Lotus Resources to Explore Milenje Hills Rare Earth Target

Lotus Resources discovered high-grade rare earth oxide materials in Milenje Hills last year. The company has recently begun exploration activities in the rare-earth target area of Milenje Hills within the Kayelekera Uranium Project in Malawi, which has a long history in Malawi.

This work was carried out after the discovery of high-grade rare-earth oxide (REO) materials related to uranium mineralization last year. The mine was first discovered through ground survey and mapping in 2014, located 2 kilometers north of the Kayelekera open-pit mine.

The grade of the material is up to 16% total REO and 3.4% key REO, including dysprosium, europium, neodymium, praseodymium, terbium, yttrium and oxides.

Lotus Resources set to raise 12.5M for Malawi project image

In the exploration agenda of Milenje Hills, the current geophysical data set will be expanded, including the addition of a survey line to a large anomaly found in preliminary work.

Mapping will be carried out in a wider area to identify new mineralized areas, excavators will be used to deepen the previous trenches, and other trenches will be expanded after good mineralized areas are observed.

 It is expected that testing will begin later this year, and will include preliminary beneficiation testing to confirm the feasibility of producing physical concentrates, in order to better understand REO's main minerals, their relevance and size.

General Manager Keith Bowes said that the exploration results will help determine the best development path for Kayelekera's rare earth opportunities. "He said: "Although we are still focusing on restarting the production of Kayelekera, we believe that Milenje Hills has the potential to add real value with minimal expenses.

Kayelekera Uranium Project image

"Last year's preliminary results are very encouraging in terms of grade and REO mineral mix, and we hope that the current work plan will give us a deeper understanding of the overall potential of the mine."

Lotus Resources hosts an 85% interest in the Kayelekera project, which currently has 37.5 million pounds of uranium oxide resources and historically produced approximately 11 million pounds of uranium between 2009 and 2014.

The restart study completed in March 2020 shows that it can support viable long-term operations and may become one of the first uranium projects to restart production in the future.

Earlier this week, the Malawi government (which owns the remaining 15% of Kayelekera) extended the mining license for the project for another 15 years.

 

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