Lotus Resources [ASX:LOT] Stable actions on increasing uranium resources

Uranium inventory Lotus Resources [ASX:LOT] announced the first mineral resource estimate for its Livingstonia uranium deposit of 6.9 Mt at 320 ppm U3O8.

The Livingstonia deposit brings Lotus’ total mineral resource estimate to 49.4 Mt.

Despite the news, LOT shares held steady late in the afternoon, treading water at 28 cents a share.

However, uranium stocks are back on investors’ radar after global energy pressures forced countries to reassess their positions on nuclear power.

While Lotus shares are down 10% year-to-date, the uranium stock is nonetheless up 33% over the past 12 months.

Other ASX uranium stocks like Energy Paladin [ASX:PDN] and South Australia Boss Resources [ASX:BOE] increased by 45% and 66% respectively over the last 12 months.

Source: Tradingview.com

Lotus announces increase in uranium resources

Lotus has announced that its inaugural Mineral Resource Estimate (MRE) for the Livingstonia uranium deposit of 6.9 Mt at 320 ppm U3O8 has increased LOT’s total worldwide MRE to 51.1 Mlbs U3O8 .

Lotus said the increase in resources came as a result of “recent exploration success”.

In a possible reason for the flat market response, Lotus has admitted that the Livingstonia resource is not included in LOT’s current Definitive Feasibility Study (DFS).

Lotus thinks the repository has the ‘potential to become a satellite operation in the future, once the Kayelekera resource has been depleted.

Lotus expects its DFS to be completed “mid-2022”.

ASX:LOT Projects Lotus Resources

Source: Lotus

LOT stock price outlook – the big clean energy push

Lotus Chief Executive Keith Bowes commented on today’s update:

The acquisition of the Livingstonia prospect last year solidified the Company’s ownership of our southern project area, a known uranium mineralized district that has been the subject of very limited exploration work over the years. year.

Following last year’s small-scale drilling program, it is pleasing to now produce a JORC (2012) compliant mineral resource estimate, which is broadly in line with our expectations.

As previously commented, Livingstonia is not part of the Kayelekera Project’s current production strategy or our DFS work, but it has the potential to become a satellite operation in the future, once the Kayelekera resource has been exhausted.

The results show that there are additional raw materials available for the Kayelekera processing plant and that the mine life is not limited by what currently exists on the mining concession..’

Lotus’s announcement comes after a positive week for global uranium stocks, which are once again jittery as the world considers its energy options following rising prices and the invasion of Ukraine by Russia.

The price of uranium – so low for years that it scared away marginal producers – is rising again.

And miners restart operations.

For example, Paladin Energy recently raised $150 million to restart the Langer Heinrich mine in Namibia, with work set to resume next month.

Operations at Langer Heinrich were suspended in 2018 due to low uranium prices:

urnaium price chart

Source: Wall Street Journal

Nuclear power is again seen as an option to strengthen countries’ energy security.

As a comprehensive Energy Options Network (EON) report notes:

An inherent advantage over technologies that only produce electricity (such as wind and photovoltaics) is nuclear’s ability to produce both electricity and heat, allowing it to take advantage of of all technological options for hydrogen production.

And with Europe holding firm to its resolve to ditch Russian oil, nuclear may soon see a resurgence.

And there is a small stockpile of Australian uranium that could help Europe’s energy transition.

Ryan Clarkson-Ledward, our small cap expert, described this potential savior in a recent research report.

To learn more, click here.


Kiryll Prakapenka