Lotus Resources Confirms Higher-Grade Uranium at Letlhakane with Infill Drilling

Infill Drilling Validates Letlhakane’s Uranium Grade and Continuity

Lotus Resources (ASX:LOT) has delivered encouraging results from the initial 4,559 metres of its planned 10,000-metre infill drilling campaign at the Letlhakane Uranium Project in Botswana. The first 71 holes, concentrated at the Serule West zone, have returned higher-grade uranium intercepts that reinforce the continuity of mineralisation within the deposit, a crucial step in upgrading the resource classification from Inferred to Indicated.

Key drill intersections include an 8.23-metre intercept grading 1,357ppm eU3O8 and an 11.67-metre intercept at 567ppm eU3O8, both from Serule West. These results not only confirm the presence of substantial uranium grades but also suggest a more robust resource base than previously modelled, supporting the company’s plan to update the Mineral Resource Estimate (MRE) in the second half of 2026.

Resource Expansion Beyond Mining Lease Boundaries

Exploration drilling on a prospecting license immediately north of the Letlhakane mining lease has also yielded positive results, with two holes confirming uranium mineralisation extending beyond the current resource boundaries. Intercepts of 5.6 metres at 292ppm eU3O8 and 4.9 metres at 293ppm eU3O8 indicate potential for resource expansion, which could further enhance the project’s scale and economic viability.

These findings dovetail with the company’s broader resource development strategy at Letlhakane, which aims to convert approximately half of the current 113.7 million pounds of uranium in the MRE from Inferred to higher confidence categories. The drill program, streamlined from an initial 180 holes to 140, is designed to deliver this upgrade by improving drill density and confidence in flat-lying mineralisation zones.

Advancing Engineering and Metallurgical Studies to Boost Economics

Alongside drilling, Lotus is progressing trade-off studies focused on optimising mining methods and simplifying the processing flow sheet. This follows a recent metallurgical study that demonstrated up to 70% reduction in acid consumption, a key cost driver in uranium extraction. The company is targeting a less complex, lower-cost processing route to improve project economics ahead of a preliminary feasibility study expected in the first half of 2027.

Managing Director Greg Bittar emphasised the strategic importance of the infill drilling results, stating they provide “confidence in continuity of mineralisation and grade” at Letlhakane, which is situated in a world-class mining jurisdiction. He also highlighted ongoing engineering efforts to refine the project’s development pathway, reinforcing Letlhakane’s potential as Lotus’s second uranium mine after Kayelekera.

Context of Project Development and Market Position

Lotus’s Letlhakane project complements its operational Kayelekera Uranium Mine in Malawi, which recently reached key milestones including acceptance of its uranium concentrate by Orano Chimie-Enrichissement, setting the stage for uranium exports in Q2 2026. The company has been actively funding its growth, having raised A$76 million earlier this year to support production ramp-up and development activities.

The Letlhakane infill drilling program and resource upgrade fit into this broader narrative of scaling production and advancing feasibility, with the updated MRE expected to inform mining studies and project economics. The continued focus on metallurgical improvements and mining optimisation reflects Lotus’s approach to managing costs and enhancing value in a competitive uranium market.