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Minister of Mining Honourable Monica Chang’anamuno (MP) on Wednesday, 29th November 2023 inaugurated High-Resolution Airborne Geophysical Survey project at Chileka International Airport in Blantyre.

The survey targets Salambidwe Ring Complex in Chikwawa district, which among other minerals, is known for Rare Earth Elements (REE) mineralization.

These minerals are critical for green energy and are currently on high demand globally.

Green Exploration Limited and Akatswiri Mineral Resources are implementing the Project with financial assistance from DY6 Metals of Australia.

New Resolution Geophysics (NRG) from South Africa is contracted to fly the helicopter over the Salambidwe Ring Complex for seven days at a line spacing of 30 metres.

Speaking to the press Honourable Chang’anamuno said the initiative will provide detailed magnetic and radiometric data for the area which will be used to map in detail the area and help to understand its mineralization better.

The Minister indicated that Salambidwe is one of the areas in the southern part of Malawi that were not covered during the Countrywide Airborne Geophysical Survey that the Government of Malawi through her Ministry undertook in 2013-14 due to problems with acquiring overflight permits from Mozambique.

She applauded Green Exploration Limited and Akatswiri Mineral Resources for taking such a path to fly the helicopter and encouraged others to emulate these two local companies in assisting the government's effort to develop the mining sector.

Chang’anamuno further said Malawi is becoming a big mining investment destination due to the availability of several mineral occurrences, which need detailed studies for the country to realize its potential mineral wealth.

She further cited the country’s stable political environment and incentives attached to the mining industry by the Government as other factors that make Malawi a more viable and attractive investment destination.

“I would like to encourage more players to participate by investing in the mining industry as the sector has been identified by the Government through the Leadership of President Dr. Lazarus McCarthy Chakwera alongside Agriculture and Tourism to be among the main contributors to sustainable economic growth if well harnessed.

“Initiatives by private companies such as Green Exploration Limited and Akatswiri Mineral Resources can help to revolutionalise the mining sector in Malawi,” Chang’anamuno said

Also speaking on the day was Director of Green Exploration Limited Troth Saindi who said DY6 Metals has provided $7 million in support of the Salambidwe project and two other projects in Machinga and Ngala Hill in Chikwawa district.

Troth was optimistic about generating interesting results from the Salambidwe, pushing the project further.

On his part Director of Akatswiri Mineral Resources Hilton Banda while agreeing with Troth, indicated that they plan to acquire airborne geophysical data over Salambidwe, quickly process it and come up with targets for further detailed studies on geochemistry, geological mapping and others that can inform drilling.

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Mkango Mines in Phalombe is expected to construct a chemical plant at Songwe Hill that would be processing rare earths stones into a finished product before exporting it.

Speaking in an interview on Friday after the Minister of Mining toured the hill where the mining will be taking place, Mkango Mines Resources President Alexander Lemon said the processed product would help raise the country’s economy by bringing forex.

“This is a huge project and once we start mining, processing and exporting the rare earth stones, Malawi’s economy would change because of the forex that would be generated from the exportation of the finished product.

“This is the main reason we want to have a plant right here at the site and exporting the finished product than the raw material,” said Lemon.

Lemon added that the construction of the chemical plant at the site would also improve the livelihood of communities around Phalombe, as they expect to create over 1,500 jobs at the construction site once the operations start.

Minister of Mining Monica Chang’anamuno said the mining project would help Malawi in so many areas because it has a minimum mining life of 18 years, but can be extended to 50 years and more.

She further said government wanted the mining industry to be a game changer for the country on issues of forex and employment and also to benefit the generation to come.

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SX- listed Lotus Resources, which has a mining licence for the mothballed Kayelekera Uranium Mine in Karonga, has announced the commencement of exploration drilling at its newly acquired Livingstonia Tenement and regional prospects in Malawi.

The Livingstonia tenement in Rumphi District has the potential to become a satellite operation from which material could be transported to the Company’s flagship Kayelekera Uranium facility in Karonga.

Lotus acquired the new exploration licenses of Livingstonia as an opportunity to extend the life-of-mine through exploration success and also increase its focus of operating at Kayelekera for longer than 10 years.

Lotus Managing Director Keith Bowes says in a Press Statement that the drilling program of a 30-hole reverse circulation, was designed to convert the historic resource JORC 2004 into a JORC 2012 resource and test potential high-grade extensions.

Bowes also says through the program, multiple greenfield targets are being considered, including the untested Chilumba prospect where a major radiometric anomaly has been identified.

He says: “To be on the ground just over a month after receiving our Livingstonia exploration licences is an excellent result and testament to our team in Malawi.

“The prospectivity at Livingstonia, and in the surrounding area, is outstanding and we believe the area has the potential to become a satellite deposit for the Company in the future, feeding our Kayelekera processing facility.”

“The aim of this exploration program is threefold. Firstly, to convert the historic resource at Livingstonia to a JORC 2012 resource; secondly, to test the multiple extensions around the Livingstonia resource that have been poorly tested; and finally, to test a number of greenfield targets, including the Chilumba prospect, that has a major radiometric anomaly and has never been drill tested.”

Lotus commenced consolidation of this prospective region in 2021, and the drilling program is the first uranium exploration to be undertaken in the area in more than a decade.

The project is still very much in an early exploration phase with the planned work program consisting of an RC drilling program totaling 30 drill holes for approximately 4,000m, consisting of: 6 holes within the historical resource boundary as part of the QAQC process align with JORC 2012; 14 holes targeting extensional opportunities that will target resource growth; and 10 holes to follow up on anomalies that may be used as future targeting, including four holes that will be drilled at the Chilumba prospect located 10 km from Livingstonia

On the assay results from the Kayelekera uranium and Milenje rare earth exploration programs completed in October, Bowes says that the samples are still being processed at the laboratories in Johannesburg, South Africa.

The Livingstonia uranium exploration tenements are located in Northern Malawi, approximately 90km southeast of the Company’s Kayelekera Uranium Mine and when combined with the Chilumba Project, this region covers 300km2.

Since taking over Kayelekera from Paladin Energy Limited in March 2020, Lotus completed a positive Re-Start study in October 2020 that confirmed the viability of the project based on a US$65/lb uranium price (current price US$46/lb).

Recently, Lotus commenced a Feasibility Study at Kayelekera Mine that will be completed by mid – 2022 to improve on the accuracy and incorporate the new ideas.

The study will target a project producing 2.5 to 3Mlbs U308 per annum for more than 10 years.

Lotus has proposed changes for the Project compared to the previous operation including: improved options around power supply; ore sorting technology; acid recovery and leach optimization and; tailings dam improvements.

The Kayelekera Uranium Mine will be kept in Care and Maintenance until Lotus completes studies and the uranium price has recovered to required levels for restart.

 

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New investors in Kayelekera Uranium Mine (KUM) in Karonga, Lotus Resources Limited, have announced commencement of drilling at the recently acquired Livingstonia tenement in Rumphi North and at regional prospects like Chilumba.

The drilling, according to managing director Keith Bowes, is, among others, aimed at converting the historic resource at Livingstonia to a JORC 2012 resource [Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves].

It involves a 30-hole (4 000 metre) reverse circulation (RC) drill programme at Livingstonia, while multiple Greenfield targets are also being considered, including the untested Chilumba prospect where a major radiometric anomaly has been identified.

The development comes just a month after the company announced acquisition of the project at $25 000 (about K20 million).

The new project is located some 90 kilometres southeast of KUM in Karonga, hosts an historical inferred mineral resource of 8.3 million tonnes.

According to Bowes, as quoted in a statement from Lotus dated November 30 2021, the aim of this exploration programme is threefold.

He said: “Firstly, to convert the historic resource at Livingstonia to a JORC 2012 resource; secondly, to test the multiple extensions around the Livingstonia resource that have been poorly tested; and finally, to test a number of Greenfield targets, including the Chilumba prospect, that has a major radiometric anomaly and has never been drill tested.”

In an interview, mining governance expert Elyvin Chawinga said it was high time Malawi learnt from previous mistakes.

She said: “First the government needs to strengthen the relationship between the communities and the company. From the word go they need to have a mutual understanding of the benefits that the mine will have.

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