Lotus Resources (ASX: LOT) has completed a program of second-stage preliminary exploration at the Milenje rare earth prospect, located near to its flagship Kayelekera uranium project in Malawi.
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Lotus Resources initiated by Red Cloud Securities with buy rating and target price of 22 cents per share
Past production of 11 million pounds of uranium (2009-2014) at the Kayelekera Uranium Project in Malawi ceased only due to lower post-Fukushima uranium prices. Ore sorting has doubled potential head grades through bench scale test work.
Lotus Resources Ltd (ASX:LOT) provides exposure to value behind the low-cost restart of a large, fully permitted, low risk, past-producing uranium mine, according to Canada-based Red Cloud Securities Inc.
Red Cloud sees opportunity for investors to benefit from an expected share price re-rating as the Kayelekera Uranium Project in Malawi is further de-risked and costs lowered as feasibility study and production nears.