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Kayelekera Mine - Malawi

ASX share price PDN A$0.15

TradeTech U3O8: Spot US$24.50/lb | long term US$32.00/lb

Production

Care and Maintenance

Total Resources 31.3Mlb
Total Reserves 14.0Mlb
  • >5 year remaining mine life
  • 10.9Mlb – production before being placed in care and maintenance in 2014
  • Uranium production capacity of approximately 3Mlbpa upon restart

Fully-built mine commissioned in 2008 with circa 3Mlbpa of uranium production capacity.

Kayelekera Mine is located in northern Malawi, 52km west (by road) of the provincial town of Karonga and 12km south of the main road that connects Karonga with the township of Chitipa to the west.

Kayelekera is wholly owned through Paladin (Africa) Limited (PAL), a subsidiary of Paladin. In July 2009, Paladin issued 15% of equity in PAL to the Government of Malawi under the terms of the Development Agreement signed between PAL and the Government in February 2007, which established the fiscal regime and development framework for Kayelekera Mine.

The Mining Licence, ML152, covering 5,520 hectares, was granted in April 2007 for a period of 15 years, following the completion of the Development Agreement with the Government of Malawi. A Bankable Feasibility Study and EIA followed, and construction started in June 2007 with completion in early 2009.

Kayelekera produced 10.9Mlb between 2007 and 2014. Once uranium prices offer sufficient incentive for restart, production, with some RIP/elution upgrades, is expected to be approximately 3Mlbpa.

As a consequence of the continuing weakness in the uranium spot price, Paladin placed Kayelekera into care and maintenance in 2014. It is expected that production will recommence once the uranium price provides a sufficient incentive and grid power supply (ESCOM) is available on site to replace the existing diesel generators.

During care and maintenance the project will be maintained and secured with adequate staffing.

View the Kayelekera Project brochure

MINERAL RESOURCES AND ORE RESERVES ESTIMATION

Mineral resources and ore reserves conforming to the JORC (2012) code are detailed below:

Malawi | Kayelekera

Ore Reserves Mt Grade ppm 
U3O8
Mlb 
U3O8
Paladin 
Ownership (%)
Paladin Attributable 
(Mlb)
Proven 0.4 1,170 1 85 0.85
Probable 5.3 880 10.4 85 8.84
Stockpiles 1.6 755 2.6 85 2.21
Total Malawi 7.3 870 14 85 11.9

Malawi | Kayelekera | 30 June 2018

Mineral Resources Mt Grade ppm 
U3O8
Mlb 
U3O8
(100% basis)
Paladin 
Ownership (%)
Paladin Attributable 
(Mlb)
Measured 0.7 1,010 1.7 85 1.4
Indicated 12.7 700 19.6 85 16.7
Inferred 5.4 620 7.4 85 6.3
Stockpiles 1.6 755 2.6 85 2.2
Total Malawi 20.4 695 31.3 85 26.6

Background

History of Kayelekera Mine (KM)

Year Event
1982 The Central Electricity Generating Board of Great Britain (CEGB) discovered the Kayelekera sandstone uranium deposit in 1982
1992 The project was abandoned in 1992 due largely to the poor uranium outlook, as well as privatisation of CEGB and resultant pressure to return to its core business
1998 In 1998, Paladin acquired a 90% interest in Kayelekera through a joint venture with Balmain Resources Pty Ltd, which then held exploration rights over the Project area
2005 In July 2005, Paladin acquired the regaining 10% interest in Kayelekera held by Balmain
2005 Paladin announced the go-ahead of a Bankable Feasibility Study (BFS) as a result of improved economics shown by the pre-feasibility work
2007 After completing the Development Agreement with the Malawi Government, the BFS and a full Environmental Impact Assessment, the Mining Licence (ML 152) covering 5,550 hectares, was granted in April 2007 for a period of 15 years
2008 Open pit mining commenced in June 2008 to develop initial stockpiles
2009 Commissioning began in January 2009, with first production achieved in April 2009
2010 KM continued to ramp-up its production volumes and commercial production was declared from 1 July 2010
2012 Paladin made substantial positive steps towards design capacity of 3.3Mlbpa through a programme of plant upgrades aimed at addressing bottlenecks. The focus at KM turned to production optimisation (nano-filtration technology) representing a key element
2013 The plant achieved record annual production totaling 2.963Mlb for FY2013
2014 Continuing low uranium prices resulted in a decision to place the Project in care and maintenance in February 2014

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