Lotus Resources Ltd (ASX: LOT) shares are racing higher on Tuesday morning.
At the time of writing, the ASX uranium stock is up 11% to 24 cents.
Why is this ASX uranium stock jumping?
Investors have been fighting to get hold of the uranium developer's shares this morning after it released an update on the Letlhakane Uranium Project in Botswana.
That update contains results from a further 35 holes drilled at the large-scale project, bringing the total number to 144 holes. This comprises 134 reverse circulation (RC) holes and 10 diamond holes.
The good news is that the latest drilling has intersected some of the thickest continuous zones of mineralisation to date, with this thicker mineralisation starting as shallow as 8.2 metres.
RC intersections from Gorgon West and diamond intersections from Serule West deposit include 26.1m at 265ppm eU3O8 from 30.2m and 24.9m at 180ppm eU3O8 from 8.2m.
Diamond drilling at Serule West is now complete but has commenced at Gorgon West to obtain samples for metallurgical test work and QAQC assaying.
Importantly, all additional infill drill holes have intersected mineralisation. This confirms continuity and grade as the ASX uranium stock aims to upgrade the classification of the Letlhakane mineral resource estimate (MRE).
Speaking of which, Lotus Resources' recently revised MRE, which is constrained by pit shells and based on reasonable prospects of eventual economic extraction (RPEEE), is 155.3Mt at 345ppm U3O8 for 118.2Mlb U3O8. A total of 34.4Mlb (or 29%) are indicated resources.
What's next?
The ASX uranium stock advised that its drilling is on track to be completed in September, with an updated MRE to be completed during November.
Exploration drilling has now commenced in the western portion of the mining lease, testing historical intercepts outside the defined resources.
A scoping level study for the Letlhakane Uranium Project remains on track for delivery in the first half of September.
Though, it is worth remembering that Lotus Resources isn't just focused on Letlhakane. It is also working hard to restart uranium production at Kayelekera in Malawi.
Lotus Resources' CEO, Greg Bittar, revealed that the company was pleased with the drilling results. he said:
As we move towards the conclusion of our infill program at Letlhakane, we continue to be extremely pleased with the drilling results. Out of 144 holes reported, 141 have intersected uranium mineralisation, confirming the continuity and grade. Furthermore, we have intersected the thickest continuous zones of mineralisation seen so far at the deposit, including 26.1m at 265ppm.
At the same time, we continue to intersect narrow high-grade lodes within these broader mineralised zones, with the latest intercepts grading up to 2,053ppm eU3O8, more than six times the current resource grade. Diamond drilling at Serule West is complete and we are now drilling at Gorgon West for further QAQC validation as well as samples for the metallurgical test work program to optimise Letlhakane's processing flowsheet. We have commenced a small exploration drilling program in the west of the mining lease to test a new target outside the current resource envelope.
