Lotus Resources (ASX:LOT) has made an announcement about a key resource.

Following the announcement shares of Lotus Resources fell 4.166% to $0.230.

Lotus Resources is pleased to announce that the inaugural greenfield exploration drill program at the Chilumba Prospect in Malawi has intercepted uranium mineralisation.

The Company's southern project area, including Livingstonia and Chilumba, has historically been poorly explored. The Company believes this area has strong long-term potential to contain additional uranium mineralisation that could be the basis for a future satellite operation.

When a mining company releases an update about a key resource it?s exciting times for shareholders.

A lot of capital goes into exploration and when a new deposit is found there?s usually a share price boost.

Discovery is the reward stage for investors, particularly of junior mining stocks, searching for undiscovered deposits of natural resources.

When discussing new resource discoveries it?s beneficial to know the difference between greenfield and brown exploration.

Greenfield exploration is looking for mineral deposits in areas that have not been explored.

In brownfield exploration deposits are being sought near or next to an already existing mine.