Shares in uranium producer Paladin Energy were nearly five per cent higher after the company upgraded its estimated ore reserves at its Langer Heinrich deposit in Namibia by 104 per cent to 60,830 tonnes (134.1 million pounds).

The company said the upgrade followed an extensive drilling program, which lifted ore reserves sufficiently to justify its planned Stage 4 processing plant upgrade, for which a feasibility study had begun.

"At present, a total of 67,758t (over 149Mlb) of contained U3O8 is now identified in the measured and indicated mineral resource categories after depletion for mining," Paladin said.

"The opportunity to readily and substantially expand production of the Langer Heinrich mining operation with long term production output, places Paladin in an excellent position to capitalise on the market opportunities and further benefit its shareholders."

Paladin also said it saw further upside potential for resource upgrades at Langer Heinrich.