Mkango Resources Ltd. (AIM / TSXV: MKA) (the "Company" or "Mkango")
is pleased to announce results for a further nine holes from the
recently completed 10,900 metre diamond drill programme at the
Songwe Hill Rare Earths Project (“Songwe”) in Malawi. The drilling
programme is a key component of the ongoing initial phases of the
Feasibility Study for Songwe, which is fully funded following
investments by Mkango’s strategic partner, Talaxis Limited, in
January 2018.
Highlights from the results include the
following:
PX068 |
20.6 m grading 2.8% TREO (39.0 – 59.6 m). Inclined
hole (60 degrees west). |
PX071 |
18.0 m grading 1.6% TREO (13.0 – 31.0 m) and
72.5 m grading 1.2% TREO (55.6 – 128.1 m).
Inclined hole (60 degrees east). |
PX074 |
30.4 m grading 1.7% TREO (15.0 – 45.4 m). Inclined
hole (60 degrees west). |
PX075 |
23.8 m grading 2.4% TREO (44.3 – 68.1 m). Inclined
hole (60 degrees west). |
PX079 |
30.5 m grading 1.4% TREO (83.0 – 113.5 m).
Inclined hole (60 degrees west). |
TREO: total rare earth oxides based on total
La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3,
Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3. These intersections are
reported as down hole widths and do not necessarily represent true
thicknesses and attitude of the mineralised zones, the estimation
of which will require further refining of the geological model.
William Dawes, Chief Executive Officer,
commented: “We are very encouraged by the continuing
consistency of results and intersections outside the area of the
previous mineral resource estimate, identifying new zones of
mineralisation. The updated resource estimate will incorporate the
results of this latest 10,900 metre drill programme and will form
the basis of an updated and optimised mine plan for incorporation
into the ongoing feasibility study. We look forward to announcing
results from the remaining 66 drill holes totalling 8,396 m.”
- The drill programme comprised infill drilling to confirm and
upgrade the existing Indicated and Inferred Mineral Resource
Estimates, testing extensions to the mineralisation, and
geotechnical drilling.
- All nine drill holes intersected rare earth mineralisation,
with the table above highlighting selected intersections each
averaging 1% TREO or more. The next batch of results from a further
eight drill holes will be announced in coming weeks.
- Drill holes PX069, PX074, PX075 and PX079 were step-out drill
holes, focused on testing north-west extensions of the
mineralisation. These holes are located between previously
announced drill hole PX082 and the area drilled in the stage 1 and
2 drill programmes, the first time this zone has been drilled;
therefore these initial results are very encouraging.
- PX099 was collared to the east of mapped carbonatite outcrop,
and successfully targeted the eastern contact of the mineralisation
at depth.
- The remaining drill holes were focused on infill drilling,
notably PX068 located on the north-west margin of the previously
delineated mineral resource estimate.
A schematic geological map illustrating the
location of the drill hole collars and estimated drill hole traces
is available on the Company’s website (www.mkango.ca).
The breakdown of TREO values reported above are
as follows:
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Drill Hole |
From |
To |
Interval |
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La2O3 |
Ce2O3 |
Pr2O3 |
Nd2O3 |
Sm2O3 |
Eu2O3 |
Gd2O3 |
Tb2O3 |
Dy2O3 |
Ho2O3 |
Er2O3 |
Tm2O3 |
Yb2O3 |
Lu2O3 |
Y2O3 |
TREO |
|
m |
m |
m |
|
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
% |
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PX049 |
40.8 |
53.9 |
13.2 |
(i) |
2,740 |
5,777 |
679 |
2,485 |
359 |
84 |
181 |
20 |
102 |
18 |
44 |
5 |
28 |
3 |
518 |
1.3% |
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(i)
Includes 6.8m cavity not sampled. Due to size of cavity, the
significance of this intersection is uncertain. |
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PX068 |
39.0 |
59.6 |
20.6 |
|
8,471 |
12,590 |
1,127 |
3,603 |
611 |
167 |
398 |
40 |
173 |
26 |
63 |
9 |
52 |
7 |
730 |
2.8% |
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PX069 |
70.0 |
81.6 |
11.6 |
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2,576 |
5,466 |
640 |
2,453 |
437 |
122 |
290 |
34 |
155 |
25 |
58 |
7 |
37 |
4 |
673 |
1.3% |
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PX071 |
13.0 |
31.0 |
18.0 |
|
4,417 |
7,209 |
693 |
2,139 |
277 |
73 |
173 |
20 |
91 |
14 |
32 |
4 |
23 |
3 |
371 |
1.6% |
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55.6 |
128.1 |
72.5 |
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3,309 |
5,527 |
536 |
1,735 |
245 |
70 |
173 |
21 |
106 |
17 |
42 |
5 |
30 |
4 |
458 |
1.2% |
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PX074 |
1.5 |
45.4 |
43.9 |
|
3,807 |
6,515 |
624 |
2,058 |
271 |
69 |
163 |
18 |
86 |
14 |
31 |
4 |
22 |
3 |
363 |
1.4% |
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including |
15.0 |
45.4 |
30.4 |
|
4,593 |
7,715 |
726 |
2,337 |
295 |
74 |
176 |
20 |
95 |
15 |
34 |
4 |
25 |
3 |
400 |
1.7% |
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PX075 |
44.3 |
68.1 |
23.8 |
|
7,159 |
10,908 |
977 |
2,992 |
361 |
91 |
224 |
28 |
142 |
23 |
55 |
7 |
39 |
5 |
645 |
2.4% |
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PX079 |
31.1 |
113.5 |
82.4 |
|
2,682 |
5,036 |
542 |
1,933 |
296 |
77 |
180 |
21 |
97 |
15 |
35 |
4 |
24 |
3 |
423 |
1.1% |
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including |
83.0 |
113.5 |
30.5 |
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3,476 |
6,267 |
655 |
2,212 |
307 |
77 |
174 |
20 |
92 |
15 |
34 |
4 |
24 |
3 |
406 |
1.4% |
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PX097 |
6.1 |
30.5 |
24.4 |
(i) |
2,329 |
4,894 |
551 |
1,996 |
325 |
89 |
212 |
24 |
116 |
19 |
43 |
5 |
27 |
3 |
502 |
1.1% |
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(i)
Includes 3.5m cavity not sampled. |
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PX099 |
159.0 |
172.8 |
13.8 |
(i) |
3,452 |
5,578 |
537 |
1,743 |
239 |
65 |
158 |
19 |
83 |
12 |
26 |
3 |
17 |
2 |
316 |
1.2% |
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(i)
Includes 3.1m cavity not sampled. |
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Scientific and technical information contained
in this release including sampling, analytical, and test data
underlying the information has been approved and verified by Dr.
Scott Swinden PGeo of Swinden Geoscience Consultants Ltd, who is a
"Qualified Person" in accordance with National Instrument 43-101 -
Standards of Disclosure for Mineral Projects.
Sample preparation and analytical work for the
drilling and channel sampling programmes are being provided by
Intertek-Genalysis Laboratories (Perth, Australia) employing ICP-MS
techniques suitable for rare earth element (REE) analyses and
following strict internal QAQC procedures inserting duplicates,
blanks and standards. Internal Laboratory QAQC was also completed
to include blanks, standards and duplicates.
About Mkango Resources
Limited
Mkango's primary business is exploration for
rare earth elements and associated minerals in the Republic of
Malawi, a country whose hospitable people have earned it a
reputation as “the warm heart of Africa”. The Company holds
interests in three exclusive prospecting licenses in Malawi, the
Phalombe licence, the Thambani licence and the Chimimbe Hill
licence.
The main exploration target in the 80% held
Phalombe licence is the Songwe Hill rare earths deposit, which
features carbonatite-hosted rare earth mineralisation and was
subject to previous exploration in the late 1980s. Mkango completed
an updated Pre-Feasibility Study for the project in November 2015
and a Feasibility Study is currently underway, the initial phases
of which include the recently completed 10,900 metre drilling
programme.
Under the terms of an agreement with Talaxis,
Talaxis will fully fund the Feasibility Study for Songwe by
investing £12 million for a 49% interest in the project (via Mkango
subsidiary Lancaster Exploration Ltd). Talaxis will also have the
option to acquire a further 26% interest by arranging funding for
project development including funding the equity component thereof.
If Talaxis exercises its option, Mkango will retain a 25% interest,
free carried to production. To-date, Talaxis has invested £5
million, which is funding the initial phase of the Feasibility
Study, for a 20% interest in the project with Mkango holding
80%.
By investing a further £2 million, Talaxis will
acquire a 49% interest in Maginito Ltd, a new subsidiary of Mkango
focused on neodymium alloy powders, magnets and other technologies.
This includes the collaboration with Metalysis Ltd announced in
September 2017, which is focused on advanced alloys using neodymium
or praseodymium with other elements for permanent magnet
manufacturing. Permanent magnets are critical materials for most
electric vehicles, direct drive wind turbines and many other high
growth applications. Neodymium is a key rare earth component at
Songwe. To date, Talaxis has invested £1 million for a 24.5%
interest in Maginito with Mkango holding 75.5%.
The main exploration targets in Mkango’s
remaining two 100% held licences are, in the Thambani licence,
uranium, niobium, tantalum and zircon and, in the Chimimbe Hill
licence, nickel and cobalt.
For more information, please visit
www.mkango.ca.
Market Abuse Regulation (MAR)
Disclosure
Certain information contained in this
announcement may have been deemed inside information for the
purposes of Article 7 of Regulation (EU) No 596/2014 until the
release of this announcement.
Cautionary Note Regarding
Forward-Looking Statements
This news release contains forward-looking
statements (within the meaning of that term under applicable
securities laws) with respect to Mkango, its business and the
Project. Generally, forward looking statements can be identified by
the use of words such as “plans”, “expects” or “is expected”,
“scheduled”, “estimates” “intends”, “anticipates”, “believes”, or
variations of such words and phrases, or statements that certain
actions, events or results “can”, “may”, “could”, “would”,
“should”, “might” or “will”, occur or be achieved, or the negative
connotations thereof. Forward looking statements in this news
release include statements with respect to the global market for
products using the rare earth metals the Company is exploring for,
completion of the feasibility study and of the transactions
contemplated in the agreement with Talaxis, as well as the use of
proceeds from the investments into the Company by Talaxis and the
timing of such expenditures. Readers are cautioned not to place
undue reliance on forward-looking statements, as there can be no
assurance that the plans, intentions or expectations upon which
they are based will occur. By their nature, forward-looking
statements involve numerous assumptions, known and unknown risks
and uncertainties, both general and specific, that contribute to
the possibility that the predictions, forecasts, projections and
other forward-looking statements will not occur, which may cause
actual performance and results in future periods to differ
materially from any estimates or projections of future performance
or results expressed or implied by such forward-looking statements.
Such factors and risks include, without limiting the foregoing,
market demand for the metals and associated downstream products for
which Mkango is exploring, researching and developing, the positive
results of a feasibility study on the Project, delays in obtaining
financing or governmental or stock exchange approvals. The
forward-looking statements contained in this news release are made
as of the date of this news release. Except as required by law, the
Company disclaims any intention and assumes no obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by
applicable law. Additionally, the Company undertakes no obligation
to comment on the expectations of, or statements made by, third
parties in respect of the matters discussed above.
For further information on Mkango,
please contact:
Mkango
Resources Limited |
William DawesChief
Executive Officerwill@mkango.caUK: +44 207 3722 744Canada: +1 403
444 5979www.mkango.ca@MkangoResources |
Alexander LemonPresidentalex@mkango.ca |
|
|
BlytheweighFinancial Public RelationsTim Blythe,
Camilla Horsfall, Julia TilleyUK: +44 207 138 3204 |
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SP Angel Corporate
Finance LLPNominated Adviser and Joint BrokerJeff Keating,
Caroline RoweUK: +44 20 3470 0470 |
|
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Alternative
Resource CapitalJoint BrokerAlex Wood, Rob CollinsUK: +44
20 7186 9004; +44 20 7186 9001 |
|
The TSX Venture Exchange has neither
approved nor disapproved the contents of this press release.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This press release does not constitute an offer
to sell or a solicitation of an offer to buy any equity or other
securities of the Company in the United States. The securities of
the Company will not be registered under the United States
Securities Act of 1933, as amended (the “U.S. Securities Act”) and
may not be offered or sold within the United States to, or for the
account or benefit of, U.S. persons except in certain transactions
exempt from the registration requirements of the U.S. Securities
Act.
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