Mkango Resources Ltd. (AIM / TSXV: MKA) (the "Company" or "Mkango")
is pleased to announce results for the first eight holes totaling
944 metres of its targeted 10,000 metre diamond drilling programme
at the Songwe Hill Rare Earths Project (“Songwe”) in Malawi. The
drilling programme is a key component of the ongoing Feasibility
Study for Songwe. Highlights from the new results are as follows:
PX062 |
147.2 m1 grading 1.6% Total Rare Earth Oxides
(TREO) (5.3 – 152.5 m end of hole (EoH)). Inclined hole
(70 degrees east). |
PX065 |
91.0 m2 grading 1.5% TREO (0.0 – 91.0 m) including
27.0 m2 grading 2.0% TREO (23.0 – 50.0 m).
Inclined hole (60 degrees west). |
PX047 |
51.8 m grading 1.6% TREO (16.2 – 68.0 m). Inclined
hole (60 degrees west). |
PX046 |
48.0 m grading 1.2% TREO (4.0 – 52.0 m). Inclined
hole (60 degrees south). |
PX045b |
9.2 m grading 2.0% TREO (6.1 – 15.3 m) and
27.5 m grading 1.5% TREO (30.5 – 58.0 m EoH).
Vertical hole. |
PX042 |
19.1 m grading 1.0% TREO (18.0 – 37.1 m). Inclined
hole (60 degrees west). |
PX036 |
42.8 m grading 1.3% TREO (87.3 – 130.1 m EoH)
including 6.7 m grading 2.2% TREO (123.4 – 130.1 m
EoH). Inclined hole (60 degrees west). |
1 Includes a 2.0m cavity not sampled. 2 Includes
a 2.7m cavity not sampled. 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: “These are an excellent first set of results
from the current programme and we look forward to announcing
results from the remaining approximately 75 drill holes as they
become available. The drill programme and planned resource update
are fully funded following investments by Talaxis Limited totalling
£6 million in January 2018. Talaxis will invest a further £7
million to fund completion of the Feasibility Study for Songwe on
Mkango publishing a NI 43-101 technical report in relation to the
resource update.”
- The drill programme is focused on infill drilling to confirm
and upgrade the existing Indicated and Inferred Mineral Resource
Estimates, testing extensions to the mineralisation and
geotechnical drilling.
- All eight drill holes intersected rare earth mineralisation,
with the table above highlighting intersections averaging 1% TREO
or more.
- Drill holes PX065, PX062, PX046, PX047, PX042 and PX045b above
were focused on infill drilling. Intersections of broad zones of
mineralisation, as opposed to narrow veins or dykes, continue to
support the concept of a bulk tonnage, open pit mining operation
with low mining costs.
- Drill hole PX036 was focused on testing the southerly extension
of mineralisation. The significance of the more than 42 m of
mineralisation intersected by PX036 at depth (87.3 – 130.1 m),
including 6.7 metres grading 2.2% TREO to the end of the hole
(130.1m), is being evaluated. This was the first hole in the
project’s history to be drilled in the area near the summit of
Songwe Hill. Another hole testing the southerly extension of
mineralisation, PX037, did not reach the target depth.
- A total of 8,466 metres of drilling, comprising 70 drill holes,
has now been completed as at August 20, 2018.
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 |
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m |
m |
m |
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ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
ppm |
% |
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PX062 |
5.3 |
152.5 |
147.2 |
(i) |
4,226 |
7,157 |
736 |
2,524 |
364 |
96 |
225 |
27 |
113 |
18 |
43 |
5 |
30 |
4 |
512 |
1.6% |
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(i)
Includes 2.0m cavity not sampled. |
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PX065 |
0.0 |
91.0 |
91.0 |
(i) |
3,600 |
6,594 |
689 |
2,352 |
319 |
83 |
191 |
23 |
107 |
17 |
41 |
5 |
29 |
4 |
489 |
1.5% |
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including |
23.0 |
50.0 |
27.0 |
(i) |
5,595 |
9,574 |
954 |
3,020 |
370 |
91 |
196 |
21 |
88 |
13 |
27 |
3 |
16 |
2 |
329 |
2.0% |
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(i)
Includes 2.7m cavity not sampled. |
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PX047 |
16.2 |
68.0 |
51.8 |
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3,606 |
7,149 |
800 |
2,877 |
415 |
115 |
280 |
36 |
179 |
29 |
70 |
9 |
47 |
6 |
807 |
1.6% |
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PX046 |
4.0 |
52.0 |
48.0 |
|
2,486 |
5,129 |
577 |
2,104 |
317 |
92 |
227 |
30 |
146 |
25 |
60 |
8 |
47 |
6 |
703 |
1.2% |
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PX045b |
6.1 |
15.3 |
9.2 |
|
5,257 |
8,278 |
806 |
2,752 |
469 |
136 |
330 |
44 |
224 |
42 |
118 |
18 |
112 |
14 |
1,318 |
2.0% |
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30.5 |
58.0 |
27.5 |
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3,876 |
6,232 |
617 |
2,075 |
337 |
98 |
240 |
30 |
144 |
25 |
61 |
8 |
46 |
6 |
737 |
1.5% |
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PX042 |
18.0 |
37.1 |
19.1 |
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2,490 |
4,263 |
440 |
1,496 |
235 |
70 |
174 |
23 |
112 |
18 |
41 |
5 |
31 |
4 |
486 |
1.0% |
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PX036 |
87.3 |
130.1 |
42.8 |
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2,821 |
5,648 |
636 |
2,279 |
295 |
67 |
141 |
15 |
77 |
15 |
41 |
6 |
35 |
5 |
483 |
1.3% |
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including |
123.4 |
130.1 |
6.7 |
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5,540 |
10,403 |
1,078 |
3,582 |
391 |
83 |
162 |
15 |
65 |
11 |
29 |
4 |
28 |
4 |
357 |
2.2% |
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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 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 a major 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, 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 Dawes
Chief Executive Officer
will@mkango.ca
UK: +44 207 3722 744Canada: +1 403 444 5979www.mkango.ca
Alexander
LemonPresidentalex@mkango.ca@MkangoResources
BlytheweighFinancial Public
RelationsTim Blythe, Camilla Horsfall, Julia TilleyUK: +44 207 138
3204
SP Angel Corporate Finance
LLPNominated Adviser and Joint BrokerJeff Keating,
Caroline RoweUK: +44 20 3470 0470
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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