Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango")
is pleased to announce the commencement of an extensive hand-auger
drilling and soil sampling programme to identify rutile prospects
within its 869 square kilometre (“sq. km”) Mchinji licence (EPL
0544/19) in Mchinji district, Malawi, held by Mkango’s 100% owned
subsidiary MKA Exploration Ltd.
The drill programme is following up on
reconnaissance work, which resulted in the discovery of rutile
during a shallow soil sampling and auger programme completed in
September. The initial exploration work was limited by the
equipment available in Malawi during the COVID pandemic but the
Company was encouraged that the highest TiO2 grades were returned
by nine consecutive samples in a single auger hole (A6), drilled to
a depth of 8.9m, that contain between 4.10% and 9.01% total heavy
minerals (specific gravity > 2.95) and grade between 3.17% and
4.09% TiO2 (see press release of 15 September, 2020). These
early-stage results show geological similarities to
saprolite-hosted rutile mineralisation recently discovered on the
adjoining Sovereign Metals Ltd licence to the east. This suggests
potential for discovering high-grade rutile deposits within
Mkango’s large licence area, which is adjacent to an area that
Sovereign Metals believes could potentially be a new province of
rutile mineralisation.
Mkango’s Chief Geologist, Dr Paul Armitage,
commented:
“This drilling
programme and
soil sampling will help us
to target saprolite-hosted
mineralisation. It will test the extent of the
rutile and ilmenite mineralisation over
a large part of our licence area
and aims
to confirm the potential
for discovering high-grade rutile deposits in
the licence. Given that
rutile is in high demand and that
there is a shortage of supply, confirmation of
rutile prospects on the Mchinji
licence could prove to be highly
significant for the
Company. We look forward
to updating the market in the coming weeks as we receive
the results from the
laboratory.”
The exploration programme will be funded from the Company's
existing working capital.
Rutile Market
- Rutile, anatase and ilmenite are naturally occurring titanium
dioxide (TiO2) minerals, whose main uses are 90% for pigments, 5%
production of titanium metal and 5% welding. Rutile is the purest,
highest-grade natural form of TiO2 and is the preferred feedstock
in manufacturing titanium pigment and producing titanium
metal.
- Finely powdered rutile is a brilliant white pigment and is used
in paints, plastics, paper, foods, and other applications that call
for a bright white colour. It has also been widely used in the
production of glass, porcelain, and ceramics, as it is a valuable
colouring agent. It can also be used to add colour to steels and
copper alloys.
- Titanium also has specialty uses including in welding,
aerospace and military applications.
- Iluka Resources Ltd (“Iluka”) reports that, when compared to
current deposits and operations, the industry is facing declining
grades and assemblages (the relative weightings of each mineral)
for future deposits being developed. Sierra Rutile in Sierra Leone,
owned by Iluka Resources Limited, is the only high-grade,
large-scale operating primary-source natural rutile mine in the
world.
- The rutile market fundamentals are robust with current and
forecast pricing remaining strong. Iluka, in its Q3 2020 quarterly
review, declared a weighted average received price for rutile of
US$1,225 in the year to date, an increase of 7.3% over the
full-year 2019 price. The current price is US$1,345 (source:
FerroAlloyNet.com, 29 October 2020).
Scientific and technical information contained
in this release 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.
About Mkango
Mkango is focused on developing the Songwe Hill
(“Songwe”) rare earth deposit in Phalombe district in Malawi and is
looking forward to completing the feasibility study. 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 four exclusive prospecting
licenses in Malawi: the Phalombe licence, the Thambani licence, the
Chimimbe Hill licence and the Mchinji licence.
The main exploration target in the 51% held
Phalombe licence is the Songwe rare earths deposit. This 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 included a 10,900-metre drilling programme and an updated
mineral resource estimate, announced in February 2019. In March
2019, the Company announced receipt of a £7 million (C$12.3
million) investment from Talaxis to fund completion of the
Feasibility Study. Following completion of the Feasibility Study,
Talaxis has an option to acquire a further 26% interest in Songwe
by arranging financing for project development including funding
the equity component thereof.
The main exploration targets in Mkango’s
remaining three 100% held licences are, in the Thambani licence,
uranium, niobium, tantalum and zircon, in the Chimimbe Hill
licence, nickel, cobalt and chromite and in the Mchinji licence,
rutile, gold, nickel, cobalt, base metals and graphite.
Mkango also holds a 75.5% interest in Maginito
with the balance owned by Talaxis. Maginito is focused on
downstream opportunities relating to the rare earths supply chain,
in particular, recycling and other innovative technologies for the
production of neodymium alloy powders and magnets used in electric
vehicles, wind turbines and other industries geared to
decarbonisation of the economy.
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 completion of the
feasibility study for Songwe, the potential for discovering
high-grade rutile deposits within Mchinji licence, the potential
for a new province of rutile mineralisation in the area of the
licence and Mkango’s plans for an exploration programme on the
licence. 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, governmental action
relating to COVID-19, market effects on global 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 Songwe Hill rare earths project and 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.
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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For further information on Mkango, please
contact: |
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Mkango Resources Limited |
|
Alexander Lemon |
William Dawes |
President |
Chief Executive Officer |
alex@mkango.ca |
will@mkango.ca |
UK: +44 207 3722 744 |
Dr Paul Armitage |
Canada: +1 403 444 5979 |
Chief Geologist |
www.mkango.ca |
paul@mkango.ca |
@MkangoResources |
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Blytheweigh |
SP Angel Corporate Finance LLP |
Financial Public Relations |
Nominated Adviser and Joint Broker |
Tim Blythe |
Jeff Keating, Caroline Rowe |
UK: +44 207 138 3204 |
UK: +44 20 3470 0470 |
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Alternative Resource Capital |
|
Joint Broker |
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Alex Wood |
|
UK: +44 20 7186 9004 |
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