Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango")
is pleased to announce the commencement of flotation pilot plant
test work for the Songwe Hill Rare Earths project in Malawi
(“Songwe” or the “Project”).
- Flotation pilot
plant processing has commenced at ALS Metallurgy in Perth,
Australia - a new, optimised flotation regime has been developed
and now scaled up as part of the pilot programme
- Preparation for
hydrometallurgical pilot testing is underway at ANSTO in Australia,
which will process rare earth mineral concentrate produced from the
flotation pilot plant
- Design and
engineering studies by lead engineer SENET (a DRA Global Group
Company) are continuing in parallel, with the Songwe Feasibility
Study targeted for completion in the fourth quarter of this
year
- Scoping studies
for rare earth separation have been completed, and strategic
options for moving forward with potential sites are being
evaluated
- Rising rare
earth prices and concerns over security of supply provide a very
favourable market backdrop, with accelerating demand geared to
growth in green technology applications
The selection and piloting of the flotation
processing flowsheet is an integral part of the Feasibility Study
and a critical step towards commercialisation of the Songwe
project. The feed for the flotation pilot plant is derived from the
60 tonne bulk sample previously shipped from Malawi to Australia,
having been selected from areas within the previously announced
upgraded Measured and Indicated Mineral Resource Estimates, which
underpin the ongoing Feasibility Study. No further resource
drilling is required.
William Dawes, Chief Executive of
Mkango, stated: “The start of pilot plant processing is a
major milestone for the company and Mkango joins the ranks of the
very few rare earths projects that have been advanced to this stage
of development. We look forward to announcing results from the
pilot plant when available.”
"Mkango is uniquely positioned in the rare
earths sector with an integrated “mine, refine, recycle” strategy
encompassing sustainably sourced rare earths from Malawi, rare
earth magnet recycling in the UK, via its interest in HyProMag, and
strategic options to develop EU and UK rare earth separation and
refining capacity. Rare earth prices have risen significantly over
the recent months and the demand outlook is very positive, directly
linked to growth in electric vehicles, wind power and other clean
technology applications.”
Processing and mineralogy are key value drivers
for rare earth projects, and pilot test work is an integral part of
developing a robust feasibility study and bankable project. The
Songwe processing flow sheet has been developed and optimised by
leading experts in rare earths processing and comprises flotation
of run of mine ore to produce an upgraded mineral concentrate,
which is then processed via hydrometallurgy to produce a high grade
purified, cerium depleted, mixed rare earth carbonate enriched in
neodymium, praseodymium, dysprosium and terbium.
Flotation Pilot Plant
Flotation is a key part of the processing
flowsheet for Songwe with significant test work having been
completed in South Africa, Canada and Australia in order to
increase grade and recovery from those in Mkango’s previously
announced pre-feasibility study. This work has resulted in a new
flotation regime, which has been scaled up during the pilot
programme. The flotation pilot plant will also provide SENET (a DRA
Global Group Company) with essential operating data to assist it in
the engineering of the Company’s commercial scale operation as well
as providing mineral concentrate feed for hydrometallurgical pilot
testing at ANSTO.
Hydrometallurgy Pilot Plant
As part of the feasibility study, significant
optimisation test work has been successfully completed at ANSTO in
Australia resulting in an improved process compared to the
pre-feasibility study. Hydrometallurgical piloting will be
completed at ANSTO following completion of flotation piloting.
The majority of Songwe's rare earths are hosted
within fluorocarbonate minerals, which means that high capital and
energy intensive kilns will not be required during
hydrometallurgical processing, in contrast to projects dominated by
monazite or other refractory rare earths minerals.
Scientific and technical information contained
in this release has been approved and verified by Nicholas Dempers
Pr.Eng (RSA) Reg. No 20150196, FSAIMM of SENET (a DRA Global Group
Company), who is a "Qualified Person" in accordance with National
Instrument 43-101 -- Standards of Disclosure for Mineral
Projects.
About
Mkango
Mkango’s corporate strategy is to develop new
sustainable primary and secondary sources of neodymium and
praseodymium to supply accelerating demand from electric vehicles,
wind turbines and other clean technologies.
Mkango is developing the 51% owned Songwe Hill
rare earths project in Malawi with the ongoing Feasibility Study
funded through a £12 million investment by strategic partner
Talaxis Limited. Malawi is known as “The Warm Heart of Africa”, a
stable jurisdiction with existing road, rail and power
infrastructure, and new infrastructure developments underway.
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.
In parallel, through its 75.5% interest in
Maginito Limited (www.maginito.com), Mkango is developing green
technology opportunities in the rare earths supply chain,
encompassing neodymium (NdFeB) magnet recycling as well as
innovative rare earth alloy, magnet and separation technologies,
and recently invested in UK rare earth (NdFeB) magnet recycler,
HyProMag Limited (www.hypromag.com).
Maginito’s strategy is underpinned by offtake
rights for sustainably sourced primary and secondary raw materials
from Songwe and HyProMag, respectively, and is geared to
accelerating growth in the electric vehicle sector, wind power
generation and other industries driven by decarbonization of the
economy.
Mkango also has an extensive exploration
portfolio in Malawi, including the recently announced Mchinji
rutile discovery, for which assay results are pending, in addition
to the Thambani uranium-tantalum-niobium-zircon project and
Chimimbe nickel-cobalt project.
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. 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, COVID-19 and other market
effects on global demand for the metals and associated downstream
products for which Mkango is exploring, researching and developing,
results from the current pilot plant studies, the results of the
current exploration programme at Mchinji, the development of a
separation plant, the positive results of a feasibility study on
the 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.
For further information on Mkango,
please contact:
Mkango Resources LimitedWilliam DawesChief
Executive Officerwill@mkango.caCanada: +1 403 444
5979www.mkango.ca@MkangoResources |
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Alexander LemonPresidentalex@mkango.ca |
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BlytheweighFinancial Public RelationsTim BlytheUK:
+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 WoodUK: +44 20 7186 9004 |
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Bacchus Capital
AdvisersStrategic and Financial AdviserRichard AllanUK:
+44 20 3848 1642 |
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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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