Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango")
is pleased to announce results of the flotation pilot plant
programme completed at ALS Metallurgy in Perth, Australia, which
was effective in scaling up a new, optimised flotation regime for
the Songwe Hill Rare Earths Project (“Songwe”) located in Malawi.
- The flotation
piloting programme demonstrated that the flotation process is
robust and straightforward to scale up and the results support a
significant increase in both flotation recoveries and concentrate
grade for the feasibility study versus the design criteria for the
2015 pre-feasibility study for Songwe:
- Significant
increase in flotation recovery of total rare earth oxides (“TREO”)
to 74% from 67%;
- Tripling of
flotation concentrate grade to 15% TREO from 4.7% TREO;
- Substantial
increase in flotation upgrade, with the optimised flotation regime
increasing the run-of-mine (“RoM”) ore grade by 10 times versus
three times in the pre-feasibility study; and
- Positive impact
on downstream integrated hydrometallurgical operations.
- The flotation
pilot plant generated over one tonne of flotation concentrate for
hydrometallurgical pilot processing at ANSTO, the first phase of
which is underway.
- The ongoing
feasibility study for Songwe envisages processing of flotation
concentrate via an integrated hydrometallurgical processing plant,
located adjacent to the Songwe operations in Malawi, targeting a
high grade purified mixed rare earth carbonate grading greater than
50% TREO.
- The flotation
and hydrometallurgical pilot plants provide SENET (a DRA Global
Group Company) with key design parameters and essential operating
data to assist it in the engineering of the Company’s commercial
scale operation.
- The results
strengthen Mkango’s position as one of the very few companies
outside China with an advanced stage project positioned to supply
the critical rare earths essential for the green transition.
William Dawes, Chief Executive of Mkango
stated: “These excellent flotation pilot results for the
Songwe feasibility study are a significant improvement versus the
2015 pre-feasibility study and is expected to have a positive
impact on downstream hydrometallurgical operations, the piloting
for which has already commenced. In contrast to many competing
projects, during commercial operations the flotation concentrate
will be processed in the country of origin, via an integrated
hydrometallurgical plant, as opposed to being exported, meaning
greater efficiencies and value added in-country. Completion of
flotation piloting is a major milestone for Mkango and further
positions the Company as one of the very few advanced stage rare
earth projects positioned to meet demand from accelerating growth
in the electric vehicle sector, wind power generation and other
industries driven by decarbonisation of the economy.”
The higher flotation concentrate grade and lower
mass pull has a positive impact on hydrometallurgical processing as
it means less tonnes, but higher-grade concentrate containing more
rare earths, entering the integrated hydrometallurgical plant as
illustrated in the table below.
Key Design Parameters |
|
Pre-feasibility Study (2015) |
Feasibility Study (ongoing) |
Run-of-Mine feed (tonnes per year) |
500,000 |
1,000,000 |
Head grade (TREO - %) |
1.6 |
1.5 |
Flotation concentrate grade (TREO - %) |
4.7 |
15.0 |
Concentrate recovery (TREO - %) |
67 |
74 |
Flotation upgrade |
3x |
10x |
Mass pull (% of RoM feed) |
23.1 |
7.4 |
Hydromet plant feed (tonnes concentrate per
year) |
115,250 |
74,000 |
Rare earths in hydromet feed (tonnes TREO per
year) |
5,360 |
11,100 |
1 TREO – total rare earth
oxides
The ongoing feasibility study envisages doubling
the scale of the mining and processing operations at Songwe to one
million tonnes per year of RoM feed to the mill. Due to the higher
flotation concentrate grade, there would be 36% less tonnes of
concentrate entering the hydrometallurgy plant, containing
approximately double the quantity of rare earths, versus the
pre-feasibility study. The results of the pilot programme, together
with variability and other batch scale flotation test work, will be
used to determine the flotation parameters over the life of the
mine.
The development of the optimised flotation
regime is underpinned by a significant amount of mineralogy,
comminution and flotation test work undertaken at commercial
laboratories in Australia, South Africa, Canada and the United
Kingdom, as well as three PhD research projects undertaken at
Camborne School of Mines, United Kingdom. Not only has this
international effort delivered a significantly improved flotation
regime for Songwe, but it has led to a greater understanding of the
mineralogy, geometallurgy and beneficiation processes for primary
carbonatite hosted rare earth deposits.
Flotation Pilot Plant Operations
Pilot plant operations were conducted over a
seven day period. The first three days were operated on a day shift
only, with results collected during the day’s shift to be analysed
and assessed overnight in order to optimise conditions and make any
adjustments for the next day of operation. The pilot plant was
operated continuously for the last four days with relatively stable
conditions.
Several different sets of data were collected
during the pilot plant trial, which were used for the assessment of
concentrate grade and recovery:
- Control Samples:
Grab samples typically taken every three to four hours during the
trial on major streams. These results were used to control the
circuit and make necessary changes to optimise the circuit
performance.
- Shift
Composites: Multiple samples taken of major streams composited
together over each nominal 12 hour shift.
- Surveys:
Multiple samples taken of every stream in the plant over a one to
two hour period of stable operation. This data typically represents
optimised results and allows a full circuit mass balance to be
conducted.
- Timed final
concentrate: The final concentrate was collected into 200 litre
drums at timed intervals, nominally every three hours, and
separated, filtered, sampled and assayed. This enables a recovery
to be calculated by dividing the concentrate REO units by the feed
REO units over the same time period.
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,
praseodymium, dysprosium and terbium to supply accelerating demand
from electric vehicles, wind turbines and other clean technologies.
This integrated ‘mine, refine, recycle’ strategy differentiates
Mkango from its peers, uniquely positioning the Company in the rare
earths sector.
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,
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 Limited |
|
William
Dawes |
Alexander
Lemon |
Chief
Executive Officer |
President |
will@mkango.ca |
alex@mkango.ca |
Canada: +1
403 444 5979 |
|
|
|
www.mkango.ca |
|
@MkangoResources |
|
|
|
Blytheweigh |
|
Financial
Public Relations |
|
Tim
Blythe |
|
UK: +44 207
138 3204 |
|
|
|
SP
Angel Corporate Finance LLP |
|
Nominated
Adviser and Joint Broker |
|
Jeff
Keating, Caroline Rowe |
|
UK: +44 20
3470 0470 |
|
|
|
Alternative Resource Capital |
|
Joint
Broker |
|
Alex
Wood |
|
UK: +44 20
7186 9004 |
|
|
|
Bacchus Capital Advisers |
|
Strategic
and Financial Adviser |
|
Richard
Allan |
|
UK: +44 20
3848 1642 |
|
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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