TIDMMKA
RNS Number : 9596Y
Mkango Resources Limited
15 September 2020
MKANGO RESOURCES LTD.
550 Burrard Street
Suite 2900
Vancouver, BC
V6C 0A3
Canada
MKANGO ANNOUNCES RUTILE AND ILMENITE DISCOVERY IN MALAWI
London / Vancouver: September 15, 2020 - Mkango Resources Ltd.
(AIM/TSX-V: MKA) (the "Company" or "Mkango") is pleased to announce
the results of a reconnaissance shallow soil sampling and auger
programme in 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.
(see map
https://mkango.ca/site/assets/files/4775/20200914_mchinji_sampling_on_topo.jpg
)
The results demonstrate the presence of interesting grades of
rutile plus anatase (both naturally occurring mineral forms of
titanium dioxide: TiO(2) ) mineralisation of up to 1.07%, with
overall TiO(2) grades in the range 0.51 to 4.10% in auger samples
and 0.14-2.38% in soil samples; also ilmenite grades of 1.30 to
3.40% (average 1.85%) - see table below.
The grade of the TiO(2) -bearing minerals in the highest-grading
auger hole are in the range of 0.63 to 1.07% rutile plus anatase
(average 0.73%) and 1.30 to 3.40% ilmenite (average 1.85%), hosted
in free-dig saprolite material from surface.
Mkango's President Alexander Lemon commented:
"Mkango is focused on developing the Songwe rare earth deposit
in Phalombe district in Malawi and is looking forward to completing
the feasibility study. We are very pleased to add this new rutile
and ilmenite discovery to our portfolio of projects in Malawi.
These early stage results show similarities in terms of
saprolite-hosted mineralisation to the recent rutile discoveries
made on the adjoining Sovereign Metals Ltd licence to the east, and
suggest the potential for discovering high-grade rutile deposits
within Mkango's large licence area, in what could potentially be a
new province of rutile mineralisation."
Twelve vertical auger holes were drilled to depths of 0.45 to
9.40m, for a total of 35.8m, from which 41 samples were collected.
Available equipment was not able to penetrate beneath a shallow
ferricrete horizon in the Ludzi river channel to test the assumed
river sands beneath, and eight holes failed to reach more than 2m
depth; new auger exploration equipment with improved ground cutting
capability has been purchased and is currently being shipped to
Malawi. The other four holes were drilled in saprolite on higher
ground between the Ludzi's tributaries.
Soil sampling was carried out in pits dug to 50cm ('B horizon')
on a 500m staggered grid in four areas of the licence, producing
134 samples.
Sample preparation and analysis was provided by Scientific
Services laboratory in Cape Town, employing two-acid microwave
digestion and ICP-OES techniques suitable for multi-element
determination and following strict internal QAQC procedures
inserting blanks and standards. Internal laboratory QAQC was also
completed to include blanks, standards and duplicates.
The highest TiO(2) 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% TiO(2) . These
samples were processed by heavy mineral separation and magnetic
separation and the separated fractions were sent to XRD Analytical
and Consulting CC in Pretoria for quantitative determination of the
heavy minerals by X-ray diffraction ("XRD"). Results are given in
the table below for vertical auger hole A6 positioned at
co-ordinates 507971E 8482591N in UTM Zone 36S:
Auger hole Total heavy TiO(2) Rutile Ilmenite
A6 minerals % + anatase %
% %
0 - 1 m 5.32 4.09 0.66 3.40
--------------------- ---------------- -------------------- ------------------
1 - 2 m 4.95 3.74 0.66 2.87
--------------------- ---------------- -------------------- ------------------
2 - 3 m 7.12 3.29 0.69 1.71
--------------------- ---------------- -------------------- ------------------
3 - 4 m 8.04 3.21 0.66 1.31
--------------------- ---------------- -------------------- ------------------
4 - 5 m 7.78 3.17 0.63 1.30
--------------------- ---------------- -------------------- ------------------
5 - 6 m 9.01 3.24 0.74 1.41
--------------------- ---------------- -------------------- ------------------
6 - 7 m 5.79 3.56 0.65 1.44
--------------------- ---------------- -------------------- ------------------
7 - 8 m 4.10 3.89 0.85 1.58
--------------------- ---------------- -------------------- ------------------
8 - 8.9 m 4.18 3.81 1.07 1.62
--------------------- ---------------- -------------------- ------------------
Weighted average 6.28 3.55 0.73 1.85
--------------------- ---------------- -------------------- ------------------
Geochemistry of the soil samples reveals anomalous TiO(2) values
around auger holes A6 and A11, suggesting potential for follow-up
and indicating that soil geochemistry may be a useful regional
exploration tool.
Mkango is planning an exploration programme of more extensive
soil sampling, additional auger drilling, and mineralogical test
work to identify rutile prospects across this potential new rutile
province within the Mchinji licence. The exploration programme will
be funded from the Company's existing working capital.
Rutile, anatase and ilmenite are naturally occurring TiO2
minerals, whose main uses are 90% for pigments, 5% production of
titanium metal and 5% welding. Sierra Rutile owned by Iluka is the
only high grade, large scale operating primary source natural
rutile mine globally.
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'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 Hill 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 GBP7 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, with
respect to the Mchinji licence, the potential for discovering
high-grade rutile deposits within the licence area, 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.
For further information on Mkango, please contact:
Mkango Resources Limited
Alexander Lemon William Dawes
President Chief Executive Officer
alex@mkango.ca will@mkango.ca
UK: +44 207 3722 744
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
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
Alternative Resource Capital
Joint Broker
Alex Wood
UK: +44 20 7186 9004
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END
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