Shares in Kendrick Resources PLC (LON: KEN) jumped 38% after the company reported strong drill assay results from its Bonya rare earth elements (REE) project in Namibia.
The standout result came from drill hole TWDD001, which returned widespread high-grade Total Rare Earth Oxide (TREO) mineralisation. The hole ended in mineralisation grading 6.09 wt% TREO, while a key intercept delivered 8.14 wt% TREO over 21.16 metres from a depth of 59.5 metres, with grades throughout the interval remaining above 6.0 wt% TREO.
Across the full mineralised section of TWDD001, the average TREO grade was 4.18 wt%, with Light Rare Earth Oxide (LREO) averaging 4.10 wt%. Combined neodymium and praseodymium (NdPr) grades were around 1%, placing the Teufelskuppe deposit among the higher-grade occurrences of these strategically important rare earth elements.
The company also noted that thorium and uranium levels were low, averaging 0.019% and 0.000196% respectively, suggesting the project is unlikely to face future processing penalties related to radioactive elements.
Highlights
· Pervasive high-grade Total Rare Earth Oxide (“TREO”) and Light Rare Earth Oxide (“LREO”) mineralisation throughout drill hole TWDD001 drilled to a final depth of 80.66m;
· TWDD001 ends in mineralisation at a grade of 6.09 wt% TREO with expectations that mineralisation continues at depth;
· Notable intercept of 8.14 w% TREO over 21.16m from 59.5m depth with TREO wt% grades never dropping below 6 .0 wt% and peaking at 10.7 wt% TREO over the 21.16m run;
· Hole drilled on Teufelskuppe (“TK”) carbonatite body TK1A, one of 8 defined mineralised bodies at TK where historic surface channel sampling returned grades ranging from 4.0 to 7.0 wt% TREO
· 48.66m of mineralisation over an 80.66m drill hole length provides compelling proof of continuity of mineralisation at depth;
· The average TREO and LREO wt% grades for all mineralisation in TWDD001 reported as 4.18 and 4.10 wt% respectively;
· The average grade of LREOs Praseodymium and Neodymium, the two most important rare earth elements associated with high intensity magnet manufacture have an average grade of approximately 1% combined (Nd2O3 & Pr6O11) placing Teufelskuppe amongst the highest grade deposits for these two REEs;
· TREO grades achieved reflect and improve on historic surface results providing further validation of historic data;
· With historic grab and channel sampling returning high grades on all of the 8 separate bodies at TK, the prospect of defining high-grade sub-surface mineralisation across the entire TK carbonatite landscape leading to a resource of note with the current drill programme remains high; and
· Average Thorium and Uranium grades reported at 0.019% and 0.000196% respectively indicating low levels of radioactive elements and therefore no perceived future penalties associated with final REE products.
Colin Bird Chairman commented “The results are extremely impressive and as good a start as the Company could wish for. What is particularly encouraging is the correlation between surface work and actual drill results since there is much channel sampling and trenching that we are able to use to target our future drilling. Table two clearly demonstrates that the project has the potential as previously stated to be in the top few producing and in development projects worldwide.
Grade is important, but tonnage is also a key factor and whilst it is too early to responsibly forecast tonnage the indications are that between Teufelskuppe and our neighbouring Keishohe carbonatite complex we have the potential to develop tonnages equal if not greater than the more outstanding projects currently in production or development. We now have our team on site and are about to commence further drilling to build up a resource and we plan to employ a second rig for reconnaissance drilling at both Teufelskuppe and Keishohe. As the capture of raw drilling data progresses our team will be assessing the database to fast track towards a Preliminary Economic Assessment. All in all, we are extremely satisfied with these results and could not have reasonably expected better and we will keep shareholders informed as we roll out our drilling, metallurgical and Resource estimation work programme”
