MKANGO INTERSECTS FURTHER EXTENSIVE ZONES OF RARE EARTHS MINERALISATION AND COMPLETES MAJOR DRILL PROGRAMME AT THE SONGWE HILL PROJECT IN MALAWI
Mkango Resources Ltd. (AIM / TSXV: MKA) (the “Company” or “Mkango”) is pleased to announce results for a further eight holes from the latest diamond drill programme at the Songwe Hill Rare Earths Project (“Songwe”) in Malawi. The drilling programme has now been completed, totaling 10,891 metres (“m”) and comprising 91 drill holes to a maximum depth of 220 m. The drilling programme is a key component of the ongoing initial phases of the Feasibility Study for Songwe.
Highlights from the results are as follows:
William Dawes, Chief Executive Officer, commented: “We are very pleased to announce another excellent set of results from the recently completed major drill programme at Songwe, which is an integral part of the ongoing Feasibility Study. This is the largest drill programme to date in the history of the project and its successful completion is a great credit to the strong international and Malawian team on the ground. We look forward to announcing results from the remaining 75 drill holes totalling 9,259 m.”
· The drill programme is focused on infill drilling to confirm and upgrade the existing Indicated and Inferred Mineral Resource Estimates, testing extensions to the mineralisation, and geotechnical drilling.
· All eight drill holes intersected rare earth mineralisation, with the table above highlighting selected intersections averaging 1% TREO or more.
· Drill holes PX060, PX061, PX064 and PX096 were focused on infill drilling, and all intersected broad zones of mineralisation. PX052, PX048 and PX043 were collared to the east of mapped carbonatite outcrop, targeting the eastern contact of the mineralisation at depth. Whilst PX052, PX048 and PX043 did intersect mineralised zones at various intervals, albeit relatively narrow in the case of PX043 and PX048, they are not interpreted to have reached the targeted contact zone.
· Drill hole PX082 was focused on testing the north-west extension of mineralisation, outside the previously delineated Indicated and Inferred Mineral Resource Estimate. This is first time mineralisation has been intersected in this area by the Company.
A schematic geological map illustrating the location of the drill hole collars and estimated drill hole traces is available on the Company’s website (www.mkango.ca).
The breakdown of TREO values reported above can be seen here:
The scientific and technical information contained in this release including sampling, analytical, and test data underlying the information 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.
Sample preparation and analytical work for the drilling and channel sampling programmes are being provided by Intertek-Genalysis Laboratories (Perth, Australia) employing ICP-MS techniques suitable for rare earth element (REE) analyses and following strict internal QAQC procedures inserting duplicates, blanks and standards. Internal Laboratory QAQC was also completed to include blanks, standards and duplicates.
About Mkango Resources Limited
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 three exclusive prospecting licenses in Malawi, the Phalombe licence, the Thambani licence and the Chimimbe Hill licence.
The main exploration target in the 80% held Phalombe licence is the Songwe Hill rare earths’ deposit, which 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 include the recently completed 10,891 metre drilling programme.
Under the terms of an agreement with Talaxis, Talaxis will fully fund the Feasibility Study for Songwe by investing £12 million for a 49% interest in the project (via Mkango subsidiary Lancaster Exploration Ltd). Talaxis will also have the option to acquire a further 26% interest by arranging funding for project development including funding the equity component thereof. If Talaxis exercises its option, Mkango will retain a 25% interest, free carried to production. To-date, Talaxis has invested £5 million, which is funding the initial phase of the Feasibility Study, for a 20% interest in the project with Mkango holding 80%.
By investing a further £2 million, Talaxis will acquire a 49% interest in Maginito Ltd, a new subsidiary of Mkango focused on neodymium alloy powders, magnets and other technologies. This includes the collaboration with Metalysis Ltd announced in September 2017, which is focused on advanced alloys using neodymium or praseodymium with other elements for permanent magnet manufacturing. Permanent magnets are critical materials for most electric vehicles, direct drive wind turbines and many other high growth applications. Neodymium is a key rare earth component at Songwe. To date, Talaxis has invested £1 million for a 24.5% interest in Maginito with Mkango holding 75.5%.
The main exploration targets in Mkango’s remaining two 100% held licences are, in the Thambani licence, uranium, niobium, tantalum and zircon and, in the Chimimbe Hill licence, nickel and cobalt.
For more information, please visit www.mkango.ca.
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