Mkango Resources Ltd. (AIM / TSXV: MKA) (the “Company” or “Mkango”) is pleased to announce results for the first eight holes totaling 944 metres of its targeted 10,000 metre diamond drilling programme at the Songwe Hill Rare Earths Project (“Songwe”) in Malawi. The drilling programme is a key component of the ongoing Feasibility Study for Songwe. Highlights from the new results are as follows:
William Dawes, Chief Executive Officer, commented: “These are an excellent first set of results from the current programme and we look forward to announcing results from the remaining approximately 75 drill holes as they become available. The drill programme and planned resource update are fully funded following investments by Talaxis Limited totalling £6 million in January 2018. Talaxis will invest a further £7 million to fund completion of the Feasibility Study for Songwe on Mkango publishing a NI 43-101 technical report in relation to the resource update.”
· 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 intersections averaging 1% TREO or more.
· Drill holes PX065, PX062, PX046, PX047, PX042 and PX045b above were focused on infill drilling. Intersections of broad zones of mineralisation, as opposed to narrow veins or dykes, continue to support the concept of a bulk tonnage, open pit mining operation with low mining costs.
· Drill hole PX036 was focused on testing the southerly extension of mineralisation. The significance of the more than 42 m of mineralisation intersected by PX036 at depth (87.3 – 130.1 m), including 6.7 metres grading 2.2% TREO to the end of the hole (130.1m), is being evaluated. This was the first hole in the project’s history to be drilled in the area near the summit of Songwe Hill. Another hole testing the southerly extension of mineralisation, PX037, did not reach the target depth.
· A total of 8,466 metres of drilling, comprising 70 drill holes, has now been completed as at August 20, 2018.
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:
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.
( 8,466m & 70 drill holes so far; drilling on track & expected to total around 10,000m)
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 a major 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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