After a resource update for its rare earth project in Malawi, Mkango Resources chief executive, Will Dawes, explains how important the project is to supply the electric car market with the rare-earth element, neodymium.
The element helps make up a critical part of the magnets that are supplied to electric engines.
Mkango Resources Ltd. (AIM / TSXV: MKA)(the “Company” or “Mkango”), the rare earths exploration and development company focused on Malawi, is pleased to announce an updated mineral resource estimate for the Songwe Hill Rare Earths Project (“Songwe”).
· 60% increase in total Measured and Indicated Resources to 21 million tonnes (“mt”), including first Measured Resource estimate for Songwe
· Majority of the previously delineated near surface Inferred Resource upgraded to either the Measured or Indicated categories
· Key objectives of 2018 drilling programme achieved, with the updated resource underpinning the ongoing feasibility study
· Approximately 95% of the Measured and Indicated Mineral Resource blocks are less than 160 metres (“m”) below the surface of the hill indicating that the majority will be accessible by open pit mining
· Updated and enlarged resource underpins Mkango’s strategy to be a long term, sustainable producer of neodymium, praseodymium, dysprosium and terbium used in permanent magnet motors for electric vehicles, wind turbines and other clean technologies
· Publication of the NI 43-101 Technical Report in relation to the resource update will trigger the next £7m milestone investment from Talaxis to fund completion of the feasibility study
William Dawes, Chief Executive of Mkango stated: “All the objectives for the 2018 drill programme have been achieved and we are very pleased to announce this increased resource at Songwe. This provides a solid platform for completion of a revised mine plan to be incorporated into the feasibility study. Based on the larger Measured and Indicated Resource, the feasibility study will evaluate opportunities to include more tonnes into the mine plan, expand operations, extend the mine life, reduce the strip ratio and therefore reduce mining costs.”
