Mkango Continues to Identify New Zones of Mineralisation in Latest Drill Results From the Songwe Hill Rare Earths Project in Malawi
LONDON and CALGARY, Alberta, Nov. 07, 2018 (GLOBE NEWSWIRE) -- Mkango Resources Ltd. (AIM / TSXV: MKA) (the "Company" or "Mkango"), the rare earths exploration and development company focused on Malawi, is pleased to announce results for a further forty-five drill holes from the recently completed 10,900 metre diamond drill programme at the Songwe Hill Rare Earths Project (“Songwe”). Thirty-nine of the drill holes intersected significant zones of rare earths mineralisation grading above one per cent total rare earth oxides (“TREO”). The drilling programme is a key component of the ongoing initial phases of the Feasibility Study for Songwe, fully funded following investments by Mkango’s strategic partner, Talaxis Limited, in January 2018.
Highlights from the results include the following:
PX056
114.8 m grading 1.6% TREO (60.7 – 175.5 m) including 30.0 m grading 2.0% TREO (135.0 – 165.0 m). Inclined hole (60 degrees west).
PX059
63.0 m1 grading 1.7% TREO (6.0 – 69.0 m), including 23.0 m2 grading 2.3% TREO (7.0 – 30.0 m), and 15.4 m grading 1.6% TREO (128.0 – 143.4 m). Inclined hole (60 degrees west).
PX073
67.1 m grading 1.6% TREO (8.8 – 75.9 m) including 25.2 m grading 2.0% TREO (45.0 – 70.2 m). Inclined hole (60 degrees west).
PX076
40.2 m grading 1.8% TREO (60.4 – 100.7 m) including 20.0 m grading 2.4% TREO (60.4 – 80.4 m). Inclined hole (60 degrees west).
1 Includes two cavities totaling 5.9m not sampled. 2 Includes a 2.5m cavity not sampled. 3 Includes a 2.7m cavity not sampled. 4 Includes a 6.3m cavity not sampled. Due to the size of the cavity, the significance of this intersection is uncertain. 5 Includes a 2.3m cavity not sampled. 6 Includes two cavities totaling 2.3m not sampled. 7 Includes a 0.9m cavity not sampled. 8 Includes two cavities totaling 10.0m not sampled. Due to the size of the cavities, the significance of this intersection is uncertain. TREO: total rare earth oxides based on total La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3. These intersections are reported as down hole widths and do not necessarily represent true thicknesses and attitude of the mineralised zones, the estimation of which will require further refining of the geological model.
William Dawes, Chief Executive Officer, commented: “This is another excellent set of results from the now completed drilling programme at Songwe, which further demonstrates broad mineralised zones with continuity of mineralisation, and will underpin the resource update. The latter will commence on receipt of the assay results from the remaining 21 drill holes yet to be announced.”
“Following the resource update and on subsequent publication of the related NI 43-101 technical report, anticipated in first quarter 2019, Talaxis will invest a further £7 million to fund completion of the Feasibility Study for Songwe, which will be the main focus for 2019. We look forward to announcing the remaining drill results in the coming weeks.”
The drill programme comprised infill drilling to confirm and upgrade the existing Indicated and Inferred Mineral Resource Estimates, testing extensions to the mineralisation, and geotechnical drilling.
Drill holes PX072, PX073, PX084, PX085, PX088, PX090, PX091, PX094, PX095, PX119, PX120 and PX121 were step-out holes focused on testing north-west extensions of the mineralisation.
Of these twelve drill holes, nine intersected broad zones of mineralisation, including the highest grade intersection of the current drill programme to date in PX090. Furthermore, this new zone of higher grade mineralisation in PX090 is located outside both the area of previously mapped carbonatite and the existing Indicated and Inferred Mineral Resource Estimates.
The mineralised intersection in PX113 indicates the extension of the higher grade “black carbonatite” zone, located in the north-east as indicated on the accompanying geological map on the Company’s website, to the north under cover.
Drill holes PX038, PX039, PX040 and PX041 were step-out drill holes, focused on testing extensions of mineralisation to the south. The intersections in PX039 and PX040 further indicate that mineralisation may extend to the south beyond the limits of the existing Indicated and Inferred Mineral Resource.
The remaining drill holes were focused on infill zones within the existing Indicated and Inferred Mineral Resource Estimates.
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.
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 full set results and breakdown of TREO values are as follows:
Drill Hole
From
To
Interval
La2O3
Ce2O3
Pr2O3
Nd2O3
Sm2O3
Eu2O3
Gd2O3
Tb2O3
Dy2O3
Ho2O3
Er2O3
Tm2O3
Yb2O3
Lu2O3
Y2O3
TREO
m
m
m
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
%
PX039
122.9
142.0
19.2
4,394
7,467
756
2,432
323
82
188
22
96
15
35
5
29
5
440
1.6
%
PX040
28.0
43.0
15.0
5,020
7,061
645
2,006
303
90
239
33
164
28
67
9
47
6
844
1.7
%
PX045a
9.8
30.9
21.1
2,006
4,148
495
1,833
309
89
217
27
127
20
47
6
33
5
547
1.0
%
PX050
8.0
161.0
153.0
2,790
5,578
643
2,353
344
87
214
26
128
21
51
7
40
5
607
1.3
%
including
96.0
126.0
30.0
4,370
8,097
890
3,132
430
108
267
32
149
24
57
8
53
7
654
1.8
%
including
137.9
161.0
23.2
3,687
7,162
808
2,899
415
105
254
31
145
24
55
7
42
5
651
1.6
%
PX053
25.0
61.0
36.0
3,461
6,442
683
2,309
365
98
236
27
117
18
39
4
22
3
492
1.4
%
74.4
94.6
20.2
(i)
2,920
5,507
585
1,972
288
72
169
20
95
15
38
5
24
3
469
1.2
%
(i) Includes 2.1m cavity not sampled.
Drill Hole
From
To
Interval
La2O3
Ce2O3
Pr2O3
Nd2O3
Sm2O3
Eu2O3
Gd2O3
Tb2O3
Dy2O3
Ho2O3
Er2O3
Tm2O3
Yb2O3
Lu2O3
Y2O3
TREO
m
m
m
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
%
PX055
21.4
47.5
26.2
3,921
6,592
676
2,282
332
85
193
21
92
15
35
5
28
4
425
1.5
%
67.7
103.2
35.5
2,627
5,470
626
2,258
328
89
214
26
119
19
44
5
30
4
520
1.2
%
PX056
60.7
175.5
114.8
3,951
7,339
799
2,784
404
105
243
28
124
20
47
6
32
4
570
1.6
%
including
135.0
165.0
30.0
5,463
9,096
920
3,003
392
101
232
26
116
18
43
5
29
4
516
2.0
%
PX057
7.5
39.7
32.2
3,696
6,496
714
2,334
327
82
188
21
93
15
36
4
23
3
407
1.4
%
PX058
29.5
71.0
41.6
2,885
5,784
636
2,208
311
83
190
21
97
15
36
4
23
3
421
1.3
%
PX059
6.0
69.0
63.0
(i)
3,980
7,314
785
2,617
392
112
279
36
173
29
76
10
57
8
879
1.7
%
including
7.0
30.0
23.0
(ii)
5,890
9,922
1,012
3,237
469
138
358
47
227
38
100
13
76
10
1,171
2.3
%
128.0
143.4
15.4
4,122
7,352
778
2,645
370
94
212
25
121
20
49
6
36
5
604
1.6
%
(i) Includes two cavities totaling 5.9m not sampled.
(ii) Includes 2.5m cavity not sampled.
PX063
4.4
21.4
17.0
2,951
6,117
698
2,540
359
100
239
32
168
29
71
8
51
7
838
1.4
%
96.4
109.8
13.4
(i)
3,908
8,548
1,000
3,703
558
135
292
29
126
20
46
5
33
5
616
1.9
%
(i) Includes 5.5m cavity not sampled.
PX066
61.8
134.2
72.4
3,122
5,703
620
2,110
301
81
196
23
112
18
44
5
33
4
510
1.3
%
including
99.0
122.6
23.6
4,147
7,328
776
2,530
337
90
219
26
127
20
50
6
40
5
576
1.6
%
PX067
6.0
128.8
122.8
3,237
5,661
598
2,105
312
85
197
22
99
15
37
5
29
4
452
1.3
%
including
44.0
70.8
26.8
4,119
7,791
858
3,039
429
112
250
27
120
19
46
6
39
6
564
1.7
%
PX072
12.6
28.4
15.8
3,364
6,889
773
2,693
405
104
247
28
121
18
41
5
25
3
532
1.5
%
93.9
147.8
53.9
2,358
4,684
525
1,886
301
77
179
20
94
16
39
5
27
4
486
1.1
%
PX073
8.8
75.9
67.1
4,024
7,255
790
2,740
401
103
232
25
114
19
43
5
28
4
507
1.6
%
including
45.0
70.2
25.2
5,278
8,924
948
3,159
439
110
241
24
106
17
36
4
21
3
438
2.0
%
PX076
60.4
100.7
40.2
5,618
8,453
789
2,458
311
80
183
22
98
15
33
4
24
3
404
1.8
%
including
60.4
80.4
20.0
7,432
11,021
1,020
3,106
372
93
209
24
108
16
36
4
25
3
434
2.4
%
PX077
26.2
78.0
51.9
(i)
5,081
7,864
733
2,266
284
75
178
22
99
16
34
4
22
3
415
1.7
%
(i) Includes 2.7m cavity not sampled.
PX088
47.0
100.7
53.7
1,894
3,988
486
1,919
355
94
225
27
132
22
53
6
35
4
639
1.0
%
PX090
39.5
65.2
25.7
(i)
12,424
18,649
1,670
4,792
512
138
324
39
167
25
56
7
41
6
631
3.9
%
(i) Includes 6.3m cavity not sampled. Due to size of cavity, the significance of this intersection is uncertain.
PX094
25.0
100.7
75.7
(i)
3,363
5,652
567
1,876
284
81
204
24
112
18
43
5
32
4
482
1.3
%
including
67.0
79.0
12.0
6,336
9,822
928
2,828
385
112
282
33
147
23
52
6
38
5
593
2.2
%
(i) Includes 8.5m cavity not sampled.
PX095
60.0
82.9
22.9
(i)
2,116
4,470
510
1,880
273
73
175
21
108
19
47
6
34
4
539
1.0
%
(i) Includes 2.0m cavity not sampled.
PX098
1.1
66.0
65.0
(i)
3,682
7,400
836
2,942
428
112
278
35
168
29
73
10
55
8
872
1.7
%
115.0
128.1
13.1
3,013
5,409
579
1,974
306
84
213
27
124
20
46
6
29
4
568
1.2
%
(i) Includes 2.3m cavity not sampled.
Drill Hole
From
To
Interval
La2O3
Ce2O3
Pr2O3
Nd2O3
Sm2O3
Eu2O3
Gd2O3
Tb2O3
Dy2O3
Ho2O3
Er2O3
Tm2O3
Yb2O3
Lu2O3
Y2O3
TREO
m
m
m
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
%
PX100
94.6
100.7
6.1
10,223
17,450
1,815
6,064
765
172
360
35
140
20
45
6
30
4
616
3.8
%
PX101
36.6
42.3
5.7
2,981
6,306
746
2,771
493
131
322
36
148
21
43
5
29
4
560
1.5
%
PX102
8.7
36.0
27.3
2,730
6,487
789
2,869
342
78
163
17
76
11
25
3
14
2
335
1.4
%
75.0
110.3
35.3
2,096
5,170
671
2,623
381
96
217
26
130
22
51
6
28
3
658
1.2
%
PX103
2.6
167.8
165.2
3,512
6,903
788
2,809
412
111
263
31
144
23
55
7
45
6
658
1.6
%
PX104
1.9
47.0
45.1
(i)
2,562
5,388
617
2,273
338
96
230
28
139
22
52
7
38
5
618
1.2
%
95.6
135.0
39.4
3,122
5,206
527
1,794
277
80
189
21
99
15
35
4
25
4
433
1.2
%
(i) Includes 5.0m cavity not sampled.
PX105
3.8
79.5
75.7
2,711
5,036
550
1,963
312
86
199
24
112
18
43
5
27
4
523
1.2
%
PX106
51.9
67.5
15.7
2,579
5,090
562
1,968
294
81
192
23
108
17
40
5
25
3
478
1.1
%
79.7
109.0
29.3
2,036
4,451
527
1,952
317
87
209
25
121
21
51
7
39
5
604
1.0
%
PX107
23.0
114.2
91.3
(i)
3,041
5,727
632
2,258
336
95
232
29
140
23
60
8
48
6
700
1.3
%
82.0
114.2
32.2
(ii)
4,624
8,375
911
3,176
457
125
300
37
168
27
70
10
53
7
827
1.9
%
(i) Includes two cavities totaling 2.3m not sampled.
(ii) Includes 0.9m cavity not sampled.
PX108
8.2
54.0
45.8
3,553
6,243
656
2,234
360
106
261
32
149
24
58
7
45
7
705
1.4
%
76.9
134.2
57.3
4,774
7,740
761
2,417
333
90
205
23
102
15
34
4
24
3
418
1.7
%
PX110
9.2
22.4
13.2
6,648
9,822
965
2,852
348
88
204
24
109
18
39
4
22
3
451
2.2
%
85.0
100.7
15.7
4,927
9,588
1,102
3,601
475
117
270
31
148
25
58
7
41
5
676
2.1
%
PX111
7.0
42.0
35.0
2,893
6,042
683
2,504
443
128
312
38
169
25
53
6
30
4
657
1.4
%
69.5
115.9
46.4
3,666
6,542
670
2,313
357
97
232
26
111
17
40
5
33
4
476
1.5
%
PX113
4.7
55.8
51.1
(i)
5,458
9,720
993
3,572
474
124
289
34
165
26
64
8
44
6
772
2.2
%
(i) Includes two cavities totaling 10.0m not sampled. Due to size of cavities, the significance of this intersection is uncertain.
PX115
2.7
17.7
15.0
2,365
4,945
564
2,107
316
84
195
23
107
18
42
5
31
4
522
1.1
%
46.3
61.0
14.8
2,468
5,132
583
2,180
350
96
221
26
116
18
42
5
29
4
493
1.2
%
PX116
27.2
66.0
38.8
2,748
5,631
648
2,374
368
93
197
21
93
14
33
4
23
3
431
1.3
%
including
57.3
66.0
8.7
4,426
9,933
1,205
4,615
752
189
397
40
166
24
52
6
33
5
720
2.3
%
PX119
14.8
64.8
50.0
3,389
6,119
640
2,135
292
76
178
20
95
16
39
5
28
4
422
1.3
%
including
14.8
24.6
9.8
8,483
12,932
1,184
3,347
334
84
193
22
98
15
34
4
23
3
380
2.7
%
PX120
3.1
42.7
39.6
2,631
5,272
572
2,010
284
75
175
20
90
14
34
4
25
3
380
1.2
%
PX121
60.0
95.5
35.5
3,598
6,143
655
2,218
336
89
212
24
113
17
40
5
28
4
487
1.4
%
Drill holes PX038, PX041, PX051, PX084, PX085 and PX091 did not intersect significant zones of mineralisation grading above 1% TREO
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 PGeo 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 10,900 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.
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.
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 global market for products using the rare earth metals the Company is exploring for, completion of the feasibility study and of the transactions contemplated in the agreement with Talaxis, as well as the use of proceeds from the investments into the Company by Talaxis and the timing of such expenditures. 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, market 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 Project, 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.
For further information on Mkango, please contact: Mkango Resources Limited
Blytheweigh Financial Public Relations Tim Blythe, Camilla Horsfall, Julia Tilley UK: +44 207 138 3204
SP Angel Corporate Finance LLP Nominated Adviser and Joint Broker Jeff Keating, Caroline Rowe UK: +44 20 3470 0470
Alternative Resource Capital Joint Broker Alex Wood, Rob Collins UK: +44 20 7186 9004; +44 20 7186 9001
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.
Source: GlobeNewswire
(November 7, 2018 - 2:00 AM EST)