AMN - BURUNDI: Exceptional Gakara TREO grades

Independent laboratory testing has recorded better than expected rare earth grades at the Gasagwe target of Rainbow Rare Earths' Gakara project in Burundi. The average Total Rare Earth Oxide (TREO) grade was 62.17%, which compares favourably with the 57% in veins across the Gakara project as published in a report compiled by MSA.

The results confirm Gakara as one of the highest grade rare earth element mining projects globally. Very low levels of uranium and thorium have also been confirmed.

Gasagwe is the area within the company’s 39sqkm mining licence which is expected to provide ore for the first two years of production. This is targeted to commence in Q4 2017.

The samples tested were part of the grade control program of systematic sampling of the ore body and represent the upper 2 metres of the Rare Earth Element (REE) vein, exposed 80 metres along strike to be mined first.

This run of mine (ROM) ore from Gasagwe is expected to be processed and sold before the end of 2017 as soon as construction and commissioning of the company's processing plant has been completed.

Based on the plant design process, it is anticipated that the grade of rare earth concentrate produced by the plant should exceed that of the ROM feed, which further increases the attractiveness of Rainbow's product to customers.

Rainbow’s CEO Martin Eales said, “This really is fantastic news. We always knew that the Gakara project was capable of delivering grades far in excess of industry norms, but to get this level of average TREO content from our first mining area is a wonderful boost as higher grade means that we shall achieve higher prices for each tonne of concentrate sold.

“Taking into account the continued strengthening of rare earth prices over recent months, the Gakara project continues to add to its excellent potential. We are now gearing up towards our first production and sales of high-grade concentrate through our multinational distribution partner thyssenkrupp Raw Materials in Q4.”

At the Kabezi plant site civils are well under way and the first containers of plant components have been dispatched from South Africa ahead of assembly during September and October 2017. At the Gasagwe mine site, work continues to expose the main vein ahead of full scale mining operations.

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