AMN - MALAWI: Songwe Hill rare earths resource upgraded

Mkango Resources has increased measured and indicated resources by 60% at the Songwe Hill Rare Earths Project in Malawi. This 21 million tonne resource grading 1.41% TREO includes the first measured resource estimate for the project.

The majority of the previously delineated near-surface inferred resource has now been upgraded to the higher confidence categories.

Around 95% of the measured and indicated mineral resource blocks are less than 160 metres below the surface of the hill, indicating that the majority will be accessible by open pit mining

The company has now achieved the key objectives of is 2018 drilling program, with the updated resource to underpin the ongoing feasibility study.

The upgraded resource also 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.

Mkango chief executive William Dawes said: “All the objectives for the 2018 drill program 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.”

Publication of an NI 43-101 Technical Report in relation to the resource update will trigger the next £7 million milestone investment from Talaxis to fund completion of the feasibility study.

Bulk samples for pilot metallurgical test work totalling about 60 tonnes have been selected from areas within the measured and indicated resource estimates and a public awareness campaign to communicate progress of the project and explain the bulk sampling program is underway in Malawi.

Pilot testing will begin following export of the bulk sample and completion of ongoing metallurgical optimisation.

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