AMN - UGANDA: Maiden rare earth estimate for Makuutu

Oro Verde Limited has completed a maiden mineral resource estimate for the Makuutu Rare Earth Element (REE) project in Uganda. The resource is 47.3 million tonnes at 910 ppm TREO, at a cut-off grade of 500 ppm TREO minus cerium.

The maiden resource is based on only 681.5 metres of core drilling undertaken in late 2019 within the Makuutu Central Zone, which covers only a portion of the larger Makuutu prospective area as represented by the current exploration target.

Oro Verde technical director Dr Marc Steffens said: “This initial mineral resource estimate covers only a very small portion of the Makuutu Project prospective area and there is strong potential to significantly grow future resources.

"Encouragingly, the resource grade is at the upper end of expectations, which is very promising for overall project potential.

"Additionally, Makuutu already demonstrates a significantly larger mineral endowment than some peer projects.

"Furthermore, considering this initial resource is based on less than 700 metres of drilling, the company expects to substantially expand this maiden resource with its next phase of drilling which is scheduled to start shortly.”

The maiden resource estimate was prepared by independent specialist resource and mining consulting group, Cube Consulting Pty Ltd.

The resource estimate has shown the REE mineralisation is distributed consistently through the clay horizon above the marginal cut-off grade. This consistency suggests an increase in resource confidence with limited infill drilling requirements.

The company will shortly begin its 2020 drilling program, with exploration drilling continuing to progressively test other areas of the exploration target to expand the resource, and in-fill drilling was undertaken to increase resource confidence level.

The exploration target for Makuutu remains at 270 530 million tonnes grading 0.04–0.1% (400 1000ppm) TREO.

Further clay-hosted REE mineralisation has been identified on the project licence by core drilling between 6 and 12 kilometres east of the resource estimate area and by historic RAB drilling up to 10 kilometres west of this area.

Also, the company together with its strategic advisor continues to engage with parties regarding the Makuutu Rare Earths Project, which includes project product offtake and marketing.

www.oroverde.com.au