Lindian Resources says its first assays from a maiden drill campaign at the company’s Kangankunde rare earths project in Malawi are due this month with one quarter of its RC and diamond drill program completed.
The explorer is currently undertaking phase 1 of its 12,500m resource definition drilling operation including 10,000m of RC drilling and a further 2500m of diamond drilling to test mineralisation to a depth of 300m. The 44-hole campaign includes two RC rigs and one diamond drill rig.
Lindian has now finished 17 RC holes for 2895m and has also completed the first diamond drill hole to a depth of 300m. The first assay result is expected within weeks after early samples highlighted continuous visible monazite from surface.
The company says monazite is the rare earth-bearing mineral Lindian is targeting at the project and mineralisation is consistent with expectations indicated from surface mapping. The explorer recently received preliminary assays from a single batch of isolated rock chip samples of mineralised rock at Kangankunde. Early results show a monazite content of 5.6 per cent and a total rare earths oxide content of 2.6 per cent.
Lindian says the current drill campaign will underpin metallurgical and geotechnical works in addition to a feasibility study and mineral resource statement that is expected in the near future.
Lindian Resources Chief Executive Officer, Alistair Stephens said: “Approximately 25 per cent of the phase 1 program is completed and advancing with three rigs operating. Drilling will continue through the wet season helping advance mine development activities more rapidly.”
Kangankunde is considered one of the world’s largest rare earths operations outside of China and hosts an outdated resource of 2.53 million tonnes grading 4.24 per cent rare earths oxide and containing 107,000 tonnes of rare earths oxide when using a cut-off grade of 3.5 per cent. It is a carbonatite-hosted system with mineralisation exposed at the surface and open at depth and therefore has potential to increase in size.
The ratio of neodymium and praseodymium in the total concentrate produced from the project is about 19 per cent and a mining licence has already been secured for the site.
In September Lindian received the green light to acquire the site’s owner Rift Valley Resource Developments. Shareholders unanimously voted in favour of the purchase after Lindian made its first tranche payment in its bid to acquire Rift Valley earlier this year. The US$2.5 million sum was the first of four payments equalling US$30m in total, with the remaining US$27.5 million payable in three tranches within 48 months from July this year.
Lindian has spent a lot of time gaining local approval for Kangankunde including meeting with government representatives to confirm support for the acquisition and development of the project. Company CEO Alistair Stephens says he will be on-site this week to provide updates to the Malawi government and the local community in addition to overseeing the progress of the ongoing drill program.
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By Matt Birney
