ASX-listed company Lindian Resources (ASX:LIN) reports assays have delivered ‘outstanding’ and ‘high-grade’ rare earth element (REE) results from the Kangankunde REE Project in Malawi.
The company says these results are from the first 2 reverse circulation (RC) holes, KGKRC001 and KGKRC002 drilled as part of the phase one drilling program at the project. Lindian states both holes contain neodymium-praseodymium (NdPr) mineralisation, which is considered a ‘critical’ battery metal.
The company’s share price had skyrocketed 48.39% to $0.230 as of 2.15pm AWST on the back of the results.
‘Significant’ intercepts include KGKRC001 with 110m from surface at average of 2.9% total rare earth oxides (TREO) including 12m @ 4.2% TREO from surface. At hole KGKRC002, the company intersected 250m from surface averaging 2.9% TREO with intersections including o 16m @ 5.7% TREO from surface, including 2m @ 11.5% from 12m.
Further to this, both holes were drilled in the central zone of the Kangankunde carbonatite complex, and were designed to drill toward the outer margin of the central carbonatite. However neither hole reached the outer margin.
“These first assay results are absolutely outstanding in terms of grade, distribution and continuity, and with a steady stream of assays to follow, we are confident of delivering more of the same…”
Commenting on the results, Lindian Resources Chief Executive Officer (CEO) Alistair Stephens says: “These first assay results are absolutely outstanding in terms of grade, distribution and continuity, and with a steady stream of assays to follow, we are confident of delivering more of the same and building the case that in 2023, Kangankunde will rapidly emerge as a standout, globally ‘significant’ REE project in terms of grade, scale, and non-radioactivity.
Today’s results should be regarded as a leading indicator of this. I am not aware of another deposit anywhere in the world demonstrating such high grades of REE mineralisation over these continuous lengths to such depth.
Added to this is the non-radioactivity of the Kangankunde REE mineralisation, a highly unique and extremely commercially advantageous characteristic, with the potential for concentrates from Kangankunde to be shipped anywhere in the world, free of Class 7 restrictions. The commercial significance of this cannot be understated.
The high content of NdPr reported in these assays is in line with the historical work and indicates that the concentrates from Kangankunde will be in high-demand with NdPr being used to produce strong permanent magnets critical to global decarbonisation technologies including electric vehicles (EVs) and wind turbines.
With a total of 26 RC holes for 4,061m and 2 core drillholes for 489m completed prior to the drilling break for the festive season, we anticipate reporting a steady stream of assays from here on. Concurrently, other mine development work is expected to commence shortly which will add another reporting stream alongside ongoing assay results, the delivery of an exploration target and maiden Mineral Resource Estimate (MRE) sometime in Q2 2023.
Lindian reports the mineralisation intercepted in holes KGKRC001 and KGKRC002 is dominated by light rare earths including cerium (Ce), lanthanum (La), Nd, and Pr. The total Nd and Pr content in oxide form constitutes 21% of the TREO in both holes.
Additionally, the company states radionuclides including uranium (U) and thorium (Th) were detected at low grades in both drillholes, with KGKRC001 averaging 5.41ppm U and 53ppm Th over 110m. KGKRC002 averages 7.5ppm U and 49ppm Th over 250m. Lindian says these readings support the low radiation content of the REE-bearing monazite mineralisation.
Lindian reports the ongoing phase one drilling program at Kangankunde consists of 10,000m of RC drilling and 2,500m of core drilling on the Kangankunde hill top. To date the company has completed 4,550m of the planned 12,500m.
The company states drill crews and field staff will return to the site on 8 January with drilling to recommence on 10 January.
This drilling will be conducted by 2 RC rigs and 1 core rig during the wet season.
Phase one drilling will also be followed up by phase two which will consist of 2 additional deep drillholes aiming to test the north to south, and east to west axis of the carbonatite between 300m and 800m below the hill top.
Lindian Resources is an ASX-listed company focused on the Kangankunde REE Project in Malawi. The company also holds over 1 billion tonnes of bauxite resources across its Gaoaul, Lelouma and Woula projects in Guinea. In addition, Lindian also has interests in the Lushoto and Pare Bauxite projects in Tanzania.
Images: Lindian Resources Ltd
