Lindian Resources (ASX:LIN) started the year 2022 with a bang and explained early to the market what its intentions were regarding its portfolio of assets.
The focus for Q1 2022 was on advancing Lindian’s ‘world-class’ bauxite portfolio in Guinea working to define the optimal export solution and progress due diligence with interested parties.
However, importantly, Lindian’s focus for the quarter was also seeking a resolution with respect to the Kangankunde Rare Earths (REEs) Project in Malawi.
Lindian starts 2022 pursuing resolutions
Post quarter-end, Lindian was notified that the Malawi Supreme Court of Appeal had scheduled an appeal hearing for 26 May in relation to an Exclusive Option Agreement for the Kangankunde Project and a dispute against Michael Saner (since deceased) and Rift Valley Resource Developments, regarding the asset.
In May, the company had reached an out-of-court settlement in regard to a dispute relating to Lindian’s proposed acquisition of up to a 75% interest in Kangankunde pursuant to the terms of the Exclusive Option Agreement entered into in 2018.
Lindian’s focus for Q2 2022 was on negotiating the terms of a legally binding transaction whereby the company could acquire a 100% interest in Rift Valley Resource Developments and its Kangankunde Project, along with the ongoing development of its bauxite projects in Guinea.
During the June quarter, Lindian also announced the successful completion of a $2m share placement, via the allocation of 20 million fully paid ordinary shares at $0.10 per share.
2H 2022 solidifies Lindian’s position
By August, the company completed the first tranche payment in accordance with the agreed terms to acquire a 100% interest in Rift Valley and the globally significant Kangankunde Project.
In October, Lindian reported maiden drilling had begun at the Kangankunde Rare Earths (REE) Project. Phase one of the drilling program consists of 44 drillholes for 10,000m of reverse circulation (RC) drilling and 2,500m of core drilling on the Kangankunde hilltop.
Lindian reported that the objective of this program was to provide an initial definition of the mineralised carbonatite and surrounding carbonatite breccia rocks within an area of 800m long and 800m wide.
The following month the company reported that visual observations of monazite mineralisation is consistent with expectations from surface mapping, and its geologists report that all drill samples contain ‘extensive’ visible monazite ‘typically’ from surface to the end of each hole.
Lindian said at the time it had completed 669m and is drilling the second and third reverse circulation (RC) holes and the first diamond core hole. RC001 is at a depth of 112m and will be drilled to 300m, while RC002 is currently at 251m with a core tail to be completed to 300m, and RC003 is at a depth of 184m with a core tail to be completed to 300m.
In December, the company reported it was progressing well with its phase one mine development drilling program at the Kangankunde REE Project.
The company said 19 holes were drilled for 2,895m of reverse circulation (RC) and 425m of diamond drilling (DD) on 11 December, with first assays due shortly. These holes were drilled to depths between 32m and 300m with all holes bar 2 being successfully completed.
During December, Lindian also confirmed it had completed a $16 million placement of some 73.45 million fully paid ordinary shares at $0.21 per share.
The capital raise also was reported to have attaching options of 36.73 million ($0.30 options expiring 3 years from issue) to new and existing sophisticated investors.
With a small war chest at hand and phase one mine development drilling program at Kangankunde progressing well, Lindian appears to be well-positioned heading into 2023.
After starting the year somewhat on the backfoot, next year looks set for the company to hit the ground running on solid footing.
Write to Adam Orlando at Mining.com.au
