Lindian Resources Ltd (ASX:LIN) investors have welcomed results described as "outstanding" from the first two batches of assays from phase 1 drilling at the Kangankunde Rare Earths Project in Malawi, driving shares as much as 32.26% higher intraday to $0.205 on strong volume.
Assay results have been received for the first two reverse circulation (RC) holes, both of which contain mineralisation with very high rare earth grades, broad intersections of non-radioactive material over the entire lengths of the holes and a large percentage of the critical battery metal elements neodymium-praseodymium (NdPr).
The holes ended in mineralisation and will be further extended with core drilling later in the program.
Assays from these holes reveal grades of up to 11.8% total rare earth oxides (TREO) and show continuous rare earth mineralisation over the entire length of holes from surface.
"Absolutely outstanding"
“These first assay results are absolutely outstanding in terms of grade, distribution and continuity," Lindian CEO Alistair Stephens said
"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 rare earths project in terms of grade, scale and non-radioactivity.
“Today’s results should be regarded as a leading indicator of this.”
Highlights
The first hole returned 110 metres from surface at an average of 2.9% TREO, including:
- 12 metres at 4.2% TREO from surface, including 1-metre at 7.2% TREO from 8 metres and 1-metre at 6.4% TREO from 4 metres;
- 25 metres at 3.0% TREO from 34 metres, including 1-metre at 5.7% TREO from 35 metres;
- 20 metres at 3.9% TREO from 64 metres, including 1-metre at 6.2% TREO from 75 metres; and
- 8 metres at 3.8% TREO from 102 metres, including 1-metre at 8.5% TREO from 103 metres.
- 16 metres at 5.7% TREO from surface, including 2 metres at 11.5% from 12 metres;
- 79 metres at 3.2% TREO from 30 metres;
- 29 metres at 3.5% TREO from 124 metres; and
- 66 metres at 2.5% TREO from 211 metres.
The critical battery metal elements NdPr were found at a ratio of 21% of TREO content.
Low radioactive material
The assays demonstrate that, on average, the mineralisation is very low in uranium and thorium.
A further six batches of samples are in process for assay and will be reported progressively in the coming weeks, while the drilling program is due to kick off again this month with three drill rigs turning on site.
The company has covered 4,061 metres of RC drilling and 489 metres of core drilling so far in a Phase 1 drill program set to take in a planned 12,500 metres.
“I am not aware of another deposit anywhere in the world demonstrating such high grades of rare earths mineralisation over these continuous lengths to such depth,” Stephens continued.
“Added to this is the non-radioactivity of the Kangankunde rare earths 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 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 EVs and wind turbines.
“With a total of 26 RC holes for 4,061 metres and two core drill holes for 489 metres 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 sometime in Q2 2023.
“Lindian is in excellent shape, we are well capitalised and these results will only increase investor interest and awareness in Kangankunde globally. We look forward to delivering more good news very soon,” he added.