Lindian Resources Ltd (ASX:LIN, OTC:LINIF) continues to showcase the global potential of its Kangankunde Rare Earths Project in Malawi with the delivery of “very encouraging” infill drilling results up to 4.63% TREO.
Assay results for the first 21 holes of a Phase 3 infill drilling program show consistent high-grade mineralisation, which bodes well for the project’s feasibility study and maiden ore reserve statement scheduled for the end of the March quarter.
The Phase 3 program, comprising 45 reverse circulation holes and three core holes for 4,886 metres, aims to define a portion of Kangankunde’s current resource of 261 million tonnes grading 2.19% TREO to the indicated category.
All holes assayed showed extensive intersections of mineralisation to the end of hole, were non-radioactive and have significant percentages of the critical rare earth metal elements, neodymium and praseodymium (NdPr).
Consistently high grades
In the infill program, Lindian targeted areas considered most likely to provide the initial feed for the Stage 1 processing facility.
These were the northern, western and south-eastern areas of the central carbonatite complex.
The significant intersections received so far include:
- 150 metres from surface to end of hole (EOH) averaging 3.78% TREO in KGKRC087;
- 75 metres from surface to EOH averaging 3.57% TREO in KGKDD011;
- 70 metres from surface to EOH averaging 3.44% TREO in KGKDD012;
- 150 metres from surface to EOH averaging 3.21% TREO in KGKRC086, including 38 metres at 4.63% TREO from 74 metres;
- 150 metres from surface to EOH averaging 3.18% TREO in KGKRC112; and
- 75 metres from surface to EOH averaging 3.15% TREO in KGKDD010.
Samples from a further 28 holes are being analysed and expected to be released before the end of this month.
Kangankunde central carbonatite geology plan and drilling locations.
"Grade is king”
“The first assays from our Phase 3 drill program are again very encouraging, with grades in one 38-metre interval of 4.63% TREO and demonstrate that high-grade rare earths are consistent across a 300-metre section from surface of the Kangankunde deposit, which is particularly noteworthy as we advance towards the Phase 1 mining and processing operation,” Lindian chief executive officer Alistair Stephens said.
“We are on track to report our upgraded MRE this quarter, which will be followed shortly thereafter by our feasibility study.
“Kangankunde is uniquely positioned as one of the world’s largest rare earths projects, based on a globally recognised reporting code, and underpinned by exceptionally high grade in a market where grade is now clearly king.
“We anticipate a more regular flow of updates as the next two quarters unfold.”
Current work plan
The company is making good progress with the mine development as well as engineering work on the processing plant.
Among others, it is also working on:
- Determining the preferred provider for the tender of civil works contract(s), inclusive of works for the access road upgrade, bulk earthworks for the plant and associated infrastructure, tails storage facility (TSF) and return water dam (RWD);
- Finalising the tender for the supply of process plant and associated infrastructure for engineering, procurement, construction and commissioning (EPCC);
- Updating the resource model and detailed mine design and mine schedule;
- Shortlisting power and fuel supply options; and
- Finalising contract terms for all work streams.
Robust project
“Assay results from the Phase 3 drill program are an important body of work and key to the delivery of our feasibility study for the Stage 1 mine development that is now underway,” Lindian executive chairman Asimwe Kabunga said.
“This study, which will also include an ore reserve statement for Kangankunde for the first time, will allow us to very clearly define first-stage capex and opex and showcase what we expect will be a robust project that can rapidly deliver a new source of dependable supply of rare earths to processors and end users.
“As our quarterly report reiterates, we are well-funded with lots of optionality to fund our Stage 1 plant and the initial early works phase, which will be underway soon.”