The initial deep diamond drill hole in Lindian Resources Ltd (ASX:LIN, OTC:LINIF)'s phase two program, KGKRCDD074, has hit on an "astonishing" 854 metres of mineralisation grading at 2.73% total rare earth oxides (TREO), indicating that the high-grade rare earth mineralisation continues to depth.
Within this is a standout result – an intersection of 554.6 metres at 2.52% TREO from 351 metres, demonstrating consistent mineralisation and high grades at considerable depths and over remarkably broad intercepts.
Alongside this in KGKRCDD074 were other notable intersections, including 156 metres at 3.61% TREO from 124 metres and 56 metres at 3.83% TREO from 289.13 metres.
Of particular note was the average component of critical metal elements neodymium and praseodymium (NdPr), which reached 19% of the TREO.
Shares higher
Investors have responded positively to the results with Lindian securities as much as 9.46% higher this morning to A$0.405.
Mineralisation was found from the beginning to the end of the drill hole, and the western boundary of the mineralisation extended 100 metres westward.
These results will be included in the upcoming maiden mineral resource estimate (MRE), set to be released in the coming days.
Massive scale and grade
“The results of these assays not only reinforce Kangankunde’s massive scale and grade, they demonstrate that the project will play an important role in the rare earths industry to stabilise and balance supply for multiple generations,” Lindian executive chairman Asimwe Kabunga said.
“We are now firmly focused on bringing the mine into production and delivering a new, stable supply of rare earths concentrate to market.”
Lindian CEO Alistair Stephens added: “The assay results from this drill hole are stunning and confirm that Kangankunde’s minersalisation extends at least 850 metres vertically. The consistency of mineralisation is astonishing.
“This assay interval is one of Lindian’s most material developments and undoubtedly establishes Kangankunde as one of the greatest, most significant and unique rare earths projects in the world, underpinned by excellent grade and uniquely non-radioactive.
“The receipt of these assay results allows the upper portion of this hole to be incorporated into the maiden mineral resource estimate expected to be finalised and released in the coming days.
“Congratulations to our team for bringing this hole to completion, which culminates in a major resource development for the rare earths industry.”
Up next - 1,000-metre hole results
The company conducted two deep holes in phase two drilling from west to east, testing the deposit to a "remarkable" vertical depth of more than 850 metres below the surface and at least 600 metres deeper than the previously reported phase one resource definition drilling.
Drill hole KGKRCDD074 was specifically drilled through the Kangankunde carbonatite, covering an impressive depth of 980.59 metres, and mineralisation was consistently present from 52 metres to 905.59 metres down the hole.
The geological boundaries also matched those intersected in the phase one drilling, highlighting the consistency of grade and geological zonation.
Unfortunately, the second deep hole, KGKRCDD083, which was initially part of the program, had to be terminated due to unacceptable orientation deviation.
Lindian awaits the assay results for the next phase two drill hole, KGKDD009, drilled to 1,000 metres, which are due to arrive in late August or September.