Lindian Resources Ltd (ASX:LIN) has drilled the first diamond core hole of its latest exploration campaign at the Kangankunde Rare Earths Project in Malawi to a depth of 980.5 metres.
The company’s phase two depth extension drill program, designed to test for major extensions of rare earth elements (REE) at depth and to evaluate the mixed breccia mineralisation around the central carbonatite, is on schedule.
About 640 metres of the core has been cut for sampling, with the first 380 metres despatched for assay analysis. Results are expected within 6-8 weeks.
Drilling is now underway on the second deep hole, which is drilling north-to-south down the long axis of the mineralised system.
The hole is at about 110 metres, with an estimated three-week time frame to completion.
Making progress
Lindian chief executive officer Alistair Stephens said: “The Phase 2 drill program is progressing very well with the second deep diamond hole well underway.
“The objective of the Phase 2 program is to determine how far Kangankunde’s mineralisation extends at depth, something we are yet to determine.
“While assay results will ultimately confirm this, as we have previously stated, the textual consistency of the mineralisation at surface for the first hole is evident throughout the hole and down to its current depth.
“The mineralisation we have seen at surface of the second deep hole, as per image below, also gives us great confidence.
“I look forward to reporting more assays from the Phase 1 drill program next week with results from 33 holes pending.
“Our maiden mineral resource estimate, due at the end of this quarter, will be based on the Phase 1, 10,000-metre reverse circulation program, which drilled to depths of about 320 metres with all holes ending in mineralisation.
“Phase 2 results will form the basis for an exploration target, below the resource.”
Rock at surface of second deep drilling hole with monazite bearing crystalline matrix estimated abundance of 2% to 4%.
Financially strong
Separately, the company said it raised about $2.83 million of additional capital this month through the conversion of 11,447,397 options.
This financial boost comes on the heels of the $9 million raised from a placement announced in March, bringing the total raised to nearly $12 million.
These funds are expected to sustain project development activities and vendor payments for Kangankunde due later in the year.
Lindian also revealed that rare earth industry stakeholders had shown interest in financing Kangankunde's future development and securing off-take.