TIDMMKA
RNS Number : 3314A
Mkango Resources Limited
11 September 2018
MKANGO RESOURCES LTD.
706 27 Avenue NW,
Calgary, Alberta T2M 2J3
MKANGO INTERSECTS FURTHER EXTENSIVE ZONES OF RARE EARTHS
MINERALISATION AND COMPLETES MAJOR DRILL PROGRAMME AT THE SONGWE
HILL PROJECT IN MALAWI
London / Calgary: September 11, 2018 - Mkango Resources Ltd.
(AIM / TSXV: MKA) (the "Company" or "Mkango") is pleased to
announce results for a further eight holes from the latest diamond
drill programme at the Songwe Hill Rare Earths Project ("Songwe")
in Malawi. The drilling programme has now been completed, totaling
10,891 metres ("m") and comprising 91 drill holes to a maximum
depth of 220 m. The drilling programme is a key component of the
ongoing initial phases of the Feasibility Study for Songwe.
Highlights from the results are as follows:
PX060 51.6 m(1) grading 1.9% TREO (7.2 - 58.8 m EoH) including
36.8 m(1) grading 2.3% TREO (7.2 - 44.0 m). Inclined hole
(60 degrees south).
PX061 161.1 m(2) grading 1.3% TREO (5.1 - 166.7 m EoH) including
31.2 m grading 1.7% TREO (110.8 - 142.0 m). Inclined hole
(60 degrees west).
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PX064 17.0 m(3) grading 1.8% TREO (21.0 - 38.0 m). Inclined hole
(60 degrees west).
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PX082 38.0 m grading 1.6% TREO (90.0 - 128.0 m). Inclined hole
(60 degrees west).
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PX096 43.4 m(4) grading 1.6% TREO (1.7 - 45.0 m) and 38.9 m grading
1.6% TREO (57.0 - 95.9 m). (60 degrees south).
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(1) Includes a 1.6m cavity not sampled. (2) Includes a 1.7m
cavity not sampled. (3) Includes a 2.2m cavity not sampled. (4)
Includes a 0.9 m cavity not sampled. TREO: total rare earth oxides
based on total La(2) O(3) , Ce(2) O(3) , Pr(2) O(3) , Nd(2) O(3) ,
Sm(2) O(3) , Eu(2) O(3) , Gd(2) O(3) , Tb(2) O(3) , Dy(2) O(3) ,
Ho(2) O(3) , Er(2) O(3) , Tm(2) O(3) , Yb(2) O(3) , Lu(2) O(3) ,
Y(2) O(3) . These intersections are reported as down hole widths
and do not necessarily represent true thicknesses and attitude of
the mineralised zones, the estimation of which will require further
refining of the geological model.
William Dawes, Chief Executive Officer, commented: "We are very
pleased to announce another excellent set of results from the
recently completed major drill programme at Songwe, which is an
integral part of the ongoing Feasibility Study. This is the largest
drill programme to date in the history of the project and its
successful completion is a great credit to the strong international
and Malawian team on the ground. We look forward to announcing
results from the remaining 75 drill holes totalling 9,259 m."
-- The drill programme is focused on infill drilling to confirm
and upgrade the existing Indicated and Inferred Mineral Resource
Estimates, testing extensions to the mineralisation, and
geotechnical drilling.
-- All eight drill holes intersected rare earth mineralisation,
with the table above highlighting selected intersections averaging
1% TREO or more.
-- Drill holes PX060, PX061, PX064 and PX096 were focused on
infill drilling, and all intersected broad zones of mineralisation.
PX052, PX048 and PX043 were collared to the east of mapped
carbonatite outcrop, targeting the eastern contact of the
mineralisation at depth. Whilst PX052, PX048 and PX043 did
intersect mineralised zones at various intervals, albeit relatively
narrow in the case of PX043 and PX048, they are not interpreted to
have reached the targeted contact zone.
-- Drill hole PX082 was focused on testing the north-west
extension of mineralisation, outside the previously delineated
Indicated and Inferred Mineral Resource Estimate. This is first
time mineralisation has been intersected in this area by the
Company.
A schematic geological map illustrating the location of the
drill hole collars and estimated drill hole traces is available on
the Company's website (www.mkango.ca).
The breakdown of TREO values reported above can be seen
here:
http://www.rns-pdf.londonstockexchange.com/rns/3314A_1-2018-9-10.pdf
Scientific and technical information contained in this release
including sampling, analytical, and test data underlying the
information has been approved and verified by Dr. Scott Swinden of
Swinden Geoscience Consultants Ltd, who is a "Qualified Person" in
accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects.
Sample preparation and analytical work for the drilling and
channel sampling programmes are being provided by
Intertek-Genalysis Laboratories (Perth, Australia) employing ICP-MS
techniques suitable for rare earth element (REE) analyses and
following strict internal QAQC procedures inserting duplicates,
blanks and standards. Internal Laboratory QAQC was also completed
to include blanks, standards and duplicates.
About Mkango Resources Limited
Mkango's primary business is exploration for rare earth elements
and associated minerals in the Republic of Malawi, a country whose
hospitable people have earned it a reputation as "the warm heart of
Africa". The Company holds interests in three exclusive prospecting
licenses in Malawi, the Phalombe licence, the Thambani licence and
the Chimimbe Hill licence.
The main exploration target in the 80% held Phalombe licence is
the Songwe Hill rare earths' deposit, which features
carbonatite-hosted rare earth mineralisation and was subject to
previous exploration in the late 1980s. Mkango completed an updated
Pre-Feasibility Study for the project in November 2015 and a
Feasibility Study is currently underway, the initial phases of
which include the recently completed 10,891 metre drilling
programme.
Under the terms of an agreement with Talaxis, Talaxis will fully
fund the Feasibility Study for Songwe by investing GBP12 million
for a 49% interest in the project (via Mkango subsidiary Lancaster
Exploration Ltd). Talaxis will also have the option to acquire a
further 26% interest by arranging funding for project development
including funding the equity component thereof. If Talaxis
exercises its option, Mkango will retain a 25% interest, free
carried to production. To-date, Talaxis has invested GBP5 million,
which is funding the initial phase of the Feasibility Study, for a
20% interest in the project with Mkango holding 80%.
By investing a further GBP2 million, Talaxis will acquire a 49%
interest in Maginito Ltd, a new subsidiary of Mkango focused on
neodymium alloy powders, magnets and other technologies. This
includes the collaboration with Metalysis Ltd announced in
September 2017, which is focused on advanced alloys using neodymium
or praseodymium with other elements for permanent magnet
manufacturing. Permanent magnets are critical materials for most
electric vehicles, direct drive wind turbines and many other high
growth applications. Neodymium is a key rare earth component at
Songwe. To date, Talaxis has invested GBP1 million for a 24.5%
interest in Maginito with Mkango holding 75.5%.
The main exploration targets in Mkango's remaining two 100% held
licences are, in the Thambani licence, uranium, niobium, tantalum
and zircon and, in the Chimimbe Hill licence, nickel and
cobalt.
For more information, please visit www.mkango.ca.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement may have been
deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements (within
the meaning of that term under applicable securities laws) with
respect to Mkango, its business and the Project. Generally, forward
looking statements can be identified by the use of words such as
"plans", "expects" or "is expected", "scheduled", "estimates"
"intends", "anticipates", "believes", or variations of such words
and phrases, or statements that certain actions, events or results
"can", "may", "could", "would", "should", "might" or "will", occur
or be achieved, or the negative connotations thereof. Forward
looking statements in this news release include statements with
respect to the global market for products using the rare earth
metals the Company is exploring for, completion of the feasibility
study and of the transactions contemplated in the agreement with
Talaxis, as well as the use of proceeds from the investments into
the Company by Talaxis and the timing of such expenditures. Readers
are cautioned not to place undue reliance on forward-looking
statements, as there can be no assurance that the plans, intentions
or expectations upon which they are based will occur. By their
nature, forward-looking statements involve numerous assumptions,
known and unknown risks and uncertainties, both general and
specific, that contribute to the possibility that the predictions,
forecasts, projections and other forward-looking statements will
not occur, which may cause actual performance and results in future
periods to differ materially from any estimates or projections of
future performance or results expressed or implied by such
forward-looking statements. Such factors and risks include, without
limiting the foregoing, market demand for the metals and associated
downstream products for which Mkango is exploring, researching and
developing, the positive results of a feasibility study on the
Project, delays in obtaining financing or governmental or stock
exchange approvals. The forward-looking statements contained in
this news release are made as of the
date of this news release. Except as required by law, the
Company disclaims any intention and assumes no obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by
applicable law. Additionally, the Company undertakes no obligation
to comment on the expectations of, or statements made by, third
parties in respect of the matters discussed above.
For further information on Mkango, please contact:
Mkango Resources Limited
William Dawes Alexander Lemon
Chief Executive Officer President
will@mkango.ca alex@mkango.ca
UK: +44 207 3722 744
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
Blytheweigh
Financial Public Relations
Tim Blythe, Camilla Horsfall, Julia Tilley
UK: +44 207 138 3204
SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker
Jeff Keating, Caroline Rowe
UK: +44 20 3470 0470
Alternative Resource Capital
Joint Broker
Alex Wood, Rob Collins
UK: +44 20 7186 9004; +44 20 7186 9001
The TSX Venture Exchange has neither approved nor disapproved
the contents of this press release. Neither the TSX Venture
Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any equity or other securities of
the Company in the United States. The securities of the Company
will not be registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act") and may not be offered
or sold within the United States to, or for the account or benefit
of, U.S. persons except in certain transactions exempt from the
registration requirements of the U.S. Securities Act.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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