Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango")
is pleased to announce the results of a reconnaissance shallow soil
sampling and auger programme in its 869 square kilometre (“sq km”)
Mchinji licence (EPL 0544/19) in Mchinji district, Malawi, held by
Mkango’s 100% owned subsidiary MKA Exploration Ltd.
(see map
https://mkango.ca/site/assets/files/4775/20200914_mchinji_sampling_on_topo.jpg)
The results demonstrate the presence of
interesting grades of rutile plus anatase (both naturally occurring
mineral forms of titanium dioxide: TiO2) mineralisation of up to
1.07%, with overall TiO2 grades in the range 0.51 to 4.10% in auger
samples and 0.14–2.38% in soil samples; also ilmenite grades of
1.30 to 3.40% (average 1.85%) – see table below.
The grade of the TiO2-bearing minerals in the
highest-grading auger hole are in the range of 0.63 to 1.07% rutile
plus anatase (average 0.73%) and 1.30 to 3.40% ilmenite (average
1.85%), hosted in free-dig saprolite material from surface.
Mkango’s President Alexander Lemon
commented:
“Mkango is focused on developing the
Songwe rare earth deposit in Phalombe district in Malawi and is
looking forward to completing the feasibility study. We are very
pleased to add this new rutile and ilmenite discovery to our
portfolio of projects in Malawi. These early stage results show
similarities in terms of saprolite-hosted mineralisation to the
recent rutile discoveries made on the adjoining Sovereign Metals
Ltd licence to the east, and suggest the potential for discovering
high-grade rutile deposits within Mkango’s large licence area, in
what could potentially be a new province of rutile
mineralisation.”
Twelve vertical auger holes were drilled to
depths of 0.45 to 9.40m, for a total of 35.8m, from which 41
samples were collected. Available equipment was not able to
penetrate beneath a shallow ferricrete horizon in the Ludzi river
channel to test the assumed river sands beneath, and eight holes
failed to reach more than 2m depth; new auger exploration equipment
with improved ground cutting capability has been purchased and is
currently being shipped to Malawi. The other four holes were
drilled in saprolite on higher ground between the Ludzi’s
tributaries.
Soil sampling was carried out in pits dug to
50cm (‘B horizon’) on a 500m staggered grid in four areas of the
licence, producing 134 samples.
Sample preparation and analysis was provided by
Scientific Services laboratory in Cape Town, employing two-acid
microwave digestion and ICP-OES techniques suitable for
multi-element determination and following strict internal QAQC
procedures inserting blanks and standards. Internal laboratory QAQC
was also completed to include blanks, standards and duplicates.
The highest TiO2 grades were returned by nine
consecutive samples in a single auger hole (A6), drilled to a depth
of 8.9m, that contain between 4.10 and 9.01% total heavy minerals
(specific gravity > 2.95) and grade between 3.17 and 4.09% TiO2.
These samples were processed by heavy mineral separation and
magnetic separation and the separated fractions were sent to XRD
Analytical and Consulting CC in Pretoria for quantitative
determination of the heavy minerals by X-ray diffraction (“XRD”).
Results are given in the table below for vertical auger hole A6
positioned at co-ordinates 507971E 8482591N in UTM Zone 36S:
Auger hole A6 |
Total heavy minerals % |
TiO2 % |
Rutile + anatase % |
Ilmenite % |
0 – 1 m |
5.32 |
4.09 |
0.66 |
3.40 |
1 – 2 m |
4.95 |
3.74 |
0.66 |
2.87 |
2 – 3 m |
7.12 |
3.29 |
0.69 |
1.71 |
3 – 4 m |
8.04 |
3.21 |
0.66 |
1.31 |
4 – 5 m |
7.78 |
3.17 |
0.63 |
1.30 |
5 – 6 m |
9.01 |
3.24 |
0.74 |
1.41 |
6 – 7 m |
5.79 |
3.56 |
0.65 |
1.44 |
7 – 8 m |
4.10 |
3.89 |
0.85 |
1.58 |
8 – 8.9 m |
4.18 |
3.81 |
1.07 |
1.62 |
Weighted average |
6.28 |
3.55 |
0.73 |
1.85 |
Geochemistry of the soil samples reveals
anomalous TiO2 values around auger holes A6 and A11, suggesting
potential for follow-up and indicating that soil geochemistry may
be a useful regional exploration tool.
Mkango is planning an exploration programme of
more extensive soil sampling, additional auger drilling, and
mineralogical test work to identify rutile prospects across this
potential new rutile province within the Mchinji licence. The
exploration programme will be funded from the Company's existing
working capital.
Rutile, anatase and ilmenite are naturally
occurring TiO2 minerals, whose main uses are 90% for pigments, 5%
production of titanium metal and 5% welding. Sierra Rutile owned by
Iluka is the only high grade, large scale operating primary source
natural rutile mine globally.
Scientific and technical information contained
in this release 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.
About Mkango
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 four exclusive prospecting licenses in Malawi: the
Phalombe licence, the Thambani licence, the Chimimbe Hill licence
and the Mchinji licence.
The main exploration target in the 51% held
Phalombe licence is the Songwe Hill rare earths deposit. This
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 included a 10,900-metre drilling programme and an updated
mineral resource estimate, announced in February 2019. In March
2019, the Company announced receipt of a £7 million (C$12.3
million) investment from Talaxis to fund completion of the
Feasibility Study. Following completion of the Feasibility Study,
Talaxis has an option to acquire a further 26% interest in Songwe
by arranging financing for project development including funding
the equity component thereof.
The main exploration targets in Mkango’s
remaining three 100% held licences are, in the Thambani licence,
uranium, niobium, tantalum and zircon, in the Chimimbe Hill
licence, nickel, cobalt and chromite and in the Mchinji licence,
rutile, gold, nickel, cobalt, base metals and graphite.
Mkango also holds a 75.5% interest in Maginito
with the balance owned by Talaxis. Maginito is focused on
downstream opportunities relating to the rare earths supply chain,
in particular, recycling and other innovative technologies for the
production of neodymium alloy powders and magnets used in electric
vehicles, wind turbines and other industries geared to
decarbonisation of the economy.
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 completion of
the feasibility study for Songwe, with respect to the Mchinji
licence, the potential for discovering high-grade rutile deposits
within the licence area, the potential for a new province of
rutile mineralisation in the area of the licence and Mkango’s plans
for an exploration programme on the licence. 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,
governmental action relating to COVID-19, market effects on global
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 Songwe Hill rare earths
project and 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.
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.
For further information on Mkango,
please contact:
Mkango Resources Limited |
|
Alexander Lemon |
William Dawes |
President |
Chief Executive Officer |
alex@mkango.ca |
will@mkango.ca |
UK: +44 207 3722 744 |
|
Canada: +1 403 444 5979 |
|
www.mkango.ca |
|
@MkangoResources |
|
|
|
Blytheweigh |
SP Angel Corporate Finance LLP |
Financial Public Relations |
Nominated Adviser and Joint Broker |
Tim Blythe |
Jeff Keating, Caroline Rowe |
UK: +44 207 138 3204 |
UK: +44 20 3470 0470 |
|
|
Alternative Resource Capital |
|
Joint Broker |
|
Alex Wood |
|
UK: +44 20 7186 9004 |
|
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