Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango")
is pleased to announce that the Government of Malawi has renewed
the Thambani uranium, tantalum and niobium exploration licence and
issued four retention licences RTL0015/16/17/18/21 granted for five
years from 20th October 2021 to 19th October 2026, covering a total
of 98.4 square km.
With the recent significant increase in
international uranium prices, Mkango is currently reviewing
strategic exploration and development options, including
opportunities for joint ventures and other potential avenues to
create further project value.
Thambani Project
The Thambani retention licences (“Thambani”) are
located in the Southern Region of Malawi, within the Mwanza
District in the northern part of the licence and the Chikwawa
District in the south – see map at
https://mkango.ca/projects/overview
The licences are approximately 120 km west of
Blantyre (capital of finance and commerce) which is served by
Chileka International Airport, and about 30 km from the large town
of Mwanza, the administrative headquarters of Mwanza District,
which is located on the main road from Blantyre to Tete in
Mozambique. Thambani is the main trading centre within the licence.
Secondary gravel roads provide vehicle access from Mwanza town to
the project area. The Thambani trading centre is connected to the
national high voltage electricity grid and is approximately 30 km
from the new US$4 billion Tete–Nacala railway which transverses
southern Malawi, passing through the southern part of the retention
licences.
Mkango's exploration activities to date have
focussed on the Thambani Massif, a large body of nepheline syenite
gneiss which is expressed in two prominent ridges, the East and
West Ridges, respectively. Activities include acquisition of
Landsat7 and ASTER satellite imagery for the licence area,
systematic ground radiometric surveys to confirm and detail known
airborne anomalies, reconnaissance geological mapping, trenching,
and litho-geochemical sampling programmes. The work has identified
a number of potential uranium and associated niobium-tantalum
targets over the Thambani Massif, and in nearby areas such as the
Little Ngona river between the ridges and near Chikoleka village in
the far north of the licence areas – see map at
https://mkango.ca/site/assets/files/4752/thambani_locations_map.jpg
Airborne radiometric and magnetic
surveys
In 1984 and 1985 the Geological Survey
Department of Malawi (“GSDM”) compiled and published total field
aeromagnetic survey data at 1:250,000, 1:100,000 and 1:50,000
scales covering the whole of Malawi. The data were acquired by
Hunting Geology and Geophysics Ltd (“Hunting”) under contract to
the United Nations (Project MLW/ 80/030) and were obtained from
fixed wing and helicopter aeromagnetic surveys.
Country-wide radiometric data was also acquired
by Hunting in 1984 and published by the GSDM as a series of
1:250,000, 1:100,000 and 1:50,000 scaled maps. The maps show total
counts, uranium, potassium and thorium counts and ternary colour
plots, available at 1:100,000 and 1:250,000 scales.
The Thambani area was one of six key areas
subject to subsequent geological ground investigations and
considered to have potential for economic uranium
mineralisation.
An airborne magnetic survey revealed a strong,
thin anomaly along the crest of the East Ridge. A wider magnetic
anomaly occurs along the West Ridge. It appears that the
radiometric uranium highs and the magnetic highs occupy mutually
exclusive zones:
Airborne radiometric survey (uranium) at
https://mkango.ca/site/assets/files/4755/image007.jpg
Airborne magnetic survey at
https://mkango.ca/site/assets/files/4755/image008.jpg
Ground radiometric survey
A systematic ground radiometric survey completed
by Mkango confirmed and detailed two distinct uranium anomalies,
occurring along the East Ridge and at the western foot of the West
Ridge. A strong uranium anomaly, measuring approximately 3 km by
1.5 km, occurs along the length of the Thambani East ridge. A
second uranium anomaly, measuring approximately 1.5 km by 0.4 km,
occurs at the foot of the West Ridge.
(see map at
https://mkango.ca/site/assets/files/4752/thambani_locations_map.jpg)
Sampling programmes
In 2013, Mkango completed a sampling programme
across the Thambani Massif primarily focused on two sites of
historical uranium exploration, known as the Chikoleka and Little
Ngona targets. An initial set of nine historical trenches, selected
on the basis of anomalous ground radiometric results, were cleaned,
re-examined and sampled across profiles from soil/overburden into
bedrock. Some outcrop was also sampled on the East Ridge.
In 2017, Mkango revisited the trenches at Little
Ngona and Chikoleka and carried out new work on the East Ridge and
at the foot of the West Ridge. The main objectives of the programme
were: to confirm the grades of previously identified high grade
mineralisation at the Little Ngona target; to ground-truth new
geophysical targets; and to complete further reconnaissance
sampling along the East and West Ridges.
In 2019/2020, Mkango carried out a
lithogeochemical sampling program on outcrops within radiometric
anomalies on the East Ridge. The aims of the sampling were to
better delineate the mineralised zones and to localise future drill
sites to test the downdip extension of surface mineralisation.
Field observations and assay results suggest that mineralisation
occurs in zones that are conformable with the gneissic banding;
this indicates potential for U-Ta-Nb mineralisation along a strike
length of >3km. Ten new trenches were excavated in 2019,
including a location at the foot of the West Ridge where a small
pit excavated in 2017 yielded the two highest-grading samples. The
median values in the table below show that grades in the fresh rock
tend to be higher than in the weathered rock in the trenches,
suggesting extensive secondary remobilisation of the elements of
interest. The scatterplot of uranium versus niobium below, limited
to 5,000 ppm U and 9,000 ppm Nb for clarity, confirms the
association between U and Nb-Ta and displays two trends; the
steeper trend represents rock samples while the other trend
represents trench samples.
Summary of assay results (380 samples,
grades in ppm)from all Thambani sampling
programmes
|
Rock grab samples (127) |
Trench samples (253) |
|
U3O8 |
Ta2O5 |
Nb2O5 |
U3O8 |
Ta2O5 |
Nb2O5 |
Average |
574 |
488 |
3,201 |
974 |
432 |
2,063 |
Median |
364 |
292 |
1,422 |
98 |
75 |
557 |
Minimum |
1 |
2 |
17 |
3 |
1 |
17 |
Maximum |
8,826 |
4,191 |
32,401 |
50,656 |
19,029 |
60,055 |
For greater detail of assay results, please see
the tables and the maps beneath the tables at
https://mkango.ca/projects/exploration/thambani
Next steps
Mkango is currently evaluating strategic options
including opportunities for joint ventures and other potential
avenues to add shareholder value to these prospects. The down-dip
extension of surface Uranium-Tantalum-Niobium mineralisation on the
East Ridge is currently being investigated further to locate
targets that could potentially be drilled and tested from a series
of collars sited downslope of the mineralised surface zones.
Zircon is abundantly visible in the nepheline
syenite gneiss and in weathered veins in the trenches. Large
crystals of zircon commonly occur as float in the soils. Corundum
and columbite occur in pegmatite dykes in the north of the licence
and also occur as float in the soils. Industrial corundum was
commercially mined in the area during the 1930/1940’s.
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.
Sample preparation and analytical work was carried out by
Intertek-Genalysis Laboratory Services (Johannesburg, South Africa
and Perth, Australia) employing a fusion method using a sodium
peroxide flux, with Inductively Coupled Plasma Mass Spectrometry
(“ICP-MS”) and Inductively Coupled Plasma Optical Emission
Spectrometry (“ICP-OES”) finish, and following strict internal QAQC
procedures including the insertion of duplicates, blanks and
certified standards. Mkango inserted standards and blanks at a
frequency of 1 in 20 (5%).
Market Abuse Regulation (MAR)
Disclosure
The information
contained within this
announcement is deemed by the Company to
constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ('MAR')
which has been incorporated into UK law by the European Union
(Withdrawal) Act 2018. Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this
inside information is now considered to be in the public
domain.
About Mkango
Resources Limited
Mkango's corporate strategy is to develop new
sustainable primary and secondary sources of neodymium,
praseodymium, dysprosium and terbium to supply accelerating demand
from electric vehicles, wind turbines and other clean technologies.
This integrated Mine, Refine, Recycle strategy differentiates
Mkango from its peers, uniquely positioning the Company in the rare
earths sector.
Mkango is developing the Songwe Hill rare earths
project in Malawi with a Feasibility Study targeted for completion
in Q1 2022. Malawi is known as "The Warm Heart of Africa", a stable
democracy with existing road, rail and power infrastructure, and
new infrastructure developments underway.
In parallel, Mkango recently announced that
Mkango and Grupa Azoty PULAWY, Poland's leading chemical
company and the second largest manufacturer of nitrogen and
compound fertilizers in the European Union, have agreed to
work together towards development of a rare earth Separation Plant
at Pulawy in Poland. The Separation Plant will process the purified
mixed rare earth carbonate produced at Songwe.
Through its ownership of Maginito
(www.maginito.com), Mkango is also developing green technology
opportunities in the rare earths supply chain, encompassing
neodymium (NdFeB) magnet recycling as well as innovative rare earth
alloy, magnet, and separation technologies. Maginito now holds a
41.6% interest in UK rare earth (NdFeB) magnet recycler, HyProMag
(www.hypromag.com) with an option to increase its interest to
49%.
Mkango also has an extensive exploration
portfolio in Malawi, including the Mchinji rutile discovery, in
addition to the Thambani uranium-tantalum-niobium-zircon project
and Chimimbe nickel-cobalt project.
For more information, please
visit www.mkango.ca
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, HyProMag,
the Separation Plant and Songwe. Generally, forward looking
statements can be identified by the use of words such as “plans”,
“expects” or “is expected to”, “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. 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,
COVID-19 and other market effects on global demand and pricing for
the metals and associated downstream products for which Mkango is
exploring, the results of any exploration activities at Thambani,
researching and developing, factors relating the development of the
Separation Plant, including the outcome and timing of the
completion of the feasibility studies, cost overruns, complexities
in building and operating the Separation Plant, changes in
economics and government regulation, the positive results of a
feasibility study on Songwe Hill and delays in obtaining financing
or governmental approvals for, and the impact of environmental and
other regulations relating to, Songwe Hill and the Separation Plant
as well as HyProMag being able to commercialise its recycling
technologies. 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 DawesChief Executive Officerwill@mkango.caCanada: +1 403
444 5979www.mkango.ca@MkangoResources |
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Alexander LemonPresidentalex@mkango.ca |
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BlytheweighFinancial Public RelationsTim BlytheUK:
+44 207 138 3204 |
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SP Angel Corporate
Finance LLPNominated Adviser and Joint BrokerJeff Keating,
Caroline RoweUK: +44 20 3470 0470 |
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Alternative Resource
CapitalJoint BrokerAlex Wood, Keith DowsingUK: +44 20 7186
9004/5 |
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Bacchus Capital
AdvisersStrategic and Financial AdviserRichard Allan,
Andrew KrelleUK: +44 20 3848 1642 / +44 79 5636 2903 |
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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.
An infographic accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/0525e11d-e9ea-425e-9559-1a8f876fb1d4
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