Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango")
is pleased to announce that it has successfully produced neodymium
and praseodymium enriched rare earth carbonate from the final
stages of hydrometallurgical piloting at ANSTO in Australia for the
Songwe Hill Rare Earths Project in Malawi.
Piloting is an integral part of the feasibility
study for Songwe, with Mkango joining the ranks of very few rare
earth companies globally which have reached this stage of
development. Mkango has now successfully completed flotation
piloting and all six hydrometallurgy pilot campaigns, testing all
aspects of the processing flow sheet.
The piloting of the hydrometallurgy processing
flowsheet is a critical step towards commercialisation of the
Songwe project. The feed for the hydrometallurgy pilot plant was
flotation concentrate derived from the highly successful flotation
pilot programme completed last year.
William Dawes, Chief Executive of
Mkango, stated: “Completion of piloting is another major
milestone for the development of Songwe and the related Pulawy
separation plant in Poland, as Mkango moves towards finalisation of
the feasibility study for Songwe. This puts Mkango in a rare class
of having an independent rare earths project at this advanced stage
of development. Through its investments across the supply chain,
Mkango is uniquely positioned to be a future producer of rare earth
oxides, recycled alloys and magnets, the latter through its 42%
strategic interest in short loop rare earth magnet recycler,
HyProMag.”
Excellent Progress in
Malawi
Negotiation of the MDA with the Government of
Malawi is well advanced and focused on delivering an advantageous
solution for all stakeholders.
Work in Malawi is progressing well with all
geotechnical drilling and pitting completed at the project site and
the Environmental Social Health Impact Assessment nearing
completion. The geotechnical programme comprised 150
five-metre-deep pits and 22 twenty-metre drill holes and was
undertaken to confirm soil and ground conditions for all future
site infrastructure, such as the processing plants, tailings
facility, solar farm and haulage roads.
This major programme was designed to maximise
local content, employing 150 locally employed labourers, the
specialist geotechnical engineering consultant firms Geoconsult ‒
the leading geotechnical engineering group in Malawi
(https://geoconsult.cc/portfolio/f/mining-and-trading-review-october-edition)
‒ and Zutari, a leading South African geotechnical engineering
group (https://www.zutari.com/our-projects/).
There have been significant improvements to
local infrastructure in recent months. The Malawi Roads Authority
are currently upgrading an existing government road from the nearby
city of Migowi to the Songwe Hill rare earth project site. To date,
12 km of an existing 15 km government dirt track has already been
upgraded and widened to an all-weather gravelled road with new
reinforced concrete culverts, embankments and bridges
installed.
Songwe Feasibility Study Nearing
Completion
Technical and other workstreams for the
feasibility study for Songwe are nearing completion with the
following progress estimates provided by SENET (a DRA Global
company), lead engineer for the project:
Capital cost estimate: pricing
for mechanical equipment, structural steel, civil, electrical,
control and instrumentation and piping bill of quantities, process
plant EPCM cost estimate, site infrastructure costs, transport
estimates using equipment masses and steelwork quantities are 100%
complete. Update of capital cost estimate is 90% complete.
Operating cost estimate:
preparation of plant labour schedules and pay rates is 90%
complete. Quantities and costs of consumables, spare parts and
utility requirements is 100% complete and administration costs and
other overheads are 100% complete. Verification of reagent
consumption and costs are 92% complete. Update of operating cost
with updated labour rates, transport and laboratory costs is 92%
complete.
Environmental, Social and
Health: review and impact assessments of specialist
studies, rehabilitation and closure liability is 100% complete.
Environmental, Social and Health Impact Assessment is 98%
complete.
Sustainable energy trade-off
study: investigation of alternative energy sources,
compilation of energy balance, design of solar PV and detailed
costing and preliminary wind resource assessment is 100%
complete.
Metallurgical test work:
grinding test work and trade-off, plant raw water testing, solid
liquid separation test work, flotation and hydrometallurgical test
work is 100% complete. Water and variability test work is 80%
complete, and tailings geochemical and geotechnical test work is
50% complete and expected to be completed by the end of this
month.
Processing engineering: process
flow diagrams, mass balances, process description, mechanical
equipment list, design basis, pipe and instrumentation diagrams,
process control philosophy and HAZOP 1 and 2 are 100% complete.
Mining: in-pit services, haul
road design, waste rock dump design, issue of enquiries into
market, mining schedule, pit optimisation and design, storm water
handling and water reticulation are 100% complete.
Mechanical, civil and structural
engineering: mechanical equipment data and duty sheets,
general arrangement drawings, civil design criteria, structural
design criteria, bill of quantities, bulk earthworks, civil and
steelwork quotes are 100% complete.
Electrical engineering:
electrical design criteria, electrical load list, cable schedule,
installed and consumed power schedule, electrical material
take-off, electrical procurement packages, motor control centres
and transformer sizing are 100% complete.
Control and instrumentation
engineering: control and instrumentation design criteria,
instrument data sheets and schedules, control and instrumentation
material take-off, instrumentation diagrams and control and
instrumentation procurement packages are 100% complete.
Piping engineering: piping
design criteria and calculations, piping material take-off and
piping bill of quantities, schedules for line list, pipe supports
and tie-ins and piping drawings are 100% complete.
Plant infrastructure
engineering: layout drawings for the construction camp,
security fencing, guardhouses, warehousing and stores,
administration offices and workshops, layout drawings for
transformer stations, roads and bill of quantities and pricing for
plant infrastructure are 100% complete.
Procurement: vendor list of
recommended suppliers, issuing enquiries and tender documents,
price comparisons and evaluation of tenders, technical and
commercial tender adjudications are 100% complete. Additional
earthworks and mining enquiries and adjudication are 96%
complete.
Tailings Storage Facility:
design of tailings dam, return water dam and storm water measures
is 100% complete. Seepage analysis and slope stability analysis to
be completed.
Scientific and technical information contained
in this release has been approved and verified by Nicholas Dempers
Pr.Eng (RSA) Reg. No 20150196, FSAIMM of SENET (a DRA Global Group
Company), who is a "Qualified Person" in accordance with National
Instrument 43-101 -- Standards of Disclosure for Mineral
Projects.
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, 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 Songwe Hill in Malawi with
a Feasibility Study well advanced. 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 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 holds a 42%
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 exploration
project, the Thambani uranium-tantalum-niobium-zircon project and
Chimimbe nickel-cobalt project.
For more information, please
visit www.mkango.ca
About SENET, a DRA Global
company
Mkango Resources Ltd. appointed SENET, a DRA
Global company, as lead engineer and to project manage
completion of the feasibility study. SENET is leading the
multi-disciplinary team comprising of various consultants that are
working on the project.
SENET has longstanding experience in project
management and in providing detailed multidiscipline engineering,
procurement, logistics management, and construction services to the
mining, mineral processing, infrastructure and materials handling
industries. It has extensive project and construction experience
throughout Africa and boasts the largest and most advanced
hydrometallurgical process engineering team on the continent.
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, 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. 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 |
Canada: +1 403 444 5979 |
|
www.mkango.ca |
|
@MkangoResources |
|
|
|
BlytheRay |
|
Financial Public
Relations |
|
Tim Blythe |
|
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, Keith Dowsing |
|
UK: +44 20 7186 9004/5 |
|
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.
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