Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango")
is pleased to provide an update on the exploration programme at the
Nkalonje Hill Rare Earths Project, 14 km from Mkango’s Songwe Hill
Rare Earths development project (see Figure 1). Mapping, sampling
and ground geophysical data were obtained at Nkalonje in Q4 2021,
following up on encouraging historical regional geophysical data.
Alexander Lemon, President of Mkango,
commented:
“We are extremely encouraged by the recent
exploration results for the Nkalonje Hill Rare Earths project. The
targets generated from the mapping and geophysics data are exciting
indicators of the potential for further mineralisation at depth.
The similarities between Nkalonje and Songwe Hill, and the high
TREO grades from the assay results, demonstrate a strong case for
further investigation. In the long term, the close proximity of
Nkalonje to Songwe provides a good potential source of additional
REE feedstock for processing at Songwe.”
Nkalonje Hill Rare Earths
Project
- Nkalonje is located 23 km by road
(14 km straight line) north-west of Mkango’s Songwe Hill Rare
Earths Project, within the Company’s Phalombe Licences. The project
is approximately 95 km by road from the commercial centre of
Blantyre, which has an international airport and a railhead. Paved
roads run from Blantyre to within 19 km of Nkalonje.
- Nkalonje is underlain by an alkali
silicate–carbonatite intrusive complex geologically similar to
Songwe Hill, comprising two connected hills underlain by fenite,
nepheline syenite and breccia (see map below). Regional geophysical
data from the World Bank funded programme in 2016 demonstrates that
Nkalonje is marked by a magnetic low and thorium high. Thorium
radiometrics are known as a highly effective tool for rare earths
exploration and the Songwe Hill carbonatite is also characterised
by a thorium radiometric anomaly, identified through previous
geophysical surveys.
- The fenites on Nkalonje are
intruded by carbonatite veins and dykes that are locally enriched
in rare earth elements, suggesting potential for a larger
mineralised carbonatite body below surface.
Exploration results
Geological mapping and geophysics data for
Nkalonje confirms the presence of previously mapped nepheline
syenite, breccia and carbonatite (see Figure 2).
- The ground geophysics data support
the geological interpretation of a ring complex structure, as seen
at Songwe, and at other carbonatite vents in Malawi. The overall
diameter of this structure is approximately 1.7 km and comprises an
outer ring of nepheline syenite and a central vent of breccia.
- The breccia body is approximately
900 m in diameter and comparable in lateral extent to Songwe
Hill.
- Mapping to date has identified
eight carbonatite dykes reaching 4 m in width and traceable at
surface up to 90 m along strike.
- Two different carbonatite types are
noted at Nkalonje: (1) calcite carbonatite, and, (2) a banded
ferroan calcite carbonatite.
- Assay results for 12 calcite
carbonatite and 17 ferroan calcite carbonatite grab samples
returned TREO grades of up to 5.92%, with a median value of 2.96%
in the ferroan calcite carbonatite, suggesting concentration of the
rare earth elements (“REE”) in the more evolved carbonatite
phases.
- The geophysical characteristics of
the central breccia vent include a low magnetic response, low
density and high conductivity. However, it also includes a central
gravity anomaly extending from the surface to approximately 300 m
depth. This feature is tentatively interpreted as a shallow body of
carbonatite, which fits the observed lithologies present at
Nkalonje, and the conceptual structure of the hill.
Exploration targets at
Nkalonje
Based on interpretation of the recent data, the
Company has identified two drilling targets at Nkalonje (see Figure
2 below).
- Target 1 is centred on known
mineralisation around the carbonatite dykes. Further mineralisation
at depth is interpreted from Induced Polarity (“IP”) and Natural
Source Audio Magneto-Telluric (“NSAMT”) geophysical anomalies which
present a series of potential shallow drill targets extending
down-dip of the exposed dykes.
- Target 2 is a conceptual target
based on geophysical anomalies which consist of a surface
radiometric anomaly (high Th), a gravity high and magnetitic low,
with an IP anomaly at depth. The target is in a relatively eroded,
poorly exposed part of the hill. These geophysical and
geomorphological features fit with a conceptual model of a central
carbonatite body, common to other carbonatite complexes, which the
surface dykes suggest may potentially contain REE
mineralisation.
Work plan
Planned work at Nkalonje consists of continued
evaluation of the dykes at Target 1, including new sampling
(including channel sampling where possible) in order to trace the
grade of the dykes along strike. A soil/auger sampling and
trenching programme is planned to ground truth the geophysical
anomalies at Target 2.
Methods and Quality Control
Sample preparation and analytical work was
provided by Intertek-Genalysis Laboratories (Johannesburg, South
Africa, and Perth, Australia), employing ICP-MS techniques suitable
for REE analyses and following strict internal laboratory QAQC
procedures, inserting blanks, standards and duplicates, in addition
to blanks and standards inserted by Mkango.
Ground geophysics data was acquired over the Nkalonje vent by
Gregory Symons Geophysics (Namibia) in November-December 2021.
Ground magnetic, radiometric and gravity data were collected over
an area of 2.7 x 2.7 km, covering the hill and surrounding lake
sediments, with magnetic and radiometric data collected at 50 m
line spacing, and gravity data collected along selected lines at
100 m spacing. 3D inversions of the magnetic and gravity data were
processed using VOXI Earth Modelling in Oasis Montaj software. The
NSAMT data was acquired on two lines, bisecting the hill at 50 m
station spacing, and the IP survey was carried out using a
pole-dipole electrode spread on eight lines with a 50 m dipole
spacing.
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.
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 nearing completion. 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
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 |
|
|
BlytheRayFinancial Public
RelationsTim BlytheUK: +44 207 138 3204
SP Angel Corporate Finance
LLPNominated Adviser and Joint BrokerJeff Keating,
Caroline RoweUK: +44 20 3470 0470
Alternative Resource
CapitalJoint BrokerAlex Wood, Keith DowsingUK: +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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