TIDMMKA
Mkango Resources Limited
18 October 2016
MKANGO RESOURCES LTD.
706 27 Avenue NW,
Calgary, Alberta T2M 2J3
MKANGO RENEWS PHALOMBE LICENCE UNTIL JANUARY 2019 AND PROVIDES
CORPORATE UPDATE
Calgary, Alberta: October 18, 2016 - Mkango Resources Ltd.
(TSXV: MKA; AIM: MKA) (the "Corporation" or "Mkango"), is pleased
to announce that the Government of Malawi has granted a further
two-year renewal for Exclusive Exploration Licence ("EPL") 0284
("the Phalombe Licence"), in south-east Malawi. Mkango's flagship
project, the Songwe Hill rare earth project ("Songwe"), for which
an updated Pre-feasibility study was completed in November 2015, is
located in the Phalombe Licence, as are the Nkalonje, Mantrap,
Knoll and Namangale prospects.
Songwe and the Nkalonje, Mantrap and Knoll prospects were
recently visited by a large delegation of international and
Malawian geology and geophysics experts in connection with the
EUR5.4 million HiTech AlkCarb research project led by the Camborne
School of Mines, University of Exeter and funded under the European
Union's Horizon 2020 Research and Innovation programme in which
Mkango (through its wholly owned subsidiary, Lancaster Exploration)
is an industry partner. The scope of the research project
encompasses building exploration expertise in hi-tech raw
materials, improving and developing interpretation of geophysical
and downhole data. Of particular relevance to Mkango is the
opportunity to better understand the potential for large but
unexposed mineralised bodies of carbonatite (the host rock for rare
earth mineralisation) on either a prospect or regional scale.
Based on work to date, such targets within the Phalombe Licence
may include the summit of Songwe hill (which lies outside and to
the south of the Indicated and Inferred Mineral Resource Estimate
at Songwe) and the Nkalonje vent system, where, in both cases
outcrop is largely fenite (altered country rock) with occasional
carbonatite, but there may be potential for underlying and larger
zones of mineralised carbonatite. Rare earth mineralisation and
mineral assemblages for both the fenite and carbonatite will be
evaluated in the context of the geophysics covering the areas, to
further assess their potential as future drill targets.
Subsequent visits by some members of the HiTech AlkCarb team
together with Mkango management were also made to Namangale in the
Phalombe Licence and also Little Ngona and Chikoleka uranium,
tantalum and niobium prospects in the Thambani Licence.
Alexander Lemon, President of Mkango, stated:
"The renewal of the Phalombe Licence is a strong validation by
the Government of Malawi of Mkango's strategy and progress to date
at Songwe, where we have invested significant funds to advance the
project from an early stage to a pre-feasibility study. We much
appreciate the continued support of the Malawian Government, the
Ministry of Natural Resources Energy and Mining, the Geological
Survey, the Mines Department and local stakeholders as we continue
to progress the project and foster capacity building and
collaboration between Malawi and the international community."
About Mkango Resources Ltd.
Mkango's primary business is the 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." Mkango holds, through its wholly owned
subsidiary Lancaster Exploration Limited, a 100% interest in two
exclusive prospecting licenses in southern Malawi, the Thambani
licence and the Phalombe licence.
The main exploration target in the 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. Mkango's strategy for
Songwe is to further optimise the project with a view to maximising
efficiency and reducing costs, thereby providing a strong platform
both for entering into partnerships, marketing and offtake
arrangements.
The main exploration targets in the Thambani licence are
uranium, niobium and tantalum. In January 2015, Mkango announced
the first set of assay results of 142 soil and rock chip samples
from 9 trenches, which returned variably anomalous uranium, niobium
and tantalum values in most trenches, ranging up to 4.70 % U(3)
O(8) , 3.25 % Nb(2) O(5) in soil and up to 0.42 % U(3) O(8) , 0.78
% Nb(2) O(5) and 972 ppm Ta(2) O(5) in rock chips. In July 2016,
the Corporation announced the results of an airborne geophysical
survey covering approximately two thirds of the licence area,
highlighting a number of significant radiometric and magnetic
anomalies.
The company's corporate strategy is to develop new sustainable
sources of rare earth elements and other minerals geared to growth
in the low carbon "green" economy, technology and the Fourth
Industrial Revolution.
Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements.
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, delays in obtaining
financing or governmental or stock exchange approvals. The
forward-looking statements contained in this press release are made
as of the date of this press release. Except as required by law,
the Corporation 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 securities law. Additionally, the
Corporation 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, 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
SP Angel Corporate Finance LLP
Nominated Adviser and Broker
Jeff Keating , Caroline Rowe
UK: +44 20 3470 0470
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 Corporation in the United States. The securities of the
Corporation 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 company news service from the London Stock Exchange
END
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