TIDMMKA
RNS Number : 0940Q
Mkango Resources Limited
24 February 2021
MKANGO RESOURCES LTD.
550 Burrard Street
Suite 2900
Vancouver
BC V6C 0A3
Canada
MKANGO COMMENCES PILOT PLANT PROCESSING OF BULK SAMPLE FROM
SONGWE HILL RARE EARTHS PROJECT
London / Vancouver: February 24 , 2021 - Mkango Resources Ltd.
(AIM/TSX-V: MKA) (the "Company" or "Mkango") is pleased to announce
the commencement of flotation pilot plant test work for the Songwe
Hill Rare Earths project in Malawi ("Songwe" or the "Project").
-- Flotation pilot plant processing has commenced at ALS
Metallurgy in Perth, Australia - a new, optimised flotation regime
has been developed and now scaled up as part of the pilot
programme
-- Preparation for hydrometallurgical pilot testing is underway
at ANSTO in Australia, which will process rare earth mineral
concentrate produced from the flotation pilot plant
-- Design and engineering studies by lead engineer SENET (a DRA
Global Group Company) are continuing in parallel, with the Songwe
Feasibility Study targeted for completion in the fourth quarter of
this year
-- Scoping studies for rare earth separation have been
completed, and strategic options for moving forward with potential
sites are being evaluated
-- Rising rare earth prices and concerns over security of supply
provide a very favourable market backdrop, with accelerating demand
geared to growth in green technology applications
The selection and piloting of the flotation processing flowsheet
is an integral part of the Feasibility Study and a critical step
towards commercialisation of the Songwe project. The feed for the
flotation pilot plant is derived from the 60 tonne b ulk sample
previously shipped from Malawi to Australia, having been selected
from areas within the previously announced upgraded Measured and
Indicated Mineral Resource Estimates, which underpin the ongoing
Feasibility Study. No further resource drilling is required.
William Dawes, Chief Executive of Mkango stated: "The start of
pilot plant processing is a major milestone for the company and
Mkango joins the ranks of the very few rare earths projects that
have been advanced to this stage of development. We look forward to
announcing results from the pilot plant when available."
"Mkango is uniquely positioned in the rare earths sector with an
integrated "mine, refine, recycle" strategy encompassing
sustainably sourced rare earths from Malawi, rare earth magnet
recycling in the UK, via its interest in HyProMag, and strategic
options to develop EU and UK rare earth separation and refining
capacity. Rare earth prices have risen significantly over the
recent months and the demand outlook is very positive, directly
linked to growth in electric vehicles, wind power and other clean
technology applications. "
Processing and mineralogy are key value drivers for rare earth
projects, and pilot test work is an integral part of developing a
robust feasibility study and bankable project. The Songwe
processing flow sheet has been developed and optimised by leading
experts in rare earths processing and comprises flotation of run of
mine ore to produce an upgraded mineral concentrate, which is then
processed via hydrometallurgy to produce a high grade purified,
cerium depleted, mixed rare earth carbonate enriched in neodymium,
praseodymium, dysprosium and terbium.
Flotation Pilot Plant
Flotation is a key part of the processing flowsheet for Songwe
with significant test work having been completed in South Africa,
Canada and Australia in order to increase grade and recovery from
those in Mkango's previously announced pre-feasibility study. This
work has resulted in a new flotation regime, which has been scaled
up during the pilot programme. The flotation pilot plant will also
provide SENET ( a DRA Global Group Company) with essential
operating data to assist it in the engineering of the Company's
commercial scale operation as well as providing mineral concentrate
feed for hydrometallurgical pilot testing at ANSTO.
Hydrometallurgy Pilot Plant
As part of the feasibility study, significant optimisation test
work has been successfully completed at ANSTO in Australia
resulting in an improved process compared to the pre-feasibility
study. Hydrometallurgical piloting will be completed at ANSTO
following completion of flotation piloting.
The majority of Songwe's rare earths are hosted within
fluorocarbonate minerals, which means that high capital and energy
intensive kilns will not be required during hydrometallurgical
processing, in contrast to projects dominated by monazite or other
refractory rare earths minerals.
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.
About Mkango
Mkango's corporate strategy is to develop new sustainable
primary and secondary sources of neodymium and praseodymium to
supply accelerating demand from electric vehicles, wind turbines
and other clean technologies.
Mkango is developing the 51% owned Songwe Hill rare earths
project in Malawi with the ongoing Feasibility Study funded through
a GBP12 million investment by strategic partner Talaxis Limited.
Malawi is known as "The Warm Heart of Africa", a stable
jurisdiction with existing road, rail and power infrastructure, and
new infrastructure developments underway. 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.
In parallel, through its 75.5% interest in Maginito Limited (
www.maginito.com ), Mkango is 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, and recently invested in
UK rare earth (NdFeB) magnet recycler, HyProMag Limited (
www.hypromag.com ).
Maginito's strategy is underpinned by offtake rights for
sustainably sourced primary and secondary raw materials from Songwe
and HyProMag, respectively, and is geared to accelerating growth in
the electric vehicle sector, wind power generation and other
industries driven by decarbonization of the economy.
Mkango also has an extensive exploration portfolio in Malawi,
including the recently announced Mchinji rutile discovery, for
which assay results are pending, in addition to the Thambani
uranium-tantalum-niobium-zircon project and Chimimbe nickel-cobalt
project.
For more information, please visit www.mkango.ca.
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. 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 for the metals
and associated downstream products for which Mkango is exploring,
researching and developing, results from the current pilot plant
studies, the results of the current exploration programme at
Mchinji, the development of a separation plant, the positive
results of a feasibility study on the 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.
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
Blytheweigh
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
UK: +44 20 7186 9004
Bacchus Capital Advisers
Strategic and Financial Adviser
Richard Allan
UK: +44 20 3848 1642
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