TIDMRBW
RNS Number : 2756X
Rainbow Rare Earths Limited
23 November 2017
FOR IMMEDIATE RELEASE
23 November 2017
Rainbow Rare Earths Ltd ('Rainbow' or 'the Company') (LSE:
RBW)
Significant Exploration Upside at Gakara Confirmed by Airborne
Magnetic Survey
Rainbow, the rare earth element mining company, is pleased to
announce an update on its Gakara Rare Earth Project ('Gakara') in
Burundi, where first production and sales of rare earth concentrate
are on schedule for Q4 2017. Gakara is one of the highest grade
rare earth element mining projects globally, with an estimated in
situ grade of 47-67% Total Rare Earth Oxide ('TREO'), and the
Company is targeting a production rate of 5,000tpa by the end of
2018. To view the announcement with the illustrative maps please
click on the following link:
http://www.rns-pdf.londonstockexchange.com/rns/2756X_-2017-11-22.pdf
Highlights
-- Completion of airborne magnetic survey suggests at least four
large and highly prospective anomalies for a carbonatite source for
Gakara's rare earth veins providing significant exploration upside
potential
-- The anomalies range in diameter from 300m to 2,700m and have
modelled starting depths of 20m to 67m
-- Consistent with Rainbow's long-term strategy these anomalies
present the targets for the Company's first ever drill programme
when cashflows from operations allow
-- Rainbow is on schedule to make first shipment of rare earth
concentrate before the end of 2017 through distribution and offtake
agreement with multinational thyssenkrupp Raw Materials
Martin Eales, CEO of Rainbow, commented: "With the first
shipment of Gakara concentrate imminent, we are encouraged by the
identification of at least four highly prospective anomalies which
could directly enhance the longer-term production profile of this
project. We have believed for some time that the high-grade Gakara
veins must have emanated from a substantial carbonatite source and
through our recent work we have established some extremely positive
indicators for the locations of what may be multiple carbonatites
within our licence area that will be a key focus for our near-term
exploration campaign."
Exploration Update
The Gakara deposit is made of a system of high grade veins,
described as "stockworks", with the veins typically varying in
thickness from a few centimetres to up to 50 centimetres. Field
observations have also shown that these veins pinch and swell,
laterally and vertically, and that they can be continuous over tens
of metres.
Most scientific studies postulate that the Gakara rare earth
mineralisation is associated with late-stage hydrothermal fluid
phases expelled from carbonatite magmas into the earth's crust and
therefore, the genetic parent rock of the veins could be a large
carbonatite intrusion in the form of pipe or several pipes, similar
to kimberlite pipes that typically host diamonds.
Rainbow commissioned a helicopter-borne magnetic and radiometric
survey, which was flown by New Resolution Airborne Geophysics (Pty)
Ltd in the first half of October 2017 over the entire Gakara
exploration licence, which covers approximately 135km(2). The
flight lines were East-West oriented with 50m spacing between the
lines and covered a total of 2,969 line-km. A survey altitude of
20-30m above topography was employed.
From the initial interpretation of the magnetic data, four
conspicuous magnetic anomalies have been selected to date, although
this figure may increase as the data is analysed further. These
targets, which are indicative of large intrusions at depth, appear
to be structurally controlled and vary in size from 300m to 2,700m
in diameter (See Table below). The depth estimates to the top of
the bodies vary from 20m to 67m.
Target name Shape Modelled Depth Size Surface geology
------------- ----------- --------------- ------------- ----------------------------------------------------------
GAK_AN01 Ellipsoid 67m 500x800m Gneiss
------------- ----------- --------------- ------------- ----------------------------------------------------------
GAK_AN05 Ellipsoid 20m 300x500m Gneiss, mafics, pegmatites
------------- ----------- --------------- ------------- ----------------------------------------------------------
GAK_AN06 Ellipsoid 20m 350x450m Gneiss, mafics, pegmatites
------------- ----------- --------------- ------------- ----------------------------------------------------------
GAK_AN09 Circular 65m 2,700-3,000m Gneiss dominates in the eastern half, mafics intruding
gneiss in the western half and micaschist
in a north-south band in the centre
------------- ----------- --------------- ------------- ----------------------------------------------------------
Each of the anomalies is close to major geological structures
(see Figure 2 below) and is also either proximate to, or
encompasses some of Rainbow's existing rare earth prospects where
high grade veins have been discovered.
These targets further complement a ground based gravity survey
at the Company's Kiyenzi prospect completed earlier this year.
Kiyenzi was selected for investigation due to the presence of large
boulders at surface containing very high grade rare earth material.
Results of this gravity survey suggest the presence of a further
anomaly, which has been modelled as a sill-like oval structure
potentially 22m thick and 80mx100m in size.
Rainbow's exploration strategy has focused to date on extending
the Company's understanding of the deposit, both in advancing near
term new mining areas to augment initial operations at Gasagwe and
to seek the possible carbonatite source or sources for Gakara's
extensive vein stockworks. The results from the recent airborne
survey and the Kiyenzi gravity survey supply Rainbow with ready
made, large and highly prospective targets warranting further
investigation through a drilling campaign when cashflows from
operations allow.
In addition, the airborne survey has provided Rainbow with a
detailed geological and structural map of the entire exploration
licence, showing previously unmapped lithological domains and
better delineating reported geological formations; and also
comprehensive data to assist decision making around the scheduled
expiration of the Company's Exploration Licence area in 2018.
Operations Update
Since its IPO in January 2017 Rainbow has targeted first
production and sales of its mineral concentrate before the end of
the calendar year. The Company has made excellent progress towards
final completion and commissioning of its processing plant at
Kabezi and the target of first shipment this quarter remains on
track. The Company has been working closely with various agencies
of the Government of Burundi to ensure that the exportation process
for Rainbow mineral concentrate takes place efficiently.
**ENDS**
For further information, please contact:
Rainbow Rare Earths Martin Eales Tel: +44 (0)
Ltd 20 3910 4550
-------------------- -------------------- --------------
St Brides Partners Lottie Wadham Tel: +44 (0)
Ltd Susie Geliher 20 7236 1177
-------------------- -------------------- --------------
Arden Partners plc William Vandyk Tel: +44 (0)
Benjamin Cryer 20 7614 5900
-------------------- -------------------- --------------
Hannam & Partners Neil Passmore Tel: +44 (0)
(Advisory) LLP Ben Newman-Sanders 20 7907 8500
-------------------- -------------------- --------------
Notes to Editors:
Rainbow's focus is the Gakara Project in Burundi, one of the
highest-grade (47%-67% Total Rare Earth Oxide) rare earths projects
globally. The Company has raised US$8 million to fast-track the
fully permitted Gakara Project to production ahead of targeted
first sales of concentrate by the end of 2017. Rainbow has a
ten-year distribution and offtake agreement with multinational
thyssenkrupp Raw Materials secured for the sale of at least 5,000
tpa of concentrate produced. The Gakara basket is weighted heavily
towards the magnet rare earths, including neodymium and
praseodymium, which are driving demand and account for 70% of
annual global REE sales due to their use in vital components in
motors, generators, wind turbines, and electric vehicles.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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