TIDMRBW
RNS Number : 4359M
Rainbow Rare Earths Limited
30 April 2018
FOR IMMEDIATE RELEASE
30 April 2018
Rainbow Rare Earths Ltd ('Rainbow' or 'the Company') (LSE:
RBW)
Phase 1 Exploration Drilling Confirms Additional Rare Earth
Mineralisation
Rainbow, the Rare Earth Element ('REE') mining company, is
pleased to announce its first update from its maiden drilling
campaign at its Gakara Project in Burundi ('Gakara'). 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 to ramp up production to an
annualised rate of 5,000 tonnes per year (approximately 400 tonnes
per month) by the end of calendar year 2018.
Highlights
-- Kiyenzi target drill holes contain multiple intersections up
to 2 metres thick of breccia mineralisation, with initial testing
confirming the presence of multiple intersections of high grade
REE
-- Drilling of airborne magnetic anomaly targets now underway
with the results expected in June alongside laboratory sample test
results from Kiyenzi
-- Encouraged by Kiyenzi results, Rainbow will now proceed with
the Phase 2 exploration campaign with an aim of delivering a
code-compliant resource by the end of 2018
Martin Eales, CEO of Rainbow, said: "The majority of the drill
holes completed to date have been focused on just the first of five
targets at Kiyenzi and we are excited to have already discovered
new rare earth mineralisation, up to 2 metres thick in some cases.
The discovery of REE-mineralised breccias is significant as it
proves that the Gakara project has potential to include sizeable
deposits over and above existing well-known vein stockworks.
"The coming months are set to be highly active on the ground. In
conjunction with the on-going production and sales of high-grade
concentrate from the Gasagwe deposit, we will be completing the
Phase 1 targets over the coming weeks, and we are already planning
for and committed to Phase 2 of the drill programme with the target
of delivering a code-compliant resource estimate by the end of Q4
2018. I look forward to reporting the results of our exploration
efforts with a view to expanding on our current mining operations
at Gakara."
Phase 1 Drilling Campaign
As announced on 10 January 2018, Rainbow's Phase 1 drilling
campaign commenced in the first quarter of this year and targets a)
the current production site at Gasagwe, b) the Kiyenzi prospect,
where a high-priority gravity anomaly had been found, and c) a
number of anomalies revealed by the airborne magnetic survey flown
in Q4 2017. In line with its previously communicated update
schedule, Rainbow today announces the initial findings from Phase
1, together with the timeline to complete the current exercise, and
commits to Phase 2 in the second half of 2018, with the aim of
reaching a code-compliant mineral resource estimate by the end of
the year.
Gasagwe
A total of three diamond drill holes, for a combined 150m, were
completed at Gasagwe, Rainbow's current mining area, with the aim
of confirming the dip and extent of veins already exposed and mined
at surface. Results from these holes consolidated Rainbow's
knowledge of the Gasagwe pit and have been incorporated into the
mine plan for the coming months.
Kiyenzi
The Kiyenzi target was deemed to be the highest priority for the
Phase 1 drilling campaign based on both the identification of a
large gravity anomaly in 2017, and the discovery of a number of
high-grade boulders at surface towards the lower part of the hill,
which are indicative of erosion from in-situ REE sources.
Ten diamond drill holes were completed at Kiyenzi, a total which
was increased beyond the initial plan due to favourable results.
Five of the ten holes encountered REE mineralisation over multiple
intersections. Mineralisation was initially visually identified as
bastnaesite/monazite (the rare earth carrying minerals) and then
tested in the field with a hand held Niton XRF analyser. In a
number of intersections, testing was indicative of the high REE
grades Rainbow has discovered elsewhere at Gakara and consistent
with grades contained in the previously analysed Kiyenzi boulders.
Multiple core samples will now be laboratory tested to confirm the
precise nature of these intersections.
Unlike the cleaner veins currently being mined at Gasagwe, the
intersections revealed in the Kiyenzi drill core are 'breccias'
that vary in thickness from a few centimetres up to 2 metres. The
shallowest mineralised intersection was at just 2 metres below the
surface and the deepest at 32 metres. Due to the intrinsic
heterogeneous nature of breccias, the intersections may contain
lower global grades on a TREO basis per tonne of in situ rock than
a cleaner narrow vein; however, it is likely that, considering the
apparent sizeable widths of the intersections, this material will
be more amenable to mechanised extraction at greater volumes than
Gasagwe.
Discovery of a breccia formation is another strong geological
signal that Gakara's REE veins emanate from a carbonatite source or
complex, which is also the basis for targeting the magnetic
anomalies identified from the airborne survey.
Completion of Phase 1
Alongside the laboratory testing of approximately 100 samples of
Kiyenzi drill core, Rainbow now intends to complete the current
Phase 1 drilling campaign by moving the rig to drill the four
remaining airborne magnetic anomalies (which range from 300 metres
to 2,700 metres in diameter), which will be completed by the end of
June 2018.
Commitment to Phase 2 campaign
Rainbow is sufficiently encouraged by the results from Kiyenzi
to commit now to Phase 2 of the exploration campaign in H2 2018,
which will comprise approximately 750 metres of further core
drilling, focused on Kiyenzi. Should the mineralisation discovered
to date prove sufficiently consistent, Rainbow intends to model and
report a code-compliant resource in Q4 2018. The Phase 2 drilling
campaign will be complemented by further trenching and terracing at
Kiyenzi, particularly of the shallow intersections, together with
mineralogy and metallurgy testing of the breccia material.
**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
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Arden Partners plc Paul Shackleton Tel: +44 (0)
Benjamin Cryer 20 7614 5900
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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 and the only African producer.
The Company began production of rare earth concentrates in Q4
2017 and is currently ramping up to a targeted run rate of 5,000tpa
by the end of 2018 and 6,000tpa by the end of 2019. Rainbow has a
ten-year distribution and offtake agreement with multinational
thyssenkrupp Raw Materials secured for the sale of at least
5,000tpa 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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