The wait is finally over for Lindian Resources as its maiden exploration campaign at the company’s Kangankunde rare earths project in Malawi kicks off marking the first drilling program at the site this century.
The explorer has begun phase 1 of its 12,500m resource definition drilling program including 10,000m of RC drilling and a further 2500m of diamond drilling to test mineralisation to a depth of 300m. The 44-hole campaign will include two RC rigs and one diamond drill rig with first assays expected within six to eight weeks.
Phase 2 drilling will consist of two additional deep 1000m drill holes to test the extent and tenor of mineralisation from 300m down to 800 metres and will begin when phase 1 drilling is completed.
Lindian says the current drill campaign will underpin metallurgical and geotechnical works in addition to a feasibility study and mineral resource statement that is expected in the near future.
Lindian Resources Chief Executive Officer, Alistair Stephens said: “This is the first drill program at Kangankunde since the 1990s. It will form the basis toward a Mineral Resource Estimate under the 2012 JORC code, or at a minimum, an exploration target. A steady stream of news in the form of assay results, metallurgical test work results, additional exploration targets, and potentially an MRE, represent multiple value drivers for shareholders.”
Kangankunde is considered one of the world’s largest rare earths operations outside of China and hosts an outdated resource that requires updating and confirming of 2.53 million tonnes grading 4.24 per cent rare earths oxide and containing 107,000 tonnes of rare earths oxide when using a cut-off grade of 3.5 per cent. It is a carbonatite-hosted system with mineralisation exposed at the surface and open at depth with grades of up to 23.7 per cent total rare earth oxides.
The company recently received preliminary assays from a single batch of isolated rock chip samples of mineralised rock at Kangankunde. Early results show a monazite content of 5.6 per cent and a total rare earths oxide content of 2.6 per cent.
Just last month Lindian secured the green light to acquire the site’s owner Rift Valley Resource Developments. Shareholders unanimously voted in favour of the purchase after Lindian made its first tranche payment in its bid to acquire Rift Valley earlier this year. The US$2.5 million sum was the first of four payments equalling US$30m in total, with the remaining US$27.5 million payable in three tranches within 48 months from July this year.
Lindian has spent a lot of time gaining local approval for Kangankunde including meeting with government representatives to confirm support for the acquisition and development of the project.
With the company’s maiden drill program now underway, the market might be keeping one eye on what Lindian can unearth at its Malawi rare earths operation.
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By Matt Birney
