Lindian Resources is gaining momentum as it moves into the development stage of its Kangankunde rare earths project in Malawi following successful meetings with government officials and local stakeholders.
Over the past week Lindian management has met with government representatives with the company saying the Malawi Ministry for Mining has confirmed its support for the acquisition and development of the project.
Earlier this month Lindian made its first tranche payment to acquire current site owner Rift Valley Resource Developments.
Whilst the deal is subject to shareholder approval, the US$2.5 million payment is the first of four totalling US$30m, with the remaining US$27.5 million payable in three tranches within 48 months from the start of this month.
Management has also conducted a site visit to Kangankunde ahead of the start of the first works program with the company saying it has identified extensive surface mineralisation, particularly near the hilltop area where samples have been taken.
Planning is now underway for the first phase of exploration and project development works including Lindian’s maiden phase drill program.
Lindian Resources Chief Executive Officer, Alistair Stephens said: “I started this role stating that Kangankunde is the worlds’ best undeveloped rare earths project. It is now becoming the worlds’ best developing rare earth project.”
Kangankunde is considered one of the world’s largest rare earths operations outside of China and hosts an outdated resource of 2.53 million tonnes grading 4.24 per cent rare earths oxide and containing 107,000 tonnes of rare earths oxide when using a cut-off grade of 3.5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.
Lindian management has also met with the local area authorities in the township of Balaka, 14km north-east of Kangankunde, to introduce the company’s development program.
The company says a full meeting of relevant delegates representing all aspects of local district development programs would be arranged in mid to late September.
Following further introductory meetings with key stakeholders, including traditional authority and local area chiefs, Lindian says it is committed to development of the project as soon as is practical with full consideration of community development.
The company says management is planning to return to Malawi in late September to present to the full committee of the Balaka District Development Committees plans to conduct a site aerial topographic survey, re-establishing site access tracks, establishing drill pads in addition to a drill program set for this year.
The Kangankunde deposit is a carbonatite-hosted system with mineralisation exposed at the surface and open at depth.
The ratio of neodymium and praseodymium in the total concentrate produced from the project is about 19 per cent with a mining licence already granted for the site.
The company says neodymium and praseodymium have become increasingly valuable since the project’s economics were last independently evaluated more than 10 years ago.
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By Matt Birney
