Monday, 9 July 2012

Mkango Resources sees more broad zones of rare earth mineralization at Songwe, with grades of 1.4% TREO over more than 332 metres

Mkango Resources (CVE:MKA) unveiled Monday drill results from a stage 2 program at its Songwe rare earth project in Malawi.
Highlights of the five near-surface holes announced today include 15.3 metres of 1.9% total rare earth oxides (TREO) including yttrium, and 58.4 metres of 1.6% TREO in hole PXO17b, including 20.5 metres grading 2.0% TREO.

Hole PX019 returned 70.2 metres grading 1.1% TREO, and hole PX020 intersected 95.8 metres of 1.7% TREO, 48.0 metres of 1.5% TREO and 132 metres grading 1.3% TREO.

A total of 38 holes were completed in stages 1 and 2 for a total of roughly 6,850 metres, the company said in a statement. The results for the remaining 10 holes from stage 2 drilling will be released as soon as they are available.

Other notable results announced today include hole PXO21, which hit 100.8 metres grading 1.7% TREO, 54 metres of 1.6% TREO and 26.5 metres grading 1.4% TREO.

In addition, hole PX022b returned a whopping 332.7 metres of 1.4% TREO, including 82.5 metres grading 1.6% TREO and 27.0 metres at 1.8% TREO.

The company said that once all assay results are received, South Africa-based MSA Group will start an NI 43-101 compliant resource estimate on the project.

All holes so far from the stage 2 program have intersected broad zones of rare earth mineralization, Mkango noted, including zones of "elevated heavy rare earth enrichment."

The consistency of results to date is also "very encouraging", the junior miner added.

At Songwe, rare earth mineralization occurs at surface in broad outcropping zones of carbonatite on the northern slopes of Songwe hill and extends to a vertical depth of at least 350 metres.

Mineralization is open to depth and along strike, the company said, and there are known areas of additional carbonatite exposure within the Songwe vent system - meaning further exploration upside potential.
The project is also in an area of southern Malawi that is in the midst of ongoing rail, road and other infrastructure developments.        

The Songwe Hill rare earth project is located within the 100 per cent owned Phalombe prospecting licence covering an area of 1,283 square kilometres in southeast Malawi. It is accessible by road from Zomba, the former capital, and Blantyre, the principal commercial town of Malawi.

Last month, the company also announced drill results from its stage 2 program, including hole PX006, which encountered 1.7% TREO over 30.4 metres on a vertical hole that tested an area to the west of main carbonatite zone.

Mkango says heavy rare earths together with yttrium comprise about 7-8 per cent of the total rare earths at Songwe but the value contribution is much higher.
The main rare earths it is targeting are neodymium, dysprosium, europium, terbium and yttrium, which it believes have the best long term outlook.
These metals are used to produce powerful magnets, a market forecast to experience high demand growth in coming years as iPads, hybrid cars, and other high tech products rely on these these rare earth elements.

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