Lindian Resources has officially wrapped up its 4000m mine development drilling at its Kangankunde rare earths project in Malawi as it aims to define its resource at the operation into the indicated category.
Assay results are expected to arrive in early December with a 400m geotechnical drill campaign to assess the geological characteristics – specifically ‘rock mechanics’ - and ground stability, which is scheduled to start and finish next month.
Management says a resource model update with a detailed mine design and schedule is anticipated to be completed by early next year in addition to a feasibility study. Civil works have been issued for tender and an award of contracts is expected shortly.
In August, the company revealed its maiden mineral resource estimate for Kangankunde, outlining 261 million tonnes at an impressive grade of 2.19 per cent total rare earth oxide (TREO). The current mineral resource shows 5.7 million tonnes of contained TREO in the inferred category. An estimated 1.2 million tonnes contains the critical neodymium-praseodymium (Nd-Pr) elements, for an average content amounting to about 21 per cent of the overall resource estimate.
The company has since highlighted a lower-end exploration target of 400 million tonnes at 2 per cent TREO, with an upper range figure at a whopping 800 million tonnes grading 2.7 per cent TREO for its central carbonatite prospect.
Lindian is making great progress advancing Kangankunde into development and we are committed to commissioning our low capex Stage 1 plant by late 2024 that will produce rare earths concentrate for sale to our first off-taker and to other industry participants seeking our product. Lindian Resources chief executive officer Alistair Stephens
Management says the new target has been considered following the successful phase-two deep drilling program that showed the continuity of high-grade rare earths mineralisation up to 800m beneath the limits of the mineral resource estimate. The deep drilling program threw up some impressive figures, with an 853.6m hit grading 2.73 per cent TREO from 52m and 1000m grading 2.6 per cent TREO, including 805.26m going 2.9 per cent TREO from 152.85m.
Last month, the Australian Nuclear Science and Technology Organisation (ANSTO) confirmed Kangankunde rare earths mineral concentrates, which have been produced at 66 per cent TREO, are not classified as radioactive, meaning the company can avoid what would otherwise be complicated and costly transport requirements.
The Malawian deposit is now considered one of the world’s major rare earths operations outside China and Lindian is currently in a highly favourable financial position, providing the company with the essential flexibility to expedite various project development activities. That includes the engineering and construction of its stage-one processing plant, with the goal of starting operations by the end of the next calendar year.
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