African Mining May - June 2019 | Page 6

Exploration Southern Africa Mkango feasibility funded Location: Malawi Resources: Rare earth elements Technology-focused company Talaxis has invested GBP7-million in Lancaster Exploration, the company who holds the exploration license at the Songwe Hill rare earths project in Malawi. This investment will increase Talaxis’ equity interest in Lancaster from 20% to 49%. Canadian company Mkango Resources is the majority shareholder at Songwe Hill (51%). The investment by Talaxis will fund completion of the feasibility study for Songwe, which is currently under way and expected to be completed in 2020. The updated resource in the technical report will form the basis for the feasibility study. Following completion of the feasibility study, Talaxis has an option to acquire a further 26% interest in Songwe by arranging financing for project development, including funding the equity component thereof. According to William Dawes, CEO at Mkango, the company is uniquely positioned in the rare earths sector. “Mkango has an advanced-stage rare earths project in a favourable jurisdiction and a strong strategic partnership with Talaxis, providing the financial means and network of relationships throughout Asia and elsewhere to deliver a successful project,” says Dawes. Daniel Mamadou, director of Talaxis and co-head of Technology Metals at the Noble Group, says rare earths play a core role in the company’s portfolio of technology metals. “High-performance electric motors and permanent magnet applications drive the demand for neodymium and praseodymium, making these elements key enablers of electric vehicle policies globally. West Africa Hummingbird looks for more potential Location: Mali Resources: Gold London-listed Hummingbird Resources has completed a third set of exploration drilling at the Yanfolila gold mine in Mali. The focus of the drilling programme was to convert resources to reserves and to possibly extend the life of mine. The drilling campaign focused largely on resource definition at the Gonka deposit, with further follow-up drilling at Komana West. According to Murray Paterson, chief geologist at Hummingbird, the latest results demonstrate more high- grade potential and continued exploration potential at depth. Late last year, Hummingbird announced a set of high-grade results, including an intercept of 15m at 16.03 grams per tonne (g/t). 4 AFRICAN MINING MAY - JUNE 2019 Mkango’s exploration camp at Songwe Hill. “The results of the drill campaign at Songwe are encouraging and point towards the potential of creating a world-class asset. We are pleased to extend our strategic partnership with Mkango and to increase our investment in Songwe, which is one of the few advanced-stage rare earths projects currently. We look forward to collaborating with Mkango to ensure this project is developed to its full potential,” says Mamadou. Songwe Hill features carbonatite-hosted rare earth mineralisation and was subject to previous exploration in the late 1980s. Mkango completed an updated pre-feasibility study for the project in November 2015, and a feasibility study is currently under way, the initial phases of which included a 10 900m drilling programme and updated mineral resource estimate. The main exploration targets in Mkango’s remaining two 100% held licences are, in the Thambani licence, uranium, niobium, tantalum, and zircon and, in the Chimimbe Hill licence, nickel and cobalt. b The Gonka deposit is 5km from the processing plant, making it suitable to be included in the current mine plan. The deposit is fully permitted and within the mining license, which will allow mining to start immediately, once the resource modelling and mine planning are completed. “Following the conclusion of the drilling programme at Gonka, we have moved to the resource modelling phase as we look to publish a new and updated mineral resource for Gonka and the open pitable reserves. After this is completed, the company plans to release a new life of mine plan at Yanfolila,” explains Paterson. “Our exploration team is reviewing the Gonka drilling data and is planning ahead for the coming 2019 drilling programme, which will target the down dip extensions to Gonka to expand the resource and reserves. A thorough review of the database to identify new greenfield targets is also under way and this is expected to yield high- priority targets to drill test outside the current seven deposits that have resources associated with them,” says Paterson. b www.africanmining.co.za