Mkango Resources jumps on early drill success at flagship Malawi project (MKA)

21 Aug 2018 | by: Patricia Miller

Rare earth elements firm Mkango Resources (LSE:MKA) shot up 10.3pc to 9.1p this morning after revealing across-the-board success in the first wave of test drilling at its Songwe project in Malawi. The first eight holes of its targeted 10,000m diamond drilling programme at the project all intersected rare earth mineralisation.

The firm said that intersections of broad zones of mineralisation, as opposed to narrow veins or dykes, continue to support the concept of a bulk tonnage, open pit mining operation with low mining costs. The drilling programme is a critical component of an ongoing feasibility study at Songwe and is focused on infill drilling to confirm and upgrade the existing inferred mineral resource estimates.

Mkango owns an 80pc stake in Songwe, which features carbonatite-hosted rare earth mineralisation and was subject to previous exploration in the late 1980s. The programme and a planned resource update are fully funded following investments by Talaxis Limited totalling £6 million in January 2018. Talaxis will invest a further £7 million to fund completion of the Feasibility Study for Songwe on Mkango, publishing an NI 43-101 technical report about the resource update.

As of 20 August, a total of 8,466m of drilling, comprising 70 drill holes, had been completed at Songwe. William Dawes, chief executive officer, said: ‘These are an excellent first set of results from the current programme and we look forward to announcing results from the remaining approximately 75 drill holes as they become available.

Author: Daniel Flynn

Disclosure: The author does not own shares in the company mentioned in this article, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

    More News & Analysis

    Top Consumer Staples stocks to consider

    The Consumer Staples sector can be a resilient place to choose stocks. here are some stocks to keep your eye on based on momentum, growth and value.