Pensana Rare Earths*
Pensana reports further positive drill results at Longonjo
KEY FACTS: Pensana Rare Earths (LSE:PRE.L, ASX:PM8) has today released positive initial assay results from a further 34 holes of the 8,000m drill programme recently completed at the Longonjo rare earths (NdPr) project in Angola. The exploration is in support of a Bankable Feasibility Study (BFS) under way and confirms particularly high-grade intersections from surface in the proposed initial mining area.
The infill drilling has confirmed a grade of +6% rare earth oxide (REO) in the surface weathered zone mineralisation. This includes new zones of high-grade mineralisation. This area of mineralisation remains open to the north and east. The company expects to upgrade the mineral resource to ‘Measured’ in this area for inclusion in a 15-20 year mine plan. An updated Mineral Resource estimate will be reported in the current quarter once all remaining assay results have been received.
Meanwhile, the first systematic drill testing of the potential immediately below the weathered zone mineralisation has returned wide intersections of 2.5% to 3% REO. These grades are very encouraging and add a second dimension to the Longonjo project beyond the initial 15-20 year mine life. The mineralisation remains open below the 80m drill depth.
COMMENT: These drill results further confirm the continuous and consistent nature of this weathered blanket style of mineralisation from surface and continue to suggest the potential of a world-class rare earths mine.
The continuity of mineralisation from surface demonstrated by the infill drilling is expected to enable much of this area of Inferred Mineral Resource estimate for the weathered zone mineralisation to be upgraded to Measured JORC category and extend the planned open pit to the west. This is expected to be completed before the end of September and lead to an increase of the current mine life of nine years as indicated by the November 2019 PFS to 15-20 years.
Furthermore, the thick mineralised intersections in the drill results from the unweathered rock beneath the existing resources offers the potential to exploit this area at a later stage of operation.
We published a detailed note on Pensana’s rare earths project on 13 September 2019 and a follow up report on its PFS on 19 November 2019.