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Rainbow Rare Earths - Further Drilling Data from Kiyenzi

RNS Number : 2389X
Rainbow Rare Earths Limited
18 December 2019
 

 

18 December 2019

Rainbow Rare Earths Limited

("Rainbow" or the "Company")

(LSE: RBW)

 

Further Drilling Data from Kiyenzi

Rainbow Rare Earths Ltd, the Rare Earth Element ("REE") mining company, is pleased to provide an update on its exploration and mine development programme.

Highlights

- Test results from 6 additional drill holes now received - 8 out of the 30 holes drilled at Kiyenzi are now analysed, a total of 200m of drilling

- All drill holes confirm mineralisation from shallow depths - a number of sections showing grades in excess of 3% TREO ("Total Rare Earth Oxides")

- Intersections totalling 42.5m across 7 of the holes averaged 6.06% TREO

 

On 25 November 2019, the Company announced details of the first two drill holes (GAK_DD_29 and 31) from the drilling campaign undertaken in the second half of 2018 at Kiyenzi, within the Gakara mining permit area.

A total of 30 diamond core drill holes were completed, and the Company is currently in the process of analysing all of these holes. Based on initial observation, these drill holes are believed to contain greater widths of mineralisation than initial expectations.

Results of a further 6 holes have now been received, meaning 8 out of the original 30 drill holes have now been fully analysed, totalling 200m.

All holes analysed show mineralisation throughout. In addition, a number of intersections have been shown to have higher grades as per the table below:

Hole No.

From

To

Length

%TREO

TOTAL

%TREO

m

m

m

m

13

2.61

5.99

3.38

1.45

5.41

7.04

23.05

25.08

2.03

16.36

19

0

2.50

2.50

6.66

2.50

6.66

20

0.00

3.70

3.70

4.86

6.41

9.70

10.74

13.45

2.71

16.31

24

10.00

11.80

1.80

10.93

1.80

10.93

27

33.7

34.6

0.9

9.91

0.9

9.91

29

17.7

22.75

5.05

4.77

13.87

4.85

29.5

38.32

8.82

4.89

31

30.65

32.02

1.37

10.66

11.64

3.86

34.83

39.45

4.62

3.01

42.65

48.30

5.65

2.91

 

 

These intersections total 42.5m out of the 200m analysed so far, and average 6.06% TREO, all at relatively shallow depths (less than 50m).

All drill holes were inclined at 50 to 60 degrees with holes orientated in 4 main and perpendicular directions which endeavoured to map the mineralised bodies (veins and breccias) at depth, while also attempting at intersecting such bodies perpendicularly to interpreted orientations. The quoted mineralisation widths may be considered an estimate of true thickness.

Commenting on the results, Rainbow CEO George Bennett said: "These results continue to confirm our belief that the mineralisation at Kiyenzi extends far beyond the localised narrow high grade intersections first viewed, and support our hypothesis that the Kiyenzi deposit should support a large portion of the first phase of our expansion target, being the production of 10,000 tonnes per annum of concentrate for at least 10 years."

**ENDS**

For further information, please contact

Rainbow Rare Earths Ltd

Company

George Bennett

Jim Wynn

+27 82 652 8526

+44 (0) 20 3910 4551

 

SP Angel Corporate Finance LLP

Joint Broker

Ewan Leggat

Charlie Bouverat

+44 (0) 20 3470 0470

Turner Pope Investments

Joint Broker

Andy Thacker

Zoe Alexander

+44 (0) 20 3657 0050

 

Notes to Editors:

Rainbow's focus is the Gakara Project in Burundi, one of the highest-grade (47%-67% Total Rare Earth Oxide) rare earths projects globally and the only African producer.

 

The Company began production of rare earth concentrates in Q4 2017 and has a ten-year distribution and offtake agreement with multinational ThyssenKrupp Materials Trading secured for the sale of at least 5,000tpa of concentrate produced.

 

The Gakara basket is weighted heavily towards the magnet rare earths, including neodymium and praseodymium, which are driving demand and account for 70% of annual global REE sales due to their use in vital components in motors, generators, wind turbines, and electric vehicles.


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