Rainbow Rare Earths Limited (LON:RBW) shares were brighter on Wednesday as drilling at the Kiyenzi area of its Gakara project in Burundi unveiled “greater widths of mineralisation” than initially expected.
The mining firm said the observations have been made by analysing two drill holes from a total of 30 from a drilling campaign conducted in the second half of 2018. Results from six more holes have also been received, totalling 200 metres.
Rainbow said a number of sections of the analysed drill holes had shown grades of total rare earth oxides (TREO) of over 3%, with some intersections averaging as high as 6.06%.
“These results continue to confirm our belief that the mineralisation at Kiyenzi extends far beyond the localised narrow high grade intersections first viewed”, said Rainbow chief executive George Bennett.
He added that the initial results supported the company’s hypothesis that “the Kiyenzi deposit should support a large portion of the first phase of [the company’s] expansion target, being the production of 10,000 tonnes per annum of concentrate for at least 10 years."
The shares were 9.1% higher at 3p in mid-morning trading.
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