Mkango Renews Thambani Uranium Licences For Five Years In Malawi
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MKANGO RESOURCES LTD.
550 Burrard Street
Suite 2900
Vancouver
BC V6C 0A3
Canada
Mkango Renews Thambani Uranium Licences For Five Years In Malawi
Highlights
• Potential for uranium-tantalum-niobium (“U-Ta-Nb”) mineralisation along a strike length of
>3 kilometres (“km”)
• Assay results from 128 rock samples collected during the 2019/2020 exploration programme
returned uranium, tantalum and niobium values ranging up to 0.74% U 3O8, 0.41% Ta2O5 and
3.24% Nb2O5. Uranium and associated tantalum / niobium (U-Ta-Nb) mineralisation occurs in
nepheline syenite gneiss and associated veins
• Targeting potential shallow drill targets on the down -dip extension of surface prospects .
Property also has Zircon, columbite and corundum exploration potential
• Evaluating strategic options including opportunities for joint ventures and other potential
avenues to create value
• Well supported by existing infrastructure, including the Tete–Nacala railway which traverses
the licence, and connection to the national grid
London / Vancouver: November 11, 2021 - Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company"
or "Mkango") is pleased to announce that the Government of Malawi has renewed the Thambani
uranium, tantalum and niobium exploration licence and issued four retention licences
RTL0015/16/17/18/21 granted for five years from 20th October 2021 to 19th October 2026, covering a
total of 98.4 square km.
With the recent significant increase in international uranium prices, Mkango is currently reviewing
strategic exploration and development options, including opportunities for joint ventures and other
potential avenues to create further project value.
Thambani Project
The Thambani retention licences (“Thambani”) are located in the Sou thern Region of Malawi, within
the Mwanza District in the northern part of the licence and the Chikwawa District in the sou th – see
map at https://mkango.ca/projects/overview
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The licences are approximately 120 km west of Blantyre (capital of finance and commerce) which is
served by Chileka International Airport, and about 30 km from the large town of Mwanza, the
administrative headquarters of Mwanza District, which is located on the main road from Blantyre to
Tete in Mozambique. Thambani is the main trading centre within the licence. Secondary gravel roads
provide vehicle access from Mwanza town to the project area. The Thambani trading centre is
connected to the national high voltage electricity grid and is approximately 30 km from the new US$4
billion Tete–Nacala railway which transverses southern Malawi, passing through the southern part of
the retention licences.
Mkango's exploration activities to date have focussed on the Thambani Massif, a la rge body of
nepheline syenite gneiss which is expressed in two prominent ridges, the East and West Ridges,
respectively. Activities include acquisition of Landsat7 and ASTER satellite imagery for the licence area,
systematic ground radiometric surveys to confirm and detail known airborne anomalies,
reconnaissance geological mapping, trenching, and litho-geochemical sampling programmes. The work
has identified a number of pote ntial uranium and associated niobium -tantalum targets over the
Thambani Massif, and in nea rby areas such as the Little Ngona river between the ridges and near
Chikoleka village in the far north of the licence areas – see map at
https://mkango.ca/site/assets/files/4752/thambani_locations_map.jpg
Airborne radiometric and magnetic surveys
In 1984 and 1985 the Geological Survey Department of Malawi (“GSDM”) compiled and published total
field aeromagnetic survey data at 1:250,000, 1:100,000 and 1:50,000 scales covering the whole of
Malawi. The data were acquired by Hunting Geology and Geophysics Ltd (“Hunting”) under contract to
the United Nations (Proje ct MLW/ 80/030) and were obtained from fixed wing and helicopter
aeromagnetic surveys.
Country-wide radiometric data was also acquired by Hunting in 1984 and published by the GSDM as a
series of 1:250,000, 1:100,000 and 1:50,000 scaled maps. The maps show total counts, uranium,
potassium and thorium counts and ternary colour plots, available at 1:100,000 and 1:250,000 scales.
The Thambani area was one of six key areas subject to subsequent geological ground investigations and
considered to have potential for economic uranium mineralisation.
An airborne magnetic survey revealed a strong, thin anomaly along the crest of the East Ridge. A wider
magnetic anomaly occurs along the West Ridge. It appears that the radiometric uranium highs and the
magnetic highs occupy mutually exclusive zones:
Airborne radiometric survey (uranium) at https://mkango.ca/site/assets/files/4755/image007.jpg
Airborne magnetic survey at https://mkango.ca/site/assets/files/4755/image008.jpg
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Ground radiometric survey
A systematic ground radiometric survey completed by Mkango confirmed and detailed two distinct
uranium anomalies, occurring along the East Ridge and at the western foot of the West Ridge. A strong
uranium anomaly, measuring approximately 3 km by 1.5 km, occurs along the length of the Thambani
East ridge. A second uranium anomaly, measuring approximately 1.5 km by 0.4 km, occurs at the foot
of the West Ridge.
(see map at https://mkango.ca/site/assets/files/4752/thambani_locations_map.jpg)
Sampling programmes
In 2013, Mkango completed a sampling programme across the Thambani Massif primarily focused on
two sites of historical uranium exploration, known as the Chikoleka and Little Ngona targets. An initial
set of nine historical trenches, selected on the basis of anomalous ground radiometric result s, were
cleaned, re-examined and sampled across profiles from soil/overburden into bedrock. Some outcrop
was also sampled on the East Ridge.
In 2017, Mkango revisited the trenches at Little Ngona and Chikoleka and carried out new work on the
East Ridge and at the foot of the West Ridge. The main objectives of the programme were: to confirm
the grades of previously identified high grade mineralisation at the Little Ngona target; to ground-truth
new geophysical targets; and to complete further reconnaissance sampling along the East and West
Ridges.
In 2019/ 2020, Mkango carried out a lithogeochemical sampling program on outcrops within
radiometric anomalies on the East Ridge. The aims of the sampling were to better delineate the
mineralised zones and to localise future drill sites to test the downdip extension of surface
mineralisation. Field observations and assay results suggest that mineralisation occurs in zones that are
conformable with the gneissic banding; this indicates potential for U-Ta-Nb mineralisation along a strike
length of >3km. Ten new trenches were excavated in 2019, including a location at the foot of the West
Ridge where a small pit excavated in 2017 yielded the two highest-grading samples. The median values
in the table below show that grades in the fresh rock tend to be higher than in the weathered rock in
the trenches, suggesting extensive secondary remobilisation of the elements of interest. The scatterplot
of uranium versus niobium below, limited to 5,000 ppm U and 9,000 ppm Nb for clarity, confirms the
association between U and Nb-Ta and displays two trends; the steeper trend represents rock samples
while the other trend represents trench samples.
Summary of assay results (380 samples, grades in ppm)
from all Thambani sampling programmes
Rock grab samples
(127)
Trench samples (253)
U3O8 Ta2O5 Nb2O5 U3O8 Ta2O5 Nb2O5
Average 574 488 3,201 974 432 2,063
Median 364 292 1,422 98 75 557
Minimum 1 2 17 3 1 17
Maximum 8,826 4,191 32,401 50,656 19,029 60,055
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For greater detail of assay results, please see the tables and the maps beneath the tables at
https://mkango.ca/projects/exploration/thambani
Next steps
Mkango is currently e valuating strategic options including opportunities for joint ventures and other
potential avenues to add shareholder value to these prospects . The down -dip extension of surface
Uranium-Tantalum-Niobium mineralisation on the East Ridge is currently being investigated further to
locate targets that could potentially be drilled and tested from a series of collars sited downslope of the
mineralised surface zones.
Zircon is abundantly visible in the nepheline syenite gneiss and in weathered veins in the trenche s.
Large crystals of zircon commonly occur as float in the soils. Corundum and columbite occur in
pegmatite dykes in the north of the licence and also occur as float in the soils. Industrial corundum was
commercially mined in the area during the 1930/1940’s.
Scientific and technical information contained in this release has been approved and verified by Dr. Scott
Swinden of Swinden Geoscience Consultants Ltd, who is a “Qualified Person” in accordance with
National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
Sample preparation and analytical work was carried out by Intertek-Genalysis Laboratory Services
(Johannesburg, South Africa and Perth, Australia) employing a fusion method using a sodium peroxide
flux, with Inductively Coupled Plasma Mass Spectrometry (“ICP-MS”) and Inductively Coupled Plasma
Optical Emission Spectrometry (“ICP-OES”) finish, and following strict internal QAQC procedures
including the insertion of duplicates, blanks and certified standards. Mkango inserted standards and
blanks at a frequency of 1 in 20 (5%).
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Niobium (ppm)
Uranium (ppm)
Scatterplot of U versus Nb
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Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has
been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement via Regulatory Information Service ('RIS'), this inside information is now considered
to be in the public domain.
About Mkango Resources Limited
Mkango's corporate strategy is to develop new sustainable primary and secondary sources of
neodymium, praseodymium, dysprosium and terbium to supply accelerating demand from electric
vehicles, wind turbines and other clean technologies. This integrated Mine, Refine, Recycle strategy
differentiates Mkango from its peers, uniquely positioning the Company in the rare earths sector.
Mkango is developing the Songwe Hill rare earths project in Malawi with a Feasibility Study targeted
for completion in Q1 2022. Malawi is known as "The Warm Heart of Africa", a stable democracy with
existing road, rail and power infrastructure, and new infrastructure developments underway.
In parallel, Mkango recently announced that Mkango and Grupa Azoty PULAWY, Poland's leading
chemical company and the second largest manufacturer of nitrogen and compound fertilizers in the
European Union, have agreed to work together towards development of a rare earth Separation Plant
at Pulawy in Poland. The Separation Plant will process the purified mixed rare earth carbonate produced
at Songwe.
Through its ownership of Maginito (www.maginito.com), Mkango is also developing green technology
opportunities in the rare earths supply chain, encompassing neodymium (NdFeB) magnet recycling as
well as innovative rare earth alloy, magnet, and separation technologies. Maginito now holds a 41.6%
interest in UK rare earth (NdFeB) magnet recycler, HyProMag (www.hypromag.com) with an option to
increase its interest to 49%.
Mkango also has an extensive exploration portfolio in Malawi, including the Mchinji rutile discovery, in
addition to the Thambani uranium -tantalum-niobium-zircon project and Chimimbe nickel -cobalt
project.
For more information, please visit www.mkango.ca
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward -looking statements (within the meaning of that term under
applicable securities laws) with respect to Mkango, its business, HyProMag, the Separation Plant and
Songwe. Generally, forward looking statements can be identified by the use of words such as “plans”,
“expects” or “is expected to”, “scheduled”, “estimates” “intends ”, “anticipates”, “believes”, or
variations of such words and phrases, or statements that certain actions, events or results “can”, “may”,
“could”, “would”, “should”, “might” or “will”, occur or be achieved, or the negative connotations
thereof. Readers ar e cautioned not to place undue reliance on forward -looking statements, as there
can be no assurance that the plans, intentions or expectations upon which they are based will occur.
By their nature, forward-looking statements involve numerous assumptions, known and unknown risks
and uncertainties, both general and specific, that contribute to the possibility that the predictions,
forecasts, projections and other forward -looking statements will not occur, which may cause actual
performance and results in futu re periods to differ materially from any estimates or projections of
future performance or results expressed or implied by such forward -looking statements. Such factors
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and risks include, without limiting the foregoing, governmental action relating to COVI D-19, COVID-19
and other market effects on global demand and pricing for the metals and associated downstream
products for which Mkango is exploring, the results of any exploration activities at Thambani ,
researching and developing, factors relating the d evelopment of the Separation Plant, including the
outcome and timing of the completion of the feasibility studies, cost overruns, complexities in building
and operating the Separation Plant, changes in economics and government regulation, the positive
results of a feasibility study on Songwe Hill and delays in obtaining financing or governmental approvals
for, and the impact of environmental and other regulations relating to, Songwe Hill and the Separation
Plant as well as HyProMag being able to commercialise its recycling technologies. The forward-looking
statements contained in this news release are made as of the date of this news release. Except as
required by law, the Company disclaims any intention and assumes no obligation to update or r evise
any forward-looking statements, whether as a result of new information, future events or otherwise,
except as required by applicable law. Additionally, the Company undertakes no obligation to comment
on the expectations of, or statements made by, third parties in respect of the matters discussed above.
For further information on Mkango, please contact:
Mkango Resources Limited
William Dawes Alexander Lemon
Chief Executive Officer President
[email protected] [email protected]
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
Blytheweigh
Financial Public Relations
Tim Blythe
UK: +44 207 138 3204
SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker
Jeff Keating, Caroline Rowe
UK: +44 20 3470 0470
Alternative Resource Capital
Joint Broker
Alex Wood, Keith Dowsing
UK: +44 20 7186 9004/5
Bacchus Capital Advisers
Strategic and Financial Adviser
Richard Allan, Andrew Krelle
UK: +44 20 3848 1642 / +44 79 5636 2903
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accu racy of this
release.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any equity or
other securities of the Company in the United States. The securities of the Company will not be registered
under the United Sta tes Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be
offered or sold within the United States to, or for the account or benefit of, U.S. persons except in certain
transactions exempt from the registration requirements of the U.S. Securities Act.