Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Rainbow Rare Earths up as it initiates first drilling as Gakara ramp-up continues

With production ongoing and new funds in place following a recent financing, the next phase of work at Gakara is now getting underway
mounds of rare earths
Demand from electric vehicles could provide further support to the rare earths price

Rainbow Rare Earths Limited(LON: RBW) saw its sharesd gain today as it initiated a drill programme at its Gakara project in Burundi.

The aim of the drilling is to improve the geological understanding of the currently productive areas at Gakara and to explore geophysical anomalies identified by airborne surveys in November 2017.

READ: Rainbow Rare Earths ships first concentrate, becomes Africa's only producer

A yet to be geologically proven oval structure potentially 22 metres thick, 80 metres wide and 100 metres long will also be explored, following its identification by a ground gravity survey.

Should these drill results prove positive, a second phase of drilling will take place during the second and third quarters of 2018, with the aim of producing a JORC-compliant resource

Meanwhile, production continues. Following the announcement of the first shipment of concentrate on 5 December 2017, a further two shipments have now taken place. Production ramp-up has been proceeding according to plan, with the target of hitting a run rate of 5,000 tonnes per year by the end of 2018.

Gakara is one of the highest grade rare earth element mining projects globally, with an estimated in situ grade of 47-67% Total Rare Earth Oxide ('TREO'), and the only producing rare earths mine in Africa.

WATCH: Rainbow Rare Earths confirms significant exploration potential at Gakara

"2017 was a year of delivery for Rainbow which saw us hit all of our targets on budget and on schedule to become a high-grade concentrate producer at the only producing rare earths mine in Africa,” said chief executive Martin Eales.

“2018 is set to be a year of growth with commercial production and sales now underway. With the forecast demand in electric vehicles driving the growth for REEs and a strong cash balance following an oversubscribed institutional fundraising in December, we are in an excellent position to accelerate development at Gakara.” 

In late afternoon trading, Rainbow Raqre Earth shares were up 1.7%, or 0.25p at 14.75p.

 -- Adds share price --


View full RBW profile View Profile

Rainbow Rare Earths Limited Timeline

Related Articles

Graphite drill core samples at Caula Vanadium-Graphite Project
One of the highest-grade graphite deposits in the world with grades up to 28% total graphitic carbon.
May 29 2018
Kavango Resources is going big game hunting in Southern Botswana
Zinc in periodic table
April 17 2018
The report was prepared by CSA Global under contract to SLR Consulting Ireland ...

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use