Mkango Resources’ (CVE:MKA) newly enhanced Songwe Hill rare earth project is progressing on track, says chief executive Will Dawes.
Having revealed the findings of successful leach optimisation tests this week, Dawes has told Proactive Investors he is confident that the pre-feasibility study is on track to hit the targeted deadline in the first quarter of next year.
The optimisation tests on Songwe ore have yielded good recoveries under straightforward processing.
Dawes explains that this work has provided a good understanding of the project’s ‘mineralogy’ – basically, knowing the composition of the rocks that host the minerals and thus understanding the most effective way to recover them.
“It is mineralogy that really drives a competitive rare earth project,” Dawes said.
“The easier the mineralogy, the easier it is to process and the more cost effective and less capital intensive it is. Our mineralogy is well understood.
“It is easy to leach, it is not high temperature and we won’t have to crack the minerals. It should make the processing easier and more capital efficient. So, it is good news.”
“The recoveries we are getting - considering the leach times, acid strength and temperature – we think are really good.”
More than 80% of rare earths were recovered, while recoveries of ‘critical’ rare earths to the leach solution ranged from 86% to 93%.
Importantly, the tests indicate low temperature leaching is possible, therefore high capital and energy intensive methods will not be necessary. Leaching with low strength acid will also be possible, thus saving certain infrastructure and processing costs.
Next, Mkango will carry out more optimisation work so that samples can be created for marketing purposes. Thus far it is indicated that two potential concentrate products are possible: a high grade mixed rare earth product and a ‘heavy’ rare earth enriched product.
Dawes has also revealed that Mkango is currently advancing talks with groups that may potentially be interested in off-take deals for the proposed concentrates.
Mkango is making good progress on the pre-feasibility study (PFS), and the bulk of the study is on track to be completed in early 2014.
The completion of the PFS is expected to be the company’s next big milestone. Dawes is keen to stress, however, that the study will in reality represent just a starting point for the mine.