Pensana PLC (LSE:PRE, OTC:PNSPF) opened Monday's trading sharply higher after it announced a new drilling and metallurgical testwork programme at its Longonjo rare-earth project in Angola
Its goal is to increase the project's current 313-million-tonne Mineral Resource Estimate to more than one billion tonnes, the company said in its statement.
The Longonjo deposit contains shallow, NdPr-rich rare-earth oxides with mineralisation extending well beyond 100 metres. The company plans a 25,000-metre vertical core drilling programme designed to expand the JORC-compliant resource at a similar grade.
“We are very confident that this programme will rapidly deliver a substantial increase to our already world-class resource inventory,” chair Paul Atherley said.
Atherley, meanwhile, noted that China’s recent efforts to expand rare-earth processing in Inner Mongolia underscore the need for large, integrated supply chains.
Pensana plans to start the programme early next year, with results released as available.
It added that Longonjo benefits from major investment in transport and energy infrastructure along the Lobito Corridor, positioning the project to scale production for US and allied markets.
The company said the programme supports its partnership with eVAC to supply a new magnet facility in South Carolina.
Pensana shares jumped to an early high of 108p on Monday, and at around 97.4p were up just over 2% as the morning progressed.