Kendrick Resources PLC (LSE:KEN) shares climbed, up 15% to 8.58p, after it announced new drilling at its Teufelskuppe rare earth project in Namibia has strengthened the case for a large-scale, high-grade development as it pushes the asset toward a maiden JORC resource.
The company, which holds a 70% earn-in interest in the project through an agreement with Bonya Exploration Pty Namibia, said a new 112-metre diamond drill hole at TK2 returned a weighted mean grade of 3.03 wt% total rare earth oxides, or TREO.
The result included more than 17 metres above 4.0 wt% TREO from pXRF analysis, while surface sampling across TK1 to TK7 confirmed an average TREO grade of 3.12 wt% from 295 samples. A peak surface grade of 4.79 wt% was recorded at TK1A.
Kendrick said neodymium and praseodymium, two higher-value rare earth elements used in permanent magnets and other strategic technologies, make up around 25% of the TREO basket.
Chairman Colin Bird said the latest results provided “more verification” that the large surface expressions at TK contain similar grades, supporting the company’s view of continuity across the complex.
Development work is being accelerated, with Kendrick working toward maiden JORC 2012 mineral resource estimates for both Teufelskuppe and Kieshöhe, alongside preliminary economic assessments and a potential decision to mine.