Vast Resources PLC (LON:VAST) has reported a maiden JORC resource at the Nkombwa Hill phosphate and rare earths project in Zambia under its 2015 option deal with Kilimire International Limited (KLL).
The resource, based on 11 holes drilled by KLL, shows a total resource, including indicated and inferred categories, of 21.8 million tonnes at a grade of 7.06% phosphate and 1.17% total rare earth oxides at a phosphate cut-off grade of 3%.
At a total rare earth cut-off grade of 1%, that total resource comes in at 2.78 million tonnes at 2.76% total rare earth oxides and 6.43% phospate.
Significantly, the resource represents just 5% of 5% of the hill volume above the valley floor, said Vast, which highlights the potential for finding much more mineralisation.
The deal in 2015 stated that KLL would fund and manage a 36 month exploration programme and could earn up to 65% of the project on reaching certain milestones - one was a JORC resource. KLL's interest in the site now stands at 50.4%.
Vast chief executive Roy Pitchford told investors on Wednesday: "The earn-In will now progress to Phase 2 with KLL committing to spending a further $1,000,000 over the next 18 months in order to advance the project towards the feasibility stage.
"We hope that this next phase of work will deliver further attributable value to Nkombwa Hill as the Vast team remains focused on its revenue generative operations in Romania and Zimbabwe."
On Tuesday, Vast revealed it had struck a convertible loan deal for up to US$5mln with Bracknor Fund Limited, providing it with sufficient cash to advance its resource assets in Romania and Zimbabwe.
Vast shares lost 14.06% to 0.275p.