Rainbow Rare Earths Ltd (LON:RBW) has hit multiple intersections of mineralisation of up to two metres thick in ongoing drilling at the Kiyenzi target on the Gakara rare earths project in Burundi.
Initial testing has confirmed the presence of high grade rare earth elements.
WATCH: Rainbow Rare Earths on track to ramp up following first full quarter of production
The drilling of targets identified by airborne magnetic survey is now underway with the results expected in June alongside laboratory sample test results the first round of drilling at Kiyenzi.
Rainbow will now proceed with the Phase 2 exploration campaign with an aim of delivering a code-compliant resource by the end of 2018.
"The majority of the drill holes completed to date have been focused on just the first of five targets at Kiyenzi and we are excited to have already discovered new rare earth mineralisation, up to two metres thick in some cases,” said chief executive Martin Eales.
“The discovery of rare earth element-mineralised breccias is significant as it proves that the Gakara project has potential to include sizeable deposits over and above existing well-known vein stockworks. The coming months are set to be highly active on the ground. In conjunction with the on-going production and sales of high-grade concentrate from the Gasagwe deposit, we will be completing the Phase 1 targets over the coming weeks, and we are already planning for and committed to Phase 2 of the drill programme with the target of delivering a code-compliant resource estimate by the end of Q4 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 company is targeting to ramp up production to an annualised rate of 5,000 tonnes per year by the end of this year.