Pensana reports positive drilling results at Longonjo
KEY FACTS: Pensana Metals (ASX: PM8) has today released positive initial assay results from the first 16 drill holes of a 7,000m infill and extension reverse circulation drilling programme underway at Longonjo. The drilling is in support of a Definitive Feasibility Study now under way. The drilling is designed to convert more of the Longonjo weathered zone Inferred Mineral Resource estimate into Measured and Indicated Mineral Resource and then into Proved and Probable Ore Reserves on completion of further technical studies for financing purposes.
The new results show that all drill holes intersected mineralisation from surface and include several high grade intersections over an area extending 250 by 450 metres immediately to the west of the current pit design.
Pensana is in the process of applying for a standard dual listing on the Main Board of the LSE and recently announced that Robert Kaplan has been appointed as Chief Financial Officer (CFO) and company secretary.
COMMENT: These initial drilling results confirm the continuous and consistent nature of this weathered blanket style of mineralisation from surface and continue to suggest the potential of a world-class rare earths mine.
The continuity of mineralisation from surface demonstrated by the infill drilling is expected to enable much of this area of Inferred Mineral Resource estimate for the weathered zone mineralisation to be upgraded to Indicated JORC category and extend the planned open pit to the west. This is expected to lead to an increase of the current mine life of nine years as indicated by the November 2019 PFS.
Drilling will also test several high grade targets, which have the potential to provide sources of high grade NdPr material and also drill into the fresh material immediately underlying the shallow weathered zone in the current mine plan. Drilling is expected to be completed in March 2020 and an updated Mineral Resource estimate is expected in May 2020..
We published a detailed note on Pensana Metals’ rare earths project on 13 September 2019 and a follow up report on its PFS on 19 November 2019.