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Mkango Continues to Identify New Zones of Mineralisation in Latest Drill Results From the Songwe Hill Rare Earths Project in Malawi

/EIN News/ -- LONDON and CALGARY, Alberta, Nov. 07, 2018 (GLOBE NEWSWIRE) -- Mkango Resources Ltd. (AIM / TSXV: MKA) (the "Company" or "Mkango"), the rare earths exploration and development company focused on Malawi, is pleased to announce results for a further forty-five drill holes from the recently completed 10,900 metre diamond drill programme at the Songwe Hill Rare Earths Project (“Songwe”). Thirty-nine of the drill holes intersected significant zones of rare earths mineralisation grading above one per cent total rare earth oxides (“TREO”). The drilling programme is a key component of the ongoing initial phases of the Feasibility Study for Songwe, fully funded following investments by Mkango’s strategic partner, Talaxis Limited, in January 2018.

Highlights from the results include the following:

PX056 114.8 m grading 1.6% TREO (60.7 – 175.5 m) including 30.0 m grading 2.0% TREO (135.0 –  165.0 m). Inclined hole (60 degrees west).
PX059 63.0 m1 grading 1.7% TREO (6.0 – 69.0 m), including 23.0 m2 grading 2.3% TREO (7.0 –  30.0 m), and 15.4 m grading 1.6% TREO (128.0 – 143.4 m). Inclined hole (60 degrees west).
PX073 67.1 m grading 1.6% TREO (8.8 – 75.9 m) including 25.2 m grading 2.0% TREO (45.0 – 70.2 m). Inclined hole (60 degrees west).
PX076 40.2 m grading 1.8% TREO (60.4 – 100.7 m) including 20.0 m grading 2.4% TREO (60.4 – 80.4 m). Inclined hole (60 degrees west).
PX077 51.9 m3 grading 1.7% TREO (26.2 – 78.0 m). Inclined hole (60 degrees west).
PX090 25.7 m4 grading 3.9% TREO (39.5 – 65.2 m). Inclined hole (60 degrees west).
PX098 65.0 m5 grading 1.7% TREO (1.1 – 66.0 m) and 13.1 m grading 1.2% TREO (115.0 – 128.1 m). Inclined hole (60 degrees south).
PX103 165.2 m grading 1.6% TREO (2.6 – 167.8 m). Inclined hole (60 degrees east).
PX107 91.3 m6 grading 1.3% TREO (23.0 – 114.2 m) including 32.2 m7 grading 1.9% TREO (82.0 – 114.2 m). Inclined hole (60 degrees east).
PX108 45.8 m grading 1.4% TREO (8.2 – 54.0 m) and 57.3 m grading 1.7% TREO (76.9 – 134.2 m). Inclined hole (60 degrees east).
PX113 51.1 m8 grading 2.2% TREO (4.7 – 55.8 m). Inclined hole (50 degrees north).

1 Includes two cavities totaling 5.9m not sampled. 2 Includes a 2.5m cavity not sampled. 3 Includes a 2.7m cavity not sampled. 4 Includes a 6.3m cavity not sampled. Due to the size of the cavity, the significance of this intersection is uncertain. 5 Includes a 2.3m cavity not sampled. 6 Includes two cavities totaling 2.3m not sampled. 7 Includes a 0.9m cavity not sampled. 8 Includes two cavities totaling 10.0m not sampled. Due to the size of the cavities, the significance of this intersection is uncertain. TREO: total rare earth oxides based on total La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3. These intersections are reported as down hole widths and do not necessarily represent true thicknesses and attitude of the mineralised zones, the estimation of which will require further refining of the geological model.

William Dawes, Chief Executive Officer, commented: “This is another excellent set of results from the now completed drilling programme at Songwe, which further demonstrates broad mineralised zones with continuity of mineralisation, and will underpin the resource update. The latter will commence on receipt of the assay results from the remaining 21 drill holes yet to be announced.”

“Following the resource update and on subsequent publication of the related NI 43-101 technical report, anticipated in first quarter 2019, Talaxis will invest a further £7 million to fund completion of the Feasibility Study for Songwe, which will be the main focus for 2019. We look forward to announcing the remaining drill results in the coming weeks.”    

  • The drill programme comprised infill drilling to confirm and upgrade the existing Indicated and Inferred Mineral Resource Estimates, testing extensions to the mineralisation, and geotechnical drilling.
  • Drill holes PX072, PX073, PX084, PX085, PX088, PX090, PX091, PX094, PX095, PX119, PX120 and PX121 were step-out holes focused on testing north-west extensions of the mineralisation.
  • Of these twelve drill holes, nine intersected broad zones of mineralisation, including the highest grade intersection of the current drill programme to date in PX090. Furthermore, this new zone of higher grade mineralisation in PX090 is located outside both the area of previously mapped carbonatite and the existing Indicated and Inferred Mineral Resource Estimates.
  • The mineralised intersection in PX113 indicates the extension of the higher grade “black carbonatite” zone, located in the north-east as indicated on the accompanying geological map on the Company’s website, to the north under cover.      
  • Drill holes PX038, PX039, PX040 and PX041 were step-out drill holes, focused on testing extensions of mineralisation to the south. The intersections in PX039 and PX040 further indicate that mineralisation may extend to the south beyond the limits of the existing Indicated and Inferred Mineral Resource.
  • The remaining drill holes were focused on infill zones within the existing Indicated and Inferred Mineral Resource Estimates.
  • Intersections of broad zones of mineralisation, as opposed to narrow veins or dykes, continue to support the concept of a bulk tonnage, open pit mining operation with low mining costs.

A schematic geological map illustrating the location of the drill hole collars and estimated drill hole traces is available on the Company’s website (www.mkango.ca). The full set results and breakdown of TREO values are as follows:

                                         
Drill Hole From To Interval   La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 TREO
  m m m   ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm %
                                         
PX039 122.9   142.0   19.2   4,394 7,467 756 2,432 323 82 188 22 96 15 35 5 29 5 440 1.6 %
                                         
                                         
PX040 28.0   43.0   15.0   5,020 7,061 645 2,006 303 90 239 33 164 28 67 9 47 6 844 1.7 %
                                         
                                         
PX045a 9.8   30.9   21.1   2,006 4,148 495 1,833 309 89 217 27 127 20 47 6 33 5 547 1.0 %
                                         
                                         
PX050   8.0   161.0   153.0   2,790 5,578 643 2,353 344 87 214 26 128 21 51 7 40 5 607 1.3 %
                                         
including   96.0   126.0   30.0   4,370 8,097 890 3,132 430 108 267 32 149 24 57 8 53 7 654 1.8 %
                                         
including   137.9   161.0   23.2   3,687 7,162 808 2,899 415 105 254 31 145 24 55 7 42 5 651 1.6 %
                                         
                                         
PX053   25.0   61.0   36.0   3,461 6,442 683 2,309 365 98 236 27 117 18 39 4 22 3 492 1.4 %
                                         
    74.4   94.6   20.2 (i) 2,920 5,507 585 1,972 288 72 169 20 95 15 38 5 24 3 469 1.2 %
                                         
(i) Includes 2.1m cavity not sampled.                                  
                                         
                                         
                                         
Drill Hole From To Interval   La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 TREO
  m m m   ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm %
                                         
PX055 21.4   47.5   26.2   3,921 6,592 676 2,282 332 85 193 21 92 15 35 5 28 4 425 1.5 %
                                         
    67.7   103.2   35.5   2,627 5,470 626 2,258 328 89 214 26 119 19 44 5 30 4 520 1.2 %
                                         
                                         
PX056   60.7   175.5   114.8   3,951 7,339 799 2,784 404 105 243 28 124 20 47 6 32 4 570 1.6 %
                                         
including   135.0   165.0   30.0   5,463 9,096 920 3,003 392 101 232 26 116 18 43 5 29 4 516 2.0 %
                                         
                                         
PX057 7.5   39.7   32.2   3,696 6,496 714 2,334 327 82 188 21 93 15 36 4 23 3 407 1.4 %
                                         
                                         
PX058 29.5   71.0   41.6   2,885 5,784 636 2,208 311 83 190 21 97 15 36 4 23 3 421 1.3 %
                                         
                                         
PX059   6.0   69.0   63.0 (i) 3,980 7,314 785 2,617 392 112 279 36 173 29 76 10 57 8 879 1.7 %
                                         
including   7.0   30.0   23.0 (ii) 5,890 9,922 1,012 3,237 469 138 358 47 227 38 100 13 76 10 1,171 2.3 %
                                         
    128.0   143.4   15.4   4,122 7,352 778 2,645 370 94 212 25 121 20 49 6 36 5 604 1.6 %
                                         
(i) Includes two cavities totaling 5.9m not sampled.                              
(ii) Includes 2.5m cavity not sampled.                                  
                                         
                                         
PX063 4.4   21.4   17.0   2,951 6,117 698 2,540 359 100 239 32 168 29 71 8 51 7 838 1.4 %
                                         
    96.4   109.8   13.4 (i) 3,908 8,548 1,000 3,703 558 135 292 29 126 20 46 5 33 5 616 1.9 %
                                         
(i) Includes 5.5m cavity not sampled.                                  
                                         
                                         
PX066   61.8   134.2   72.4   3,122 5,703 620 2,110 301 81 196 23 112 18 44 5 33 4 510 1.3 %
                                         
including   99.0   122.6   23.6   4,147 7,328 776 2,530 337 90 219 26 127 20 50 6 40 5 576 1.6 %
                                         
                                         
PX067   6.0   128.8   122.8   3,237 5,661 598 2,105 312 85 197 22 99 15 37 5 29 4 452 1.3 %
                                         
including   44.0   70.8   26.8   4,119 7,791 858 3,039 429 112 250 27 120 19 46 6 39 6 564 1.7 %
                                         
                                         
PX072   12.6   28.4   15.8   3,364 6,889 773 2,693 405 104 247 28 121 18 41 5 25 3 532 1.5 %
                                         
    93.9   147.8   53.9   2,358 4,684 525 1,886 301 77 179 20 94 16 39 5 27 4 486 1.1 %
                                         
                                         
PX073   8.8   75.9   67.1   4,024 7,255 790 2,740 401 103 232 25 114 19 43 5 28 4 507 1.6 %
                                         
including   45.0   70.2   25.2   5,278 8,924 948 3,159 439 110 241 24 106 17 36 4 21 3 438 2.0 %
                                         
                                         
PX076   60.4   100.7   40.2   5,618 8,453 789 2,458 311 80 183 22 98 15 33 4 24 3 404 1.8 %
                                         
including   60.4   80.4   20.0   7,432 11,021 1,020 3,106 372 93 209 24 108 16 36 4 25 3 434 2.4 %
                                         
                                         
PX077   26.2   78.0   51.9 (i) 5,081 7,864 733 2,266 284 75 178 22 99 16 34 4 22 3 415 1.7 %
                                         
(i) Includes 2.7m cavity not sampled.                                  
                                         
                                         
PX088   47.0   100.7   53.7   1,894 3,988 486 1,919 355 94 225 27 132 22 53 6 35 4 639 1.0 %
                                         
                                         
PX090   39.5   65.2   25.7 (i) 12,424 18,649 1,670 4,792 512 138 324 39 167 25 56 7 41 6 631 3.9 %
                                         
(i) Includes 6.3m cavity not sampled. Due to size of cavity, the significance of this intersection is uncertain.                    
                                         
                                         
PX094 25.0   100.7   75.7 (i) 3,363 5,652 567 1,876 284 81 204 24 112 18 43 5 32 4 482 1.3 %
                                         
including   67.0   79.0   12.0   6,336 9,822 928 2,828 385 112 282 33 147 23 52 6 38 5 593 2.2 %
                                         
(i) Includes 8.5m cavity not sampled.                                  
                                         
                                         
PX095   60.0   82.9   22.9 (i) 2,116 4,470 510 1,880 273 73 175 21 108 19 47 6 34 4 539 1.0 %
                                         
(i) Includes 2.0m cavity not sampled.                                  
                                         
                                         
PX098 1.1   66.0   65.0 (i) 3,682 7,400 836 2,942 428 112 278 35 168 29 73 10 55 8 872 1.7 %
                                         
    115.0   128.1   13.1   3,013 5,409 579 1,974 306 84 213 27 124 20 46 6 29 4 568 1.2 %
                                         
(i) Includes 2.3m cavity not sampled.                                  
                                         
                                         
                                         
Drill Hole From To Interval   La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 TREO
  m m m   ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm %
                                         
PX100   94.6   100.7   6.1   10,223 17,450 1,815 6,064 765 172 360 35 140 20 45 6 30 4 616 3.8 %
                                         
                                         
PX101   36.6   42.3   5.7   2,981 6,306 746 2,771 493 131 322 36 148 21 43 5 29 4 560 1.5 %
                                         
                                         
PX102 8.7   36.0   27.3   2,730 6,487 789 2,869 342 78 163 17 76 11 25 3 14 2 335 1.4 %
                                         
    75.0   110.3   35.3   2,096 5,170 671 2,623 381 96 217 26 130 22 51 6 28 3 658 1.2 %
                                         
                                         
PX103   2.6   167.8   165.2   3,512 6,903 788 2,809 412 111 263 31 144 23 55 7 45 6 658 1.6 %
                                         
                                         
PX104 1.9   47.0   45.1 (i) 2,562 5,388 617 2,273 338 96 230 28 139 22 52 7 38 5 618 1.2 %
                                         
    95.6   135.0   39.4   3,122 5,206 527 1,794 277 80 189 21 99 15 35 4 25 4 433 1.2 %
                                         
(i) Includes 5.0m cavity not sampled.                                  
                                         
                                         
PX105   3.8   79.5   75.7   2,711 5,036 550 1,963 312 86 199 24 112 18 43 5 27 4 523 1.2 %
                                         
                                         
PX106 51.9   67.5   15.7   2,579 5,090 562 1,968 294 81 192 23 108 17 40 5 25 3 478 1.1 %
                                         
    79.7   109.0   29.3   2,036 4,451 527 1,952 317 87 209 25 121 21 51 7 39 5 604 1.0 %
                                         
                                         
PX107 23.0   114.2   91.3 (i) 3,041 5,727 632 2,258 336 95 232 29 140 23 60 8 48 6 700 1.3 %
                                         
    82.0   114.2   32.2 (ii) 4,624 8,375 911 3,176 457 125 300 37 168 27 70 10 53 7 827 1.9 %
                                         
(i) Includes two cavities totaling 2.3m not sampled.                              
(ii) Includes 0.9m cavity not sampled.                                  
                                         
                                         
PX108 8.2   54.0   45.8   3,553 6,243 656 2,234 360 106 261 32 149 24 58 7 45 7 705 1.4 %
                                         
    76.9   134.2   57.3   4,774 7,740 761 2,417 333 90 205 23 102 15 34 4 24 3 418 1.7 %
                                         
                                         
PX110 9.2   22.4   13.2   6,648 9,822 965 2,852 348 88 204 24 109 18 39 4 22 3 451 2.2 %
                                         
    85.0   100.7   15.7   4,927 9,588 1,102 3,601 475 117 270 31 148 25 58 7 41 5 676 2.1 %
                                         
                                         
PX111 7.0   42.0   35.0   2,893 6,042 683 2,504 443 128 312 38 169 25 53 6 30 4 657 1.4 %
                                         
    69.5   115.9   46.4   3,666 6,542 670 2,313 357 97 232 26 111 17 40 5 33 4 476 1.5 %
                                         
                                         
PX113   4.7   55.8   51.1 (i) 5,458 9,720 993 3,572 474 124 289 34 165 26 64 8 44 6 772 2.2 %
                                         
(i) Includes two cavities totaling 10.0m not sampled. Due to size of cavities, the significance of this intersection is uncertain.                  
                                         
                                         
PX115 2.7   17.7   15.0   2,365 4,945 564 2,107 316 84 195 23 107 18 42 5 31 4 522 1.1 %
                                         
    46.3   61.0   14.8   2,468 5,132 583 2,180 350 96 221 26 116 18 42 5 29 4 493 1.2 %
                                         
                                         
PX116   27.2   66.0   38.8   2,748 5,631 648 2,374 368 93 197 21 93 14 33 4 23 3 431 1.3 %
                                         
including   57.3   66.0   8.7   4,426 9,933 1,205 4,615 752 189 397 40 166 24 52 6 33 5 720 2.3 %
                                         
                                         
                                         
PX119   14.8   64.8   50.0   3,389 6,119 640 2,135 292 76 178 20 95 16 39 5 28 4 422 1.3 %
                                         
including   14.8   24.6   9.8   8,483 12,932 1,184 3,347 334 84 193 22 98 15 34 4 23 3 380 2.7 %
                                         
                                         
PX120   3.1   42.7   39.6   2,631 5,272 572 2,010 284 75 175 20 90 14 34 4 25 3 380 1.2 %
                                         
                                         
PX121   60.0   95.5   35.5   3,598 6,143 655 2,218 336 89 212 24 113 17 40 5 28 4 487 1.4 %
                                         
                                         
Drill holes PX038, PX041, PX051, PX084, PX085 and PX091 did not intersect significant zones of mineralisation grading above 1% TREO              

Scientific and technical information contained in this release including sampling, analytical, and test data underlying the information has been approved and verified by Dr. Scott Swinden PGeo of Swinden Geoscience Consultants Ltd, who is a "Qualified Person" in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

Sample preparation and analytical work for the drilling and channel sampling programmes are being provided by Intertek-Genalysis Laboratories (Perth, Australia) employing ICP-MS techniques suitable for rare earth element (REE) analyses and following strict internal QAQC procedures inserting duplicates, blanks and standards. Internal Laboratory QAQC was also completed to include blanks, standards and duplicates.

About Mkango Resources Limited

Mkango's primary business is exploration for rare earth elements and associated minerals in the Republic of Malawi, a country whose hospitable people have earned it a reputation as “the warm heart of Africa”. The Company holds interests in three exclusive prospecting licenses in Malawi, the Phalombe licence, the Thambani licence and the Chimimbe Hill licence.

The main exploration target in the 80% held Phalombe licence is the Songwe Hill rare earths deposit, which features carbonatite-hosted rare earth mineralisation and was subject to previous exploration in the late 1980s. Mkango completed an updated Pre-Feasibility Study for the project in November 2015 and a Feasibility Study is currently underway, the initial phases of which include the recently completed 10,900 metre drilling programme.

Under the terms of an agreement with Talaxis, Talaxis will fully fund the Feasibility Study for Songwe by investing £12 million for a 49% interest in the project (via Mkango subsidiary Lancaster Exploration Ltd). Talaxis will also have the option to acquire a further 26% interest by arranging funding for project development including funding the equity component thereof. If Talaxis exercises its option, Mkango will retain a 25% interest, free carried to production. To-date, Talaxis has invested £5 million, which is funding the initial phase of the Feasibility Study, for a 20% interest in the project, with Mkango holding 80%.

By investing a further £2 million, Talaxis will acquire a 49% interest in Maginito Ltd, a new subsidiary of Mkango focused on neodymium alloy powders, magnets and other technologies. This includes the collaboration with Metalysis Ltd announced in September 2017, which is focused on advanced alloys using neodymium or praseodymium with other elements for permanent magnet manufacturing. Permanent magnets are critical materials for most electric vehicles, direct drive wind turbines and many other high growth applications. Neodymium is a key rare earth component at Songwe. To date, Talaxis has invested £1 million for a 24.5% interest in Maginito with Mkango holding 75.5%.

The main exploration targets in Mkango’s remaining two 100% held licences are, in the Thambani licence, uranium, niobium, tantalum and zircon and, in the Chimimbe Hill licence, nickel and cobalt.

For more information, please visit www.mkango.ca.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement may have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements (within the meaning of that term under applicable securities laws) with respect to Mkango, its business and the Project. Generally, forward looking statements can be identified by the use of words such as “plans”, “expects” or “is expected”, “scheduled”, “estimates” “intends”, “anticipates”, “believes”, or variations of such words and phrases, or statements that certain actions, events or results “can”, “may”, “could”, “would”, “should”, “might” or “will”, occur or be achieved, or the negative connotations thereof. Forward looking statements in this news release include statements with respect to the global market for products using the rare earth metals the Company is exploring for, completion of the feasibility study and of the transactions contemplated in the agreement with Talaxis, as well as the use of proceeds from the investments into the Company by Talaxis and the timing of such expenditures. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Such factors and risks include, without limiting the foregoing, market demand for the metals and associated downstream products for which Mkango is exploring, researching and developing, the positive results of a feasibility study on the Project, delays in obtaining financing or governmental or stock exchange approvals. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.

For further information on Mkango, please contact:
Mkango Resources Limited

William Dawes    Alexander Lemon
Chief Executive Officer   President
will@mkango.ca   alex@mkango.ca
UK: +44 207 3722 744
   
Canada: +1 403 444 5979    
www.mkango.ca    
@MkangoResources    

Blytheweigh
Financial Public Relations
Tim Blythe, Camilla Horsfall, Julia Tilley
UK: +44 207 138 3204

SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker
Jeff Keating, Caroline Rowe
UK: +44 20 3470 0470

Alternative Resource Capital
Joint Broker
Alex Wood, Rob Collins
UK: +44 20 7186 9004; +44 20 7186 9001

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any equity or other securities of the Company in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and may not be offered or sold within the United States to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

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