- Pensana Rare Earths (PM8) had a positive March quarter with the highlight being receiving mining approval for its Longonjo project in Angola
- Once Pensana received approval for Longonjo, it completed a 195 hole infill and extension drilling program
- This drilling aimed to present detailed data to support a mineral resource upgrade from the inferred category to the measured and indicated categories
- Pensana announced its planned listing on the London Stock Exchange is now expected to be completed by the end of the next quarter
- As of March 31, the company had a cash balance of just over $2 million which is almost double the amount of the previous quarter
- Pensana has ended the day 5.56 per cent in the green with shares trading for 19 cents each in a $28.91 million market cap
Pensana Rare Earths (PM8) has released its quarterly activities report for the quarter ending March 31.
Throughout the quarter, the company received mining approval for its Longonjo project in Angola, and then completed a large drilling program at the same project.
It also received encouraging results from infill drilling, and sent off samples pilot plant operations.
Mining approval for Longonjo
On April 27, Pensana announced that it had received approval from President João Lourenço to begin exploration at the Longonjo Rare Earths Project in Angola.
This mining licence is renewable for a period of up to 35 years Pensana must abide by some key fiscal terms.
This includes a two per cent royalty on revenue, a 20 per cent national tax and a five per cent municipal tax on profit following a two-year tax reduction or suspension.
Longonjo is the first major mining project to be developed in Angola for quite some time and Pensana believes that it will create hundreds of jobs and help economically stimulate Angola.
Once Pensana received approval for Longonjo, it undertook and completed a 195 hole, for 7987 metres, reverse circulation (RC) infill and extension drilling program.
This drilling aimed to present detailed data to support an upgrade of the mineral resource from the inferred category to the measured and indicated categories.
Longonjo previously had an inferred mineral resource estimate of 240 million tonnes at 1.60 per cent REO (rare earth oxides) including 0.35 per cent NdPr (neodymium-praseodymium) for 3.85 million tonnes of REO including 840,000 tonnes of NdPr.
Neodymium is a silver-white metals that can be added to glass to remove the green colour caused by iron.
Praseodymium is also a silver-white metal primarily used as an alloying agent with magnesium to create high-strength metals that are used in aircraft engines.
High-grade intersections were returned from the Central, West, South, and North East areas and the results support the conversion of mineral resources.
Significant results from the Central Area include 16 metres at 6.53 per cent REO including 1.27 per cent NdPr, and 18 metres at 5.69 per cent REO including 1.06 per cent NdPr.
These results have shown the continuity of mineralisation and several holes unearthed NdPr grades higher than estimated by the mineral resource estimate.
Samples from further holes are awaiting to be analysed.
To the north, higher grade mineralisation was intersected with the likes of 10 metres at 4.65 per cent REO including 0.95 per cent NdPr, and 13 metres at 4.36 per cent REO including 0.93 per cent NdPr being returned.
The Western Area returned results of 36 metres at 6.74 per cent REO including 1.10 per cent NdPr from 16 metres, and 14 metres at 5.85 per cent REO including 1.07 per cent NdPr from four metres.
Mineralisation remains open to the north.
High-grade intersections were returned from both the weathered zone and fresh rock directly below a carbonate body.
Significant results include eight metres at 7.73 per cent REO including 1.32 per cent NdPr from 10 metres, and 14 metres at 5.63 per cent REO including 0.96 per cent NdPr from 56 metres.
North East Area
Drilling here has defined a consistent zone of deep weathering with a zone of NdPr enriched rare earth mineralisation.
Results include 34 metres at 2.57 per cent REO including 0.79 per cent NdPr, and 30 metres at 2.12 per cent REO including 0.57 per cent NdPr from four metres.
During the quarter, four sea containers with 60 tonnes of near surface mineralisation arrived at Fremantle Port in Western Australia.
These containers were then driven to ALS Metallurgy where the contents will be used in the planned flotation pilot plant test work program.
These samples have already been dried, crushed and mixed.
Pensana has announced that its planned listing on the London Stock Exchange is now expected to be completed by the end of the next quarter, however, this is dependent on market conditions.
As of March 31, Pensana had a cash balance of $2.015 million which is almost double the $1.271 million from the previous quarter.
Pensana has ended the day 5.56 per cent in the green with shares trading for 19 cents each in a $28.91 million market cap.