4 April 2022
THIS ANNOUNCEMENT
CONTAINS INSIDE INFORMATION
Pensana Plc
("Pensana" or the
"Company")
Update on the
results from the Coola exploration programme
Pensana Plc is pleased to announce the following update on the
results from the exploration programme undertaken on the Coola
licence, located 16 kilometres north of the Company’s
state-of-the-art Longonjo rare earth project in Angola.
Having identified highly anomalous technology metals including
rare earths, scandium and fluorite in soils surrounding the
7 500km2 Coola project in 2020, field exploration
activities resumed in Q3 2021, and a range of very encouraging
results has been reported from the Coola carbonatite and the
recently identified Sulima West.
Highlights
- Twenty-two samples from a 4.2 km diameter ring structure at
Sulima West, located 50 km from the Coola carbonatite, were all
mineralised and returned values of between 0.6% and 10.6% TREO,
averaging 4.2% TREO (NdPr average = 0.86%). The iron content in
these rocks averaged 28% Fe and the Manganese averaged 5.6%
Mn.
- Sulima West has been intersected by ten large exploration
trenches up to 90 metres in length, coinciding with a large
radiometric anomaly. The trenches are understood to have been
excavated during 1960-61 but have not been followed up with modern
exploration methods.
- Rock chip sampling of the 0.9 km diameter Coola carbonatite
ring dyke returned values of between 0.6% and 4.9% TREO (average
2.6%). Soil geochemistry over the covered carbonatite returned
values of between 0.37% and 13.18% TREO (average 3.21%).
- Mineralogical studies of the Coola carbonatite identified the
rare earth mineral to be bastnäsite, which occurs as discrete
veins, veinlets, and segregations within the carbonatite.
- Soil geochemistry over the fluorite-rich zone at Coola
identified an area of 13 000
m2 with average fluorite values of 17% (Calcium
Flouride) CaF2.
Exploration Manager, Grant Hayward, commented:
“We are extremely encouraged by the
initial results from both Coola and Sulima West and are eager for
the field season to commence to follow up on these exciting
targets. Whilst it is early stage, these are very large structures
reporting grades which are in some cases higher than those for
Longonjo.
There are several radiometric
anomalies and ring structures still to be evaluated, and we very
much look forward to further exploration in 2022 with the easing of
Covid related travel restrictions.”
Exploration results include significant total rare earth oxide
(TREO) values from the rock chip and soil sampling programmes
completed in 2021 on Pensana’s Coola prospecting license (No.
059/02/01/T) in Huambo Province, central Angola.
Field activities in Q3 2021 focused primarily on the Coola
carbonatite, which showed encouraging rare earth element (REE)
scandium (Sc) and fluorite mineralisation, following the initial
2020 sampling programme. Subsequent follow-up work thereon included
detailed geological mapping, soil and rock chip sampling, and
augering of the central soil covered diatreme.
During this period, a visit was conducted at the Sulima West
target, a radiometric anomaly located approximately 50km northwest
of Coola, where a series of historic trenches and pits had been
identified. Initial sampling of some of these trenches was
completed during this visit.
Analytical results from these programmes have been received and
the results of the work completed to date is summarised below:
Main findings at the Coola Carbonatite
include:
- Geological mapping of the 0.9 km diameter Coola intrusive
centre identified three main lithologies, namely a carbonatite ring
dyke, fenite breccias with carbonate matrix, and a strongly
oxidised and hydrated barite-rich rock.
- Rock chip sampling of the 20-50 m
wide portions of the carbonatite ring dyke returned values of
between 0.6% and 4.9% TREO (average 2.6%). Soil geochemistry over
areas of soil covered carbonatite returned values of between 0.37%
and 13.18% TREO (average 3.21%).
- Rock chip sampling of the breccia and oxidised barite-rich rock
generally showed TREO grades of <1.0% TREO. Soil geochemistry
over areas of soil covered breccia returned values of between 0.44%
and 3.93% TREO (average 1.37%). Soil geochemistry over areas of
soil covered oxidised and hydrated barite-rich rock returned values
of between 0.28% and 8.26% TREO (average 1.84%).
- Mineralogical studies of the carbonatite identified the REE
mineral to be bastnäsite, which occurs as discrete veins, veinlets,
and segregations within the carbonatite.
- Scandium values of rock chip samples from all lithologies
showed highest values of 67 ppm Sc. Scandium values in soil samples
were highest in the breccia and oxidised and hydrated barite rich
rock ranging from 30 – 220 ppm and averaging 92 ppm Sc. The
scandium in the carbonatite averaged 25 ppm Sc.
- Soil geochemistry over the fluorite-rich zone at Coola
identified an area of 13 000
m2 with average fluorite values of 17%
CaF2.
- Augering of the regolith within the central diatreme generally
showed low TREO grades of 0.3-1% TREO. Geochemistry indicated that
the area is underlain by oxidised and hydrated fenite
lithologies.
Main findings at the Sulima West
target include:
- Sulima West is a 4.2 km diameter ring structure with a
corresponding radiometric anomaly. Inspection of the satellite
imagery of this ring structure identified 10 large trenches of
about 90m length located in the
western segment of the structure. These trenches correspond with
the highest radiometric response.
- Little information on these trenches was available from the
Geological Institute of Angola,
however local anecdotal information reports that the trenches were
excavated between 1960 and 1961 by the Companhia Minerais do
Lubito and a further pitting programme was completed in 1972 by
unknown parties.
- The trenches extend over an area of 40 000m2, are up to 90 metres in length
and up to 3 metres deep. Four pits were located with depths of up
to 10 metres.
- The trenches and pits are excavated in an iron/manganese-rich
laterite of unknown thickness. The precursor lithology of the
laterite is unknown but may represent a deeply weathered
carbonatite.
- Twenty-two samples of the Fe/Mn rich material within the
trenches returned values of between 0.6% and 10.6% TREO (NdPr range
= 0.11-3.07%) and averaged 4.2% TREO (NdPr average = 0.86%). Fe
content in these rocks average 28% and Mn averages 5.6%.
- The REE distribution is LREE enriched and is suspected to be
monazite as the highest TREO values correspond to the most
anomalous phosphorous values.
The information contained within this
announcement is considered by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No.596/2014. Upon the publication of this announcement via a
Regulatory Information Service, this inside information will be
considered to be in the public domain. The person responsible for
arranging for the release of this announcement on behalf of the
Company is Paul Atherley,
Chairman.
ENDS
For further information, please
contact:
Shareholder/analyst enquiries:
Pensana Plc
Paul Atherley,
Chairman
IR@pensana.co.uk
Tim George, Chief Executive
Officer
Rob Kaplan, Finance Director
Virginia Skroski, Head of
Investor Relations & Communications
Media enquiries:
Finsbury Glover Hering:
Gordon Simpson / Richard
Crowley
Pensana-LON@finsbury.com
The information contained within this announcement is considered
by the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No.596/2014. Upon the publication
of this announcement via a Regulatory Information Service, this
inside information will be considered to be in the public domain.
The person responsible for arranging for the release of this
announcement on behalf of the Company is Paul Atherley (Chairman).
About Pensana plc
The electrification of motive power is the most important part
of the energy transition and one of the biggest energy transitions
in history. Magnet metals are central to the transition and
critical to high value manufacturing applications such as electric
vehicles and offshore wind turbines.
Pensana plans to establish Saltend as an independent,
sustainable supplier of the key magnet metal oxides to a market
which is currently dominated by China. The US$194
million Saltend facility is being designed to produce circa
12,500 tonnes per annum of rare earth oxides, of which 4,500 tonnes
will be neodymium and praseodymium (NdPr), representing circa 5% of
the world market in 2025.
The Saltend facility is located within the world class Saltend
Chemicals Park, a cluster of leading chemicals and renewable energy
businesses at the heart of the UK’s energy estuary, and host to a
range of companies including BP Petrochemicals technology, INEOS,
Air Products, Triton Power, Nippon Gohsei and Tricoya.
Pensana’s plug and play facility will create over 500 jobs
during construction and over 125 direct jobs once in production. It
will be the first major separation facility to be established in
over a decade and will become one of only three major producers
located outside China.
Initial feedstock will be shipped as a clean, high purity mixed
rare earth sulphate (MRES) from the Company’s Longonjo low impact
operations in Angola. A
state-of-the-art concentrator and MRES processing plant are being
designed by Wood to the highest international standards. They will
be powered by minimal carbon hydro-electric power and connected to
the Port of Lobito by the recently upgraded Benguela railway
line.
Pensana is of the view that provenance of critical rare earth
materials supply, life cycle analysis and GHG Scope 1, 2 and 3
emissions will all become significant factors in supply chains for
major customers. The Company intends to offer customers an
independently and sustainably sourced supply of the metal oxides
and carbonates of increasing importance to a range of applications
central to the energy transition, industrial, medical, military and
communications sectors.
For many miners around the world who are looking to access the
European and US supply chains, it is becoming increasingly clear
that the proposed EU and possible UK carbon border taxation would
mean that it is no longer acceptable for manufacturers to source
material extracted or processed unsustainably.
Pensana is aiming to establish Saltend as an attractive
alternative to mining houses who may otherwise be limited to
selling their products to China,
having designed the facility to be easily adapted to cater for a
range of rare earth feedstocks.
www.pensana.co.uk