14 September 2023
THIS
ANNOUNCEMENT CONTAINS INSIDER INFORMATION
Pensana
Plc
("Pensana"
or the "Company")
Mineralogical
Results from the Coola Exploration Licence
Further to
the announcement of 29 August 2023,
which reported high grade TREO soil sampling results at Sulima West
and encouraging results from other targets on the Coola exploration
licence area the company is pleased to report on the Mineralogical
Characterisation studies undertaken by SGS South Africa of samples
collected at Sulima West and the Coola carbonatite during
2022.
-
Sulima
West laterite mineralisation contains monazite which hosts NdPr
with moderate liberation and exposure which should be amenable to
some degree of simple upgrading at the current location, prior to
processing at Longonjo;
-
The
Coola carbonatite contains a significant amount of bastnaesite
which is host to more than 90% of the NdPr.
The
bastnaesite is moderately liberated and exposed, again suggesting
that there is potential for recovery using the physical separation
at the current location prior to processing at
Longonjo.
Exploration
Manager, Grant Hayward,
commented:
"We
are encouraged that the initial mineralogical study has confirmed
the processing potential of the rare earth host minerals for both
the Sulima West laterite and the Coola Carbonatite.
The
opportunity for upgrading the ore at the current location using
physical separation techniques will be further assessed with the
testing of larger samples which are in the process of being
collected.
We
obviously see both Sulima West and Coola carbonatite as having the
potential for upgrading the ore at its current location and thereby
providing a high-grade near-term feedstock 40 kilometres from
Longonjo."
RESULTS
Sulima
West Laterite target
-
The Sulima
West laterite contains three main types of rare earth minerals
namely bastnaesite, monazite and florencite. The important NdPr
mineralogy occurs mainly in the monazite, whilst the bastnaesite
hosts the Cerium and the Lanthanum occurs in the
florencite.
-
The
minerals have been partially liberated from the weathered host rock
and should be amenable to some degree of simple upgrading at the
current location, whilst the moderate exposure noted should be
sufficient for successful process route leaching, with the
bastnaesite and the monazite showing the highest recovery
potential.
Sulima
West Apatite Maghemite target
-
The
majority of the rare earth minerals present in the
Apatite-Maghemite sample occur in the apatite. The apatite is
relatively coarse-grained and is well liberated and exposed. Whilst
apatite is not a typically recovered rare earth mineral this sample
is well liberated and exposed and as such would be amenable to
potential recovery and may constitute a significant phosphate
resource.
Coola
Carbonatite
-
Coola
Carbonatite contains a significant amount of bastnaesite which is
host to more than 90% of the light rare earths (NdPr La Ce) found
in this sample. As the bastnaesite is moderately liberated and
exposed, there is potential for recovery using the physical
separation at the current location prior to processing at
Longonjo.
All
targets occur within the Coola Exploration License
(No059/02/01/T.P/ANG-MIREMPET/2020)
located 40 kilometres north of Longonjo. A combination of Chemical
Analysis (major/minor/trace and REE analysis), XRD, TIMA, and EMPA
were applied to determine the bulk modal mineralogy of the sample
and characterization of the REE-bearing minerals
and the report highlights included:
Mineralogical
Analysis by SGS comprised:
-
Three
individual samples were received by SGS, each of the samples were
crushed to 100% passing 1mm and subjected to a rotary splitter to
obtain a representative sub-sample. The remainder of unpulverized
aliquot was pulverised and homogenised for X-ray Diffraction
analysis (XRD) and analysed for major element oxides, trace
elements and for rare earth elements. The remainder of unpulverized
aliquot from the rotatory splitter was prepared into polished
sections for Automated scanning electron microscopy analysis
(AutoSem) using Tescan Integrated Mineral Analyzer
(TIMA).
-
Electron
microprobe EMPA work was required in order to determine the mineral
chemistry of the REE-bearing minerals, particularly the element
present at low concentration, which was required for the REE
deportment and was incorporated into the TIMA data.
-
Each
sample was studied for bulk modal mineralogy, REE deportment, grain
size distribution, mineral association, mineral liberation and
exposure.
About
the Coola Exploration Project
The Coola
Exploration Project located in Angola, approximately 160 km east of Port of
Lobito covers an area of 7,456 square kilometres.
The
Coola Exploration Project consists of three highly prospective
targets namely the Sulima West carbonatite, the Benga Novo alkaline
complex and the Coola carbonatite. The three highly prospective
targets are located between 40 and 100 kilometres north of
Pensana's Longonjo project.
Pensana,
through Coola Mining LDA in which Pensana holds a ninety percent
interest, was granted the Coola exploration license in May 2020 and has since completed multiple field
programmes in 2020, 2021 and 2022 involving geological mapping,
rock chip sampling, trench and pit sampling, stream sediment
sampling, initial radiometric surveys, close space soil sampling
and assaying confirming rare earth mineralisation across all three
carbonatites/alkaline complexes.
The Coola
carbonatite is a roughly circular body, measuring about 900 metres
across as inferred from the limited outcrops of carbonatite and
fenite. The circular shape suggests that the Coola carbonatite may
be a ring dyke or breccia pipe, similar to the carbonatite at
Longonjo. 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 Fluoride) CaF2. Economic
grades of REE mineralisation in the form of bastnaesite has been
located in banded dolomitic carbonatites at the Coola carbonatite.
In Q3 2023, ground radiometric surveys (magnetic and radiometric)
were completed over the Coola carbonatite and data is currently
being processed and interpreted.
Sulima
West is a 4.2-kilometre diameter alkaline carbonatite ring complex
with a corresponding high radiometric
response
occurring immediately to the south of the Benga Novo intrusion and
to the west of the Sulima ring structure. Ten historic trenches
each of about 90 metres in length located in the western segment of
the structure were identified and corresponded with the highest
radiometric response.
Twenty-two
initial reconnaissance samples were extracted from the trenches in
2021. During this sampling, it was observed that the trenches were
excavated into an iron/manganese-rich laterite very similar in
appearance to the rare earth element laterite developed over the
Longonjo carbonatite.
Results of
this initial sampling returned significant values for rare earth
oxides with up to 10.6% TREO encountered in the laterite and
averaging 4.2% TREO. Manganese oxide values of up 15.9% MnO and
averaging 7.2% MnO were also reported.
In Q2
2022, further trench and pit exploration activities were conducted
at the Sulima West target, reporting initial rare earth grades of
up to 9.7% TREO averaging 3.4% TREO over 68 metres at surface in
the trench and up to 5.2% TREO, averaging 4.3% TREO over 6 metres
at surface for the pit. During 2022, two hundred and thirty-eight
soil samples were collected on a 50 m
x 50 m sample spacing over an area of
650 m x 800
m covering the area of identified historic trenches and
surroundings at the Sulima West target.
Individual
soil samples are from 10-20 cm below surface, were sieved to
<0.5 mm, bagged and dispatched for ICP-MS analysis at IGEO
Laboratories, Luanda.
The soil
sampling clearly identifies an area of approximately 500 m x 300 m (~15
hectares) with >2% TREO in soils within which a zone with >3%
TREO is delineated. In Q3 2023, ground radiometric surveys
(magnetic, radiometric and gravity) were completed over the Sulima
West target and data is currently being processed and
interpreted.
The
presence of highly anomalous TREO of >10%, the anomalous
radioactivity, outcropping fenite, as well as significant manganese
and supergene apatite, are all supportive of a carbonatite at
depth.
The Benga
Novo intrusion is interpreted as a very large caldera occurring
immediately to the north of the Sulima West intrusion. It is
regarded to be at least 8 to 10 kilometres across and is
characterised by flat, deeply weathered soils with a solitary
alkaline granite outcropping in the south eastern part.
The
identification of a significant, clay dominated, deeply weathered
regolith over parts of the main Benga Novo intrusion may
additionally be prospective for the occurrence of ionic clay hosted
REE deposits and possible bauxite.
Whole rock
geochemistry and analytical results of clays collected from the
deeply weathered Benge Novo alkaline complex showed a low
Al2O3
content
(<18%) with no bauxite minerals identified, however, the clays
typically contain up to 1600 ppm TREO. The REE distribution shows a
typical LREE distribution. XRF reports 65% SiO2,
18% Al2O3,
4.4% K2O
and 3.5% Fe2O3.
XRD work reported 46% quartz, 23% microcline, 26% kaolinite and 5%
phlogopite for these clays.
The Benge
Novo complex is vast (10 km minimum in diameter) and largely soil
covered. Further mapping, sampling and possible geophysics is
required to effectively assess and explore this prospective
alkaline complex.
About
Angola
The
Angolan government has implemented a modern mining code with an
attractive fiscal regime and a range of investment incentives
including tax exemptions and customs duty exemptions. Over the past
decade it has also made significant investments in
business-critical infrastructure such as railways, ports, bridges,
and roads.
The Lobito
Corridor railway, the historic 1739 km umbilical cord to the
strategic minerals mined in the Copperbelt straddling the DRC and
Zambia, is now under concession
management by the Trafigura/Mota-Engil led Lobito Atlantic Corridor
consortium. Alongside the management of Lobito Port, it is the
latest under the roll-out of government privatisation initiatives.
Angola currently enjoys a power
supply surplus following mega hydro-electric projects and expansion
of the national grid.
Angola's economic profile has improved significantly over
recent years, with the country's public debt falling from 131% of
gross domestic product in 2020 to 66% in 2022. The IMF has
projected that the economy will grow by 3.5% in 2023.
Following
an upgrade by Moody's in late 2021, all three major rating agencies
raised their credit assessment of the country's sovereign debt in
2022, with Fitch and Moody's upgrading the country outlook from
neutral to stable in the second half of the year.
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, Chief Financial Officer