Lindian Resources has topped up its coffers with a double shot of cash totalling just under $1.65 million from the exercise of 10M unlisted options at $0.12 per share for $1.2M and a $448,753 research and development refund.
The federal Research and Development Tax Incentive Program refund is for process development and metallurgical testwork Lindian conducted to improve beneficiation at its massive Kangankunde rare earths project in Malawi.
Kangankunde, about 90 kilometres north of Malawi’s main economic and commercial centre Blantyre, potentially ranks among the world’s biggest rare earths deposits.
It is highly regarded because of its elevated rare earths grades, low incidence of impurities and radioactive minerals, and attractive cost structure that positions the project in the lowest cost quartile of rare earths projects globally.
The total indicated and inferred mineral resource for the project is 261 million tonnes at an average grade of 2.14 per cent total rare earth oxides (TREO) at a 0.5 per cent TREO cut-off grade.
The total indicated resource is 61Mt grading 2.43 per cent TREO, at a 0.5 per cent TREO cut-off grade, which includes a higher-grade 25Mt averaging 3.26 per cent TREO using a higher 2.5 per cent TREO cut-off.
The resources contain a maiden ore reserve of 23.7Mt at 2.9 per cent TREO, which studies show will support a stage one mine life of 45-years . Almost 20 per cent of the reserve comprises the more valuable magnet rare earths, neodymium and praseodymium.
Stage one development involves mining and a mineral processing plant and necessary support infrastructure and would be a logical springboard for future expansions of the operation.
Lindian’s beneficiation studies on the Kangankunde deposit have focussed on gravity and magnetic separation techniques to extract a concentrate.
Initial studies show that water-only, low-cost beneficiation methods aimed at minimising capital expenditure will yield about 70 per cent recovery. The company aims to produce a high rare earth oxide concentrate of 60 per cent TREO for export.
Earlier this month, Lindian’s site development update showed it was well on track with haul road construction, critical infrastructure and solar power farm works.
Additionally, mining and power infrastructure contracts and pricing for long lead-time items are being finalised and shortlisted.
Lindian has also recently appointed experienced personnel across its site operations to fill roles including senior process engineer, construction superintendent, project planner, QA/QC superintendent and health, safety and environment officer.
The company remains on track to begin plant construction this year.
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