Mkango Renews Thambani License and Provides Uranium Exploration Update
September 24, 2013 (Source: Marketwired) — Mkango Resources Ltd. (TSX VENTURE:MKA) (the “Corporation” or “Mkango“), is pleased to announce that the Government of Malawi has granted a further two year renewal for Exclusive Prospecting License (“EPL”) 0303/10R (“the Thambani License”), in southeast Malawi. Mkango has undertaken an extensive regional work program within the 486 square kilometre (“km2”) Thambani License, primarily focused on anomalous uranium targets across the Thambani Massif, which dominates the northeastern part of the license.
The exploration activities to date have included acquisition of Landsat7 and ASTER satellite imagery for the license area, systematic ground radiometric surveys to confirm and detail previously-known airborne anomalies, reconnaissance geological mapping and litho-geochemical sampling programs. The work has identified a number of potential uranium targets over the Thambani Massif, which is mainly composed of nepheline syenite gneiss, forming two prominent ridges known as Thambani East Ridge and West Ridge. Historical airborne radiometric surveys and ground radiometric survey programs carried out by Mkango have revealed two distinct uranium anomalies occurring along the two ridges: A strong uranium anomaly, measuring approximately 3 kilometre (“km”) by 1.5 km, occurs along the length of the Thambani East ridge with a north-south trend and a second uranium anomaly, measuring approximately 1.5 km by 0.4 km occurs on the West Ridge along the western contact of the nepheline syenite body with the eastern biotite-hornblende gneisses.
Initial results from follow up reconnaissance geochemical sampling returned locally anomalous uranium values, ranging up to 1,545 ppm U3O8, on both Thambani East and West ridges.
Detailed geological mapping and systematic geochemical sampling is currently underway across the anomalies in order to determine the geological model for uranium mineralization and further constrain the spatial distribution of the uranium mineralization in the license area. Ground radiometric and geological surveys are also planned for other areas in the license which were historically referred to as hosting uranium mineralization.
The Thambani License has been renewed for a further period of two years, effective September 9th, 2013 and grants the exclusive rights to carry on prospecting operations for uranium, zircon, niobium, all 17 rare earth elements including yttrium in addition to strontium, iron ore, manganese, gold, silver, copper, bauxite, fluorite, phosphate, thorium, monazite, nepheline, syenite, tantalum, clay, kaolinite, and associated minerals, over an area of 468km2. The expenditure commitment for the Thambani EPL is 250,000,000 Malawian Kwacha (approximately [US $715,000] based on MK349 Standard Bank exchange rate) over two years. The license is renewable for a further two year period in September 2015.
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The Thambani exploration license, located in Mwanza District, was originally granted by the Malawi Minister of Natural Resources, Energy and Environment on September 10, 2010 in respect of an area of 468 km². Exploration to date has identified a number of areas with potential for uranium, zircon, corundum and niobium and follow up exploration is currently underway, the main focus currently being the uranium targets. Uranium mineralization was identified in the license area during historical exploration activities.
Scientific and technical information, contained in this release has been approved and verified by Dr. Scott Swinden of Swinden Geoscience Consultants Ltd, who is a “Qualified Person” in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
About Mkango Resources Ltd.
Mkango’s primary business is the exploration for rare earth elements and associated minerals in the Republic of Malawi. It holds, through its wholly owned subsidiary Lancaster Exploration Limited, a 100% interest in two exclusive prospecting licenses covering a combined area of 1,751 km² in southern Malawi. The main exploration target is the Songwe Hill rare earth deposit, which is accessible by road from Zomba, the former capital, and Blantyre, the principal commercial town of Malawi. On 22 November 2012, Mkango filed a Technical Report (the “Report”) for its maiden NI 43-101 mineral resource estimate for Songwe Hill. Mkango is currently completing a pre-feasibility study for the project. In parallel, the company is also undertaking regional exploration in the second license area known as Thambani, where a number of areas with potential for uranium, zircon, corundum and niobium have been identified.
The Corporation’s corporate strategy is to further explore and develop the Songwe Hill rare earth deposit and Thambani licence, and secure additional rare earth element and other mineral opportunities in Malawi and elsewhere in Africa.
On behalf of the Board of Mkango Resources Ltd.,
William Dawes, Chief Executive Officer
Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements relating to the Corporation. 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, among others, the interpretation and actual results of current exploration activities; uncertainty of estimates of mineral resources, changes in project parameters as plans continue to be refined; future commodity prices; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration.
The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Corporation disclaims any intention and assume 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 securities law. Additionally, the Corporation undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above.
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.
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