Mkango Resources Intersects Further Extensive Zones of Ree Mineralisation at Songwe and Commences Estimation of NI 43-101 Compliant Mineral Resource
Calgary, Alberta: September 4, 2012 - Mkango Resources Ltd. (TSXV-MKA) (the "Corporation" or "Mkango") is pleased to announce results for the remaining holes of the Stage 2 drilling programme at the Songwe project in Malawi. Highlights from the new results are as follows:
|PX007a||45.5 m1 grading 1.8% TREO (51.9 -- 97.3 m). Inclined hole (60 degrees).|
|PX008||165.8 m grading 1.3% TREO (26.1 -- 191.9 m), 34.0 m grading 1.8% TREO (257.0 -- 291.0 m) and 20.1 m grading 2.1% TREO (318.9 -- 339.0 m). Inclined hole (70 degrees).|
|PX016||40.9 m grading 1.8% TREO (322.7 -- 363.6 m EoH). Inclined hole (80 degrees).|
|PX026||26.5 m grading 1.1% TREO (163.6 -- 190.1 m) and 28.9 m grading 1.3% TREO (243.0 -- 271.9 m). Inclined hole (80 degrees).|
|PX028||134.3 m grading 1.9% TREO (10.7 -- 145.0 m), including 67.7 m grading 2.3% TREO (40.3 -- 108.0 m), 29.0 m grading 1.2% TREO (159.0 -- 188.0 m). Inclined hole (60 degrees).|
|PX029||112.7 m grading 1.7% TREO (4.6 -- 117.3 m), including 24.6 m grading 2.4% TREO (5.6 -- 30.2 m). Inclined hole (60 degrees).|
|PX032||164.5 m grading 1.2% TREO (2.5 -- 167.0 m), including 46.1 m grading 1.6% TREO (2.5 -- 48.6 m). Inclined hole (60 degrees).|
|PX034||21.5 m grading 1.7% TREO (13.0 -- 34.5 m), 79.0m grading 1.7% TREO (47.0 -- 126.0 m), including 13.2 m grading 3.0% TREO (89.0 -- 102.2 m), 44.9 m grading 1.5% TREO (155.0 -- 199.9 m) and 27.6 m grading 1.1% TREO (241.4 -- 269.0 m). Inclined hole (65 degrees).|
1 Includes two cavities totalling 9.4m not sampled. TREO: total rare earth oxides including yttrium. These intersections are reported as down hole widths and do not necessarily represent true thicknesses and attitude of the mineralised zones, the estimation of which will require further refining of the geological model. See Appendix for contents of TREO and for further details on results of Stage 2 drilling programme. PX007b and PX010 were planned to test potential depth extensions of mineralised zones in PX007a and PX001, but were aborted prematurely at 21m and 52 m, respectively, due to bad ground conditions and are therefore not reported.
- A total of 38 holes were completed in Stages 1 and 2 for a total of approximately 6,850 metres, focusing on an area measuring approximately 350 m by 100 m comprising rare earth enriched lithologies largely exposed at surface.
- The majority of Stage 1 and 2 drill holes intersected broad zones of rare earth mineralization, including zones of elevated heavy rare earth enrichment.
- The MSA Group, Johannesburg, South Africa, has commenced estimation of a National Instrument 43-101 compliant mineral resource estimate for the Songwe project and an announcement will be forthcoming in the next few weeks.
- Mineralisation is open to depth and along strike, and there are known areas of additional carbonatite exposure within the Songwe vent system constituting further exploration upside.
A schematic geological map illustrating the location of the drill hole collars and estimated drill hole traces is available on the Company's website (www.mkango.ca).
The Songwe Hill Rare Earth Project
The Songwe Hill rare earth project is located within a 100% owned exclusive prospecting licence covering an area of 1,283 km2 in southeast Malawi (the "Phalombe Licence"). Songwe is accessible by road from Zomba, the former capital, and Blantyre, the principal commercial town of Malawi. Total travel time from Zomba is approximately 2 hours, which will reduce as infrastructure continues to be upgraded in the area.
Scientific and technical information, including data verification, 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.
Sample preparation and analytical work for the drilling and channel sampling programmes are being provided by Intertek-Genalysis Laboratories (Johannesburg, South Africa and Perth, Australia) employing ICP-MS techniques suitable for rare earth element (REE) analyses and following strict internal QAQC procedures inserting duplicates, blanks and standards. Internal Laboratory QAQC was also completed to include blanks, standards and duplicates.
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, 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 features carbonatite hosted rare earth mineralisation and was subject to previous exploration in the late 1980s.
The Corporation's corporate strategy is to further delineate the rare earth mineralisation at Songwe Hill and secure additional rare earth element and other mineral opportunities in Malawi and elsewhere in Africa.
For further information, please contact:
Mkango Resources Ltd.
Office +1 (403) 444 -- 5979
Fax +1 (403) 351 -- 1703
Chief Executive Officer
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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; 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.
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