REG-Pensana Plc: Longonjo construction budget on track and Coola carbonatite drilling

PensanaAnnouncement

28/07/2025 07:02

28 July 2025

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

Pensana Plc

("Pensana" or the "Company")

 

Longonjo construction budget on track and Coola carbonatite drilling

 

Pensana is pleased to provide the following update on the construction
progress at Longonjo and the commencement of an exploration project at the
Coola project in Angola:
* Construction on track to meet capital cost schedule;
* Engineering delivery partners mobilised;
* Further drilling  programme  at Coola outlined.
The Longonjo project team has completed a detailed review of the capital cost
estimates and construction schedule since the approval of finance. Based on
recent updates from all major contractors and supplier quotations, the project
team has confirmed that the overall capital cost envelope of US$ 217 million
remains intact and that the project remains on schedule.

 

Key project delivery partners Pro-Process Engineering (Pty) Ltd, Lycopodium
ADP Group Ltd and SRK Consulting Ltd have commenced detailed engineering
activities..

 

SRK has contracted a specialist drilling company to commence drilling on the
tailings storage facility ("TSF") to define the final excavation profile to
meet Global Industry Standards on Tailings Management. The material excavated
within the primary TSF will be deployed for mine haul road construction, plant
and infrastructure terracing as well as the TSF wall construction.

 

Upon completion of TSF drilling, the drilling contractor will re-mobilise to
the Coola exploration project, located approximately 40 kilometres north of
Longonjo, to commence a drilling programme  to test the potential for a
deeply weathered and supergene enrichment central diatreme, as occurs at the
Longonjo carbonatite.

 

The central diatreme is a compelling magnetic target and is covered by 3 to 5
metres of sand and a ferricrete layer. An initial 10 holes of 30 to 50 metres
are planned to investigate this unique magnetic anomaly. Samples collected
will be analyzed on site by portable XRF and mineralogical studies initiated.
This will confirm the resource potential and allow for follow-up drilling to
delineate the contribution that this deposit may make as a high-grade
feedstock to the Longonjo operation.

 

Commenting on the progress, Pensana CEO Tim George said:

 

"We are extremely pleased with the excellent progress on the Longonjo project.
The confirmation that our capital costs remain firmly within budget-and that
our development timeline is intact-is a great result for the team. This
reflects the quality of the planning and technical input to date, and we look
forward to positive confirmation of the Coola deposit to extend the use of the
processing infrastructure being developed at Longonjo beyond the +20 years
currently contemplated"

 

About ADP Group
 

ADP Group (a Lycopodium Group company) is a multidisciplinary engineering,
project management, and construction firm with extensive experience across the
African continent. Headquartered in Cape Town, ADP has successfully delivered
numerous modular mineral processing facilities across a range of commodities.
Their role on the Longonjo project includes engineering design and project
integration for the concentrator and related plant infrastructure.

 

About ProProcess Engineering
 

ProProcess is a South African-based engineering company specialising in the
design, fabrication, and commissioning of hydrometallurgical and chemical
processing plants. With a strong focus on modular and containerised solutions,
ProProcess has delivered complex process systems across Africa, supporting
clients in the mining, oil and gas, and chemical sectors. For the Longonjo
project, ProProcess is responsible for the detailed design and engineering of
the hydrometallurgical process plant and associated systems.

 

About SRK Consulting
 

SRK Consulting is a global leader in mining consultancy, offering services in
geotechnical engineering, mine planning, environmental assessment, tailings
design, and hydrogeology. With over 1,700 professionals across 45 offices
worldwide, SRK brings international best practice and technical rigour to
mining projects. SRK is overseeing the geotechnical and civil components of
the Longonjo project, including the design and implementation of the tailings
storage facility to the highest international standards.

About Longonjo

 

Pensana has spent over US$ 70 million over the past six years on exploration,
technical and environmental studies on the Longonjo rare earth project in the
Huambo district of Angola approximately 350 kilometres Southeast of the
capital Luanda.

 

The Company has successfully delineated a near surface JORC compliant reserve
of 22 million tonnes grading 3.04% TREO containing 139,457 tonnes of NdPrO
making it one of the world's largest and highest grade, undeveloped magnet
metal rare earth deposits with a mine life of over 20 years.

 

The electrification of motive power is arguably the biggest energy transition
in history and needs rare earths for permanent magnets.

 

Initial production will be 20,000 tonnes of a highly marketable clean Mixed
Rare Earth Carbonate ("MREC"). A proposed second phase expansion will see
production increase to 40,000 tonnes per annum of MREC, representing about 5%
of the world's production, capable of being converted into permanent magnets
for electric vehicles and offshore wind turbines.

 

The Company is committed to developing the Longonjo mine to the very best
international standards with the highest level of community engagement and has
published a blueprint for sustainable rare earth development which is
available on our website. Pensana_Blueprint_for_Sustainable_Rare_Earths.pdf
(https://pensana.co.uk/wp-content/uploads/2022/09/Pensana_Blueprint_for_Sustainable_Rare_Earths.pdf)

 

The team's efforts were recognised in 2022 when Pensana received green bond
assurance by S&P Green Bond Rating Agency CICERO and more recently were
awarded a Gold Medal by EcoVadis, a leading sustainability ratings provider,
placing it among the top 5% of the companies assessed.
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



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