REG-Pensana Plc: Mineralogical Results from the Coola Exploration Licence

PensanaAnnouncement

14/09/2023 07:15

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

 

 



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