AuKing to Acquire High-Grade Tundulu Rare Earths Project in Malawi and Strategic Placement

AuKing Mining Limited (ASX: AKN) (“AuKing” or “the Company”) has agreed to acquire a 100% interest in the Tundulu Rare Earth Elements (REE) project in south-eastern Malawi (Proposed Acquisition).

Highlights

• AuKing to acquire 100% of the Tundulu Rare Earths Project in south-eastern Malawi – a 5km in diameter intrusive carbonatite complex¹, ranking among the largest and most under-explored rare earth systems in the country. The Project is de-risked by high-grade historical drilling (originally targeting phosphate), highlighting strong potential for a significant rare earth discovery applying modern and REE targeted exploration.
• Established carbonatite-hosted rare earths system with historical high-grade drilling results, including²:
• JICA drilling (1G87, max depth 50m):
  • 41m @ 3.7% TREO from 8m (JMT-22) (hole ending in mineralisation)
  • 35m @ 2.7% TREO from 15m incl 14m @ 4.1% TREO from 36m (JMT-17) (hole ending in mineralisation)
• Mota-Engil / Optichem drilling (2014-2015, average hole depth 127m, with several holes ending in high-grade REE mineralisation, while targeting phosphate):
  • 15m @ 3.46% TREO from 73m (TU071)
  • 31m @ 2.27% TREO from 41m (TU048)
  • 30m @ 4.03% TREO from surface (TU014)
  • 100m @12.6% P2O5 from 30m (TU042) and
  • G7m @ 14.4% P2O5 from surface (TU050)
• Total of 24 historical drill holes conducted across the project area ended in mineralisation including 8 drill holes that ended in greater than 2% TREO. By way of example drill hole TU073 recorded 10m @ 3.13% TREO from 113m to end of hole (EOH).
• Drilling at Nathace Hill has confirmed carbonatite geology, representing one of five topographic highs across the Tundulu Project, with strong potential for Makhanga Hill, Namuka Hill, Ichigwakalu Hill and Tundulu Hill to host carbonatite mineralisation.
• Historical rock chip samples from JICA program in 1988 returned assays (to be drill tested) including:
  • 6.07% TREO at Tundulu Hill eastern flank (sample 7Y1G6)
  • 6.41% TREO at Nathace Hill (sample 7Y386)
• Located within an emerging world class rare earths district in southern Malawi, in proximity to Lindian Resources’ Kangankunde Project (261Mt @ 2.61% TREO) and the Songwe Hill Project (21Mt @ 1.41% TREO).
• Mineralisation appears high in valuable heavy rare earth elements (HREEs) and medium rare earth elements (MREEs), with low levels of uranium and thorium.³

AuKing’s Managing Director Paul Williams said: “The proposed acquisition of the Tundulu Rare Earths Project represents a further exciting step in AuKing’s strategy to build exposure to critical minerals through high-quality exploration assets.”

“Tundulu is a district-scale carbonatite ring complex in southern Malawi with an interesting profile of bastnaesite and apatite containing abundant rare earth mineralisation and easily accessible by road. AuKing intends to commence exploration activities following completion of the acquisition, with an initial drilling program planned to advance understanding of the mineralisation. Subject to results, the Company is targeting the delivery of an initial Mineral Resource estimate within the next 12 months.”

Tundulu Project Overview

The Tundulu Rare Earth Elements (REE) Project comprises an area of 91.5 km² within exploration licence EL 0731/24. The licence area is located approx. 70km south-east of the city of Zomba and 90km east of Blantyre, in the Phalombe District of the Southern Region of Malawi. All-weather roads link these centres with the town of Migowi, approximately 25 km from Tundulu, which is accessible by dirt/gravel roads. Migowi is connected to the national electricity grid. The Tundulu area has a sub-tropical climate with average annual rainfall between 900-1400mm.

Tundulu is a well-known carbonatite complex in southern Malawi, enriched in REE mineralisation. The Project is formed of several hills in a ring around a central vent called Nathace Hill where the majority of historical surface sampling and drilling has been undertaken.

The predominant geology at Nathace Hill is REE and apatite rich carbonatites and feldspathic breccias and comprises a large inner agglomerate vent. Mineral rich carbonatite also occurs at Tundulu Hill to the east of Nathace Hill and Makhanga Hill to the west of Nathace and is largely unexplored and prospective for REEs.

The occurrence of carbonatites is widespread across the region in the presence of fenites and breccias, with lesser but significant mineralisation in the breccia/agglomerate. The rare earth carbonatite shows the highest grades of REE whilst the other host mineral, apatite, has phosphate grades ranging from approximately 5% to 30% P2O5. Lithological strip logs of the drillholes also shows a good correlation between rich apatite (P2O5) and abundant HREE.

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