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Reconnaissance Sampling Program Commences at Ngala Hill PGE Project to Follow up Historical Targets
HIGHLIGHTS
- Targeted reconnaissance sampling program commences at DY6’s highly prospective PGE, Cu & Ni project at Ngalla Hill, Southern Malawi
- At Ngala Hill, 3 key target zones of palladium rich Pd+Pt+Au+Cu mineralisation have been identified from historical trenching and limited drill testing
- DY6 will undertake a rock chip and soil sampling program to follow up on known high grade areas as well as aiming to expand the zone of mineralisation
- No significant modern exploration including electromagnetics (EM) to target massive sulphides has been undertaken at Ngala Hill
- Trenching by Placer Dome in 2000 included results of:
- 12m at 3g/t PGE+Au; and
- 70m at 1.12g/t PGE+Au, including 8m at 3.3g/t PGE+Au
- The main mineralised zone has only had limited modern drilling
The Company’s CEO, Mr Lloyd Kaiser said: “Our team in Malawi has actively built strong relationships with local communities across our projects and this early engagement at Ngala Hill is setting the foundation between the Company and the community as we prepare to mobilise the geo team and embark on our first exploration campaign at Ngala.”
Figure 1: Location of the Ngala Hill PGE Project in southern Malawi
Background on the Project
The Ngala Hill ultramafic chonolith is an arcuate-shaped intrusion, with dimensions of approximately 2.4km by 0.7km and was intruded into the underlying Proterozoic Basement Complex gneisses. The Ngala Hill Project is characterised by an intrusive ultramafic suite of pyroxenites and hornblende- pyroxenites that intrude basement gneisses. The pyroxenite facies of the ultramafic complex is prospective for platinum group elements (PGEs), predominantly palladium, and associated copper.
Initial work at Ngala Hill in the late 1960s included geochemical sampling programs undertaken by the British and Malawian Geological Surveys. Phelps Dodge started an exploration program for PGEs on Ngala Hill in 1999 with approximately 600 m of trenching. Metapyroxenite and amphibolite with an PGE- gold-copper nickel association was intersected trenching and yielded 1.41g/t Pt+Pd+Au and 1,430 ppm Cu over a length of 64m.
In 2000, Placer Dome confirmed further anomalies with encouraging results received from several trenches including 12m at 3g/t PGE+Au and 70 m at 1.12g/t PGE+Au, including 8m at 3.3g/t PGE+Au.
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This article includes content from DY6 Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Heavy Rare Earths & Niobium Explorer DY6 Metals Lists On ASX Following Successful $7M IPO
- $7 million successfully raised via IPO, including $2.5 million from Hong Kong- based cornerstone investors, Zhenshi Group and Zhung Nam New Material Company
- Funds to be used for exploration on three 100%-owned rare earths and critical metals projects in southern Malawi
- Malawi is an attractive and stable mining jurisdiction with proven potential for hosting major rare earth deposits including Lindian Resources’ world class Kangankunde discovery (40km east of the Company’s Machinga Project)
- RC drilling is already underway at the flagship Machinga project, with diamond drilling scheduled to commence next month
- Drilling aims to follow up high grade 2010 results by Globe Metals and Mining (ASX:GBE)§Machinga is enriched in heavy rare earths (Dysprosium and Terbium) and Niobium
DY6’s listing follows a successful initial public offering (IPO), which raised $7 million. As part of this, the Company attracted a combined $2.5 million from Hong Kong-based strategic investors, Zhensi Group (HK) Heshi Composite Materials Co., Limited and Zhung Nam New Material Company Limited.
The funds raised in the IPO will be used primarily for exploration at the Company’s three 100%-owned rare earths and critical metals projects located in southern Malawi, a stable and attractive African jurisdiction with proven potential for hosting major mineral deposits.
DY6 has recently commenced a 5,000m program of reverse circulation and diamond drilling at the flagship Machinga project, only 40km east of Lindian Resources’ Kangankunde carbonatite discovery, which is widely regarded as the world’s best undeveloped rare earths project.
Machinga is particularly enriched with high-value heavy rare earth elements dysprosium and terbium. The project also holds significant niobium and tantalum potential as well.
Non-executive Chairman Dan Smith said: “DY6 has recently started its maiden drill program at the exciting Machinga project. In addition to being a potential source of the critical heavy rare earth elements Dysprosium and Terbium, Machinga also contains significant Niobium mineralisation.
The Company is seeking to emulate the success of Lindian Resources in proving up a major critical minerals project in southern Malawi. We believe the projects and the team we have assembled provide us with an excellent opportunity.”
Image 1: RC Drilling underway at Machinga HREO + Nb Project
Six targets have been identified to date within the Machinga North concession and the Company will be following up on previous high grade intercepts from a previous 2010 campaign undertaken by Globe Metals and Mining (ASX:GBE).
DY6’s other projects in southern Malawi, Salambidwe and Ngala Hill, have also been subject to previous exploration: rock chips from Salambidwe returned high grade values of TREO and Nb while soil samples from Ngala Hill and limited previous drilling by Phelps Dodge returned high grade results of Pd, Pt, Au and Cu.
The Company plans to carry out detailed geophysical and geological sampling programs at Salambidwe to aid in defining targets for a maiden drilling campaign towards the end of the year. RC drilling at Ngala Hill is scheduled for around the same time.
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This article includes content from DY6 Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Scoping Study Delivers Robust Economics and Upside Potential
This Scoping Study considers the advancement of Tardiff, a Rare Earth and Niobium project located in the NWT of Canada and 100% owned by Vital Metals. This Study evaluates development of a hard rock starter open pit that extracts only 15% of the total Tardiff Mineral Resource Estimate of 192.7Mt at 1.3% Total Rare Earth Oxide (TREO). The adjacent 100% owned North T and South T deposits have not been included as part of this Study.
Highlights:
- Scoping Study delivers robust financial outcomes of:
- Pre-tax NPV8 of US$776M and 32% IRR
- Post-tax NPV8 US$445M and 25.5% IRR
- Base case commodity pricing of US$90/kg of neodymium (Nd) and praseodymium (Pr), US$1322/kg for terbium (Tb) and US$338/Kg for dysprosium (Dy). The breakeven price for NdPr using all other prices from the base case is US$33.68/ kg.
- Average annual production estimate of 56kt of concentrate at a grade of 26.4% TREO and 3.3% Nb2O5, with 45.1% global TREO recovery over an initial 11-year life of mine (LOM). Average annual Rare Earth Element (REE) production is estimated to be: 2.9kt of Nd, 0.9kt of Pr with less than 100 tons each of Dy and Tb.
- Further infill drilling should increase the size and confidence of the resource supporting a longer LOM and thereby expanding project economics.
- Pit design targets a daily production of 14,000 tpd (approx. 3,000,000 tpa) with a very low 0.3:1 stripping ratio.
- Capital cost estimated at US$291 million (A$455 million), including a 35% contingency of US$68M; operating cost estimated at US$24/dry metric tonne mined (includes a 20% contingency).
- The Study states that building a Canadian supply chain will be preferred for the project’s success. The Canadian Rare Earth Supply Chain Consortium, in which Vital plays a founding role, will foster the collaboration between industry, government and technical partners to expedite the timeline from lab, and pilot work and demonstration plant to be ready to scale to commercial production of separated metals, permanent magnets and wind turbines.
- To potentially improve the project’s economics, the Study recommends advancing to a prefeasibility Study (PFS) with additional extensive metallurgical testing to:
- Optimize TREO and niobium recoveries;
- Prove the payability of niobium; and
- Test the recovery of zircon.
Vital Metals’ Managing Director Lisa Riley said: "The Study is an essential step towards moving the Project forward. It is a first step towards Vital playing a key role in building critical minerals supply chain in Canada. The Study has outlined the potential to build a viable, long- term rare earths and niobium project at Tardiff. Recommended next steps will aim to capture further economic upside by optimizing REE and Nb recoveries, lifting concentrate grades and delivering higher payability for the economic commodities.”
Figure 1: Vital Metals' Nechalacho Project, Canada
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This article includes content from Vital Metals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
