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It reads great doesn't it Lovelybuy!! Not just in the UK you're excited, we've been watching this story unfold for a while.
421,981,551 shares in issue
134,961,602 shares Or 32.0% held by directors. Think they might be confident of a good maiden JORC.
Gakara - The test work results from Metanza showed that a combination of crushing, jigging and shaking tables could be used to upgrade the Gakara ore to consistently achieve a concentrate grade of at least 55 % TREO at recoveries of 85 %. Let that sink in.
Based on the average grades of REO within Gakara, magnet rare earths (principally neodymium, praseodymium and dysprosium) account for approximately 22% of the contained REOs within the Gakara ore.
It is these rare earths that are of great value to Rainbow Rare Earths because, based on current rare earths market prices, the company will be able to yield the most revenue from its magnet rare earths.
September 2016, Rainbow Rare Earths commissioned The MSA Group as its independent consultant to prepare an independent competent person’s report on the project.
So the Gakara project WAS considered by The MSA Group to be an exploration target, as defined in the JORC Code, as a result of insufficient exploration data to estimate a mineral resource as well as REE vein characteristics that are hard to quantify.
Accordingly, The MSA Group calculated an exploration target of between 20 000 t and 80 000 t of mineralised vein material grading at 47% – 67% total REO.
Based on this, Rainbow Rare Earths decided not to take the Gakara deposit to a JORC resource but mine it as is in the meantime over the next two to four years, until it becomes economically viable to prove the resource up further.
This appears to be the end of the trial mining period. Off take agreement signed. RBW hit 5000t target at $1500 per ton concentrate.
“Poised to be the next REO concentrate producer outside of China once in production, Rainbow Rare Earths is confident that the Gakara project will be able to yield many more REO tons than noted in the competent person’s report. Besides the 798 occurences of high-grade vein material already identified to date, the CEO believes that the progress of mining activity will reveal further occurrences.”
A JORC compliant report would change this from an exploration target and significantly increase the estimated 20 000 t and 80 000 t of mineralised vein material.
DYOR
Hi all,
I've realised that the document I stumbled upon the other day is in fact referred in an RNS so is fair game to share as it's known to the market. This being the CPR announced 27 June 2019. It's a wordy document and has taken me most of the day to read. To be fair I'm probably going to read it again next time I have a day off. I'm no geologist so it's been hard going. Bear with me because I'm attempting to summarize a 156 page document in a single post.
What's also interesting is the PhD research that has been carried out by a local Burundian student that has added a lot of know-how on the formulation of the geology - this one really is hard going! RBW are using this research to help with better the prospecting.
In my opinion the announcement of the JORC is one thing, what would be really interesting would be reapplication (and granting) of the exploration licence (EL). This adds a further 57 sq km to the already approved 39 sq km in the mining licence. From what I can glean from the report the EL is renewable every 2 years, but for some reason it was allowed to relapse in July 2018. A fact that had actually passed me by. The point here is there is potential for future exploration in the surrounding area.
Of note to me also is the fact that the company has identified 4 key prospects within the mining licence area (from a total of 28 sites) Of these 4 the mineral structure at Kiyenzi is significantly different to the other 3 and is possibly the highest yielding prospect. The other sites tend to have thin veins of deposits that can be hard to follow and get good yields from. To quote the report:-
"In addition, an Exploration Target has been defined at Kiyenzi that offers the opportunity for larger scale, lower grade mining than at the narrow vein deposits."
In relation to the JORC the report however concludes :-
"MSA reviewed the Mineral Resource model constructed for Kiyenzi and is of the opinion that it is not reliable enough to report a Mineral Resource from, as it is not based on the current geological understanding of a breccia pipe and has not taken into account the selective sampling conducted by Rainbow."
I could conclude from this that the delays we are experiencing in the announcement of the resource could be down to additional drilling, 3D visualisation and analysis of the Kiyenzi site before submission. The other thing to bear in mind is the sheer volume of samples that need to be verified and blind/double tested at different labs in order to verify the statistical accuracy of the assays. This could easily be hampered by the current and past Covid restrictions.
There's a lot more to garner from this report if you care to read it. It's interesting and in relatively plain English. After reading the report I'm confident in my investment here. We just need a little more patience IMO.
Bring on the JORC ..... (and bring back the EL)
ATB LB