Mkango Res Share News (MKA)

(Sharecast News) - Mkango Resources updated the market on its major diamond drilling programme underway at the Songwe Hill Rare Earths Project in Malawi on Thursday, which is a "key component" of the feasibility study for Songwe, fully funded by Noble Group subsidiary Talaxis.The AIM-traded firm said a total of 6,558 metres of drilling had been completed as at 8 August, comprising 52 drill holes to a maximum depth of approximately 220 metres.It said multiple zones of carbonatite - the primary host rock for rare earth mineralisation at Songwe - had been intersected to date.Assay results from the first batch of samples from eight drill holes totaling 944 metres were expected to be announced by the end of August, with the second batch of samples from six drill holes totaling 721 metres recently dispatched for assay, and further batches of samples to be dispatched in coming weeks.The drill programme was reportedly on track, and was expected to total up to about 10,000 metres, focused on infill drilling the existing indicated and inferred mineral resource estimates, testing extensions to the mineralisation and geotechnical drilling.Mkango said it completed two successful drilling programmes at Songwe in 2011 and 2012, totaling approximately 6,850 metres and culminating in a maiden mineral resource estimate.It said it was targeting announcement of an updated mineral resource estimate, incorporating the results of the latest drill programme, by the end of 2018.On Mkango publishing a NI 43-101 technical report in relation to the updated mineral resource estimate, Talaxis will invest a further £7m to fund completion of the feasibility study for Songwe."The drill programme is on track and we look forward to updating the market with the first set of results," said Mkango chief executive officer William Dawes."Mkango is developing one of the few advanced stage rare earths projects globally."Dawes said it was "fully funded" and well positioned to benefit from growing demand for neodymium and praseodymium used in permanent magnet motors for electric vehicles."Our vision is to develop a major new sustainable source of rare earths in Malawi, with Mkango spearheading development of the sector."We are receiving strong support from the Government of Malawi to fulfil this vision."This includes commitments on infrastructure developments to enhance the already favourable operating environment."