22/6/20 rns :-10 Aug 2020 18:35
Rainbow is expecting the finalisation of a maiden JORC (2012) compliant resource statement for the Gakara Project within the coming weeks, which will mark an important milestone for the Company. This will allow the Company to further define the capital requirements for both exploration to grow the resource and further trial mining to demonstrate the continuity of minerology. The understanding of the resource base from both exploration and trial mining will allow a technical study to be completed for the expansion of the operations at the Gakara Project to a commercial scale.
In parallel, Rainbow continues to explore options for further downstream processing of the high grade Gakara concentrate to a higher value mixed rare earth carbonate or individual rare earth oxides which will allow the Company to realise the full value of the deposit for shareholders.
George Bennett, Chief Executive of Rainbow, said:
"I am delighted by the strong support we have received from both existing and new institutional shareholders in the placing. We believe that the rare earth business is poised for significant growth and that the Gakara Project can play an important part in this. With the simple minerology of the deposit and the high-grade nature of the mineralised veins encountered to date we believe that the business can be developed to a commercial scale and look forward to announcing our maiden resource update which will form an important element in delivering that goal."