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IRW News: Pensana Rare Earths: Longonjo Mineral Resource Estimate Expanded

09/14/2020 | 07:44

Source: dpa-AFX

Author: dpa-AFX

RW PRESS: Pensana Rare Earths: Longonjo mineral resource estimate expanded

Pensana Rare Earths Plc (LSE: PRE, ASX: PM8) is pleased to announce a significant improvement in the mineral resource estimate for its Longonjo project.

International mining industry advisory firm SRK Consulting reported an improved Mineral Resource Estimate for: Measured, Indicated and Inferred Mineral Resources:

313 million tons at 1.43% REO including 0.32% NdPr for 4,470,000 tons

REO including 990,000 tons of NdPr

* NdPr = neodymium + praseodymium oxide. REO = total of rare earth oxides. An NdPr cut of 0.1% is used. Tables 4 through 7 summarize the estimate for a range of cutoff grades, material types, resource categories and individual rare earth oxide grades.

The improved estimate:

- contains more than 2.3 times the previous estimate of the Measured and Indicated Resources used in the Preliminary Feasibility Study1 (ASX - Released November 15, 2019).

- Increased the proportion of resources in the categories Measured and Indicated from 31% to 68% 2;

- and has increased the total NdPr contained by 35% 2;

A number of previously reported drill holes in the mineralization in the fresh rock immediately below the weathered zone have reported continuous mineralization to a depth of 80 meters that remains open. Additional drilling is planned in this area which will form the basis for a future mineral resource estimate.

The measured and displayed mineral resource estimate for the weathered zone is at a 0.2% lower grade NdPr cut:

39.9 million tons at 2.38% REO including 0.52% NdPr for 948,000 tons of REO

including 208,000 tons of NdPr.

An NdPr cut of 0.2% is used. Only the Weathered Zone Measured and Indicated categories are included in the total mineral resource estimate and are a subset of it.

1 Comparison of contained NdPr within the categories Weathering Zone Measured and Indicated with a cutoff grade of 0.2% NdPr, November 2019 and new mineral resource estimates.

2 Comparison of contained NdPr within Longonjo's new Total Mineral Resource Estimate and November 2019 cut-off of 0.1% NdPr (Measured + Indicated + Inferred Categories).

The enhanced resource estimate will be integrated into the ongoing technical studies and will support an extended mine life once additional workflows for the Bankable Feasibility Study (BFS) are completed.

Executive Director Dave Hammond commented:

This is a major improvement that will underpin the Bankable Feasibility Study. We now have 2.3 times the amount of mineralization in the Measured and Indicated categories, which we expect will result in significantly extended mine life beyond the nine years defined in last year's Preliminary Feasibility Study.

We have only just begun exploring the mineralization of the fresh rock that is immediately below the weathered zone. We have tested them to a depth of eighty meters so far with several holes ending in the mineralization. Metallurgical test work on this material is ongoing to confirm the optimal procedural route for treating this second type of mineralization which, if successful, could significantly expand the scope of the project.

The full report can be found under the following link:

https://www.boerse-express.com/news/articles/irw-news-pensana-rare-earths-mineralressourcenschaetzung-von-longonjo-erweitert-246240