Development of a Metallurgical Flow Sheet for the Songwe Hill Rare Earth Project in Malawi

Mkango Resources Limited is developing the Songwe Hill Rare Earth Element Project in southeast Malawi. Since being awarded the exclusive exploration licence for the project in January 2010, Mkango has completed an extensive work programme including detailed mineralogical studies, geological mapping, geochemical sampling and trenching, environmental and social studies, two phases of diamond drilling, and extensive metallurgical test work. In October 2012, the company announced a NI 43-101 compliant mineral resource estimate comprising an Indicated resource of 13.2 million tonnes grading 1.62% total rare earth oxides (TREO) and an Inferred resource of 18.6 million tonnes grading 1.38% TREO. The Indicated mineral resource estimate formed the basis for commencement of the Preliminary Feasibility Study (PFS). The mineralogical program identified the fluorocarbonate mineral, synchysite, and the phosphate mineral, apatite, as the primary rare earth element (REE) bearing minerals. Extensive flotation testwork conducted at Mintek in South Africa has resulted in an effective regime to increase the REO grade 2.6 times. Initial leaching testwork by Mintek identified that a selective hydrochloric acid (HCl) leach can target the gangue minerals with minimal REE dissolution. Recent testwork undertaken at Nagrom in Western Australia has expanded on this work to develop a two stage HCl leach process incorporating HCl recycling. A downstream processing route of purification and cerium rejection to produce a cerium depleted high grade REE concentrate suitable as feed to a separation facility is proposed.