ASX-listed Lindian Resources has made the first tranche payment of $2.5-million to Malawi exploration company Rift Valley Resource Developments as the starting payment for its acquisition of the Kangankunde rare earths project, in Malawi.
“We have wasted no time getting on the ground in Malawi and assessing the Kangankunde [project] and its potential. We have also held extensive discussions with government, regional representatives and other critical stakeholders – all of which are supportive of developing Kangankunde,” Lindian CEO Alistair Stephens said on August 30.
Lindian is advancing its planned works programme for the current quarter, which is the fourth quarter of the company’s financial year.
“I started this role stating that Kangankunde is the worlds’ best undeveloped rare earths project. It is now becoming the world's best developing rare earth project. My work has only just begun,” Stephens said, adding that he believed the project presented “the best opportunity for a rare earths project ever”.
Over the past week, extensive government and local stakeholder engagements were undertaken by Stephens and Lindian chairperson Asimwe Kabunga.
Stephens said engagements with officials from the Malawi Ministry of Mining reaffirmed the government’s commitment to Lindian’s 100% acquisition of Rift Valley Resource Developments and its fully tenured mining licence at the Kangankunde project.
He said the Ministry of Mining had confirmed its “enthusiastic support” for the acquisition and development plans for the project, while local district authorities at Balaka also showed support.
Constructive conversations were also held with the Traditional Authority Senior Chief and Area Chief.
The first Kangankunde site visit was also conducted ahead of starting the first works programme.
The site visit revealed “extensive” surface mineralisation – more extensive than the company had expected.
Moreover, an inspection of the access roads to mineralisation zones showed they were in good structural condition. Road and power access from the main highway was also investigated.
Access to water was confirmed as possible from the Shire river, located 25 km east of Kangankunde from the perennial river system flowing from Lake Malawi.
Moreover, planning is under way for the first phase of exploration and project development works to progressively start in September, including Lindian’s maiden drill programme.
Stephens is planning to return to Malawi in late September to present to the full committee of the Balaka District Development Committee Lindian’s plans to conduct a site aerial topographic survey, re-establish site access tracks, establish drill pads and start a drill programme this year.
A geophysical gravity survey has been postponed until next year owing to the necessity to clear lines through thick grass.