Mkango starts drilling at Songwe Hill

Updated mineral resource estimate expected by the end of 2018

Staff reporter
The largest drilling programme to date has started at Mkango's Songwe Hill project in Malawi

The largest drilling programme to date has started at Mkango's Songwe Hill project in Malawi

The company said the diamond drilling programme would include at least 5,000m and focus on infill, step-out and geotechnical drilling.

It had also constructed over 50 drill pads, new access roads and an enlarged camp.

In May, Mkango and Noble Group subsidiary Talaxis agreed the latter would fund the feasibility study and development of Songwe Hill in exchange for up to a 75% interest in the project and a 49% interest in Maginito Limited.

The first part of the agreement included £5 million (US$6.7 million) for drilling in exchange for a 20% interest in Songwe Hill.

Mkango aims to complete an updated mineral resource estimate by the end of the year and after it publishes a NI 43-101 technical report, Talaxis will invest another £7 million to fund completion of the FS, which is targeted by the end of 2019.

Mkango CEO William Dawes said the drilling was the "culmination of extensive preparatory work completed over recent months", and would be the largest drill programme to date at the project.

This is not the first time drilling will take place at Songwe Hill, Mkango carried out drilling programmes totalling 6,850m in 2011 and 2012, which resulted in a maiden mineral resource estimate.

"Mkango is fully funded to completion of a feasibility study with a clearly defined pathway to production," Dawes said.

Mkango's shares were 0.94% higher Monday at 8.07p.

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