Rainbow Rare Earths Limited Phalaborwa High Grade Assay Results (8709O)

TIDMRBW

RNS Number : 8709O

Rainbow Rare Earths Limited

12 February 2021

Rainbow Rare Earths Limited

("Rainbow" or the "Company")

(LSE: RBW)

12 February 2021

Assay Results from Phalaborwa Indicate 0.5% TREO Grade, Confirming the High-Grade Nature of the Mineralisation

Rainbow Rare Earths Ltd is pleased to announce the first batch of assay results of the auger drilling programme completed at the Phalaborwa Rare Earths Project ("Phalaborwa" or the "Project") located in South Africa, which confirm:

   --    Average in situ grade of 0.50% total rare earths oxide ("TREO"). 

-- Average in-situ combined grade of 0.15% Neodymium and Praseodymium ("NdPr") oxide, representing 29.7% of the TREO grade reported in the rare earths basket.

-- 29.7% NdPr represents one of the highest weightings of NdPr in a rare earths basket of any project in the world.

These initial results, received from 178 of the 708 total samples from the 1,056-metre drilling programme, demonstrate the expected homogenous nature of the rare earth mineralisation in the gypsum stacks. They are also supportive of previous indications from the Sasol sample and test work programme.

Results are included in a table below. Further assay results will be announced shortly, followed by the estimation and publication of an JORC (2012) Mineral Resource Estimate within the estimated +/-35 million tonne gypsum stacks.

George Bennett, CEO, said: "These assay results go a long way to confirming the substantial tonnage and value of the Phalaborwa Rare Earths Project in terms of both in-situ grade and the consistency of the high value NdPr content in the rare earths basket. The results also demonstrate extremely low levels of radioactive elements present in the stacks, substantially below the low radioactive levels which we have seen to date for other rare earth projects globally. This factor simplifies the optimised processing flow sheet from Sasol's initial pilot plant flow sheet, developed to extract the rare earth mineralisation from the gypsum. These assays also highlight the environmentally advantageous characteristics of the Phalaborwa project, which we believe will position Rainbow as a leading example of a 'green' rare earth Company, producing the elements required for the clean energy revolution.

These are very high grades for a low-cost project of this type, which is potentially homogenous in nature, with minimal geological uncertainty, no waste stripping requirements and where the gypsum, which is already in a 'cracked' chemical form, is ready to process. The results further underscore Phalaborwa's potential to drive Rainbow's strategy to become a globally-significant producer of rare earth metals."

For further information, please contact:

 
 Rainbow Rare                      George Bennett 
  Earths Ltd            Company     Pete Gardner        [phone] 
 SP Angel Corporate                Ewan Leggat 
  Finance LLP           Broker      Charlie Bouverat    [phone] 
                       ---------  -------------------  -------------------------------------- 
 Flagstaff Strategic                Tim Thompson        [phone] 
  and Investor                       Fergus Mellon       [e-mail] 
  Communications 
                                   ------------------  -------------------------------------- 
 

Qualified Person

Mr Malcolm Titley, an independent consultant, full time employee of Maja Mining Limited and Competent Person as defined by the JORC Code. Mr Titley has visited the Phalaborwa site, reviewed the auger drilling programme, visited the analytical laboratory and approved the information contained in this announcement. Malcom Titley is a Member of both the Australasian Institute of Mining and Metallurgy and Australian Institute of Geologists.

Notes to Editors:

Rainbow's strategy is to become a globally-significant producer of rare earth metals. NdPr are vital components of the strongest permanent magnets used for the motors and turbines driving the green technology revolution. Analysts are predicting demand for magnet rare earth oxides will grow substantially over the coming years, driven by increasing adoption of green technology, pushing the overall market for NdPr into deficit.

The Company's Gakara Project in Burundi, which produces one of the highest-grade concentrates in the world (typically 54% TREO) through ongoing trial mining operations, is currently the only African producer of rare earths. The Gakara basket is weighted heavily towards NdPr, which account for over approximately 19.5% of the contained TREO and 85% of the value of the concentrate.

The Phalaborwa Rare Earths Project, located in South Africa, comprises approximately 35 million tonnes of gypsum tailings stacked in unconsolidated dumps derived from historic phosphate hard rock mining, containing rare earth elements with an initial estimated average in situ grade of 0.6% TREO, based on previous sampling campaigns, of which +/- 30% comprises high-value NdPr. The rare earths are contained in chemical form in the gypsum dumps, which is expected to deliver a higher-value rare earth carbonate, with lower operating costs than a typical rare earth mineral project.

Assay results:

 
   Hole     Length    Ce     Dy    Er    Eu    Gd    Ho    La    Lu     Nd     Pr    Sm    Tb    Tm     Y    Yb    TREO    LREO    HREO    CREO    NdPr   Th     U 
    ID 
              m       ppm    ppm   ppm   ppm   ppm   ppm   ppm   ppm    ppm    ppm   ppm   ppm   ppm   ppm   ppm    ppm     ppm     ppm     ppm     %     ppm   ppm 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 PAH01      12.0     1,650   33    7     31    131   4     695   0     946     217   177   14    0     69    2     4,653   3,002   1,652   1,280   29     43    3 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 PAH02      9.0      1,747   32    6     33    115   4     723   0     1,011   229   159   12    0     54    2     4,829   3,162   1,666   1,336   30     46    2 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 PAH03      10.5     1,859   34    7     34    105   4     794   0     1,055   240   142   11    0     50    2     5,076   3,390   1,687   1,384   30     47    1 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 PAH04      12.0     1,956   34    7     35    98    4     817   0     1,118   254   138   10    0     50    2     5,293   3,547   1,746   1,458   30     50    1 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 PAH05      10.5     1,800   33    7     32    93    4     759   0     1,026   235   128   10    0     53    2     4,894   3,273   1,621   1,350   30     47    2 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 PAH08      18.0     2,073   42    8     34    126   5     869   0     1,187   270   172   15    1     69    3     5,703   3,763   1,939   1,577   30     40    2 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 PAH09      18.0     2,006   43    8     33    124   5     841   0     1,155   263   167   15    1     75    3     5,548   3,644   1,904   1,547   30     42    2 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 PAH10      19.5     1,685   36    7     28    93    5     694   0     978     224   128   11    1     68    2     4,635   3,050   1,585   1,314   30     37    2 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 PAH11      15.0     2,033   37    7     37    86    4     864   0     1,152   263   116   9     0     56    3     5,462   3,703   1,760   1,510   30     41    2 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 PAH14      21.0     1,835   38    7     31    115   5     755   0     1,052   251   161   12    1     71    3     5,078   3,329   1,749   1,411   30     44    2 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 PAH15      21.0     1,678   35    7     30    110   4     680   0     962     238   157   10    1     67    2     4,660   3,043   1,618   1,294   30     40    2 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 PAH16      21.0     1,629   33    6     29    102   4     660   0     928     232   149   9     1     63    2     4,502   2,953   1,548   1,244   30     41    2 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 PAH17      18.0     1,798   38    7     33    121   5     762   0     1,040   253   177   9     3     82    2     5,069   3,296   1,773   1,408   30     44    1 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 

 PAH23      16.5     1,728   41    8     34    128   5     825   0     1,036   238   185   1     13    104   2     5,093   3,271   1,822   1,427   29     44    2 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 PAH29      13.5     1,621   44    9     33    130   6     783   0     968     223   176   1     13    109   3     4,826   3,078   1,748   1,357   29     46    2 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 PAH34      9.0      1,445   38    7     30    119   5     676   0     877     200   158   1     12    96    2     4,292   2,719   1,573   1,224   29     48    2 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 PAH35      13.5     1,604   43    9     34    134   6     785   0     964     219   174   1     13    115   3     4,808   3,057   1,751   1,359   29     50    2 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 PAH39      9.0      1,411   39    8     30    123   5     689   0     844     193   155   1     12    108   3     4,242   2,687   1,555   1,201   28     44    3 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 Total      267.0 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 Average             1,769   37    7     32    114   5     760   0     1,024   239   157   9     4     75    2     4,957   3,243   1,714   1,380   30     43    2 
           -------  ------  ----  ----  ----  ----  ----  ----  ----  ------  ----  ----  ----  ----  ----  ----  ------  ------  ------  ------  -----  ----  ---- 
 
 
 Table key: 
 ppm    parts per million 
 Ce     Cerium 
 Dy     Dysprosium 
 Er     Erbium 
 Eu     Europium 
 Gd     Gadolinium 
 Ho     Holmium 
 La     Lanthanum 
 Lu     Lutetium 
 Nd     Neodymium 
 Pr     Praseodymium 
 Sm     Samarium 
 Tb     Terbium 
 Tm     Thulium 
 Y      Yttrium 
 Yb     Ytterbium 
 TREO   Total Rare Earths Oxides 
 LREO   Light Rare Earths Oxides 
 HREO   Heavy Rare Earths Oxides 
 CREO   Critical Rare Earth Oxides 
 NdPr   Neodymium and Praseodymium 
 Th     Thorium 
 U      Uranium 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

DRLVFLFFFLLBBBD

(END) Dow Jones Newswires

February 12, 2021 02:00 ET (07:00 GMT)