Modern Mining July 2019

MINING News

CPR prepared on Gakara rare earths project

LSE-listed Rainbow, the Rare Earth Element (REE) mining company which holds the Gakara project in Burundi, has received a Competent Person’s Report (CPR) from MSA dated 4 June 2019. Gakara is one of the highest grade (47 %-67 % Total Rare Earth Oxide) rare earths projects globally and the only African producer. The full text of the CPR contains a review

of the company’s recently announced strat- egy to invest in the opening of additional mining areas and new mining machinery and endorses Rainbow’s strategy on the assumption that risk areas identified in its report are addressed In addition, MSA has increased its estimation of the high-grade rare earth vein tonnages classified by JORC as an

Exploration Target from 20 000 – 80 000 tonnes at the time of Rainbow’s IPO in 2017 to 27 000 – 103 200 tonnes, an increase of 30 % at the mid-point of the range even taking into account the depletion from recent mining production. MSA is of the view that some additional work is required before it could translate its calculations for the Exploration Target into a resource. Specifically for the high-grade deposits, it suggests more extensive use of laboratory testing of channel samples (rather than hand-held Niton XRF data which Rainbow has used for a number of years) and additional computerised vein modelling; and for the lower grade deposits such as Kiyenzi a comprehensive laboratory sampling of all existing drill core from the 2018 drilling campaign plus addi- tional drilling and metallurgical testing. All these activities are planned by Rainbow in the coming months. Rainbow began production of rare earth concentrates in Q4-2017 and has a ten-year distribution and offtake agree- ment with multinational thyssenkrupp Materials Trading secured for the sale of at least 5 000 t/a of concentrate produced. The Gakara ‘basket’ is weighted heavily towards the magnet rare earths, including neodymium and praseodymium, which are driving demand and account for 70 % of annual global REE sales due to their use in vital components in motors, generators, wind turbines and electric vehicles.  Comments Sean Gilbertson, Gemfields’ CEO: “We have enjoyed a sound and suc- cessful partnership with Mwiriti at the Montepuez ruby mine and we look forward to furthering our joint understanding of these new licences. While the opportunities are early stage, secondary gold mineralisa- tion has been observed and recovered in small quantities from several areas within the licence portfolio and these will therefore constitute our key focus in the year ahead. “Gemfields remains a company focused on emeralds, rubies and sapphires mined in Africa. However, given their proximity, the relative ease of mobilisation, our long- standing relationship with Mwiriti and the mineralisation observed on site to date, we feel it is important to fully investigate the possible upside potential of these licences for our shareholders.” 

The Gasagwe mining area, part of the Gakara project (photo: Rainbow).

Gemfields in JV to explore greenfield licences JSE-listed Gemfields (formerly Pallinghurst Resources) has announced that it has agreed to establish a joint venture (JV) company with Mwiriti Limitada, a Mozambican-registered company, in order to explore and progress opportunities aris- ing from 12 greenfield licences presently held by Mwiriti.

view to building on the successes achieved in Mozambican rubies, where Gemfields and Mwiriti’s collaboration brought con- siderable benefits to both the regional economy and local communities. Mwiriti will contribute six applications for mining concessions and six exploration licences for gold and assorted minerals. Mwiriti will receive from the JV an advance payment of US$3 million against Mwiriti’s share of future earnings arising from the operations of the new JV. The licences, which begin as little as 20 km from MRM’s existing operations, include an extension of the known Montepuez ruby belt with both secondary gold incidence and primary corundummin- eralisation having been observed.

The new joint venture company will be incorporated in Mozambique with Gemfields owning 75 % and Mwiriti 25 %. Mwiriti is Gemfields’ existing partner in Montepuez Ruby Mining Limitada (MRM) in which Mwiriti also owns 25 %. Under the terms of the JV agreement, Gemfields will contribute its proven explo- ration and project development experience together with appropriate financing with a

16  MODERN MINING  July 2019