MKANGO RESOURCES Spearheading development of Malawi’s Rare Earth Sector RARE EARTHS FUTURE INNOVATION

MKANGO RESOURCES
Spearheading development of Malawi’s Rare Earth Sector
TSX-V: MKA
RARE EARTHS
FUTURE INNOVATION
October 2014
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Dr Scott Swinden of Swinden Geoscience Consultants Ltd is a qualified person for purposes of Canadian National Instrument 43-101 – Standards of Disclosure for Mineral
Projects (“NI 43-101”). Dr Swinden has approved and verified the scientific and technical information in this presentation related to the Mineral Resource Estimate. Scientific
and technical information contained in this presentation in relation to metallurgical test work has been approved and verified by Mr Gavin Beer BSc. (Ext. Met.) MAusIMM (CP),
consultant metallurgist who is a "Qualified Person" in accordance with NI 43-101. The Mineral Reserve calculation contained in this Presentation was completed by The MSA
Group (Pty) Ltd. under the supervision of Clive Brown, who is a “Qualified Person” in accordance with NI 43-101. The process design and cost estimation for the integrated
processing plant and the infrastructure associated with the integrated processing plant for the Pre-feasibility Study (the “Study”) was completed by SNC-Lavalin (Pty) Ltd. under
the supervision of Jansen Scheepers and Tinus Redelinghuys, respectively, each of whom are a “Qualified Person” in accordance with NI 43-101.
A complete description of technical and scientific information related to the Songwe Hill project is contained in (i) the report titled “NI 43-101 Technical Report and Mineral
Resource Estimate for the Songwe Hill Rare Earth Element (REE) Project, Phalombe District, Republic of Malawi”, dated November 22, 2012 and authored by Scott Swinden,
PhD, P.Geo and Michael Hall, Pr.Sci.Nat., MAusIMM (the “Technical Report”), which has been filed and is available at www.sedar.com; (ii) the press release titled “Mkango
2
Announces Results of Pre-Feasibility Study for the Songwe Hill Rare Earth Project in Malawi dated September 23rd September; and (iii) the NI 43-101 compliant Technical Report
in respect of the results of the Study described herein being prepared by The MSA Group (Pty) Ltd. under the guidance of Rob Croll, Principal Consultant for The MSA Group
(Pty) Ltd., who is a “Qualified Person” in accordance with NI 43-101, and which will be filed at www.sedar.com on or before November 7th 2014. All of the Qualified Persons
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Certain disclosures contained in or incorporated by reference into this presentation constitute forward-looking statements or forward-looking information. Any statements
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Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed
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Investment Highlights
PRE-FEASIBILITY STUDY INDICATES 36% IRR AND US$293M NET PRESENT VALUE
CAPITAL EXPENDITURE OF US$217M AMONGST THE LOWEST IN THE SECTOR
MAIDEN PROBABLE RESERVE SUPPORTS 18 YEAR, OPEN PIT MINING OPERATION
AVERAGE ANNUAL PRODUCTION OF 2,841 TONNES REO IN HIGH GRADE CHEMICAL CONCENTRATE
OPPORTUNITY TO SIGNIFICANTLY EXPAND PRODUCTION AND MINE LIFE
DIVERSIFIED RARE EARTH MIX LEVERAGED TO HIGH GROWTH MAGNET APPLICATIONS
REGIONAL ROAD, RAIL AND POWER INFRASTRUCTURE DEVELOPMENTS
MALAWI – A GLOBALLY SIGNIFICANT RARE EARTHS MINERAL PROVINCE
4
Results of Pre-Feasibility Study
Financial Evaluation
Base Case
Internal rate of return
1includes
Nominal discount rate1
Real Discount rate
Post-tax NPV US$m
9.0%
6.3%
326
10.0%
7.3%
293
11.0%
8.3%
262
12.0%
9.3%
234
13.0%
10.2%
210
14.0%
11.2%
188
36%
32%
inflation at 2.5%
ROBUST PROJECT AT A RANGE OF DISCOUNT RATES
ADDITIONAL OPPORTUNITIES TO OPTIMISE AND ADD VALUE
DURING NEXT PHASE
5
Capital Structure
Directors &
Management
34%
Leominex
(Private)
33%
Share Price (07/10):
C$0.235
Shares Outstanding:
73.3M
Warrants (exp. 03/19,
03/16,04/19, 04/16):
24.0M @ C$0.20*
Options:
6.9M
Fully Diluted:
104.2M**
Market Cap (07/10):
~C$17M
• Haywood Securities
• Institutions & private investors
Mkango Resources
(TSX-V)
•
•
•
•
Sprott Inc & Affiliates
Genesis Emerging Markets
Haywood Securities
Institutions & private investors
*If the closing price of the Common Shares on the TSX Venture Exchange equals or exceeds C$0.30 for 20 consecutive trading days following the date that is four months and one day after the date of issuance of the Warrants, Mkango Resources shall have the right to require
conversion of the Warrants at the exercise price upon 30 days' notice. Mkango may, within three trading days thereof, accelerate the expiry of the Warrants to 20 trading days after the issuance of a news release announcing the new expiry date
**Includes Brokers Warrants entitling the holder to acquire one Unit (one common share and common share purchase warrant and options
6
Board of Directors
Executive Directors
Mr William Dawes, Chief Executive Officer
- 12 years Exploration and Business Development, 9 years Mining Finance; prior experience with Rio Tinto exploration
& JP Morgan mining team - Bristol University (BSc Geology), Royal School of Mines (MSc Mineral Exploration).
Mr Alexander Lemon, President
- 15 years Exploration and Operations, 5 years Investment Analysis; prior experience as Managing Director of Gold &
Mineral Excavation Inc., Central Asian miner - Oxford Brookes (BSc Geological Sciences), Royal School of Mines (MSc
Mineral Exploration).
Non – Executive Directors
Mr Derek Linfield (Chairman)
- Managing Partner of Stikeman Elliott (London) LLP, 17 years experience in London with a focus on cross-border
financings, M&A in the mining and oil & gas sectors and TSX, TSX-V & LSE listings.
Mr Adrian Reynolds
- Over 30 years experience in the natural resources sector, 15 years with Randgold, Chairman of Digby Wells
Environmental, Non-Executive Director of Aureus Mining.
Mr David Berg
- Former Chairman and Director of Potash One Inc., 28 years of consecutive service with Loblaw Companies Ltd.
Mr Eugene Chen
- Corporate Finance and Securities lawyer with McMillan LLP.
7
Strong international Team Delivered Pre-Feasibility Study
Pre-Feasibility Team
SNC-Lavalin, South Africa
Processing plant, and associated infrastructure
Digby Wells Environmental, South Africa
Environmental and social impact studies
Epoch Resources, South Africa
Tailings storage facility
Met-Chem Consulting, Australia
Metallurgical optimisation
Mintek, South Africa
Metallurgical optimisation
The MSA Group, South Africa
Mining studies and compilation of the NI 43-101 Report
Nagrom Laboratories, Australia
Metallurgical optimisation
Technical Expertise
Malawi – Strong in-Country Expertise
Dr Aoife Brady
Principal geologist and mineralogist
Mr Burton Kachinjika
Country Manager
Dr Alan Woolley
Consulting geologist and mineralogist
Ms Effie Likaku
Country Administrator
Dr Scott Swinden
Consulting geologist and QP
Mr James Mtegha
Senior Exploration Geologist
Gavin Beer
Consulting metallurgist and QP
Mr Ansel Zabula
Senior Exploration Geologist
Research
Camborne School of Mines
Mr Chikondi Mcheka
Exploration Geologist
AFRICAN CONTENT WAS A KEY DRIVER FOR AWARD OF DTI GRANT
8
Malawi – “The Warm Heart of Africa”
 World class, underdeveloped rare
earth mineral province – historically
known carbonatite deposits, drilled
by JICA/MMAJ in late 80s
 Songwe Hill – most advanced stage
rare earth project, catalyst for
regional REE development
 Global support – ~US$40m minerals
sector support funded by World
Bank, EU, French Government
CHILWA ALKALINE
PROVINCE (CAP)
 Established infrastructure – Multi
billion dollar Vale Tete-Nacala rail
development
STABLE COUNTRY CLOSE TO MAJOR MINING CENTRES
9
Songwe Hill - 2 hours’ drive from international airport
10
Rail and Road Developments
Tete – Nacala railway line through Malawi
Blantyre – Migowi road refurbishment
TETE – NACALA RAIL LINE OPERATIONAL EARLY 2015
11
REE
Geology
and Mineralogy
at Songwe
Hill
Maiden
Probable
Mineral Reserve
Estimate
•
•
Songwe Hill is a near-surface carbonatite hosted
Songwe key rare earth minerals
REE deposit
2012 Mineral Resource Estimate
Volcanic vent system with1.0%
threeTREO
maincut
REEoff grade
mineralized rock
types:
carbonatites,
Tonnes
(million)
TREO (%) fenites and
TREO
(tonnes)
breccias
13.16
213,098
• Indicated
REE mineralization
interpreted 1.62
to have formed
Inferred
18.59
1.38following the
256,149
through hydrothermal
alteration
carbonatite intrusion
2014 Mineral Reserve Estimate
Synchysite – fluorocarbonate (Ca(Ce,La)(CO3)2F)
1.5% TREO cut off grade
Apatite – phosphate
(Ca5(PO4)3(F,Cl,OH))
Tonnes
(million)
TREO (%)
Songwe
contains significantly
6.15 apatite2.05
126,065
higher
of HREE
5.06concentrations
1.83
92,412 versus the
majority of apatite in carbonatites
worldwide
 Conservative Mineral Reserve
cut–off grade versus pay limit
(0.57% TREO)
1.0% TREO cut off grade
Probable
Tonnes (million)
TREO (%)
TREO (tonnes)
8.48
1.60
136,139
TREO (tonnes)

Hill apatite
Mineral Reserve Songwe
based
on
Indicated Resource only
TREO – total rare earth oxides. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. Mineral Resources are inclusive of Mineral Reserves. Full
resources estimate can be found on page 112-116 of the Technical Report on www.sedar.com. The following modifying factor were used to convert the Mineral Resource Estimate to the
Mineral Reserve Estimate: Mining recovery – 95%, Mining dilution – 5%, plant recovery 34%, product price US$55.01/kg TREO, operating cost US$96.42/t ore processed / US$16.95/kg TREO
recovered.
Typical carbonatite apatite
SIGNIFICANT POTENTIAL TO EXPAND PRODUCTION OR MINE LIFE
Scanning electron microscope (SEM) colour montage: blue = synchysite,
yellow = apatite, red = carbonate
12
Maiden Probable Mineral Reserve Estimate
2012 Mineral Resource Estimate
1.0% TREO cut off grade
1.5% TREO cut off grade
Tonnes (million)
TREO (%)
TREO
(tonnes)
Tonnes
(million)
TREO (%)
TREO (tonnes)
Indicated
13.16
1.62
213,098
6.15
2.05
126,065
Inferred
18.59
1.38
256,149
5.06
1.83
92,412
2014 Mineral Reserve Estimate

Conservative Mineral Reserve
cut–off grade versus pay limit
(0.57% TREO)

Mineral Reserve based
Indicated Resource only
1.0% TREO cut off grade
Probable
Tonnes (million)
TREO (%)
TREO (tonnes)
8.48
1.60
136,139
on
TREO – total rare earth oxides. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. Mineral Resources are inclusive of Mineral Reserves. Full
Mineral Resources Estimates can be found on page 112-116 of the Technical Report on www.sedar.com. The following modifying factor were used to convert the Mineral Resource Estimate to
the Mineral Reserve Estimate: Mining recovery – 95%, Mining dilution – 5%, plant recovery 34%, product price US$55.01/kg TREO, operating cost US$96.42/t ore processed / US$16.95/kg
TREO recovered.
SIGNIFICANT POTENTIAL TO EXPAND PRODUCTION OR MINE LIFE
13
Significant resource upside - open laterally and to depth
Stage 1 & 2 drill holes superimposed on Th / K radiometrics
14
Mine Development and Infrastructure
Summary of Key Outputs
Total ore mined and processed (tonnes)
Average strip ratio
Total waste mined (tonnes)
Average life of mine TREO grade (%)
Mine Life (years)
Total REO recovered to concentrate1 (tonnes)
Annual ore mined and processed2 (tonnes)
8,482,603
4.5
38,441,726
1.60
18
48,275
500,000
1 A large proportion of the cerium will be selectively removed during the hydrometallurgical process
2 Average annual at full capacity excluding first and last years process

Favourable topography – located on a hill, not a laterite
deposit

Broad zones of mineralisation – as opposed to a narrow
vein or dyke deposit

Open pit mining – using contract mining

Developing infrastructure – railhead in Blantyre, roads
being paved to within circa 10km from project with
gravel/dirt roads for the balance, power developments,
access to water
15
Mine Development – Potential Upside
IN-PIT INFERRED RESOURCES CURRENTLY TREATED AS WASTE – POTENTIAL TO
LOWER STRIP RATIO AND OPERATING COSTS, EXTEND MINE LIFE
16
Key Revenue Drivers – Peer Group Consensus Pricing
Rare Earth Oxide
REO Price Assumption
US$/kg
REO in conc1
tonnes
REO in conc
split
REO in conc
US$/kg
REO IN conc
split by value
Lanthanum
La2O3
7.7
1,075
37.8%
2.9
5.3%
Cerium
CeO2
5.9
341
12.0%
0.7
1.3%
Praseodymium
Pr6O11
91.4
227
8.0%
7.3
13.3%
Neodymium
Nd2O3
77.3
756
26.6%
20.6
37.4%
Samarium
Sm2O3
7.9
114
4.0%
0.3
0.6%
Europium
Eu2O3
1066.0
27
0.9%
10.0
18.3%
Gadolinium
Gd2O3
49
62
2.2%
1.1
1.9%
Terbium
Tb4O7
912
7
0.3%
2.3
4.3%
Dysprosium
Dy2O3
627.9
35
1.2%
7.8
14.2%
Yttrium
Y2O3
32.9
165
5.8%
1.9
3.5%
Holmium2
Ho2O3
6
0.2%
Erbium2
Er2O3
13
0.5%
Thulium2
Tm2O3
2
0.1%
Ytterbium2
Yb2O3
10
0.3%
Lutetium2
Lu2O3
1
0.0%
2,841
100.0%
55.0
100.0%
328
11.5%
23.2
42.1%
Average annual production REO in concentrate
Average heavy rare earth production in concentrate
1Average
2No
annual at full capacity excluding first and last years
value currently attributed to these rare earths in the financial evaluation
17
17
Diversified REE Mix Geared to Magnet Applications
Neodymium*; Dysprosium*; Praseodymium
Permanent magnets
Europium*; Terbium*; Yttrium*
Phosphors
Critical Rare Earths – supply risk versus importance to clean energy
CONSUMER ELECTRONICS – CLEAN ENERGY
Terbium
4%
Cerium
Yittrium Lanthanum Samarium
1%
5%
4%
1%
Gadolinium
2%
Europium
18%
Praseodymium
13%
Neodymium
38%
Dysprosium
14%
PERMANENT MAGNET SECTOR IS THE KEY GROWTH AREA FOR RARE EARTHS
18
Initial CAPEX Breakdown
Initial Capital Expenditure
US$m
Site facilities and infrastructure
22.0
Power supply
14.2
Mining
1.7
Beneficiation plant
45.2
Hydrometallurgical plant
57.1
Sulphuric acid plant
32.7
Tailings storage facility
12.7
Other Costs
12.0
Total Initial Capital Expenditure
Contingency
Total Initial Capital Expenditure including contingency

Infrastructure – utilizing existing road, rail, power developments

Mineralogy – high capital and energy kilns will not be required

Low strength acid – enables use of plastics or composite material for tanks

Conventional technology – tanks, pumps and filters; modular plant

Strategy – initially modest scale with expansion options; produce chemical concentrate
197.5
19.8
217.3
CAPEX OF US$217M IS AMONG THE LOWEST IN THE SECTOR
19
19
OPEX Breakdown
Real Operating Costs
Life of Mine
US$/kg
Life of mine
US$/t processed
2017-2021
US$/kg
2017-2021
US$/t processed
Mining
4.1
23.5
3.0
21.1
Beneficiation
3.7
21.3
3.0
21.2
Hydrometallurgical
7.7
43.5
6.1
43.5
G & A / other
1.5
8.4
1.3
9.3
Cash Operating Cost
17.0
96.7
13.4
95.1
Tolling / conc sale
10.0
56.9
10.0
70.9
Total Cash Costs
27.0
153.6
23.4
166.0
Potential for optimisation:

Strip ratio – potential to lower strip ratio if inferred resource is included

Beneficiation – focus on improving flotation recoveries, greatest scope for improvement

Hydrometallurgy – optimisation of reagent use and testing of modified flow sheet

Cerium removal – increasing cerium rejection would add value given tolling strategy

By-products – potential sale of gypsum

Synergies – utilisation of excess sulphuric acid capacity
FUTURE FOCUS ON OPTIMISATION AND OPEX REDUCTION
20
20
Mkango Resources
STRONG PROJECT RETURNS WITH RELATIVELY LOW CAPEX
SIMPLE OPEN PIT MINING OPERATION OVER INITIAL 18 YEAR MINE LIFE
CONVENTIONAL TECHNOLOGY WITH NO KILNS REQUIRED IN FLOW SHEET
PLATFORM FOR FURTHER GROWTH
REGIONAL ROAD, RAIL AND POWER DEVELOPMENTS
RARE EARTH MIX GEARED TO HIGH GROWTH MAGNET SECTOR
STRONG PLATFORM TO CAPITALISE ON REE SECTOR RECOVERY
21
Contact Details
William Dawes
Chief Executive
will@mkango.ca
Alexander Lemon
President
alex@mkango.ca
Aoife Brady
Principal Geologist
aoife@mkango.ca
Mkango Resources Ltd.
Calgary Office
259 Windermere Road SW
Calgary, Alberta
T3C 3L2
Canada
Malawi Office
Plot No. BW536, Sunnyside
P.O. Box 3027
Blantyre
Malawi
P +1 403 444 5979
F +1 403 351 1703
P +265 1 525 383
F +265 1 525 383
www.mkango.ca
Twitter: @MkangoResources
22
In-situ Mineral Resource Estimates
23
In-situ Mineral Resource Estimates at 1.0% TREO cut–off grade1
In-situ Indicated Mineral Resource at 1% TREO Cut-Off
Indicated
Million
Tonnes
La2O3
ppm
Ce2O3
ppm
Pr2O3
ppm
Nd2O3
ppm
Sm2O3
ppm
LREO
ppm
Eu2O3
ppm
Gd2O3
ppm
Tb2O3
ppm
Dy2O3
ppm
Ho2O3
ppm
Er2O3
ppm
Tm2O3
ppm
Yb2O3
ppm
Lu2O3
ppm
Y2O3
ppm
HREO
ppm
TREO
ppm
TREO
%
Th
ppm
U
ppm
Carbonatite
Fenite
Mixed
11.10
1.37
0.69
3,951
3,980
4,520
7,208
7,235
7,678
775
779
774
2,676
2,679
2,473
387
404
335
14,997
15,077
15,780
95
76
63
223
186
148
27
24
17
127
116
79
21
19
13
48
46
29
6
6
4
36
32
22
5
4
3
590
542
362
1,178
1,050
739
16,175
16,127
16,519
1.62
1.61
1.65
351
301
335
12
11
12
Inferred
Million
Tonnes
La2O3
ppm
Ce2O3
ppm
Pr2O3
ppm
Nd2O3
ppm
Sm2O3
ppm
LREO
ppm
Eu2O3
ppm
Gd2O3
ppm
Tb2O3
ppm
Dy2O3
ppm
Ho2O3
ppm
Er2O3
ppm
Tm2O3
ppm
Yb2O3
ppm
Lu2O3
ppm
Y2O3
ppm
HREO
ppm
TREO
ppm
TREO
%
Th
ppm
U
ppm
Carbonatite
Fenite
Mixed
8.64
8.27
1.68
3,275
3,286
4,559
5,974
5,973
7,746
642
643
781
2,218
2,212
2,495
321
333
338
12,430
12,448
15,918
90
73
53
211
180
125
25
23
14
120
112
66
19
18
11
46
44
25
6
5
3
34
31
19
5
4
3
559
523
304
1,115
1,014
622
13,545
13,462
16,541
1.35
1.35
1.65
324
295
248
11
12
11
In-situ Inferred Mineral Resource at 1% TREO Cut-Off
TREO – total rare earths including Y2O3; HREO – heavy rare earth oxides including Y2O3
REO distribution for different rock types at 1.0% TREO cut-off grade1
In-situ Indicated Mineral Resource - REO Distributions at 1.0% TREO Cut-Off
Indicated
La2O3
Ce2O3
Pr2O3
Nd2O3
Sm2O3
Eu2O3
Gd2O3
Tb2O3
Dy2O3
Ho2O3
Er2O3
Tm2O3
Yb2O3
Lu2O3
Y2O3
Carbonatite
Fenite
Mixed
%
24.43
24.68
27.36
%
44.56
44.86
46.48
%
4.79
4.83
4.69
%
16.54
16.61
14.97
%
2.39
2.50
2.03
%
0.59
0.47
0.38
%
1.38
1.15
0.90
%
0.17
0.15
0.10
%
0.78
0.72
0.48
%
0.13
0.12
0.08
%
0.30
0.28
0.18
%
0.04
0.04
0.02
%
0.22
0.20
0.13
%
0.03
0.03
0.02
%
3.65
3.36
2.19
Inferred
La2O3
Ce2O3
Pr2O3
Nd2O3
Sm2O3
Eu2O3
Gd2O3
Tb2O3
Dy2O3
Ho2O3
Er2O3
Tm2O3
Yb2O3
Lu2O3
Y2O3
Carbonatite
Fenite
Mixed
%
24.18
24.41
27.56
%
44.11
44.37
46.83
%
4.74
4.78
4.72
%
16.37
16.43
15.08
%
2.37
2.48
2.04
%
0.67
0.54
0.32
%
1.56
1.33
0.75
%
0.19
0.17
0.09
%
0.89
0.83
0.40
%
0.14
0.14
0.06
%
0.34
0.33
0.15
%
0.04
0.04
0.02
%
0.25
0.23
0.11
%
0.03
0.03
0.02
%
4.12
3.89
1.84
Total
%
100
100
100
HREO
%
7.3
6.5
4.5
Total
%
100
100
100
HREO
%
8.2
7.5
3.8
In-situ Inferred Mineral Resource - REO Distributions at 1.0% TREO Cut-Off
1 Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability; Mineral Resources are inclusive of Mineral Reserves; Individual REO
concentrations calculated by applying global proportions per domain from the drilling database
24
In-situ Mineral Resource Estimates at different cut–off grades1
In-situ Indicated Carbonatite Mineral Resource
Cut-Off
%TREO
Million
Tonnes
La2O3
ppm
Ce2O3
ppm
Pr2O3
ppm
Nd2O3
ppm
Sm2O3
ppm
LREO
ppm
Eu2O3
ppm
Gd2O3
ppm
Tb2O3
ppm
Dy2O3
ppm
Ho2O3
ppm
Er2O3
ppm
Tm2O3
ppm
Yb2O3
ppm
Lu2O3
ppm
Y2O3
ppm
HREO
ppm
TREO
ppm
TREO
%
Th
ppm
U
ppm
0.5
1.0
1.5
16.31
11.10
5.26
3,274
3,951
5,022
5,973
7,208
9,163
642
775
985
2,217
2,676
3,401
321
387
492
12,426
14,997
19,063
85
95
103
200
223
241
24
27
29
114
127
137
18
21
22
44
48
52
6
6
7
32
36
39
4
5
5
530
590
639
1,058
1,178
1,275
13,484
16,175
20,338
1.35
1.62
2.03
322
351
385
12
12
12
Cut-Off
%TREO
Million
Tonnes
La2O3
ppm
Ce2O3
ppm
Pr2O3
ppm
Nd2O3
ppm
Sm2O3
ppm
LREO
ppm
Eu2O3
ppm
Gd2O3
ppm
Tb2O3
ppm
Dy2O3
ppm
Ho2O3
ppm
Er2O3
ppm
Tm2O3
ppm
Yb2O3
ppm
Lu2O3
ppm
Y2O3
ppm
HREO
ppm
TREO
ppm
TREO
%
Th
ppm
U
ppm
0.5
1.0
1.5
17.09
8.64
1.90
2,568
3,275
4,539
4,686
5,974
8,281
504
642
890
1,739
2,218
3,074
252
321
445
9,748
12,430
17,228
77
90
99
180
211
233
22
25
28
102
120
132
17
19
21
39
46
51
5
6
6
29
34
37
4
5
5
476
559
616
949
1,115
1,230
10,698
13,545
18,458
1.07
1.35
1.85
304
324
349
12
11
11
Cut-Off
%TREO
Million
Tonnes
La2O3
ppm
Ce2O3
ppm
Pr2O3
ppm
Nd2O3
ppm
Sm2O3
ppm
LREO
ppm
Eu2O3
ppm
Gd2O3
ppm
Tb2O3
ppm
Dy2O3
ppm
Ho2O3
ppm
Er2O3
ppm
Tm2O3
ppm
Yb2O3
ppm
Lu2O3
ppm
Y2O3
ppm
HREO
ppm
TREO
ppm
TREO
%
Th
ppm
U
ppm
0.5
1.0
1.5
1.01
0.69
0.31
3,749
4,520
6,051
6,369
7,678
10,280
642
774
1,037
2,051
2,473
3,311
278
335
448
13,088
15,780
21,127
61
63
69
144
148
163
17
17
19
76
79
87
12
13
14
29
29
32
4
4
4
22
22
25
3
3
3
351
362
399
717
739
816
13,805
16,519
21,943
1.38
1.65
2.19
318
335
387
12
12
14
Cut-Off
%TREO
Million
Tonnes
La2O3
ppm
Ce2O3
ppm
Pr2O3
ppm
Nd2O3
ppm
Sm2O3
ppm
LREO
ppm
Eu2O3
ppm
Gd2O3
ppm
Tb2O3
ppm
Dy2O3
ppm
Ho2O3
ppm
Er2O3
ppm
Tm2O3
ppm
Yb2O3
ppm
Lu2O3
ppm
Y2O3
ppm
HREO
ppm
TREO
ppm
TREO
%
Th
ppm
U
ppm
0.5
1.0
1.5
1.90
1.68
1.43
4,289
4,559
4,802
7,287
7,746
8,158
735
781
823
2,347
2,495
2,628
318
338
356
14,976
15,918
16,766
53
53
53
125
125
124
15
14
14
66
66
66
11
11
11
25
25
25
3
3
3
19
19
19
3
3
3
305
304
302
624
622
618
15,600
16,541
17,384
1.56
1.65
1.74
251
248
243
11
11
11
Cut-Off
%TREO
Million
Tonnes
La2O3
ppm
Ce2O3
ppm
Pr2O3
ppm
Nd2O3
ppm
Sm2O3
ppm
LREO
ppm
Eu2O3
ppm
Gd2O3
ppm
Tb2O3
ppm
Dy2O3
ppm
Ho2O3
ppm
Er2O3
ppm
Tm2O3
ppm
Yb2O3
ppm
Lu2O3
ppm
Y2O3
ppm
HREO
ppm
TREO
ppm
TREO
%
Th
ppm
U
ppm
0.5
1.0
1.5
2.71
1.37
0.59
2,876
3,980
5,236
5,228
7,235
9,517
563
779
1,025
1,936
2,679
3,524
292
404
531
10,895
15,077
19,833
64
76
88
158
186
217
20
24
28
98
116
135
16
19
22
39
46
53
5
6
7
27
32
38
4
4
5
459
542
633
889
1,050
1,226
11,784
16,127
21,060
1.18
1.61
2.11
288
301
334
13
11
10
Cut-Off
%TREO
Million
Tonnes
La2O3
ppm
Ce2O3
ppm
Pr2O3
ppm
Nd2O3
ppm
Sm2O3
ppm
LREO
ppm
Eu2O3
ppm
Gd2O3
ppm
Tb2O3
ppm
Dy2O3
ppm
Ho2O3
ppm
Er2O3
ppm
Tm2O3
ppm
Yb2O3
ppm
Lu2O3
ppm
Y2O3
ppm
HREO
ppm
TREO
ppm
TREO
%
Th
ppm
U
ppm
0.5
1.0
1.5
17.47
8.27
1.73
2,564
3,286
4,631
4,661
5,973
8,417
502
643
907
1,726
2,212
3,117
260
333
470
9,713
12,448
17,541
62
73
88
153
180
215
19
23
27
95
112
134
16
18
22
38
44
53
5
5
7
26
31
37
4
4
5
446
523
627
863
1,014
1,215
10,577
13,462
18,756
1.06
1.35
1.88
271
295
331
13
12
11
In-situ Inferred Carbonatite Mineral Resource
In-situ Indicated Mixed Mineral Resource
In-situ Inferred Mixed Mineral Resource
In-situ Indicated Fenite Mineral Resource
In-situ Inferred Fenite Mineral Resource
Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability; Mineral Resources are inclusive of Mineral Reserves; Individual REO concentrations calculated by applying
global proportions per domain from the drilling database
1
25
REO distribution at different cut-off grades1
In-situ Indicated Carbonatite Mineral Resource - REO Distributions at 0.5%, 1.0% and 1.5% TREO Cut-Offs
Cut-Off
%TREO
0.5
1
1.5
La2O3
Ce2O3
Pr2O3
Nd2O3
Sm2O3
Eu2O3
Gd2O3
Tb2O3
Dy2O3
Ho2O3
Er2O3
Tm2O3
Yb2O3
Lu2O3
Y2O3
%
24.28
24.43
24.69
%
44.29
44.56
45.05
%
4.76
4.79
4.84
%
16.44
16.54
16.72
%
2.38
2.39
2.42
%
0.63
0.59
0.51
%
1.49
1.38
1.19
%
0.18
0.17
0.14
%
0.84
0.78
0.67
%
0.14
0.13
0.11
%
0.32
0.30
0.26
%
0.04
0.04
0.03
%
0.24
0.22
0.19
%
0.03
0.03
0.03
%
3.93
3.65
3.14
La2O3
Ce2O3
Pr2O3
Nd2O3
Sm2O3
Eu2O3
Gd2O3
Tb2O3
Dy2O3
Ho2O3
Er2O3
Tm2O3
Yb2O3
Lu2O3
Y2O3
%
24.01
24.18
24.59
%
43.80
44.11
44.86
%
4.71
4.74
4.82
%
16.26
16.37
16.65
%
2.35
2.37
2.41
%
0.72
0.67
0.54
%
1.68
1.56
1.26
%
0.20
0.19
0.15
%
0.95
0.89
0.72
%
0.15
0.14
0.12
%
0.37
0.34
0.27
%
0.05
0.04
0.04
%
0.27
0.25
0.20
%
0.04
0.03
0.03
%
4.45
4.12
3.34
La2O3
Ce2O3
Pr2O3
Nd2O3
Sm2O3
Eu2O3
Gd2O3
Tb2O3
Dy2O3
Ho2O3
Er2O3
Tm2O3
Yb2O3
Lu2O3
Y2O3
%
27.15
27.36
27.58
%
46.13
46.48
46.85
%
4.65
4.69
4.72
%
14.86
14.97
15.09
%
2.01
2.03
2.04
%
0.44
0.38
0.32
%
1.04
0.90
0.74
%
0.12
0.10
0.09
%
0.55
0.48
0.40
%
0.09
0.08
0.06
%
0.21
0.18
0.15
%
0.03
0.02
0.02
%
0.16
0.13
0.11
%
0.02
0.02
0.02
%
2.54
2.19
1.82
La2O3
Ce2O3
Pr2O3
Nd2O3
Sm2O3
Eu2O3
Gd2O3
Tb2O3
Dy2O3
Ho2O3
Er2O3
Tm2O3
Yb2O3
Lu2O3
Y2O3
%
27.50
27.56
27.62
%
46.71
46.83
46.93
%
4.71
4.72
4.73
%
15.05
15.08
15.12
%
2.04
2.04
2.05
%
0.34
0.32
0.30
%
0.80
0.75
0.71
%
0.09
0.09
0.08
%
0.43
0.40
0.38
%
0.07
0.06
0.06
%
0.16
0.15
0.14
%
0.02
0.02
0.02
%
0.12
0.11
0.11
%
0.02
0.02
0.02
%
1.96
1.84
1.74
La2O3
Ce2O3
Pr2O3
Nd2O3
Sm2O3
Eu2O3
Gd2O3
Tb2O3
Dy2O3
Ho2O3
Er2O3
Tm2O3
Yb2O3
Lu2O3
Y2O3
%
24.41
24.68
24.86
%
44.36
44.86
45.19
%
4.78
4.83
4.87
%
16.43
16.61
16.73
%
2.48
2.50
2.52
%
0.54
0.47
0.42
%
1.34
1.15
1.03
%
0.17
0.15
0.13
%
0.83
0.72
0.64
%
0.14
0.12
0.11
%
0.33
0.28
0.25
%
0.04
0.04
0.03
%
0.23
0.20
0.18
%
0.03
0.03
0.02
%
3.89
3.36
3.01
La2O3
Ce2O3
Pr2O3
Nd2O3
Sm2O3
Eu2O3
Gd2O3
Tb2O3
Dy2O3
Ho2O3
Er2O3
Tm2O3
Yb2O3
Lu2O3
Y2O3
%
24.25
24.41
24.69
%
44.07
44.37
44.88
%
4.75
4.78
4.83
%
16.32
16.43
16.62
%
2.46
2.48
2.50
%
0.59
0.54
0.47
%
1.45
1.33
1.15
%
0.18
0.17
0.15
%
0.90
0.83
0.71
%
0.15
0.14
0.12
%
0.36
0.33
0.28
%
0.04
0.04
0.04
%
0.25
0.23
0.20
%
0.03
0.03
0.03
%
4.21
3.89
3.34
Total
%
100
100
100
HREO
%
7.8
7.3
6.3
Total
%
100
100
100
HREO
%
8.9
8.2
6.7
Total
%
100
100
100
HREO
%
5.2
4.5
3.7
Total
%
100
100
100
HREO
%
4.0
3.8
3.6
Total
%
100
100
100
HREO
%
7.5
6.5
5.8
Total
%
100
100
100
HREO
%
8.2
7.5
6.5
In-situ Inferred Carbonatite Mineral Resource - REO Distributions at 0.5%, 1.0% and1.5% TREO Cut-Offs
Cut-Off
%TREO
0.5
1
1.5
In-situ Indicated Mixed Mineral Resource - REO Distributions at 0.5%, 1.0% and 1.5% TREO Cut-Offs
Cut-Off
%TREO
0.5
1
1.5
In-situ Inferred Mixed Mineral Resource - REO Distributions at 0.5%, 1.0% and 1.5% TREO Cut-Offs
Cut-Off
%TREO
0.5
1
1.5
In-situ Indicated Fenite Mineral Resource - REO Distributions at 0.5%, 1.0% and 1.5% TREO Cut-Offs
Cut-Off
%TREO
0.5
1
1.5
In-situ Inferred Fenite Mineral Resource - REO Distributions at 0.5%, 1.0% and 1.5%TREO Cut-Offs
Cut-Off
%TREO
0.5
1
1.5
Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability; Mineral Resources are inclusive of Mineral Reserves; Individual REO concentrations calculated
by applying global proportions per domain from the drilling database
1
26