Mar 27, 2012
Mkango Resources Ltd Announces Channel Sampling Results for the Songwe Hill Rare Earth Project in Malawi and Provides Stage 2 Drilling Update
Calgary, Alberta: March 27th, 2012 - Mkango Resources Ltd. (TSXV-MKA) (the "Corporation" or "Mkango") is pleased to announce channel sampling results and an update on drilling activities for the Songwe Hill rare earth project in Malawi.
Channel sampling results
Mkango has completed five E-W trending surface channel sampling lines using rock saws at Songwe Hill with the objective of further constraining the geological model as well as rare earth element (REE) mineralization for potential incorporation into a NI 43-101 compliant mineral resource estimate.
Delineation of the channel sampling lines was dictated by the availability of outcrop along each E-W line, and in the absence of outcrop, the most proximal outcrop to the line was sampled, irrespective of lithology. Each E-W line approximately corresponds to the surface projections of one or more of the Stage 1 or Stage 2 drill hole traces.
The results of the channel sampling is broadly consistent with existing geological mapping, geochemical grab sampling and portable XRF sampling results generated to date, and further validates continuity of rare earth mineralisation at surface in carbonatite, carbonatite breccia and fenite lithologies.
A schematic map illustrating the location of the five channel lines and tables showing the results and breakdown of individual rare earth oxide's will be made available on the Company's website (www.mkango.ca).
Stage 2 drilling update
Mkango's drilling contractors, Cartwright Drilling Inc. of Goose Bay, Canada, commenced Stage 2 drilling on 10th January and have made good progress. To date, a total of 17 holes (3,149 metres) have been drilled. Drilling continues to intersect broad zones of mineralised carbonatite, carbonatite breccia and fenite. Furthermore, REE mineralisation was intersected at a vertical depth of 350m below surface which has significantly extended the known depth extent of REE mineralisation.
The Stage 2 drilling programme is designed to complement the Stage 1 drilling programme completed in 2011, and is focusing on an area measuring approximately 350m by 100m comprising rare earth enriched carbonatite, carbonatite breccia and fenite lithologies, largely exposed at surface.
The programme comprises infill drilling and testing depth extensions of mineralisation identified in the first stage.
The Songwe Hill Rare Earth Project
The Songwe Hill rare earth project is located within a 100% owned exclusive prospecting licence covering an area of 1,283 km2 in southeast Malawi (the "Phalombe Licence"). Songwe is accessible by road from Zomba, the former capital, and Blantyre, the principal commercial town of Malawi. Total travel time from Zomba is approximately 1.5 to 2 hours, which will reduce as infrastructure continues to be upgraded in the area.
Scientific and technical information, including data verification, contained in this release has been approved and verified by Mr Mike Venter Pr.Sci.Nat, Principal Consultant at The MSA Group who is a "Qualified Person" in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Sample preparation and analytical work for the drilling and channel sampling programmes are being provided by Intertek-Genalysis Laboratories (Johannesburg, South Africa and Perth, Australia) employing ICP-MS techniques suitable for rare earth element (REE) analyses and following strict internal QAQC procedures inserting duplicates, blanks and standards. Internal Laboratory QAQC was also completed to include blanks, standards and duplicates.
Mkango Resources Ltd.
Mkango's primary business is the exploration for rare earth elements and associated minerals in the Republic of Malawi. It holds, through its wholly owned subsidiary Lancaster, a 100% interest in two exclusive prospecting licenses covering a combined area of 1,751 km² in southern Malawi. The main exploration target is the Songwe Hill rare earth deposit, which features carbonatite hosted rare earth mineralisation and was subject to previous exploration in the late 1980s.
The Corporation's corporate strategy is to further delineate the rare earth mineralisation at Songwe Hill and secure additional rare earth element and other mineral opportunities in Malawi and elsewhere in Africa.
For further information, please contact:
Mkango Resources Ltd.
Office +1 (403) 444 -- 5979
Fax +1 (403) 351 -- 1703
Chief Executive Officer
Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements relating to the Corporation. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Such factors and risks include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future commodity prices; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration.
The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Corporation disclaims any intention and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. Additionally, the Corporation undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above.
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