This technical report presents the results of a prefeasibility study for the Songwe Hill rare earth element deposit in Malawi, based on proposed design parameters supported by metallurgical testwork and historical operating data.
Report context
The Songwe Hill rare earth element (REE) deposit is located in southeastern Malawi, within Exclusive Prospecting License (EPL) 0284/10, which Mkango refers to as the "Phalombe License." The EPL covers an area of 1,283 km² and was originally granted to Lancaster Exploration Ltd (Lancaster), a 100 percent owned subsidiary of Mkango, on January 21, 2010. The license was renewed for a further two years until January 20, 2015. Mkango is in receipt of a legal opinion from Blantyre's law firm, Gustave and Company, confirming Lancaster as the legal holder of 100 percent interest in EPL 0284/10R, valid and unencumbered as of October 30, 2014. The Songwe Hill carbonatite abuts against Mauze Hill on its northwestern flank and lies entirely within the Republic of Malawi.
Processing route
Mineral processing and metallurgical testwork
The mineral processing and metallurgical testwork for the Songwe Hill project has been conducted under the supervision of qualified persons. The testwork program was designed to establish the processing route for the rare earth element mineralization. Specific processing details including flowsheet configuration, reagent schemes, and equipment selection are based on the metallurgical testwork results and proposed design parameters.
Recovery methods and infrastructure design
Recovery methods and infrastructure design have been developed by qualified persons and contributing authors. The design basis for the processing plant and associated infrastructure incorporates the results of metallurgical testwork and considers site-specific conditions identified during the prefeasibility study phase. Infrastructure requirements include the processing facilities, utilities, and support services necessary for the proposed mining operation.
Tailings management
Tailings management for the Songwe Hill project has been evaluated by qualified persons and contributing authors. The tailings storage facility design is based on proposed design parameters and considers the site conditions and regulatory requirements for the project area. Historical operating data from similar operations has been referenced where applicable to support the design assumptions.
Process design basis
The proposed processing route has been developed using a combination of metallurgical testwork results and engineering design studies. The design parameters show the characteristics of the Songwe Hill mineralization as determined through the testwork program. No detail is provided in the report regarding specific unit operations, reagent consumption, or process performance metrics beyond what is presented in the key reported parameters.
Key reported parameters
| Parameter | Unit | Value | Basis |
|---|---|---|---|
| Project location | Songwe Hill, Phalombe district, Malawi | Description | |
| License | EPL 0284/10 (Phalombe License) | Legal opinion | |
| License area | km² | 1,283 | Legal opinion |
| License holder | Lancaster Exploration Ltd (100% owned by Mkango) | Legal opinion | |
| Original grant date | January 21, 2010 | Legal opinion | |
| Renewal period | January 20, 2013 to January 20, 2015 | Legal opinion | |
| Estimated closure cost | US$ | 7,108,000 | Proposed design |
| Closure cost demolition | US$ | 4,410,000 | Proposed design |
| Closure cost rehabilitation | US$ | 1,196,000 | Proposed design |
| Closure cost groundwater monitoring | US$ | 213,000 | Proposed design |
| Closure cost vegetation maintenance | US$ | 53,000 | Proposed design |
| Closure cost vegetation monitoring | US$ | 2,000 | Proposed design |
| Closure cost project management (12%) | US$ | 673,000 | Proposed design |
| Closure cost contingency (10%) | US$ | 561,000 | Proposed design |
| Post-closure groundwater monitoring period | years | 5 | Proposed design |
| Post-closure vegetation monitoring period | years | 3 | Proposed design |
| Average wind speed (2010-2012) | m/s | 3.73 | Modelled testwork data |
| Predominant wind direction | South-southeast | Modelled testwork data | |
| Calm conditions frequency (<0.5 m/s) | % | 2.73 | Modelled testwork data |
Project website: https://mkango.ca/news/mkango-announces-results-of-updated-feasibility-study-for-the-songwe-hill-rare-earths-project-in-malawi-and-pre-feasibility/
Technical qualifications
The technical report acknowledges that none of the consultants or any associates employed in the preparation of this technical report has any beneficial interest in Mkango. The consultants are not insiders, associates or affiliates of Mkango and are being paid a fee for their work in accordance with normal professional consulting practice.
The closure cost estimate used the block plan provided by SNC Lavalin as representative of the infrastructure and liabilities associated with the proposed mine. The closure estimate excludes potential liabilities associated with social obligations to surrounding communities, retrenchment payments, and long-term water management. A contingency of 10 percent has been included to allow for areas which may have been undervalued or which may have been overlooked.
The disclosure of information relating to land, legal, title, and related issues relies on a legal opinion from Blantyre's law firm, Gustave and Company. The consultants are not responsible for such information but have assumed it to be accurate for the purposes of this technical report.
Currently, the environmental liabilities on the site are minimal as only exploration has taken place and it is a greenfields project. Should the project not proceed to construction, the site will need to be closed and rehabilitated. Current liabilities would include the removal of the tented construction camp, the closure of boreholes, and the rehabilitation of access and drilling roads.
It is recommended that an environmental obligations register be compiled during the ESHIA process, the closure cost estimate be updated once the definitive feasibility study is completed, and a preliminary closure plan be developed. These recommendations should be actioned in the ESHIA phase of the project.
Source: Mkango Songwe Hill PFS , November 2014 Technical Report, Sections 3, 4.2, 4.3, 5.2, and Qualified Persons sections.
