Junior explorer Mkango Resources (CVE:MKA) rallied over 22% Wednesday after it reported significant near-surface zones of rare earth mineralization at its Songwe project in Malawi, with areas of higher value heavy rare earths also identified.
The company received results from ten of its 13 holes in its stage one drilling program, with most of the holes collared on the north-eastern slopes of Songew hill.
Highlights included 117.4 metres grading 1.6% total rare earth oxides (TREO), including 36.5 metres of 1.9% TREO within a broader intersection of 299.8 metres of 1.0% TREO in hole PX001.
Other notable results included 57.5 metres of 3.8% TREO in hole PX003; and 113.8 metres of 1.7% TREO including 38.8 metres of 2.5% TREO in hole PX004.
In addition, hole PX009 returned 113.9 metres of 1.8% TREO, including 14.9 metres of 2.2% TREO and 41.9 metres of 2.1% TREO, while hole PX012 intersected 89.7 metres of 1.6% TREO, including 57.0 metres of 1.9% TREO.
Investors cheered the news, with shares of the company jumping 22.6% to $0.65 as of 12:59pm EDT.
Mkango said that this drilling, in addition to geological mapping and surface sampling, has shown both the extension of rare earth mineralization at depth, and laterally, compared to previous exploration programs.
Rare earth mineralization, in addition to niobium mineralization, is pervasive throughout the carbonatite, fenite and breccia lithologies intersected, with zones of higher grade mineralization and elevated heavy rare earth enrichment being identified, the company added.
The stage one program totaled 1,990 metres, of which the results for three holes are still pending. Once all of the results are received, they will be included into the geological model for the project to plan stage two drilling, due to start in the fourth quarter.
Systematic surface sampling and geological mapping will also be completed to further define the geological model, as well as to identify additional drill targets.