Pensana Rare Earths has advised that its operations have been unaffected by the Covid-19 virus to date as it continues to advance definitive feasibility studies at Longonjo.
Angola has successfully implemented proactive containment measures based on its previous experience managing the Ebola virus and to date there are no reported cases of the Covid19 virus in the country.
The definitive feasibility study is expected to confirm Longonjo’s status as one of the world’s only major rare earth mines being developed at a time when demand for magnet metals from electric vehicles and offshore wind turbine manufacturers is expected to take off.
Based on the results from 57 out of 195 holes of the recently completed drill programme and subject to the usual caveats that drilling results can downgrade as well as upgrade a resource estimate, the company is expecting that the resource will be substantially upgraded and is targeting a mine life of well in excess of 15 years.
The studies into the downstream production of a carbonate, which will open up markets in Europe, Japan and a Korea as well as China, will form part of the definitive feasibility study which will be reported in the September quarter.
Chinese rare earth processing companies have returned to work following a longer than usual Chinese New Year break and Pensana has received further expressions of interest in becoming potential partners in developing the Longonjo project.
The company is well advanced in the documentation and regulatory and shareholder approvals for listing on the LSE and once the current turmoil in the financial markets has abated it will complete the standard listing on the main board.
Pensana recently welcomed the Angolan Sovereign Wealth Fund as a shareholder and notes the fund’s intention to further support and work with the company and its management in the development of this important national project.