Northern Zambia – In February 2015, as part of an asset rationalisation process, Vast Resources entered into an earn-in arrangement with Kilimire International (KLL) whereby KLL would fund and manage a 36 month exploration and assessment programme.
KLL can earn up to 65% equity in the project through the achievement of certain milestones. The funding and compilation of the JORC compliant mineral resource statement increases KLL’s interest in the Nkombwe Hill to 50.4%.
- Total mineral resource (indicated & inferred) of 21.8 Mt at a grade of 7.06% P2O5 and 1.17% Total Rare Earth Oxides (TREOs) at a 3.0% P2O5 cut-off
- Alternatively, and as a subset of the total mineral resource above, a total mineral resource of 2.78 Mt at a grade of 2.76% TREO and 6.43% P2O5 at a 1.0% TREO cut-off grade
- The mineral resource represents approximately 5% of the hill volume above the valley floor highlighting the significant resource upside potential. Phase 2 of the earn-in will include KLL funding an additional US$1 million
- Following the publication of this maiden JORC resource, Vast Resources now has an interest of 49.6% in Nkombwa Hill
“The rationalisation process we undertook in February 2015 to focus on the company’s Brownfields assets while retaining upside exposure to the exploration assets is bearing fruit and the declaration of this maiden JORC Resource funded by KLL is encouraging,” says Roy Pitchford, CEO of Vast Resources.
“The earn-in will now progress to Phase 2 with KLL committing to spending a further $1 million over the next 18 months in order to advance the project towards the feasibility stage. We hope that this next phase of work will deliver further attributable value to Nkombwa Hill as the Vast team remains focussed on its revenue generative operations in Romania and Zimbabwe.”
The mineral resource was solely based on the drilling undertaken by KLL which comprises 11 diamond drill-holes. The area drilled represents approximately 5% of the carbonatite pipe by volume. The historical drill holes drilled by Rhodesian Selection Trust (RST) have only been sampled selectively and have not been used in the resource calculation.