AIM-listed Mkango Resources has been granted an exclusive prospecting licence covering the Chimimbe Hill nickel / cobalt deposit and other targets in Mchinji - Malawi.Mkango Resources (Mkango) will re-evaluate the Chimimbe Hill cobalt deposit in the context of geophysical data produced by the recent World Bank airborne geophysical survey of Malawi.
The evaluation of the licence will be funded from the company's existing working capital, which totaled US$869.479 as at September 30, 2017.
Subsequently, Mkango announced the receipt of $320.135 from the exercise of warrants.
"We are delighted to have been granted the Chimimbe Hill nickel - cobalt exploration licence, which is consistent with our strategy to target raw materials and technologies geared to accelerating growth in the electric vehicle market," comments president of Mkango, Alexander Lemon.
"Both nickel and cobalt are increasingly in demand as cathode materials for batteries in electric vehicles.
This new licence, when combined with the Songwe Hill rare earths project and our collaboration with Metalysis on neodymium alloys for permanent magnets, positions Mkango as a potential future supplier of the critical raw materials used in both batteries and permanent magnet motors in electric vehicles," he continues.
"We are commencing a full historical data review for Chimimbe Hill, including an evaluation of exploration potential from recent geophysics, and look forward to updating shareholders on this new licence and the recently announced transaction with Talaxis in due course," he adds.
Chimimbe Hill exploration licence
The Chimimbe Hill licence has been granted for the exploration of nickel, cobalt, graphite, chrome and other minerals and covers an area of 98.48 sq km in the Mchinji district of central Malawi.
The licence is initially awarded for a three-year term, after which it can be renewed twice for further two-year periods with a 50% reduction in the licence size required with each renewal.
The Chimimbe Hill area was selected following comprehensive in-house analysis of available data-sets.
These included geological maps, historic mineral occurrences, remote sensing data and satellite imagery.
A nickel anomaly was first identified by the Malawian Geological Survey in 1968.
Chimimbe Hill is a prominent northerly trending elongate feature, measuring 1 200 m by 500 m and rising 140 m above the surrounding plain.
Chimimbe Hill is underlain by a deformed and metamorphosed ultramafic body associated with high grade metamorphic rocks of the Mozambique mobile belt.
Feature image credit: Mkango Resources