LONDON (ShareCast) - (Sharecast News) - Rare earth element mining company Rainbow Rare Earths updated the market on its exploration and mine development programme on Monday, reporting that it had analysed two borehole samples from Kiyenzi, including sections of 13.87 metres at 4.85% total rare earth oxides, and 11.64 metres at 3.86% total rare earth oxides.
The London-listed firm said additional drill cores, amounting to more than 1,000 metres, had been sent for analysis to enable the "rapid evaluation and formulation" of a comprehensive mineral resource statement.

It explained that it had historically focused on the areas of Gasagwe and Murambi for its production of rare earth elements from Burundi, but during 2018, it undertook a drilling campaign at Kiyenzi.

That campaign followed an exploration programme comprising a ground gravity survey and trenching.

In total, 30 core holes were drilled, for a total of 1,428 metres, with drilling said to be "relatively shallow", with the exception of one hole which was drilled to a depth of 150 metres, while all other holes averaged a depth of 44 metres.

Drilling was carried out on a loose 25 metre grid.

In October this year, Rainbow began the shipment and evaluation of the remaining Kiyenzi cores in order to generate a comprehensive dataset which would enable it to produce an "updated, robust and code-compliant" mineral resource estimate, which was currently being undertaken by CSA Global.

The first two diamond core holes - 29 and 31 - had been analysed, and showed continuous mineralisation from first mineralisation strike, both of which were at shallow depths.

At hole 29, mineralisation was seen from 17.70 metres to 38.32 metres, for a mineralised section of 20.62 metres at an average grade of 3.45%.

That included a number of sections including 0.20 metres at 45.79% total rare earth oxides, 1.32 metres at 4.99%, 0.17 metres at 30.47%, 0.15 metres at 33.11%, and 0.15 metres at 26.52%.

It also included 0.17 metres at 19.10% total rare earth oxides, 0.22 metres at 13.7%, and 0.12 metres at 23.29%.

Excluding a section of the core of 6.75 metres, which graded 0.58%, the company said that implied an average grade for the remaining 13.87 metres of 4.85%.

At hole 31, mineralisation was reported from 12.45 metres to 48.90 metres, for a mineralised section of 36.45 metres at an average grade of 1.63%.

Rainbow said that included 0.38 metres at 10.96%, 0.42 metres at 9.13%, 1.05 metres at 3.05%, 0.30 metres at 11.41%, 0.27 metres at 11.78%, and 0.70 metres at 4.51%.

It also included 0.90 metres at 3.34%, 0.90 metres at 3.15%, 0.17 metres at 13.62%, and 0.14 metres at 15.39%.

Excluding a section of the core of 24.81 metres which graded 0.58%, that implied an average grade for the remaining 11.64 metres of 3.86%.

"With the historical data we have and these encouraging results, I am optimistic that the remaining drill core will yield equally good results, ensuring we have multiple future mining areas giving us mining flexibility while maintaining our record of one of the highest grading rare earth element mines on the continent," said chief executive officer George Bennett.

At 0813 GMT, shares in Rainbow Rare Earths were up 5.71% at 2.96p.

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