Kendrick Resources (LSE:KEN) told investors that independent laboratory analysis has confirmed favourable mineralogy and radioactivity findings at its Teufelskuppe carbonatite complex in Namibia.
The AIM-listed explorer is developing the project as a rare earth opportunity, and the latest results address a factor that has historically derailed similar projects.
Certified assays from SGS South Africa show thorium and uranium averaging 144ppm and 3.6ppm respectively, ranking in the lowest quartile of comparable hard-rock rare earth projects globally.
That compares with thorium grades of 240ppm to 2,900ppm and uranium grades of 30ppm to 360ppm at peer projects already in production or under development.
High radioactive element content has traditionally forced costly processing routes or halted projects altogether, according to Kendrick.
Separately, X-ray diffraction and electron probe microanalysis confirmed that more than 95% of the rare earth pool sits in fluorocarbonate minerals, chiefly bastnäsite and parisite, amenable to established processing methods.
Total REE mineral content across bulk samples ranged from 1.3% to 7.8%, averaging 3.8%.
"This represents one of the three major milestones having been met and neatly leads into the design of a flow sheet that will have fewer complications not being burdened by high radioactivity levels", said Colin Bird, Kendrick's chairman.
Three bulk samples are now with Dorfner Anzaplan for early-stage metallurgical assessment and mineral liberation analysis, following submission announced on 26 August.
News Intelligence what this means for the company
Kendrick's Teufelskuppe project has cleared a material technical hurdle: certified assays confirm thorium at 144ppm and uranium at 3.6ppm—both in the lowest quartile versus peer rare earth projects globally (which range 240–2,900ppm thorium and 30–360ppm uranium). High radioactivity has historically forced costly processing or killed projects; Kendrick's low readings, combined with confirmation that >95% of rare earths sit in processable fluorocarbonate minerals (bastnäsite and parisite), remove a major economic barrier to development. The company is now advancing to metallurgical testwork with Dorfner Anzaplan, one of three stated major milestones toward flowsheet design.
The company's internal unaudited NPV estimate of US$400m rested on assumptions about processing feasibility; confirmation of low radioactivity and amenable mineralogy materially de-risks that economic case and shortens the path to a maiden resource estimate and feasibility study.
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