Kendrick Resources (LSE:KEN), the mineral exploration and development company, has an unaudited in‑house gross project valuation (NPV) of US$400m for verified in‑situ LREO-bearing carbonatites at Teufelskuppe (TK) following an internal review.
The review estimates above‑ground mineralised carbonatite at TK of 14Mt at an average head grade of 3.12 wt% equating to a gross estimated rare earth inventory of 448kt LREO, with central zones and dyke stockwork returning up to 4.5% TREO and Nd/Pr representing about 70% of LREO economic value.
The TK and Kieshöhe (KH) projects in SW Namibia are the subject of Kendrick's 70% earn‑in under a definitive agreement with Bonya Exploration Pty Namibia, which holds exploration licence EPL 6691.
"The board and management team are single minded in their approach to produce a maiden resource by the end of the third quarter 2026 and to nail down an optimised metallurgical flow sheet," Colin Bird, chairman, said.
Kendrick said boreholes at targets TK1 and TK2 demonstrate carbonatites extend to 80-115m and geological continuity below surface implies a larger resource than surface outcrops alone indicate.
The company said the valuation used current TREO prices, comparable processing capital costs and mining and labour costs typical for southern Africa.
Kendrick said it is pursuing a "Mine to Magnet" strategy and that recent fundraising will be used to drill out resources, test reconnaissance targets and complete petrological, mineralogical and metallurgical design work.
The company noted growing industry interest in TK and KH and cited projections that the global REE market is expected to increase by 130% by 2034.
