NI 43-101 Songwe REE Deposit
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NI 43-101 Technical Report and Mineral Resource Estimate for the Songwe Hill Rare Earth Element (REE) Project, Phalombe District, Republic of Malawi Prepared by The MSA Group (Pty) Ltd for: Mkango Resources Ltd Authors: Scott Swinden Consulting Geologist Ph.D., P.Geo. Michael Hall Consulting Geologist Resources Pr.Sci.Nat., MAusIMM Effective Date: September 30, 2012 Date of Signature: November 22, 2012 Table of Contents 1 Summary......................................................................................................................................... viii 1.1 Introduction.............................................................................................................................viii 1.2 Property, Location and Ownership.........................................................................................viii 1.3 Geology and Mineralization....................................................................................................viii 1.4 Status of Exploration ................................................................................................................ix 1.5 Mineral Resources.................................................................................................................... x 1.6 Conclusions and Recommendations........................................................................................xi 2 Introduction..................................................................................................................................... 12 2.1 Scope of Work ........................................................................................................................ 12 2.2 Principal Sources of Information ............................................................................................ 12 2.3 Qualifications, Experience and Independence....................................................................... 13 3 Reliance on Other Experts............................................................................................................. 14 4 Property Description and Location...............................................................................................15 4.1 Property Location ................................................................................................................... 15 4.2 Property Description............................................................................................................... 16 4.2.1 Exclusive Prospecting Licenses (“EPL”) in Malawi ................................................... 16 4.2.2 EPL 0284/10 Phalombe ............................................................................................ 16 4.2.3 General Provisions .................................................................................................... 18 4.3 Overlapping EPLs................................................................................................................... 19 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography............................ 20 5.1 Access .................................................................................................................................... 20 5.2 Climate.................................................................................................................................... 21 5.3 Local Resources and Infrastructure ....................................................................................... 21 5.4 Topography, Elevation and Vegetation .................................................................................. 22 6 History.............................................................................................................................................. 24 6.1 Ownership History .................................................................................................................. 24 6.2 Historical Exploration.............................................................................................................. 24 6.2.1 Pre-1981 Programmes .............................................................................................. 24 6.2.2 Post-1981 Programmes ............................................................................................ 25 6.2.2.1 Aeromagnetic Survey................................................................................. 25 6.2.2.2 Gravity Survey............................................................................................ 25 6.2.2.3 Radiometric Survey.................................................................................... 25 6.2.2.4 Airborne Electromagnetic (“EM”) Survey ................................................... 25 6.2.3 1986-1988 Japan International Cooperation Agency and Metal Mining Agency of Japan......................................................................................................................... 25 7 Geological Setting and Mineralization.......................................................................................... 30 7.1 Regional Geology ................................................................................................................... 30 7.2 Geology of the Songwe Carbonatite Vent.............................................................................. 32 7.2.1 Carbonatite ................................................................................................................ 33 7.2.1.1 Calcite carbonatite...................................................................................... 33 7.2.1.2 Fe-rich carbonatite ..................................................................................... 34 7.2.2 Fenite......................................................................................................................... 35 7.2.3 Breccia....................................................................................................................... 35 7.2.3.1 Feldspar-rich breccia.................................................................................. 36 J2137 Songwe REE Project Page: i NI 43-101 Technical Report – 22 November 2012 7.2.3.2 Carbonatite-rich breccia ............................................................................. 36 7.2.4 Silicate-rich dykes...................................................................................................... 36 7.3 Mineralization ......................................................................................................................... 36 7.3.1 Geological Domains .................................................................................................. 36 7.3.1.1 Carbonatite Domain ................................................................................... 37 7.3.1.2 Fenite Domain ............................................................................................ 39 7.3.1.3 Mixed Domain ............................................................................................ 41 7.3.2 Geometry of the Mineralization ................................................................................. 41 7.3.3 Thorium ..................................................................................................................... 43 7.3.4 Mineralogy ................................................................................................................. 44 7.3.4.1 Genetic Model for REE Mineralization ....................................................... 52 8 Deposit Types ................................................................................................................................. 53 9 Exploration ...................................................................................................................................... 56 9.1 Litho-geochemical Sampling .................................................................................................. 56 9.2 Ground Geophysical Programme........................................................................................... 59 9.2.1 Magnetic survey ........................................................................................................ 59 9.2.2 Radiometric survey.................................................................................................... 60 9.2.3 Gravity survey............................................................................................................ 60 9.3 Geological Mapping................................................................................................................ 61 9.4 Surface Channel Sampling..................................................................................................... 62 9.5 Research Programmes .......................................................................................................... 64 10 Drilling.............................................................................................................................................. 66 10.1 Historical Diamond Drilling (1988).......................................................................................... 66 10.2 Stage 1 and Stage 2 Diamond Drilling (2011 – 2012)............................................................ 66 10.3 Core Recovery........................................................................................................................ 69 10.4 Collar Surveys .......................................................................................................................