Slide 1: Mkango Resources
MKANGO RESOURCES Spearheading development of Malawi’s Rare Earth Sector Songwe Hill Rare Earth Project TSX-V: MKA RARE EARTHS EXPLORATION FUTURE INNOVATION May 2014
Slide 2: Disclaimer
This presentation (the “Presentation”) has been prepared by Mkango Resources Ltd (the “Company” or “Mkango”) solely for its use at informational meetings relating to it or is being delivered for information purposes only to a limited number of persons. By attending the meeting where this Presentatio
Slide 3: Forward-looking statements
Certain disclosures contained in or incorporated by reference into this presentation constitute forward-looking statements or forward-looking information. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements or forward-looking inf
Slide 4: Investment Highlights
Investment Highlights ADVANCED STAGE PROJECT - pre-feasibility study underway NI 43-101 RESOURCE - substantial Indicated and Inferred rare earth resource defined FLOW SHEET - produce critical & heavy rare earth enriched chemical concentrate EXPERIENCED MANAGEMENT - strong team to deliver pre
Slide 5: Capital Structure
Capital Structure Share Price (30/04): C$0.135 Shares Outstanding: 73.3M Warrants (exp. 03/19, 03/16,04/19, 24.0M @ $0.20* 04/16): Directors & Options: 5.0M Management Fully Diluted: 102.3M** Market Cap (30/04): ~9.9M Leominex • Haywood Securities (Private) • Institutions & Private Investors 34% • S
Slide 6: Pathway to Production - Songwe Hill REE Project
Pathway to Production - Songwe Hill REE Project • January 2010 – Songwe Hill licence awarded • January 2011 – MKA listed on TSX-V, raising C$7.8m ($0.50) • July 2011 – Phase 1 drill program complete (2,000m) EXPLORATION • May 2012 – Phase 2 drilling complete (4,850m) • October 2012 – Maiden resource
Slide 7: Directors & Management
Directors & Management Executive Directors Mr William Dawes, Chief Executive Officer - 12 years Exploration and Business Development, 9 years Mining Finance; prior experience with Rio Tinto exploration & JP Morgan mining team - Bristol University (BSc Geology), Royal School of Mines (MSc Mineral Exp
Slide 8: Corporate & Technical Project Management Expertise
Corporate & Technical Project Management Expertise • Mrs Sandra Beaulieu - CFO Corporate • Mr Burton Kachinjika - Country manager (Malawi) Management • Mrs Effie Likaku - Country Administrator (Malawi) • Aoife Brady, PhD - Principal Geologist & Mineralogist (UK/Malawi) Technical • Mr James Mtegha -
Slide 9: Malawi – The Warm Heart of Africa
Malawi – “The Warm Heart of Africa” World class, underdeveloped rare earth mineral province – historically known carbonatite deposits, drilled by JICA/MMAJ in late 80s Songwe Hill – most advanced stage rare earth project, catalyst for regional REE development Global support – ~US$40m minerals
Slide 10: Songwe Hill - 2 hours' drive from international airport
Songwe Hill - 2 hours’ drive from international airport 10
Slide 11: In-situ Mineral Resource Estimate - Songwe Hill Project
In-situ Mineral Resource Estimate - Songwe Hill Project 2012 Resource Estimate 1.0% TREO cut off grade 1.5% TREO cut off grade Tonnes (million) TREO (%) TREO Tonnes TREO (%) TREO (tonnes) (tonnes) (million) Indicated 13.16 1.62 213,098 6.15 2.05 126,065 Inferred 18.59 1.38 256,149 5.06 1.83 92,412 T
Slide 12: Mine Development & Infrastructure
Mine Development & Infrastructure Favourable topography – located on a hill, not a laterite deposit Broad zones of mineralisation – as opposed to a narrow vein or dyke deposit Outcropping mineralisation – potential for open pit mining Developing infrastructure – railhead in Blantyre, roads b
Slide 13: Mineralogy & Processing - key drivers of economics
Mineralogy & Processing - key drivers of economics Targeting critical & heavy rare earth enriched product: Cerium depleted, high grade, mixed rare earth hydroxide (55% TREO1, 18% HREO2/TREO) Favourable mineralogy - synchysite and apatite that is anomalously enriched in heavy rare earths Good l
Slide 14: Rare Earth Elements - future demand
Rare Earth Elements - future demand Neodymium*; Dysprosium*; Praseodymium Permanent magnets Europium*; Terbium*; Yttrium* Phosphors * Critical Rare Earths – supply risk versus importance to clean energy CONSUMER ELECTRONICS – CLEAN ENERGY Computer drives, mobile phones, mp3 players, cameras, wind tu
Slide 15: REE Distribution
REE Distribution Songwe Hill - Rare Earth Distribution Songwe Hill - Distribution by in-situ value Rare earths used in the magnet and phosphor sectors - Based on Indicated carbonatite resource at 1.0% TREO cut-off grade: 11.1mt grading 1.62% TREO - Distribution by value based on approximate Asian Me
Slide 16: Strategy - Songwe Hill Project
Strategy - Songwe Hill Project PHASE 1 DEVELOPMENT: Produce a heavy and critical rare earth enriched chemical concentrate 1. Cerium removed during hydromet flow sheet 2. Initial modest scale operation with significant expansion potential 3. Purified mixed REE chemical concentrate for separation outs
Slide 17: Mkango Resources
Mkango Resources RESOURCE - significant 43-101 compliant resource, mineralized outcrop yet to be drilled DEVELOPMENT - pre-feasibility study well advanced, favourable mineralogy, simple processing flow sheet, defined phase 1 strategy, expansion options RARE EARTHS - weighted mix to critical &
Slide 18: Contact Details
Contact Details William Dawes Chief Executive will@mkango.ca Mkango Resources Ltd Calgary Office Malawi Office www.mkango.ca 259 Windermere Road SW Plot No. BW536, Sunnyside Twitter: @MkangoResources Calgary, Alberta P.O. Box 3027 T3C 3L2 Blantyre Canada Malawi P +1 403 444 5979 P +265 1 525 383 F +
Slide 19: Appendix A - Significant resource upside - open laterally and to depth
Appendix A - Significant resource upside - open laterally and to depth Stage 1 & 2 drill holes superimposed on Th / K radiometrics 19
Slide 20: In-situ Mineral Resource Estimates
In-situ Mineral Resource Estimates 20
Slide 21: In-situ Mineral Resource estimates at 1.0% TREO cut-off grade
In-situ Mineral Resource estimates at 1.0% TREO cut–off grade1 In-situ Indicated Mineral Resource at 1% TREO Cut-Off Indicated Million La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 LREO Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 HREO TREO TREO Th U Tonnes ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm
Slide 22: In-situ Mineral Resource estimates at different cut-off grades
In-situ Mineral Resource estimates at different cut–off grades1 In-situ Indicated Carbonatite Mineral Resource Cut-Off Million La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 LREO Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 HREO TREO TREO Th U %TREO Tonnes ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm pp
Slide 23: REO distribution at different cut-off grades
REO distribution at different cut-off grades1 In-situ Indicated Carbonatite Mineral Resource - REO Distributions at 0.5%, 1.0% and 1.5% TREO Cut-Offs Cut-Off La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 Total HREO %TREO % % % % % % % % % % % % % % % % % 0.