Chilwa Minerals Accelerates Drilling and Expands Rare Earths Strategy in Malawi
Chilwa Minerals has completed a major drilling program at its Mposa deposit and launched a dual commodity strategy targeting both heavy mineral sands and rare earth elements, supported by a fresh $6 million capital raise.
- Completion of 7,000m sonic drilling at Mposa with 30% higher recoveries than previous campaigns
- Arrival of second sonic rig enabling expanded drilling at high-grade Mpyupyu deposit
- Official opening of on-site preparation laboratory to speed up assay turnaround
- Launch of twin parallel exploration teams for mineral sands and rare earth elements
- Successful $6 million capital raise led by major shareholder Mota Engil, strengthening cash position
Drilling Milestones at Mposa
Chilwa Minerals Limited (ASX: CHW) has reported significant progress in its December 2024 quarterly activities, highlighted by the completion of an extensive sonic drilling program at the Mposa deposit within its Chilwa Critical Minerals Project in Malawi. The company drilled over 7,000 metres along a 7km strike, tripling the drilling volume of previous owners and achieving an average 30% improvement in sample recoveries due to the adoption of sonic drilling technology over traditional air-core methods.
The enhanced drilling results have revealed higher grades and a richer mineralogy, including increased levels of rutile, zircon, and pseudo rutile, prompting Chilwa to initiate an early resource upgrade for Mposa. This move aims to elevate the deposit's classification from Inferred to Indicated and Measured categories, potentially enhancing its economic valuation.
Expansion with Second Sonic Rig and New Targets
December also saw the arrival of a second state-of-the-art Eijkelkamp sonic rig at the Zalewa camp, doubling Chilwa's drilling capacity. This rig features interchangeable heads, allowing conversion to diamond drilling, which is critical for exploring deeper ionic clays beneath the mineral sands. Drilling at the high-grade Mpyupyu deposit, known for its 7.1% Total Heavy Minerals (THM) grade, commenced with the first rig and will soon be supported by the second.
Operational Enhancements and Local Engagement
In November 2024, Chilwa officially opened its on-site preparation laboratory at Zalewa, inaugurated by Malawi's Minister of Mines. This facility is equipped to prepare samples for both heavy mineral sands and rare earth element assays, significantly reducing turnaround times by eliminating the need to send samples overseas for preparation. The company has also recruited and begun training seven local technicians, underscoring its commitment to community engagement and capacity building.
Strategic Shift to Dual Commodity Focus
Building on positive airborne geophysics results that identified 47 rare earth element (REE) anomalies, Chilwa has launched a twin parallel exploration strategy. This involves two dedicated teams focusing separately on heavy mineral sands and REE/ionic clays, led by newly recruited senior geologists with relevant expertise. The company has also appointed Geoff Chapman as Competent Person for the REE and ionic clays drilling program, bringing valuable experience to this emerging focus area.
Financial Strength and Government Relations
Chilwa successfully completed a $6 million private placement at $0.86 per share, with major shareholder Mota Engil maintaining its 30% stake through a $2.27 million participation. An oversubscribed Share Purchase Plan raised an additional $750,000. The company ended the quarter with a strong cash position of $4.65 million, excluding funds received post-quarter. Chilwa is also advancing discussions with the Malawian government on mining licenses and agreements, supported by international legal advisors Pinsent Masons, reflecting a solid relationship with local authorities.
Looking ahead, Chilwa anticipates key assay results from Mposa and Mpyupyu drilling, further REE soil sampling outcomes, and the initiation of a scoping study, all of which will be critical in defining the project's next development phases.
Bottom Line?
Chilwa Minerals is rapidly advancing its dual-commodity strategy with enhanced drilling and local infrastructure, setting the stage for a pivotal resource upgrade and expanded rare earths exploration.
Questions in the middle?
- How will the upgraded Mposa resource impact Chilwa's project valuation and development timeline?
- What are the prospects and timelines for rare earth element discoveries from the 47 identified anomalies?
- How will Chilwa's engagement with the Malawian government influence mining license approvals and project advancement?
