Kangankunde Drilling Targets 40 Million Tonnes Resource Upgrade for 4 Mtpa Production

Stage 2 Drilling Program Kicks Off

Lindian Resources Limited (ASX, LIN) has commenced an ambitious Stage 2 resource definition drilling campaign at its flagship Kangankunde Rare Earths Project in Malawi. This program is a critical step in advancing the project’s expansion plans, focusing on converting a substantial portion of the existing inferred mineral resources into the more reliable indicated category. The upgrade is essential for refining mine scheduling and pit design, which will underpin the next phase of production growth.

The drilling program comprises approximately 3,400 metres of diamond core drilling and 2,700 metres of reverse circulation (RC) drilling, with operations expected to continue through to April 2026. The company anticipates assay results by the end of May, followed by an updated resource model targeted for completion by the end of June. This timeline sets the stage for more detailed engineering and feasibility work to support the Stage 2 expansion.

Targeting Resource Confidence and Scale

The primary objective of this drilling campaign is to convert between 20 and 40 million tonnes of inferred resources within the current resource footprint to indicated status. This conversion is crucial because indicated resources carry a higher degree of geological confidence, which is necessary for detailed mine planning and securing financing. The focus is on areas beneath and adjacent to the existing indicated resource zones, which are expected to define the expanded Stage 2 pit.

Executive Director Zac Komur emphasised the importance of this phase, "Stage 2 is about scale and mine life, and that starts with confidence in the resource model and the design inputs that sit behind it. This program is focused on the parts of the orebody most likely to define the Stage 2 expansion case." The company is also conducting a dedicated geotechnical drilling program to inform robust pit design criteria, ensuring the expanded mine will be both efficient and safe.

Expanding Production Capacity

The Stage 2 expansion aims to increase ore processing capacity to 4 million tonnes per annum, which would enable the production of an additional 100,000 tonnes per annum of high-grade monazite concentrate. Kangankunde’s monazite concentrate is notable for its premium quality, boasting a 55% total rare earth oxides grade without deleterious elements, positioning it among the world’s most promising rare earth deposits.

With all key permits and approvals already in place, and strong infrastructure and government support, Lindian is well-positioned to accelerate development. The project’s strategic partnership with Iluka Resources and a recent A$91.5 million institutional placement have provided the financial backing necessary to proceed confidently.

Looking Ahead

As drilling progresses, market watchers will be keenly awaiting assay results and the updated resource model, which will provide clearer insights into the scale and economics of the Stage 2 expansion. The outcomes will be pivotal in determining the speed at which Lindian can transition to increased production and potentially extend the mine life significantly.

Overall, this drilling campaign represents a vital milestone in Lindian’s journey to becoming a globally significant critical minerals producer, with Kangankunde at the core of its ambitions.