AuKing Mobilises Drilling and Secures Earn-In for Tundulu Licence Amid Approval Process
AuKing Mining expands its footprint at the Tundulu Rare Earths Project in Malawi through a structured earn-in agreement and a fresh airborne survey revealing a larger carbonatite system with multiple new drill targets.
- Airborne survey reveals extensive carbonatite system at Tundulu
- Multiple new drill-ready targets identified beneath shallow cover
- RC drilling rig mobilised with diamond rig to follow soon
- Earn-in agreement with Tusker Minerals secures exploration rights pending licence transfer
- Staged payments and share issuances underpin potential 100% licence acquisition
Airborne Survey Uncovers Larger Rare Earth System
AuKing Mining Limited (ASX:AKN) has lifted the veil on a much larger rare earths playground at its Tundulu project in southern Malawi. A high-resolution drone-based LiDAR and magnetic survey has confirmed that historical drilling barely scratched the surface of a sprawling carbonatite intrusive complex centred on Nathace Hill.
The survey, conducted at tight 50-metre line spacing and 35-metre terrain clearance, delineates a ~3km scale system with ring-style intrusive architecture and structural corridors that had not been previously tested. Notably, significant portions of this system lie beneath shallow post-mineral sedimentary cover, which historical explorers largely overlooked.
Independent peer review by a former senior Rio Tinto geophysicist has validated AuKing’s interpretation, reinforcing confidence in the new drill targets identified. These include untested intrusive margins, structural corridors, and potential demagnetised zones, all of which are now priority targets for the company’s upcoming drilling campaign.
Drilling Program Kicks Off with Thompson Resources
Priority targets include southwest extensions and southern corridors around Nathace Hill, with step-outs, infill, and twin holes designed to validate historical results and expand known mineralisation along strike and at depth. The program’s design directly incorporates the geophysical data, signalling a more targeted and informed exploration approach than previous efforts.
Earn-In Agreement Secures Licence Access Amid Transfer Delays
Meanwhile, AuKing is navigating regulatory waters as the transfer of the Tundulu exploration licence to its subsidiary, Tundulu Rare Earths Limited, remains under review by Malawi’s Mining and Minerals Regulatory Authority (MMRA). The timing of approval is uncertain, leaving exploration activities in limbo.
To circumvent potential delays, AuKing has inked an earn-in agreement with Tusker Minerals Limited (ASX:TSK) and its Malawi subsidiary, Green Exploration Limited. This deal grants AuKing contractual authorisation to explore the licence while the transfer process continues, with staged payments and share issuances structured to ultimately acquire up to 100% ownership.
The earn-in involves an initial A$1 million cash payment plus 83.3 million ordinary shares and 57.1 million performance shares, followed by further cash payments over the next 12 months. Performance shares convert into ordinary shares upon achieving a JORC-compliant resource of at least 25 million tonnes at 1.25% total rare earth oxides (TREO), subject to shareholder approval.
Strategic Implications and Next Steps
The expanded understanding of Tundulu’s carbonatite system, combined with secured exploration rights through the earn-in agreement, positions AuKing to accelerate its rare earths ambitions in Malawi. The integration of modern geophysical techniques and a substantial drilling program marks a shift from historical surface-focused exploration to a more comprehensive subsurface evaluation.
However, the timing of licence transfer approval remains a regulatory wildcard. The company’s ability to meet earn-in milestones and convert performance shares will be pivotal in consolidating ownership and advancing resource definition. Investors should watch for drilling results and regulatory updates as key catalysts in the coming months.
Bottom Line?
AuKing’s expanded geophysical footprint and earn-in deal set the stage for a critical phase in Tundulu’s rare earths exploration, but regulatory timing and milestone delivery will dictate the pace.
Questions in the middle?
- How will the regulatory approval timeline impact the drilling program’s momentum?
- Can the new drill targets beneath sedimentary cover deliver significant resource expansions?
- What are the financial and shareholder implications if performance milestones are not met?
