AuKing Mining has rapidly advanced its Tundulu Rare Earths Project in Malawi, confirming extensive carbonatite mineralisation beyond historical targets and securing $8 million to fund an expanded drilling campaign including diamond drilling.
- Acquisition and exploration of Tundulu Rare Earths Project in Malawi
- Over 2,000m of carbonatite logged across 26 of 27 drill holes
- Completed $3 million and $5 million capital raises to fund drilling
- High-resolution airborne magnetic and LiDAR survey reveals large unexplored areas
- Export approval granted for drill samples with assays expected late July
Tundulu Project Emerges as a District-Scale Rare Earths Opportunity
AuKing Mining Limited (ASX:AKN) has made significant strides at its 100% owned Tundulu Rare Earths Project in southern Malawi, a large carbonatite intrusive complex that ranks among the country’s most promising rare earth systems. Acquired earlier this year, Tundulu benefits from extensive historical drilling focused initially on phosphate, which nonetheless returned high-grade rare earth mineralisation, including eight drill holes with over 2% total rare earth oxides (TREO).
Recent exploration has rapidly expanded the footprint of known mineralisation beyond the historic Nathace Hill target, with new step-out drilling at Kamilala Hill and Tundulu Hill intersecting carbonatite across three of the six identified carbonatite complexes. This confirms the interpretation of a district-scale system with substantial potential for resource growth.
Strong Drilling Results Validate Exploration Model
By the end of the June quarter, AuKing had completed nearly 3,000 metres of reverse circulation (RC) drilling, with geological logging confirming carbonatite lithologies in 26 out of 27 drill holes (96% hit rate). Nine drill holes logged over 100 metres of carbonatite each, with cumulative logged intervals exceeding 2,000 metres, demonstrating continuity and scale well beyond historical drilling extents.
These early results underpin confidence in the geological model and support the planned commencement of diamond drilling to test depth extensions and structural controls. The diamond rig is slated for mobilisation later in July, marking a key phase in the 10,000-metre combined RC and diamond drilling program designed to unlock the project’s rare earth potential.
Capital Raising Fuels Accelerated Drilling Campaign
To underpin the acquisition and rapid advancement of Tundulu, AuKing completed a $3 million capital raising during the quarter, followed by a strongly oversubscribed $5 million placement post-quarter. The latter was supported by family offices, global institutions, and sophisticated investors, with pricing at a premium to the volume-weighted average price (VWAP). These funds will accelerate the expanded drilling program and provide flexibility to pursue additional strategic opportunities.
At quarter-end, the company held cash reserves of $1.33 million, with the recent placement expected to extend funding well beyond the next quarter. AuKing has also secured export approval from the Malawi Ministry of Mining for initial drill samples, enabling timely dispatch to Intertek laboratories in Zambia and Perth, with assay results anticipated in late July.
Geophysical Survey Highlights Untapped Exploration Potential
Complementing drilling, AuKing completed a high-resolution airborne magnetic and LiDAR survey across a significant portion of the Tundulu project area. The survey revealed that historical drilling has only tested a small fraction of the 5-kilometre diameter carbonatite intrusive complex, with large areas beneath shallow sedimentary cover remaining virtually unexplored.
This geophysical dataset, independently peer-reviewed by a former Rio Tinto chief geophysicist, has identified multiple new drill-ready targets, shaping the current drilling campaign and future exploration activities.
Broader Asset Portfolio and Corporate Progress
Beyond Tundulu, AuKing is advancing its tin and silver exploration licences in north-west Tasmania, near the Renison Bell mine, with plans for detailed exploration once licences are granted. The company’s 49% interest in the Koongie Park copper/zinc/silver project in Western Australia remains under joint venture management, while the uranium-focused Mkuju Project in Tanzania is preparing for an upcoming drilling program after seasonal delays.
Meanwhile, AuKing is considering disposal of its Canadian Myoff Creek claims, reflecting a strategic focus on core assets. The company’s recent Annual General Meeting saw all resolutions passed with strong shareholder support, underpinning confidence in management’s direction.
Bottom Line?
AuKing’s strong early drilling results and robust capital raising position it well to unlock the rare earth potential at Tundulu, but assay results and regulatory approvals will be critical next milestones.
Questions in the middle?
- Will assay results confirm high-grade rare earth mineralisation consistent with historical data?
- How quickly can diamond drilling extend the known carbonatite system’s depth and lateral continuity?
- What impact will the timing of Malawi Ministry of Mining’s licence transfer approval have on exploration momentum?