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Update - Rare Earth Elements at Musensi Hill

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Amigo Resources PLC has released results from a petrographic study of its Musensi Hill Rare Earth Elements Project in Tanzania, indicating the project is an undersaturated alkaline complex with a minor carbonatite component, supporting exploration for rare earth elements and high-field-strength elements like niobium and tantalum. The study of approximately 26 thin sections revealed a diverse lithological assemblage including phonolite, feldspathoid-bearing rocks, and ultramafic components, alongside evidence of significant late-stage hydrothermal activity with silica veining and iron-oxide alteration. This evolving geological interpretation, integrating petrography with geochemistry, aims to refine the exploration model and identify priority targets for future work, though no economic mineralisation has yet been established.

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Amigo Resources PLC (LSE: AMGO) is pleased to provide a further technical update on its Musensi Hill Rare Earth Elements Project (the "Musensi Hill Project" or "Project") in Tanzania, following completion of the first phase of petrographic thin-section examination and continued geological interpretation.

The petrographic programme forms part of the Company's ongoing effort to integrate field geology, whole-rock geochemistry, petrography and mineralogical interpretation into a progressively refined exploration model for Musensi Hill.

Approximately 26 petrographic thin sections have been prepared to date and studied.

Highlights

●Exploration Potential Supported: Initial petrographic work program supports continued exploration for rare earth elements (REEs) and high-field-strength elements (HFSEs), including niobium and tantalum.
●Revised Geological System: The geological system is now considered more appropriately classified as an undersaturated alkaline complex containing a minor carbonatite component, rather than a simple carbonatite body.
●Diverse Lithological Assemblage: Petrographic observations indicate a diverse lithological assemblage including carbonate-rich rocks, gneissic rocks, phyllitic rocks, ultramafic components and alkaline lithologies.
●Alkaline Magmatic System: Phonolite and feldspathoid-bearing rock types have been identified during the evolving petrographic interpretation, supporting the presence of an extensive alkaline magmatic system.
●Hydrothermal Activity: Extensive late-stage silica veining has been observed throughout the complex, indicating a significant hydrothermal event.
●Follow-up Targets: Iron-oxide-rich altered zones are interpreted as evidence of strong late-stage fluid activity and represent important targets for follow-up study.
●Textural Modification: Current interpretations indicate that original rock textures have in places been strongly modified or destroyed by hydrothermal alteration.
●Dominance of Alkaline Complex: Further observations by the Company's engaged geological consultant indicates that much of the block is underlain by an undersaturated alkaline volcanic-intrusive complex, rather than being dominated by carbonatite.
●Identified Lithologies: The alkaline complex includes phonolite, possibly nepheline-bearing, leucitite, ultramafic foidite, nepheline syenite and intrusive ultramafic foidite, together with fenitised amphibolite and minor granite gneiss.
●Carbonatite Extent: Only one examined sample collected from calcitic carbonatite was confirmed petrographically as carbonatite sensu stricto, indicating that carbonatite may represent only a minor component of the block based on samples reviewed to date.
●Model Integration: Whole-rock geochemistry is currently being integrated with petrographic observations to refine the mineralisation model and prioritise future exploration.

Petrographic Programme

The current petrographic study was designed to identify primary lithologies, alteration styles, mineral associations and late-stage hydrothermal features that cannot be reliably determined from hand-specimen observations alone.

Approximately 26 thin sections have been prepared from representative samples collected and examined.

This work enables the Company to refine its understanding of the Musensi Hill Project intrusive system and distinguish between:

●primary magmatic lithologies;
●carbonate-rich intrusive phases;
●alkaline silicate rocks;
●altered basement rocks;
●ultramafic components;
●hydrothermal replacement textures; and
●late-stage vein and iron-oxide alteration.

Evolving Geological Interpretation

The petrographic work completed to date indicates that Musensi Hill Project is more geologically diverse than initially interpreted from surface mapping alone.

The additional observations indicate that the sampled area is dominated by an undersaturated alkaline complex comprising volcanic and intrusive rocks:

●Volcanic rocks: include phonolite, possibly nepheline-bearing, leucitite and ultramafic foidite;
●Intrusive rocks: include nepheline syenite and intrusive ultramafic foidite; and
●Associated units: fenitised amphibolite and minor granite gneiss are also present.

Based on these interpretations, the Company considers the most appropriate working description to be an undersaturated alkaline complex containing a minor carbonatite component.

This interpretation is significant as typically both alkaline intrusive complexes and carbonatite systems are recognised geological environments for rare earth elements and high-field-strength elements including niobium and tantalum.

The current interpretation remains preliminary and will continue to evolve as additional petrographic, geochemical and mineralogical data become available.

Further Petrographic Observations

The Company's engaged geological consultant (GeoVale Services) has completed its petrographic review. This review indicated that:

●Much of the area previously shown on the geological map as basement granite gneiss may instead form part of the undersaturated alkaline complex, with only minor fenitised amphibolite gneiss and granite gneiss.
●Many of the alkaline volcanic and intrusive rocks are cross-cut by late carbonate, quartz and aplitic veins.

Recognition of a sizeable undersaturated alkaline complex introduces an additional exploration dimension. Subject to confirmation by chemical and mineralogical analyses, target elements requiring particular assessment include niobium, zirconium, hafnium, thorium and uranium, alongside the Company's continuing rare earth element and niobium-tantalum evaluation.

Late-Stage Hydrothermal Activity

One of the most significant observations from the petrographic review is the evidence for extensive late-stage hydrothermal activity.

●Silica Veining: Abundant silica veins have been observed across the Project. These veins are interpreted as representing a late fluid phase that affected the intrusive system following principal magmatic events.
●Iron-Oxide Alteration: Strongly iron-oxide-rich altered zones have been identified within the Project. These zones are locally intensely decomposed and weathered, producing what field geologists describe as "rotten rock".

The presence of late silica veining and iron-oxide alteration is considered important because hydrothermal fluids may remobilise, redistribute and locally concentrate rare earth elements and other metals.

Furthermore, iron oxides may also act as scavengers or carriers for certain specific elements during hydrothermal alteration and weathering. The Company is therefore prioritising these iron-rich and late-vein zones for further mineralogical and geochemical study.

Significance for Rare Earth and Nb-Ta Exploration

The current petrographic interpretation supports continued focus on two principal commodity groups:

(1)Rare Earth Elements (REEs): including both light and heavy REEs; and
(2)High-Field-Strength Elements (HFSEs): including niobium (Nb) and tantalum (Ta).

The significance of the current work is that the geological environment increasingly demonstrates characteristics consistent with a complex alkaline magmatic and hydrothermal system capable of concentrating these elements.

A coherent geological basis for exploration is provided by the combination of:

●alkaline lithologies;
●carbonate-rich phases;
●feldspathoid-bearing rocks;
●late silica veining;
●strong iron-oxide alteration;
●extensive hydrothermal modification; and
●previously identified geochemical enrichment in strontium, phosphorus, potassium and other associated pathfinder elements.

Integration with Whole-Rock Geochemistry

The next stage of evaluation will integrate the petrographic findings with the Company's existing whole-rock geochemical data to determine:

●the relationship between individual lithologies and geochemical anomalies;
●whether metal enrichment is associated with primary magmatic phases or subsequent hydrothermal alteration;
●the specific mineral hosts for REEs, niobium and tantalum;
●the significance of iron-oxide-rich zones;
●the role of late-stage silica veining; and
●the priority geological environments for follow-up surface sampling and future drill targeting.

This integrated petrographic-geochemical interpretation will be instrumental in refining the Musensi Hill Project exploration programme.

Next Steps

The forthcoming phase of work for the Musensi Hills Project includes:

●integration of petrographic data with whole-rock geochemistry;
●detailed mineral identification utilising SEM-EDS and equivalent analytical techniques;
●Rare Earth Element and High-Field Strength Elements specific analytical work;
●systematic examination of iron-oxide-rich alteration zones;
●investigation of late-stage silica-vein systems;
●refinement of lithological mapping and classification across the complex; and
●definition and prioritisation of geological targets for the next phase of exploration.

Craig Ransley, Executive Chair of Amigo Resources PLC, commented:

"The petrographic work is helping us transition from a broad field interpretation to a considerably more precise understanding of the Musensi Hill Project geological system.

The key point emerging from this work is that we are seeing a broader undersaturated alkaline complex with multiple volcanic and intrusive lithologies, a minor carbonatite component and a significant late-stage hydrothermal overprint.

The abundance of silica veining, iron-oxide alteration and alkaline lithologies provides a clear and strong technical foundation to continue focusing on rare earth elements alongside high-field-strength elements such as niobium and tantalum.

At this stage we are not making any statement regarding economic mineralisation. Our objective is to continue building the geological model and identify the mineral hosts and the most prospective parts of the system before advancing to the next stage of exploration."

Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.

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