Major drill programme to increase Longonjo resource to over one billion tonnes

Pensana plc (LSE: PRE) is pleased to announce an US$11million drilling and metallurgical testwork programme at the company's flagship Longonjo project in Angola which is designed to increase the current Mineral Resource Estimate to over one billion tonnes making it one of the world's largest rare earth deposits ever developed.

The Longonjo deposit comprises a near-surface blanket of high-grade, NdPr-rich total rare earth oxides ("TREO"), with an average depth of approximately 30 metres. Previous drilling has confirmed that the mineralisation continues to well over 100 metres directly beneath the current resource indicating the potential for substantially increasing resources with further drilling.

A 25,000-metre vertical core drilling programme has been planned which aims to extend the existing JORC-compliant Mineral Resource Estimate from 313 million tonnes at 1.43% TREO to over one billion tonnes at a similar grade.

Metallurgical sampling and testwork will be undertaken for mine planning and processing optimisation. The programme is scheduled to commence early in the new year with results released as they become available.

Paul Atherley Chairman commented: "Following the recent announcement that China is looking to establish a major rare earth processing hub to boost mining, refining and magnet production at the world's largest rare earth mine at Bayan Obu in Inner Mongolia, further strengthening China's position as the world's major producer, it is clear that large scale, cost efficient, fully integrated supply chains are set to dominate the industry.

We are fortunate that the style of mineralisation at Longonjo is known to have very significant depth extensions and we are very confident that this programme will rapidly deliver a substantial increase to our already world-class resource inventory. Longonjo benefits from the ongoing multi-billion dollar investments into the Lobito Corridor rail, hydro-electric power and port facilities enabling it to rapidly scale up production to meet the growing demand from the U.S.

Our recent partnership with eVAC to establish a world class integrated mine-to-magnet supply chain in the U.S. will see Longonjo supply the recently commissioned advanced magnetics facility at Sumter in South Carolina with feedstock, initially to produce 2,000 tonnes of magnets rising to 12,000 tonnes per year in 2029, making eVAC one of the world's largest producers underpinned by a world class long life resource base at Longonjo. This major new fully integrated mine to magnet supply chain is expected to capture the interest of major offtake partners looking to reduce their exposure to China's export controls."