Mkango Resources has secured an exclusive prospecting licence covering the Chimimbe Hill nickel–cobalt deposit in Mchinji district, central Malawi.
Covering a 98.48km² area, the EPL0475/17 licence features laterite and saprolite-hosted nickel, cobalt, chrome and other mineralisation.
Historical exploration at the deposit includes pitting, drilling and metallurgical test work.
According to the company, the licence area comprises magnetic anomalies that indicate exploration potential for additional nickel-cobalt mineralisation.
Mkango Resources president Alexander Lemon said: “We are delighted to have been granted the Chimimbe Hill nickel-cobalt exploration licence, which is consistent with our strategy to target raw materials and technologies geared to accelerating growth in the electric vehicle market.
“This new licence, when combined with the Songwe Hill Rare Earths project and our collaboration with Metalysis on neodymium alloys for permanent magnets, positions Mkango as a potential future supplier of the critical raw materials used in both batteries and permanent magnet motors in electric vehicles.
“We are commencing a full historical data review for Chimimbe Hill, including an evaluation of exploration potential from recent geophysics, and look forward to updating shareholders on this new licence and the recently announced transaction with Talaxis in due course.”
The company intends to re-evaluate the Chimimbe Hill deposit, taking into consideration geophysical data produced by the recent World Bank airborne geophysical survey of Malawi, as well as recent regional infrastructure developments.
In addition, Mkango will also evaluate potential synergies with its Songwe Hill Rare Earths project and Thambani uranium-tantalum-niobium project while making a decision.
Initially awarded for a three-year term, the licence can be renewed twice for additional two-year periods.