Kendrick Resources (LSE:KEN) has begun an expanded drilling and trenching campaign at its Kieshöhe rare earths project in southern Namibia, as the company works to establish a JORC-compliant mineral resource. The programme is intended to support development of its flagship Teufelskuppe project located about 30km away.
To accelerate exploration, the company is securing a second drill rig and carrying out sampling across more than 2,500 metres of trenches. Collected samples will undergo petrological and metallurgical testing aimed at determining optimal processing methods. The work programme is designed to provide the geological data required to advance Kieshöhe toward formal resource definition.
Results from earlier Phase I drilling and channel sampling suggest an average total rare earth element grade of roughly 1.6–2.0 wt%. High-value magnet metals neodymium and praseodymium account for about 27% of the rare earth content. Kendrick has also identified three potential open-pit targets that could serve as satellite ore sources. With relatively low uranium concentrations in the carbonatite-hosted mineralisation, the company sees Kieshöhe as a potentially strategic rare earth supply source in Namibia, particularly as global demand for rare earths grows and supply chains seek alternatives to China.
The company’s outlook remains constrained by weak financial performance, including the absence of revenue, continued operating losses, negative cash flow and a significant decline in equity and assets during 2024. Technical indicators provide some counterbalance, with the share price showing a strong upward trend relative to moving averages and a positive MACD signal, though overbought momentum indicators point to elevated short-term risk. Valuation metrics remain limited due to negative earnings and the lack of dividend support.
More about Kendrick Resources PLC
Kendrick Resources Plc is a mineral exploration and development company focused on acquiring and advancing mineral resource projects through exploration, technical studies and resource development. Its board has extensive experience across southern Africa, and the company is currently progressing the Bonya rare earth project in Namibia and the Blue Fox licence in northwest Zambia, targeting critical minerals such as rare earth elements for industrial and technology markets.
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