Kendrick Resources (LSE:KEN) has reported further portable X-ray fluorescence drill results from its Teufelskuppe rare earths project in Namibia, identifying high-grade light rare earth oxide mineralisation across substantial widths in several diamond drill holes. The latest findings provide additional evidence of the scale and grade potential of the Teufelskuppe carbonatite complex.
According to the company, the grades recorded to date position Teufelskuppe within the upper quartile of comparable carbonatite-hosted rare earth projects globally. Kendrick believes this strengthens the project’s potential to become a future source of neodymium and praseodymium for free-market economies, at a time when demand for critical rare earth elements continues to increase.
The latest drilling encountered continuous mineralised packages measuring up to 36.75 metres, with light rare earth oxide grades reaching as high as 4.77 wt%. Multiple intersections returned grades above 2 wt%, while several drill holes finished within mineralisation, indicating that the identified zones remain open and could extend beyond the areas tested so far.
Management believes the consistency and extent of the mineralisation support its assessment that the existing 14 million tonne surface resource represents only a portion of Teufelskuppe’s overall potential. Further drilling is intended to test the wider carbonatite system and establish whether a substantially larger rare earth resource can be defined.
Kendrick is also progressing work towards JORC 2012 certification as part of its broader exploration programme. Expanding and formalising the resource could position Teufelskuppe to benefit from growing demand for rare earth materials used across electronics, renewable energy technologies, electric vehicles and defence applications.
The company nevertheless remains at an early stage financially, with no revenue, continuing losses and negative cash flow, alongside a weakened balance sheet and negative equity. Technical indicators provide limited support due to mixed moving-average signals, while conventional valuation measures remain difficult to apply given negative earnings and the absence of dividend data.
More about Kendrick Resources PLC
Kendrick Resources PLC is a mineral exploration and development company focused on acquiring and advancing resource projects through exploration, technical studies and resource definition. Its strategy typically involves progressing projects towards production through joint ventures or asset transactions. The company’s portfolio includes rare earth and critical mineral interests in southern Africa, including projects in Namibia and Zambia.
Leave a Reply