Kendrick Resources (LSE:KEN) has announced the discovery of high-grade rare earth element breccia at the Teufelskuppe carbonatite complex in Namibia, further strengthening the project’s development potential. The newly identified breccia zone is estimated to contain around 40% high-grade, light rare earth element-dominant carbonatite and averages approximately 3.75 wt% Total Rare Earth Oxide (TREO) across an interval of 14.42 metres. Located close to the surface, the discovery has the potential to significantly increase the project’s overall resource base.
The company has begun an accelerated programme of resource development and metallurgical testing aimed at separating the higher-grade carbonatite from surrounding waste rock. By improving feed grades and reducing the amount of material requiring processing, Kendrick hopes to enhance the project’s future economics. Work is also progressing on an initial mineral resource estimate for the newly discovered breccia, alongside the preparation of a JORC-compliant resource for the wider Teufelskuppe project. The company believes the project could become an important future source of rare earth materials as global demand rises and supply chains continue to diversify.
Kendrick’s investment outlook remains constrained by weak financial fundamentals, including the absence of revenue, ongoing losses, negative cash flow and a significantly weakened balance sheet with negative shareholders’ equity. However, technical indicators remain supportive following recent share price strength. Valuation is difficult to assess due to the company’s negative earnings and the absence of a dividend.
More about Kendrick Resources PLC
Kendrick Resources Plc is a mineral exploration and development company focused on identifying, acquiring and advancing projects containing critical minerals. The company is progressing the Teufelskuppe and Bonya rare earth projects in Namibia, alongside the Blue Fox licence in northwest Zambia, with the aim of developing strategically important mineral resources that support growing demand from global clean energy and advanced manufacturing industries.
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