Kendrick Resources (LSE:KEN) has started metallurgical test work on mineralisation from its Teufelskuppe rare earth project in Namibia as it advances technical studies aimed at determining the project’s development potential.
The company has appointed German specialist consultancy Anzaplan to undertake Mineral Liberation Analysis on bulk samples from the Bonya project. The programme will assess the potential recovery of light rare earth oxides and provide information needed to develop and optimise a suitable processing flowsheet.
The metallurgical programme is being supported by detailed petrological studies, with results expected to contribute to further technical work as Kendrick progresses Teufelskuppe, or TK, according to its existing development schedule.
Teufelskuppe targets neodymium and praseodymium resources
The TK carbonatite complex contains predominantly light rare earth elements, including neodymium and praseodymium, which are important materials for permanent magnets used across electric vehicles, renewable energy systems and advanced technologies.
According to recent industry research cited by the company, the grades identified at the project place its rare earth endowment within the upper quartile globally when compared with major producing operations.
Kendrick is continuing drilling designed to support JORC 2012 certification of an initial 14 million-tonne surface mineral resource.
Exploration results have also indicated that mineralisation could continue at depth, suggesting the initial surface estimate may represent only part of the project’s overall resource potential.
Resource certification and metallurgy advance in parallel
By progressing metallurgical testing alongside resource drilling, Kendrick is seeking to establish both the scale of the Teufelskuppe deposit and a technically viable route for recovering its rare earth minerals.
Successful completion of these programmes would provide important information for subsequent development studies and help determine the project’s potential as a future commercial source of rare earth elements.
The work comes as industrialised economies seek to diversify critical mineral supply chains, particularly for materials required by renewable energy, electric vehicles, defence systems and other high-technology industries.
If successfully developed, Teufelskuppe could strengthen Kendrick’s position in the rare earth sector while potentially establishing Namibia as an important source of newly developed rare earth supply.
Exploration catalysts offset financial pressures
Kendrick’s ongoing drilling, metallurgical work and progress towards resource certification provide potential catalysts as the company advances Teufelskuppe.
However, its broader outlook remains constrained by weak financial fundamentals, including the absence of revenue, continuing losses and negative cash flow. Negative equity and a significant contraction in assets also weigh on the balance-sheet position.
Technical indicators are more supportive, with the shares trading above major moving averages and displaying positive momentum. Recent exploration developments and funding progress provide additional support, although negative earnings and the absence of a dividend limit the usefulness of conventional valuation measures.
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 development.
Its strategy includes progressing assets towards production through joint ventures, other development arrangements or potential disposals. The company’s board has extensive experience in southern Africa, where Kendrick’s portfolio includes the Bonya rare earth project in Namibia and the Blue Fox licence in northwest Zambia.
The Teufelskuppe project targets rare earth-bearing carbonatite mineralisation and currently has a provisional 14 million-tonne surface mineral resource estimate being advanced towards JORC 2012 compliance.
Early drilling and channel sampling indicate both lateral and vertical continuity of rare earth mineralisation, providing scope for the project’s resource base to extend beyond the currently identified surface mineralisation.
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