29th Oct 2019 14:29
(Alliance News) - Rainbow Rare Earths Ltd on Tuesday said demand for rare earths remains strong as shipments from Burundi's Gakara project continue.
Rainbow has shipped a further 100 tonnes of concentrate at 56% total rare earth oxides, and it is processing further shipments for departure over the coming weeks.
These shipments, it continued, contain "very low" levels of radioactive materials, which is a common issue in bulk loads of rare earth metals. Rainbow's are "readily shippable" due to minimal levels of uranium and thorium.
"Demand for Rainbow's concentrate remains strong as a result of both the quality and limited impurities," said Rainbow.
"As previously indicated, production levels are expected to be reduced whilst the company performs the work necessary to achieve higher production target levels as it moves its focus from high-grade vein mining to a more broad, mechanised operation as outlined in the most recent financial result."
Rainbow has also implemented a cost control programme, reducing the break-even level of concentrate production to 110 tonnes per month from 270 tonnes.
On the exploration front, Rainbow is working to establish a new drilling area, finding targets to develop a new mineral resource in early 2020.
"Rainbow's mining licence has a total of 30 exploration targets, all of which have been shown to have numerous rare earth element occurrences that contain mineralisation. Of these 30 targets, seven targets were historically mined, a very good indicator of high-grade mineralisation in mining deposits in Africa," said the firm.
Rainbow, in a separate announcement, also said Chief Executive George Bennett has bought 5.5 million shares, in a deal on Monday, for 3 pence each for GBP163,934 in total. Non-Executive Chair Adonis Pouroulis the same day bought the same amount of shares at the same price.
The two now own a combined stake in Rainbow of just over 27%. Shares were up 3.2% on Tuesday afternoon at 2.58p each.
By George Collard; [email protected]
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