Modern Mining May 2017

RARE EARTHS

licence for Gakara, Rainbow car- ried out an extensive exploration programme including pitting and trenching, geological mapping, rock grab sampling, ground grav- ity and magnetic surveys and detailed geochemical sampling. Its work on site has also encom- passed a bench mining exercise conducted in 2015, as well as the collection of a sample of REE vein material for mineralogi- cal and metallurgical testwork. In addition, a conceptual mine study was completed in 2016. In all, Rainbow expended US$4,8 million on the project between 2011 and 2016. The main objective of the geo- logical mapping was to locate in-situ REE veins and by April 2013 nearly 800 occurrences of high-grade vein material had

been identified in the project area, with 387 of these occurrences being established as in-situ veins (the balance being transported mate- rial). “This was more than enough to justify an application for a mining licence and this was awarded to Rainbow in 2015,” says Eales. Although Gakara is now entering the min- ing phase, the project has no defined mineral resource. “What we have is an exploration tar- get of 20 000 to 80 000 tonnes of vein material,” notes Eales. “As you know, this is a defined classification within the JORC code. The prob- lem with trying to produce a defined resource is that the nature of the deposit is such that it would require – and this is the view of our Competent Person, the MSA Group – a very large amount of closely-spaced drilling to be undertaken at considerable cost. We don’t believe this is necessary, as we can see where we need to mine and are confident that we have the tonnages and grade to underpin a commer- cially viable mining operation.” He adds that the initial mining phase at Gakara is technically a trial mining programme, as recommended by MSA. “Having said this, we will, from the first day, be operating on a commercial basis and we envisage a seamless transition from the trial mining programme into full production.” The trial mining phase is expected to last 22 months, with planned production of 3 338 tonnes of ore for 2 503 tonnes of concentrate from the Gasagwe site and 1 933 tonnes of ore for 1 379 tonnes of concentrate from the Gashirwe West site. Mining starts at Gasagwe

finished REO (rare earth oxide) products. While the market for rare earth concentrates is quite small, Rainbow already has in place a 10-year distribution and offtake agreement for exclu- sive sales of up to 5 000 tonnes per annum of concentrate with thyssenkrupp Raw Materials, an active worldwide metals trader with offices in Europe, North America, South America and China. The concentrate will be transported by road from Gakara to either Dar es Salaam in Tanzania or Mombasa in Kenya for shipping to overseas customers. Rainbow has been involved with Gakara since 2011 (which is the date when the company was established). Recounting the background, Eales says that the deposit – which had lain fallow since the cessation of mining in 1978 – came to the attention of mining entre- preneur Adonis Pouroulis (who founded Petra Diamonds 20 years ago) in 2009 when he met up with a Burundian geologist in Angola while visiting one of Petra’s properties in the coun- try. Pouroulis followed up on this information and a team from what would later be Rainbow visited the site in 2010 and also examined the historical records (most of them archived in Belgium). An application for an explora- tion licence was subsequently submitted and granted in 2011. Pouroulis remains closely involved with Rainbow (he is non-executive chairman) and Rainbow, in fact, forms part of his Pella Resources group, which has several African mining and energy projects in its portfolio. Subsequent to being granted an exploration

The project area is charac- terised by rugged terrain with incised drainage, intense cultivation and thick weathering profiles.

24  MODERN MINING  May 2017