C. Chiwambo and R.Malikebu Mines Department - UNECE

Interregional IAEA-CYTED-UNECE

Workshop on United Nations Framework Classification for Fossil Energy and Mineral Reserves and Resources – 2009 (UNFC–2009)

Applications in Uranium and Thorium

Resources: Focus on Comprehensive Extraction.

Santiago, Chile, 9-12 July 2013. C. Chiwambo and R.Malikebu Mines Department- Lilongwe, Malawi

July 9-12, 2013

Spatial Location and mineral potential of Malawi Brief history of Uranium, Thorium & REEs exploration and extraction in

Malawi Current development trends: Kayelekera Uranium Project Resource Star’s Livingstonia Niobium, Uranium and REEs exploration Kanyika Niobium and Uranium Exploration focusing on Uranium Machinga Heavy Rare Earths, Songwe, Mt.Mulanje, Illomba and

Kangankunde REEs Tundulu Phosphates (Extraction of Uranium from Phosphates –

Comprehensive Extraction) Challenges being faced in reporting the mineral resources Interventions; Reporting of Uranium Resources using UNFC 2009

template Conclusion

July 9-12, 2013

Malawi is located in the south-eastern part of

Africa, within the East African Rift System, between latitudes 9o S and 17o S and longitudes 32o E and 36o E.

The country is landlocked between Mozambique to

the south and east, Zambia to the west and Tanzania to the north (Figure 1).

July 9-12, 2013

July 9-12, 2013 Department of Mines, Malawi

Figure 1: Location of Malawi (Msika et al.,2009)

Malawi is endowed with abundant and diverse mineral resources.

These include: uranium, pyrite, limestone, coal, graphite,

monazite and strontianite, columbium (niobium), apatite, silica sands, vermiculite, bauxite, titanium heavy mineral sands, and various types of gemstones and ornamental stones .

Some significant anomalies of alluvial gold, diamondiferous mineralization and other Platinum Group of Metals (PGMs) have also been reported in the country recently.

Mining contributes 10% to Malawi’s GDP.

July 9-12, 2013 Department of Mines, Malawi

In early 1950s, many exploration programmes on Karroo geology in Malawi indicated high anomalies of radio-active mineralization.

However, not much exploration on radioactive minerals was conducted then due to unattractive global prices.

Airborne Radiometric and Geophysical exploration – 1985 to 88 revealed a number of potential radio-active mineralisation in many areas with Kayelekera as one of the most promising targets.

The first EPL was granted to CEGB between 1988 to 1991 ◦ Mapping, drilling and feasibility studies yielded positive

results.

July 9-12, 2013 Mines Department

Down-spiralling of world uranium price due to fall of iron curtain led to project stalling and eventual surrender. Area re-licensed to Paladin 1997 leading to re-eveluation, confirmation drilling, bankable feasibility studies & a go- ahead given in 2005, with Mw Govt-Paladin agreement signed in 2007. It rolled it operations in 2009.

Current View of Kayelekera Uranium Mine; Source: Mines Report, 2013_ updated

Mineralisation at Livingstonia was discovered by Globe and as announced to the ASX on 16 March, 2010, Resource Star and Globe signed a joint venture agreement to explore the Livingstonia Project.

Globe had drilled 95 holes at

Livingstonia for a total of 11,000 metres, during 2007-08 using both reverse circulation (‘RC’) and open hole percussion with a combination of either or both laboratory analysis or down-hole gamma probing.

Drilling targeted three prospects, with the majority occurring at the Chombe Prospect.

July 9-12, 2013

Source: Mines Department (2011)

By July 2010, on the basis of the historical Globe drilling, CSA Global (an out sourced company) completed a Mineral Resource estimate on the Chombe Prospect, and defined an Inferred Resource of 7.7Mt @ 270 ppm eU3O8 using a 150 ppm cut-off.

Currently, CSA Global’s updated estimate

of the Inferred Resource is 8.3 Mt averaging 325 ppm eU3O8 of contained 6.0 Mlbs of eU3O8 (or approximately 2,700 tonnes of contained eU3O8) at a lower cut-off grade of 150 ppm eU3O8

Govt has made a decision to renew Resource Star’s licence for 2 years (as per application) to allow for other activities such as EIA. The project is very ‘promising’.

• Drilling works in Progress at Livingstonia Site


Kanyika Niobium and U Prospect – an EPL was granted to Globe Metals and Mining of Australia in 2005. Investor’s initial interest was in Niobium, tantalum and Uranium Uranium component dropped due to non-viability of the project if included (100 ppm), and replaced Uranium with Zircon.

Table 1: Mineral Resource Estimate for Kanyika (1,500 ppm Nb2O5 lower cut

Table 2: Mineral Resource Estimate for Kanyika (3,000 ppm Nb2O5 lower cut).

Currently, an EIA has been completed, presented to stakeholders and inputs taken and now in the DA negotiation phase.

The project has demonstrated heavy REE potential in Machinga, and in particular, very high grades of dysprosium that have been encountered. Thorium is also present in this location. This can be viewed as below:


Mkango Resources of Songwe REE (with also interests in Uranium and thorium

resources) has is also conducting a pre-feasibility study in Phalombe District.

Geological Map of Songwe Hill Project. Courtesy of Mkango Resources

Uranium in the Tundulu Phosphates (local laboratories and Tunisia labs) There are many exploration projects in the U and Thorium areas as well as

other minerals taking place in Malawi.


MINERAL AREA (Potential ore type)

TONNAGE (million tonnes)

STATUS COMPANY

Uranium Mhuju (Karoo)

Not Yet Available EPL (Early Exploration)

Globe Metals (Australia)

Uranium/ REEs

Rumphi District (Karoo)

Not Yet Available EPL (Early Exploration)

HBDK EMWAW Mining Co. Ltd)

Uranium Chilumba and Extension of Kayerekera & Mwankenja areas

Not Yet Available Drilling in progress (Karoo)

EPL (Mid Exploration)

Paladin Africa

Uranium Nsanje (Granitic)

Not Yet Available (Baseline study)

EPL Orapa (UK-RSA-Zw)

REEs Kangankunde 2.5Mt @ 4.2% TREO EPL (Advanced Exploration and delineation)

Lynas Co. Ltd

REEs Songwe Indicated R. of 13.2 Mt grading 1.62% TREO; 6.2 Mt grading 2.05% TREO and Inferred R. AT 18.6%, 1.38% TREO

EPL (Advanced Exploration and delineation)

Mkango Resources (a Canada listed Co.)

REEs Mt. Mulanje Not Yet Available

EPL (Early Exploration)

JOGMEC/ Gold Canyon

NO DEPOSIT OPERATOR DEPOSIT

TYPE RESOURCES (TU)

AVERAGE GRADE

(%U) UNFC CLASS UNFC SUB CLASS E F G

1 Kayelekera Paladin Africa Limited Sandstone

(tabular) 15,670 0.09 Commercial Project Production 1 1 1

2 Chilumba and Mwankenja Paladin Africa Limited

Sandstone (tabular)

unknown Exploration Project 3.2 3 4

2 Livingstonia and Chombe Resource Star

Sandstone (tabular)

8.3 Mt (Inferred

Resource) 0.035 Potentially commercial project

Feasibility Studies underway

EIA to commence soon 3.2 2.1 1

3 Illomba Resource Star

Sandstone (tabular)

Alkali

syenite intrusion

unknown

Unknown (historicall

y 2000 ppm to

>1% U3O8)

Exploration Project 3.2 3 4

4 Kanyika Globe Metals and

Mining

Sandstone (tabular)

117 t/a 0.010 Potentially Commercial Development on hold 2 2.2 1,2,3

5 Machinga Globe Metals and

Mining

Sandstone (tabular)


6 Mhuju Globe Metals and

Mining

Sandstone/ Karoo

(tabular)


7 Songwe Mkango Resources

N/I Exploration Project 3.2 3 4

8 Tambani Mkango Resources

N/I Exploration project 3.2 3 4

9 Nsanje Oropa (UK-RSA-Zw)

Granitic

Exploration project 3.2 3 4

Government has NO unique reporting template which all companies could be using

Companies use the templates most favorable to them such as CRIRSCO

Government faces challenges to use such varied way of reporting (additionally due to low levels of qualified personnel in this field).

This results in numerous consequences such as: Poor management of its resources; myopic policies, even DAs

at pre-mining phase- which include coverage on social and environmental issues etc,

Lack of reliable Government-Sourced Geological Information to act as back up information to investors seeking for loans from money lenders (case of Standard Bank)


Lack of uniform reporting system and considering the sector’s fast growth as evidenced by the Issuing of New Exploration Licenses both is Solid and Liquid Minerals (Oil and Gas Blocks 1-6) and Renewals of existing ones, Government has made the following strides;

Discussed internally at the possibility of harmonising the reporting

arrangements High level meetings are in progress to consider usage of UNFC 2009

following the Jordan and Tunis INT/2/015 Workshop’s report recommendations.

This follows its advantages over the existing ones and the ability to have others such as CRIRSCO and SPE-PRMS bridged to it

Plans on how to implement this are underway Slow progress due to the need for comprehensive information on

UNFC 2009 template and its regulations Further capacity building is required for fear of being defeated due

to suspicions/speculations by investors upon introducing such a new format (Case of Minerals Survey Exercise in progress)


Uranium, Thorium and REE mineral explorations and development are progressing very steadily. More similar projects will spring up after the completion of the anticipated Airborne Geophysical Survey to be undertaken, courtesy of the World Bank and EU, through the Mining Governance and Growth Support Project (MGGSP) in Malawi. Therefore, the need for a standard/uniform mineral resources reporting format is a MUST.

This will help to organise the Malawi’s minerals sector since Government is committed to developing the sector and has selected mining as one of the key priority sectors for the country’s economic growth and development as indicated in the MGDS II and the recently launched Economic Recovery Plan (ERP).

On the other hand, Government is committed to supporting the private sector in the development of this radio-active and REE mineral sub-sector.


Remember: It’s Atoms for Peace and indeed Uranium & Thorium for

Peace!!!


C. Chiwambo and R.Malikebu Mines Department - UNECE

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