Rift Valley (ASX:RVY) Newsletter 13 August 2018
Kavita Kachipita Dr Wally Witt and Manuel Mandembue geological mapping of Longonjo. Mt Chimbilundo in background.
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QUARTERLY ACTIVITIES REPORT
For the period ending 30 June 2018
Quarterly Activities Report
Lead by a new Board and Chairman, the Quarter saw a re-emphasis of focus on the Longonjo NdPr Project in infrastructure rich Angola.
Subsequent to quarter end, on 2 July 2018, the Company announced an over-subscribed placement to raise $5.5 million to fund a major exploration drilling programme and associated works at Longonjo designed to evaluate the potential for a globally significant high grade NdPr deposit.
Preparations are well advanced for drilling to commence in August 2018.
NdPr strategy at Longonjo
The Company has a clear and focussed strategy to realise a valuable asset at Longonjo.
Drilling and associated field and test work programs have been designed to determine the potential
for a very large and high grade NdPr deposit that could rank amongst the world’s best NdPr Projects.
The successful delineation of a large Mineral Resource estimate would allow the Company to identify and select the most favourable, highest quality mineralisation for development. Depending on final size, this may comprise only about 10% of the total Mineral Resource estimate but could still have the potential to support a mine life of many years.
The definition of quality mineralisation at surface in the ‘free dig’ weathered zone combined with the favourable location of the Project close to modern infrastructure will create a valuable asset of global significance to the expanding NdPr market.
NdPr and the clean energy revolution
The move to clean energy and the electrification of mobility is driving increased demand for the speciality metals neodymium and praseodymium (NdPr), which are used in the electric motors of EVs, wind turbines and more generally in the electrification of modern society.
From hairdryers to electric vehicles to grid scale wind turbines, electric motors will be at the core of
our clean energy future.
Figure 1: From buses to trains to trucks, drones, heating, cooling, industrial automation and robotics
the electric motor will be the driver of our clean and automated energy future.
Following a series of acquisitions over recent years, China now controls over 90% of the production of NdPr, which is essential for the manufacture of powerful electric motors. Currently there is only one listed NdPr producer outside of China (ASX:LYC), which sells most of its production to China.
Following a short exploration programme in 2017 the Company announced a substantial Mineral Resource estimate (See ASX announcement “Maiden JORC Mineral Resource Estimate - Longonjo Project” of 26 September 2017 for further details).
The shallow, high grade NdPr mineralisation (Figure 3) remains open in all directions, with only a tenth of the prospective carbonatite area drill tested to date (Figure 4).
versubscribed Placement to Raise $5.5m
Rift Valley Resources (ASX: RVY) has announced that it has received firm commitments from sophisticated and institutional investors to raise $5,500,000 to fund a 9,000 metre drill programme at its Longonjo NdPr project.
“We are targeting an increase in the size of the resource that will rank Longonjo
as one of the largest NdPr projects in the world, linked by world class
infrastructure to a major Atlantic port.”
Attention turning to Longonjo NdPr Project
The clean energy revolution has resulted in a dramatic increase in demand for battery metals, notably lithium and cobalt. Attention is now turning to a very much larger market; the rapidly growing application of electric motors to virtually all walks of life.
From electric vehicles to grid scale wind turbines, electric motors will be at the core of our clean energy future.
NdPr motors are expected to become the dominant EV technology for years to come as powertrain motors featuring permanent magnets provide faster acceleration, reduced vehicle weight and additional space for other components.
Following a series of acquisitions over recent years China now controls over 96% of the production of NdPr metals, which are a key component in the manufacture of electric motors.
There is currently only one listed NdPr producer (ASX:LYC) in the world today and it sells most of its product to China.
Rift’s NdPr Longonjo Project is located in the infrastructure rich country of Angola. Following a short exploration programme in 2017 a substantial Mineral Resource estimate was reported.
The project is blessed with infrastructure that sets it apart from most other projects in the world. Located adjacent to a recently constructed US$1.8 billion rail line the project is linked to the major port of Lobito on the Atlantic coast which has recently undergone a US$2 billion refurbishment. Low cost power will come from a connection to the Gove 65 MW hydroelectric dam 38 kilometres away.
Chairman Paul Atherley commented:
“Dave Hammond and his team will commence a 9,000 metre drill programme later next month and we expect to be reporting results soon afterwards.
We are targeting an increase in the size of the resource that will rank Longonjo as one of the largest NdPr projects in the world, linked by world class infrastructure to a major Atlantic port.
We very much look forward to keeping you informed of the results from this exciting programme.”
Mr. Paul Atherley Chairman
Mr. David Hammond Chief Operating Officer
Mr. Mark Hohnen Non Executive Director
Mr Neil MacLachlan Non Executive Director
Mr. Scott Mison Company Secretary / Chief Financial Officer
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