Pensana comes from a Chinese word which means “giant rock”. The junior explorer, Pensana Metals Limited (ASX: PM8), of the Angola project is optimistic that it contains neodymium-praseodymium (NdPr). NdPr is widely used into automotive industry for electric components. These components are seats, wipers, mirrors, steering and braking. It is also used in traction motors of electric and hybrid vehicles. NdPr is basically used to produce permanent magnet of high strength.
Pensana’s (ASX:PM8) “Longonjo” project consist of 11.6 million tonnes resources, 4.3% rare earth oxide (REO) and a good composition of NdPr around 20%.
The company is confident that it has potential to grow its resource at least four times. It has set a benchmark for itself to initially produce 50 million tonnes and has set itself an initial resource target of 50 million tonnes at 4.6 per cent REO. This will also produce 2.3 million tonnes of contained REO.
As per the general manager of Pensana’s Angolan subsidiary Ozango Minerais, Graeme Clatworthyt, the deposit will increase five times and reach 50 million tonne deposit.
Being located adjacent to a major rail link to the Atlantic port of Lobito, Longonjo project will become world’s largest NdPr deposits.
There are other more explorations which are good in Pensana’s project. The current resource is just 10% of the total mineralized area of 6km2 which is being drilled. The first 14 holes in the ongoing drilling program is interconnected with the mineralization process where the majority of drilling starts from the surface and extends up to 50 meters of depth.
Several high-grade intersections have been returned, including up to 30m at 7.72 per cent REO including 1.21 per NdPr from surface, that significantly extend the NdPr mineralization. There are several new zones which are 50m in thickness have been interconnected across the highly weathered carbonatite which is the host to high-grade mineralization in the resource area. The east-west range of the horizontal layer of weathered mineralization has gone up from 450 to 1400m and it is open in all directions.
As per the chairman Paul Atherley, the results of the mineralization are very encouraging as they confirm that the blanket of highly weathered mineralization is extending beyond the known resources. He also states that they are looking for further first drill results to come so that it gives a better picture of the scale and grade of this mineralization deposit. The increase in the global demand is the driving factor for the Longonjo project into production. It is expected that the NdPr market will grow at an annual rate of 8.9% $US87 billion ($121.8 billion) by 2019. It is also expected that the demand may double by 2025 followed by a shortfall in supply in the early 2020. At present, China is the world’s largest producer of NdPr having a control over 96% on the total NdPr production. It is expected that by 2025, with a continued pollution crackdown, the Asian powerhouse will be the major importer. This means Pensana will take a prime position to fill the shortfall of supply. After the change of President in the month of September, Angola is not only diversifying its wealth from oil and diamonds but also diversifying itself into other minerals as well. The current market price of the share is A$0.017 (up 21.4%) and market capitalization of $ 12.86 million, as at November 01, 2018 (3:55 PM AEST).
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.