Kendrick Resources Reports Strong High-Grade Rare Earth Element Results from Namibia’s Teufelskuppe Drilling Program

Teufelskuppe Carbonatite Complex Confirms Extensive, Shallow REE Mineralisation

The Teufelskuppe project in Namibia consists of eight dykes and sills within a carbonatite complex exhibiting consistent rare earth element mineralisation near the surface. The recent drilling campaign, covering holes TKDD007 to TKDD010, systematically tested this mineralised sequence and confirmed lateral continuity and significant REE grades over substantial vertical intervals. The carbonatite host rocks, igneous formations with over 50 modal % primary carbonate minerals and ≤20 wt% SiO2, are notably enriched in light rare earth elements essential for modern industrial applications.

Portable X-ray fluorescence (XRF) results from these four drill holes reinforce management’s confidence in the deposit’s scale and commercial potential. The grade distribution’s consistency—with LREO values clustering between 2.5 and 3.5 wt% across multiple intercepts and locations—indicates a robust mineralised system rather than isolated enrichment zones. This uniformity reduces geological risk in resource estimation and supports the feasibility of future mining operations that depend on predictable ore grades and widths.

Drill Hole TKDD010 Shows Multiple High-Grade Intercepts Over Significant Widths

Drill hole TKDD010 delivered the most extensive high-grade sequence in this update, highlighting the deposit’s shallow depth and economic promise. It intersected 3.15 wt% LREO over 15 metres from 101 metres downhole, 2.50 wt% LREO over 26 metres from 70 metres, 3.50 wt% LREO over 4 metres from 14.5 metres, 3.45 wt% LREO over 5 metres from 32.25 metres, and 2.65 wt% LREO over 7.25 metres from 44.75 metres. Collectively, these intercepts demonstrate that high-grade REE mineralisation starts within metres of the surface and extends beyond 100 metres depth, favoring open-pit mining and lowering initial stripping costs.

This downhole sequence is notable for combining economic grades (above 2.5 wt% LREO) with mining-scale thicknesses (4 to 26 metres per interval), a combination uncommon globally and positioning Teufelskuppe competitively among international REE deposits. Kendrick states these results boost confidence in the project’s scale, quality, and near-surface potential, reflecting improved economics and reduced exploration risk.

TKDD009 Reveals Higher-Grade Internal Intervals Within Broader Mineralised Zone

Drill hole TKDD009 returned 3.25 wt% LREO over 17 metres from 27.75 metres depth, including a higher-grade interval of 4.04 wt% LREO over 9.5 metres from 35.25 metres. Drilling complications—rods stuck at 47 metres—led to a wedge-directed redrill from the same collar. The secondary hole, diverted from 29 metres depth, intersected a sub-parallel zone with 2.39 wt% LREO over 15.25 metres from 29.75 metres, including 3.31 wt% over 2 metres and 3.05 wt% LREO over 3.75 metres. This ability to intersect parallel mineralised structures demonstrates the carbonatite complex’s spatial extent and the robustness of the REE system.

The presence of internal higher-grade intervals within broader zones—also evident in TKDD010—suggests potential for ore sorting or selective mining during production. The redrill data increase confidence that the TK complex’s dykes and sills are geometrically complex yet internally consistent, supporting systematic geological mapping and resource definition.

Near-Surface Intercepts from TKDD007 Confirm REE Mineralisation Extends From Surface

Drill hole TKDD007 intersected 1.52 wt% LREO over 32.75 metres from surface (0.00 metres depth). Although lower than peak grades in TKDD010 and TKDD009, this intercept confirms economic-grade REE mineralisation extends from surface without significant barren overburden. Minimizing non-mineralised waste rock above ore improves project economics by lowering mining costs and environmental impact. The 32.75-metre continuous mineralisation at TKDD007 contributes substantially to overall resource tonnage and average grades.

This near-surface mineralisation aligns with the provisional 14-million-tonne surface mineral resource estimate announced earlier, reducing exploration risk compared to deposits requiring deep mining and potentially accelerating production timelines after JORC-2012 certification and bankability studies.

TKDD008 Intercepts Multiple Shallow Mineralised Zones

Drill hole TKDD008 returned 1.60 wt% LREO over 1.75 metres from 3.0 metres depth and 2.02 wt% LREO over 1.5 metres from 10.25 metres. These narrower, lower-grade zones extend the known mineralisation footprint and confirm REE-bearing carbonatite dykes or sills across multiple locations. The shallow intercepts—starting at 3 metres—reinforce the Teufelskuppe complex’s near-surface nature and support potential shallow open-pit or bulk mining.

Collectively, the four drill holes suggest the TK complex consists of stacked or clustered mineralised intrusions rather than a single ore body. This geometry may require selective mining or staged extraction but does not diminish the resource potential. Kendrick employs three rigs—two diamond drills for detailed logging and one reverse circulation (RC) drill for rapid geometry definition—to systematically map structures and support resource estimation.

Advancing Toward JORC-Compliant Resource and Internal Verification

On 6 May 2026, Kendrick announced a Development Plan schedule for Teufelskuppe. The company is verifying an in-house mineral resource estimate (MRE) and upgrading it to JORC (2012) compliance, the global standard for public reporting of mineral resources and reserves. The provisional 14-million-tonne surface MRE announced on 11 May 2026 is based on channel sampling and early drilling, likely classified as Inferred or Indicated pending further data and geological confidence.

Kendrick stated on 15 May 2026 that recent drilling reinforces confidence that the 14-million-tonne surface resource represents only a fraction of the total mineable resource. Channel and borehole data confirm lateral continuity of surface REE mineralisation and extension of REE-rich resources to mineable depths beneath the desert surface. The company projects a much larger overall resource, suggesting the forthcoming JORC-compliant estimate may significantly exceed the provisional figure. Investors should watch for updates on the upgraded resource estimate, which will underpin preliminary economic assessments and feasibility studies.

Light Rare Earths Drive Economic Value; Neodymium and Praseodymium Are Key Revenue Contributors

The Teufelskuppe complex’s economically valuable rare earths are predominantly light elements: cerium (Ce) is dominant, followed by lanthanum (La), neodymium (Nd), and praseodymium (Pr). Nd and Pr together average 25 wt% of the total rare earth pool, which averages about 3 wt% rare earth oxide content across surface and deeper carbonatites. Heavy rare earth oxides (HREOs) average only 0.15 wt%. This distribution is important because Nd and Pr command premium prices due to their critical role in permanent magnet alloys used in wind turbines, electric vehicle motors, and military applications without substitutes.

According to the International Energy Agency (2026), the global rare earths market was valued at approximately USD 18.2 billion with a 7.6% compound annual growth rate (CAGR). Sustained demand for super magnets in electronics, renewable energy, and EVs continues to drive prices higher, with no sign of slowing. This global context supports long-term pricing strength for Nd and Pr, the economic foundation of Teufelskuppe. Additionally, rare earths are essential for defence systems, medical imaging, telecommunications, and advanced displays, diversifying demand beyond magnets.

Strategic Supply Chain Diversification and Namibia’s Role as a Free-Market Producer

Diversifying rare earth supply is a priority for industrialised nations, which are forming international partnerships to secure supply chains. The concentration of global REE production in few regions motivates consumers and consortia to develop alternative sources, especially in politically stable, free-market economies. Namibia, hosting Teufelskuppe, is well-positioned geographically and institutionally to supply Western defence, renewable energy, and electronics sectors seeking to reduce supply chain risks.

Kendrick emphasizes its focus on developing Teufelskuppe to meet free-market economies’ needs and benefit all stakeholders, including Namibia. This strategic positioning may attract government support, international financing, and partnerships prioritising supply security. Developing Teufelskuppe could establish Namibia as home to one of the world’s largest newly recognized rare earth deposits for defence and advanced technologies, underscoring the project’s geopolitical and commercial importance.

Regional Prospectivity and Expansion Potential at Nearby Kieshohe Carbonatite Deposit

Kendrick’s board, experienced in southern African resource projects, has returned to the region with acquisitions including the Bonya Rare Earth Project in Namibia and the Blue Fox Licence (34412-HQ-LEL) in northwest Zambia (late 2025). Near Teufelskuppe, the company identified other carbonatite intrusions at Kieshohe, with an in-house (non-JORC) mineral resource and established access and infrastructure. This cluster of REE-bearing carbonatites positions Teufelskuppe for near-term development with promising resource expansion and multi-deposit potential within a single mining and processing complex.

Multiple carbonatite intrusions suggest a favourable geological environment for rare earth mineralisation with a shared magmatic origin. Should Kieshohe prove viable for resource definition and development, the combined TK and Kieshohe system could support a significantly larger operation than either alone. This geological context lowers Teufelskuppe’s risk profile by showing REE mineralisation is regional rather than isolated. Investors should monitor Kieshohe exploration updates for potential upside to current resource estimates.

Three-Rig Drilling Strategy and Timeline for Resource Estimate Release

Kendrick is advancing Teufelskuppe per its Development Plan announced on 6 May 2026. Three rigs operate onsite: two diamond drills for detailed geological logging and resource definition, and one reverse circulation (RC) drill for rapid mineralised zone geometry. This division of roles enables efficient data collection for resource estimation within an accelerated timeframe, according to Chairman Colin Bird.

The company aims to deliver a mineral resource estimate rapidly using this multi-rig approach. The RC rig quickly defines mineralised widths and extents, guiding diamond rigs for detailed geological data to build the resource model and improve understanding of mineralisation. Colin Bird confirmed ongoing shareholder updates as drill data become available, signaling commitment to transparency during exploration. Investors should watch for monthly or quarterly drill result announcements, as continued high-grade assays may expedite JORC resource estimation and feasibility studies.