Pensana Plc PRE

14 May 2024                            

THIS ANNOUNCEMENT CONTAINS INSIDER INFORMATION

Pensana Plc

("Pensana" or the "Company")

Encouraging Sulima West Beneficiation Test Work Results

Pensana (PRE) is pleased to provide an update on the beneficiation test work on samples from the Sulima West deposit on the Coola exploration licence located 75 kilometres north of Longonjo.

The test work is being undertaken to determine whether the mineralogy at Sulima West is amenable to simple upgrading onsite, prior to transporting to Longonjo for further processing.

The initial results on the samples tested are very encouraging. Both samples tested show the potential for separation and upgrading to a high-grade concentrate using simple magnetic and gravity processes.

Once the test work has been finalised a drill programme will be undertaken to delineate the extent of the near surface mineralisation over the six-hectare target area at Sulima West.

Highlights include:

·       The composite laterite sample graded 8.4% TREO (total rare earth oxide) with 80% comprising magnetic iron and manganese oxides and 10% REE (rare earth element) rich monazite.

·       Magnetic and gravity separation test work has been commissioned with the target of producing a 50% TREO concentrate suitable for treatment at Longonjo.

·       The apatite-maghemite sample graded 22% P2O5 (phosphate) and was upgraded to 42.6% P2O5 using magnetic separation. Test work has been commissioned with the aim of producing a commercially saleable >40% phosphate concentrate.

Grant Hayward, Exploration Manager commented: "'These early results indicate the potential for low-cost physical beneficiation of the Sulima West ore at site, feeding the Longonjo processing plant with a high-grade rare earth concentrate."

Sulima West Laterite

The Sulima West REE enriched laterite covers an area of approximately 6 hectares and has a surface expression defined by a strong soil anomaly grading >3% TREO. The laterite has been sampled in four trenches and numerous pits of 4-6 metres deep, with all the pits ending in mineralisation.

Delineation drilling is required to fully evaluate the dimensions of the laterite and will be undertaken based on the outcome of beneficiation test work.

In late 2023, a 100-kilogram laterite sample was extracted from the wall of Trench 1 over a width of 7 metres and bagged and freighted to Blu Sky Mining laboratory in Pretoria, South Africa for test work.

The entire 100-kilogram laterite sample was homogenised and ground to 100% passing 3.35 mm and 35-kilogram split off and stage ground to 80% passing 150 µm. Samples were screened into six size ranges, analysed for major and trace elements, and PSD plots compiled. Three different size fractions were submitted for QEMSCAN analysis.

The head grade of the laterite is 8.4% TREO, and the sample comprises 80% goethite (iron oxide), psilomelane (manganese oxide) and other oxides, which are all importantly paramagnetic. 10% of the sample comprises monazite which is large and well liberated.

The monazite shows very little association with the goethite or psilomelane . Other rare earth minerals identified are bastnaesite and florencite and gangue minerals including fluorite, variscite and minor quartz.

Further ongoing test work commissioned involves magnetic separation to remove the paramagnetic minerals to the magnetic fraction and then subject the non-magnetic fraction containing the non-magnetic minerals (REE's, fluorite, variscite, quartz, etc.) to further gravity test work to upgrade and recover the monazite and bastnaesite with the aim of achieving a 50% TREO concentrate grade.

The liberation of the monazite appears sufficient to continue with the current grind. This REE concentrate will then be subject to bench scale test work to see how it responds to the Longonjo flotation and hydrometallurgy regime.

Sulima West Apatite-Maghemite

The Sulima West apatite-maghemite (phosphate) sample was sourced from an isolated, outcropping hill of this rock type, immediately to the northwest of laterite area. The outcrop has a surface area of approximately 500 m2 and has been exposed in two 5-6 metre, deep pits.

A 100-kilogram sample of this outcropping phosphate rock type was bagged and freighted to South Africa for beneficiation test work. The entire sample was homogenised and ground to 100% passing 3.35 mm and three grind sizes were considered, 80% passing 1 mm, 80% passing 850 µm and 80% passing 500 µm. The sample head grade is 21% P2O5. The sample comprises essentially Fe oxides (55%) and apatite (42%) with minor rutile/ilmenite (2%).

Two beneficiation processes were considered, namely gravity (shaking table) and magnetic separation (Carpco).

Gravity separation was not efficient to achieve a saleable P2O5 grade. Magnetic separation achieved a >38% P2O5 grade at a good mass yield. 80% passing 500 µm achieved the highest mass yield and grade after magnetic separation, achieving a grade of 42.6% P2O5 and 34% mass yield. The La and Nd upgraded to the phosphate concentrate.

Further ongoing test work commissioned involves milling a 50-kilogram sample to 80% passing 500 µm and conducting WHIMS (wet high intensity magnetic separation) test work to the milled sample to get a >38% P2O5 concentrate at maximum yield. In addition, a 10-kilogram sample of apatite concentrate will be produced for further mineralogical studies and for marketing purposes.

For further details please go to https://pensana.co.uk/coola-exploration-project/ on the Pensana website.

The information contained within this announcement is considered by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information will be considered to be in the public domain. The person responsible for arranging for the release of this announcement on behalf of the Company is Paul Atherley, Chairman.

-      ENDS -

For further information, please contact:

Shareholder/analyst enquiries:

Pensana Plc 

Paul Atherley, Chairman IR@pensana.co.uk 

Tim George, Chief Executive Officer

Rob Kaplan, Chief Financial Officer