Pensana Plc provided 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. 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.