Rainbow Rare Earths begins drilling of Burundi asset

High-grade rare earth producer Rainbow Rare Earths has commenced drilling at its Gakara Project in Burundi.

Gakara, one of the highest grade rare earth element mining projects in the world, and the only one producing rare earths in Africa, was estimated to hold an in-situ grade of 47-67% total rare earth oxide (TREO).

Drilling contractors had been engaged by Rainbow, with the first phase of the programme set to continue throughout the first quarter of the year, focusing on improving the group's understanding of the Gasagwe production area as well as exploring further geophysical anomalies identified by its November airborne survey.

Rainbow highlighted that, should the frill results prove to be positive, the group would initiate a second phase of drilling during the second and third quarters of 2018.

Following the send-off of its first shipment of concentrate on 5 December, Rainbow had made two more shipments after production ramp-up had proceeded according to the group's plan of hitting a run rate of 5,000tpa by the end of 2018.

Martin Eales, chief executive of Rainbow, said, "2017 was a year of delivery for Rainbow which saw us hit all of our targets on budget and on schedule to become a high-grade concentrate producer at the only producing rare earths mine in Africa. 2018 is set to be a year of growth with commercial production and sales now underway."

As of 1000 GMT, shares had grown 1.79% to 14.76p.