Mkango Resources Ltd. Announces Completion of Stage One Drilling at the Songwe Hill Rare Earth Element Project in Malawi

Mkango Resources Ltd. (TSX-V: MKA) reported this morning the completion of its stage-one diamond drilling program at the Songwe Hill rare earth element (REE) project in Malawi.  The Songwe Hill rare earth element project is located within the 100% owned exclusive prospecting licence (the “Phalombe Licence”) EPL0284/10 covering an area of 1,283 km2 in southeast Malawi. Songwe Hill is located about 20 km north of Phalombe town and features carbonatite hosted rare earth mineralization which was previously drilled in the late 1980s. Exploration and mineralogical analysis was completed during 2010, and the 43-101 compliant “Technical Report on the Songwe Rare Earth Element (REE) Project, Republic of Malawi” dated September 30, 2010 was filed on SEDAR.

The latest phase of exploration by Mkango in 2011 comprised an initial 13 diamond drill holes for a total of approximately 2,000m. The drill holes tested the mineralized zones previously identified in the late 1980s in addition to potential extensions of these zones. Assay results for these drill holes are expected to be announced in September 2011. The recent drill programme, in addition to geological re-mapping by Dr Alan Woolley, consultant to Mkango, has significantly enhanced Mkango’s understanding of the project:

— Significant quantities of carbonatite have been intersected in the majority of the drill holes, the deepest intersection being at approximately 260 metres vertical depth, significantly deeper than encountered in previous drilling (50 metres) in the late 1980s

— Rare earth element mineralization is confirmed by detailed Niton XRF analysis, with geochemical assay results expected in September

— New exposures generated from construction of drill pads and roads has facilitated remapping at Songwe Hill with new areas of potential mineralization identified.

— Two drill holes intersected carbonatite to the east of the previously mapped contact with nepheline syenite indicating carbonatite extends further east than previously mapped.

— Mineralized breccia zones have been identified and may represent a further rare earth target type within the Songwe Hill vent system 

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