Kula Gold has formed a JV to explore the Wozi Niobium Project in Malawi, holding a 75% stake, while African Rare Metals, an unrelated third party, owns 25%.
Malawi's mining regulatory authority has recommended granting an exploration licence for the project, pending completion of an environmental study.
Kula will fund the initial exploration programme of $100,000, while ARM retains a 2% net smelter return royalty.
ARM may reduce its stake to 10% and will remain free carried until a decision to proceed with mining is made.
The Wozi Niobium Project is located 225km north of the country’s capital Lilongwe.
The APL0630 exploration licence for the Wozi Niobium Project covers an area of approximately 5.52km².
It encompasses igneous and metamorphic rocks from the Precambrian to Lower Palaeozoic Basement of the Mozambique Orogenic Belt within the Malawi Rift Valley System.
This area was previously held by Mantra Resources and is part of the East African Rift Valley System.
The project hosts niobium and tantalum mineralisation within a nepheline syenite intrusive stock.
Kula managing director Ric Dawson said: “Amidst a robust global gold market, Kula has identified the Wozi Niobium Project as a very interesting high impact, low-cost niobium/tantalum opportunity to add to the company’s portfolio whilst advancing the flagship Mt Palmer Gold Mine near Southern Cross WA.
“Kula looks forward to quickly advancing the Wozi Niobium Project towards a maiden drilling programme over the next few months. Kula’s board and team have considerable experience in Africa in discovery, construction and successful mining operations.”
Historical trenching results by Mantra Resources in 2007 indicated “significant” surface niobium mineralisation, highlighting the project's large-scale potential.
A field programme is expected in the first quarter of 2025 (Q1 2025) to verify historical niobium results upon the granting of the exploration licence.
This will include field mapping, and rock-chip and soil sampling to assess the project's scale potential.
The work aims to progress towards a maiden drilling programme by Q2 2025, with additional tenure under evaluation. Geological mapping and rock-chip sampling are also scheduled for that period.
