Lindian Resources' Game-Changing Rare Earth Project in Malawi Poised to Disrupt Chinese Control of Supply

• Lindian Resources is a well-structured organization with $24 million in the bank and an additional $20 million in options.
• They acquired the Kandang Kund Rare Earth Project in Malawi, where they have successfully conducted drilling, leading to a significant resource estimate.
• The project is strategically located near infrastructure, including power lines and railways.
• Lindian Resources has achieved impressive metallurgical results, including a 70% recovery rate and 66% concentrate grades, making them a potential global player in the rare earth industry.

Australian rare earths company Lindian Resources Limited (ASX: LIN) has outlined plans for its world-class Kangan Kundi rare earth project in Malawi, which CEO Alastair Stephens believes will be the “most influential” new source of rare earths globally, with the potential to disrupt China’s dominance over rare earths supply.

Massive High-Grade Resources with Huge Upside

With less than a year of drilling, Lindian has already delineated a massive maiden JORC-compliant mineral resource estimate of 261 Mt at 2.19% TREO containing 5.7 Mt of rare earth oxides. This includes 1.2 Mt of magnet rare earth oxides, the most valuable component.

The project benefits from outstanding drill results, with grades up to 8.54% TREO over 854m in the deepest hole drilled so far. Mineralization is open at depth and along strike, with the potential for a much larger resource.

Lindian’s exploration target is 500-750 Mt, demonstrating the scale upside at Kangan Kundi. At the current rate of drilling, there is potentially 100-200 years of mine life already delineated.

Strategically Located with Excellent Infrastructure

Kangan Kundi is strategically located just 25km from the national highway in central Malawi, with access to rail, road and power infrastructure, as well as an international airport within 70km.

A high-voltage power line is located just 5-6km from the project, providing the potential to tap into Malawi’s hydro-powered electricity grid. This gives Lindian the opportunity to develop Kangan Kundi as a low-carbon, sustainable mine.

Metallurgy De-risks the Project

Extensive metallurgical testwork has demonstrated Kangan Kundi’s potential for low-cost processing and high recoveries. Using simple gravity and magnetic separation, Lindian achieved recoveries over 70% into a mineral concentrate grading 66% TREO.

Importantly, this simple flotation-free process required no harmful chemicals or reagents, aligning with Lindian’s sustainability focus. ANSTO assays also confirmed the concentrate is non-radioactive, allowing for unrestricted global sale.

Fast Track to Production in Late 2023

Lindian has set an aggressive timeline to fast track Kangan Kundi into production. The maiden resource allows the company to commence feasibility studies and an accelerated exploration drilling program through 2022.

Site works and plant construction are scheduled to start in early 2023, targeting first production of a rare earth mineral concentrate by Q4 2023.

While production rates are still to be confirmed pending feasibility studies, Kangan Kundi will likely start as a top-10 global producer of rare earth concentrates. This could grow substantially in later expansion phases to potentially 100,000 tpa of TREO.

Unlocking Downstream Processing Potential

As one of only a handful of advanced rare earth projects globally, Kangan Kundi has immense strategic value in unlocking potential new downstream rare earth processing capacity outside China, according to CEO Alastair Stephens.

By securing a major new source of magnet rare earth feedstock in NdPr, Lindian can enable processing plants for separation and permanent magnet manufacturing to be built in Europe, Asia and the USA.

This has the potential to shift the industry away from dependence on China’s export quotas and unstable supply chains, providing greater supply security.

Strong Financial and ESG Credentials

With A$24 million in cash and another A$20 million in options, Lindian is in a robust financial position to progress Kangan Kundi’s fast-track development timeline.

The company also boasts outstanding ESG credentials that should appeal to ethical investors. The simple processing method, access to renewable power and non-radioactive products all support Lindian’s aim of developing Kangan Kundi as one of the world’s first zero-carbon rare earth mines. Lindian Resources presents a compelling investment case thanks to its world-class Kangan Kundi rare earth project in Malawi. Its near-term production potential, outstanding economics and strategic value in disrupting Chinese control of rare earths make this a hugely exciting growth story in the critical minerals sector.

Lindian Resources could be a good investment opportunity:

World-Class Asset with Upside Potential

Kangan Kundi is shaping up to be one of the world's premier rare earth deposits. The large maiden resource with high grades provides a solid foundation, and there is a significant upside to growing the resource further through additional drilling. A project of this scale and quality is rare.

Strategic Importance

Developing a major new rare earth supply source outside China could be a game-changer for the industry. This would aid in diversifying global supply chains and reducing dependence on China. Lindian could enable new downstream rare earth capacity to be built across Europe, Asia and the USA.

Near-Term Production Potential

Unlike many rare earth projects which can take 7-10 years to reach production, Lindian has set an aggressive timeline to achieve its first output in late 2023. Positive metallurgy results also derisk the path to production. This provides investors with a clear line of sight to cash flows. Strong Financial PositionWith a healthy cash balance and additional funding options, Lindian has the financial capacity to fast-track Kangan Kundi's development. The company won't need to pursue dilutive fundraising options in the near term.

ESG Credentials

The environmentally-friendly processing method, renewable power plans and non-radioactive products give Lindian Resources excellent ESG credentials. This could make it attractive to ethical investors and stakeholders.

Kangan Kundi's immense resource potential, strategic significance, near-term production timeline, strong financials and sustainability focus make Lindian Resources a compelling rare earth investment case if executed well. The company appears to tick many boxes for investors.