Mineralogy, Metallurgical & Radioactivity Update

Kendrick confirms low-radioactivity rare earths at TK, but commercialisation remains years away.

What the company is saying

Kendrick Resources Plc presents certified laboratory results showing that over 95% of rare earth elements at the Teufelskuppe (TK) project in Namibia are in minerals suitable for established processing. The company highlights low thorium (144ppm) and uranium (3.6ppm) levels, positioning TK in the lowest quartile globally for radioactivity among hard-rock rare earth projects. Management, led by Chairman Colin Bird, frames these findings as a major milestone, suggesting lower future capital and operating costs and a simpler processing flow sheet. The announcement emphasises technical progress—mineralogy, metallurgy, and radioactivity—while referencing the global rare earth market size ($18.2 billion, CAGR 7.6%) to underscore commercial potential. The narrative is confident, focusing on the project's potential to become a significant rare earth supplier for industrialised nations, but does not provide financials, economic studies, or binding agreements. The company also notes ongoing JORC-2012 resource certification and drilling to expand the resource base.

What the data suggests

Certified assays confirm that TK's rare earths are primarily in bastnäsite and parisite, with total REE mineral content ranging from 1.3% to 7.8% and averaging 3.8%. More than 95% of the rare earth pool is in minerals amenable to established processing. Thorium and uranium levels average 144ppm and 3.6ppm, well below the 240–2,900ppm thorium and 30–360ppm uranium seen in comparable projects, indicating a lower environmental and permitting burden. Neodymium and praseodymium together account for an average 25% of the approximately 3% rare earth pool by weight. Heavy rare earth oxides average 0.15 wt% across the deposit. The company is advancing JORC-2012 certification of a provisional 14Mt surface mineral resource, but no compliant resource or economic study is yet disclosed. Three bulk samples have been submitted for early-stage metallurgical testing, and drilling is ongoing to assess resource upside. The global rare earth market is valued at $18.2 billion, growing at 7.6% annually, but no project-level revenue, cost, or cash flow figures are provided.

Analysis

The announcement is upbeat, highlighting positive assay results and technical progress at the Teufelskuppe project, with certified data supporting low thorium/uranium levels and favorable mineralogy. However, the majority of key claims are forward-looking, including JORC-2012 certification, resource upgrades, and future production potential, none of which are realised or imminent. The technical data is credible and specific, but there is no disclosure of project economics, capex, opex, or any financial metrics, and no binding offtake, construction, or funding agreements are mentioned. The narrative inflates the project's significance by referencing global market size and projecting future benefits, but actual milestones achieved are limited to early-stage exploration and assay confirmation. The gap between narrative and evidence is moderate: technical progress is real, but commercialisation and value creation remain distant and unquantified.

Risk flags

• ●The TK project is still pre-resource and pre-feasibility, with only a provisional 14Mt surface estimate and no JORC-2012 compliant resource yet in place. This means the scale, grade, and economic viability remain unproven and subject to change as drilling and studies progress.
• ●No project-level economic data—such as capex, opex, or NPV—has been disclosed, so the commercial case is unquantified. Investors have no visibility on potential returns, payback, or sensitivity to rare earth prices.
• ●All forward-looking claims about lower costs, permitting ease, and market positioning rely on early-stage technical data and have not been tested through engineering studies or regulatory processes. There is a risk that later work could reveal unforeseen technical, environmental, or permitting hurdles.
• ●The company references global market size and demand growth, but has not disclosed any binding offtake, partnership, or funding agreements. This leaves the project exposed to market, financing, and execution risks that could delay or derail development.
• ●While low radioactivity is a technical advantage, it does not guarantee project approval or economic success. The absence of a clear development timeline or funding plan adds to execution uncertainty.

Bottom line

Kendrick's update confirms that the Teufelskuppe project hosts rare earths in minerals amenable to standard processing, with certified low thorium and uranium levels that could reduce future permitting and processing costs. The technical data is credible and benchmarks well against global peers, but the project remains at an early stage with no compliant resource, economic study, or binding commercial agreements. All commercial upside is still speculative, with years of technical, regulatory, and financial work ahead before any cash flow is possible. Investors should treat the announcement as a positive technical milestone, not a near-term value driver. The most important takeaway is that while the project's radioactivity profile is attractive, its economic and development path remains unproven and long-dated.

Announcement summary

(NYSE:KEN) Kendrick Resources Plc announced significant positive mineralogical, metallurgical, and radioactivity findings from its Teufelskuppe (TK) Carbonatite Complex Project in Namibia, reinforcing the project's potential as a significant rare earth opportunity. Independent laboratory analysis confirms that Teufelskuppe REEs are hosted in fluorominerals commonly associated with major global rare earth deposits, with more than 95% of the rare earth pool contained in minerals amenable to established processing routes. Certified assays confirm low thorium and uranium levels, averaging 144ppm and 3.6ppm respectively, ranking in the lowest quartile of comparable hard-rock rare earth projects globally. The study confirmed earlier external work by Marlow and Palmer (2023), indicating that TK's dominant REE-rich minerals belong to the REE fluorocarbonate group, with total REE mineral content ranging from 1.3% to 7.8% and averaging 3.8%. Three bulk samples have been submitted to Dorfner Anzaplan for early-stage metallurgical assessment and Mineral Liberation Analysis for LREO recovery. The Bonya Exploration dataset previously indicated relatively low TK radioactivity, averaging 294ppm thorium and 2.6ppm uranium. Certified Laboratory Assays from SGS South Africa announced on 2 September 2026 confirm the northern suite of TK outcrops averaging 144ppm thorium and 3.6ppm uranium across 96 samples. Comparable REE projects either in production or under development have thorium grades ranging from 240ppm to 2,900ppm and uranium grades ranging from 30.0 to 360ppm. The company is progressing the TK project in line with the published Development Plan schedule announced on 6 May 2026, with verification of the in-house MRE and upgrading to compliance with JORC (2012) initiated alongside ongoing diamond and reverse circulation drilling. The company is advancing JORC-2012 certification of the provisional and visible 14Mt surface mineral resource estimate for TK as announced on 11 May 2026. Recent drill results underpin confidence that these surface resources are only a modest fraction of the mineable total as indicated on 15 May 2026. The predominant rare earths of economic value in the TK complex are light elements in the order Ce>La>Nd>Pr, with neodymium (Nd) and praseodymium (Pr) together providing an average 25% (by wt) of the ca. 3% wt% rare earth pool. HREO's average 0.15 wt% across surface and deeper carbonatites. The global metals market is valued at approximately $18.2 billion with a Compound Annual Growth Rate (CAGR) of 7.6%. The company exercised an option in late 2025 in relation to the acquisition of the Blue Fox Licence, 34412-HQ-LEL located in northwest Zambia.

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