AuKing Mining Limited (ASX: AKN) has obtained outstanding total rare earth oxide (TREO) intersections from its reverse circulation (RC) drilling across selected areas of Nathace Hill at the Tundulu rare earth project in southern Malawi.

Rare earth elements are a group of 17 metals used in permanent magnets and other components across electric vehicles, wind turbines, consumer electronics and defence systems, and the search for new sources of supply has been a recurring theme across the global exploration sector. Reverse circulation drilling, the method used at Nathace Hill, is a standard exploration technique that recovers rock chips from depth for laboratory assaying.

Managing Director Paul Williams said the new assay results, together with exceptional results previously reported across the southern and western areas of Nathace Hill, provide further evidence that significant high-grade zones occur across multiple areas of a broader carbonatite system.

"The latest assay results from the Tundulu drilling program continue to provide us with various high grade REE results across various holes – some focussed around the Nathace Hill core but others quite some distance away," he told shareholders.

"The results from hole 26NH030 are particularly exciting, establishing high grade REEs at depth and away from Nathace Hill, suggesting that the magnetic anomalies established from the airborne survey might well be marking significant rare earths mineralisation.

"The results in the release also continue to identify mineralised zones at depth, which provide significant confidence that our deeper drill holes are going to show continuous mineralisation beyond 400 to 500m. We will continue to report the assays as this Tundulu story develops."

Among the latest assays, hole 26NH001 returned 59m at 1.51% total rare earth oxides (TREO) from 13m, including 24m at 2.02% TREO from 49m and 17m at 2.46% TREO from 50m.

Mr Williams said 26NH001 has further confirmed the presence of high-grade, near-surface rare earth mineralisation on the western flank of Nathace Hill. Combined with the exceptional intersections reported for this prospective zone in September, the latest assays provide compelling support for increased exploration activity across the western flank, which is emerging as a significant priority for further drilling and evaluation.

Drill holes 26NH006 and 26NH027 are among the closest holes drilled towards the interpreted carbonatite zone to date. The significant high-grade mineralisation intersected in 26NH006, together with the broad and continuous mineralisation encountered from surface in 26NH027, confirms that the Nathace Hill system remains well developed in this area and strengthens evidence of its continuation towards the core of the large carbonatite. Carbonatites are rare, carbonate-rich igneous rocks that host some of the world's largest rare earth deposits, making the size and continuity of the interpreted system beneath Nathace Hill central to the drilling program.

Step-out drilling in 26NH030 and 26NH009 at south-west Nathace Hill has revealed high-grade rare earth mineralisation beyond the previously interpreted carbonatite footprint. These results indicate that the mineralised system may extend farther laterally than previously recognised and provide a strong basis for expanded exploration across this under-explored area. As the program advances, the company's own commentary points to several markers ahead: deeper holes testing whether mineralisation continues beyond the 400 to 500 metre range referenced by Williams, expanded activity across the emerging western flank priority, and further step-out results from the under-explored south-western ground.

Following the announcement, AKN shares were down 6.25% to 1.5 cents, giving the company a market capitalisation of $37.34 million.

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