AuKing Mining (ASX:AKN) is preparing to further test the depth potential of its Tundulu rare earth project in Malawi, with a large diamond drilling phase now underway following promising initial results.

Recent findings have strengthened the company's confidence that the overall geological model at Tundulu is considerably broader and deeper than first anticipated. End-of-hole logging has indicated that the carbonatite geology remains open at depth, and additional deep diamond drillholes are planned.

Carbonatites — carbonate-rich intrusive igneous rocks — are among the principal host rocks for rare earth deposits worldwide, and rare earths are key inputs to the permanent magnets used in electric vehicles, wind turbines and consumer electronics. Confirming carbonatite over an interval of this scale is therefore a central exploration indicator for a project at Tundulu's stage of development.

Managing Director Paul Williams said the current drilling program remains focused on maximising geological data around Nathace Hill to support a potential maiden mineral resource estimate later this year.

"AuKing's exploration team continues to make excellent progress now that diamond drilling has commenced at Tundulu. Importantly, the observations from the initially-planned 300m first hole compelled the drilling to continue well beyond that depth, to 510m. Carbonatite geology has been confirmed throughout this now much deeper hole," he said.

"We also share investors' frustrations with the delays in assay reporting of the early Tundulu drilling. Every effort has been taken to expedite the process of export permitting, transportation from Malawi to Zambia, sample preparation and then export to the lab in Perth."

"We still believe that AuKing's logistics process has been undertaken much quicker than has generally been the experience of other companies in the region. With the samples now in the Intertek facility in Perth, we can expect a timely turnaround of the much-anticipated first assay results."

Malawi is an emerging rare earths jurisdiction that hosts other carbonatite-linked deposits, including Mkango Resources' Songwe Hill project, one of the country's most advanced rare earth developments.

On 31 July 2026, AuKing confirmed it had completed the reverse circulation (RC) component of the initial Tundulu drilling program, having drilled 4,300m across 31 holes.

Detailed geological logging of all RC drillholes has since been completed, confirming widespread carbonatite lithologies throughout the current drilling area. Of particular interest is the interpretation of carbonatite material in drillholes situated well away from the primary Nathace Hill target area, which has been the focus of previous exploration.

Shares in AKN were steady at 1.8¢, giving the company a market capitalisation of $42 million.