Europe-focused rare earth explorer Tasman Metals (CVE:TSM)(NYSE MKT:TAS) Monday acquired three new rare earth element exploration properties in central Finland.
Korsnas South, Siilinjarvi and Laivajoki projects are being acquired
from private Finnish company Magnus Minerals Oy. Full financial details
were not disclosed but consideration included 60,000 Tasman shares.
is pleased to add these new rare earth element projects to our
extensive Finnish portfolio," Tasman's president and CEO Mark Saxon
"While the projects are of an early stage compared to our
Swedish assets, they have been selected due to their potential for
elevated grades of neodymium, one of the critical REE's that is short
supply and high demand within the green technology, high technology and
"All projects are known to have rare earth bearing minerals, and are supported by extensive existing infrastructure.
welcome the continued involvement of the Magnus Minerals team who will
assist in the follow up of all of Tasman's Finnish projects."
Korsnas South project is located 350 km north of Helsinki in central
western Finland and is comprised of six claim applications securing
approximately 1,300 hectares.
These claims cover the
southeastern prospective trend of the historic Korsnas Rare Earth
Element (REE) - lead (Pb) mine that is currently under claim application
The historic mine site has “excellent
infrastructure”, the company said, lying only 1 km from the Baltic coast
with an all weather road network and a skilled local community. Between
1959 and 1972, the Finnish mining company Outokumpu Oy produced a total
of 0.87 million tonnes of ore from Korsnas at a grade of 3.6% Pb and
Within the claim areas gained under this
acquisition, clusters of several hundred REE-rich boulders and two
REE-mineralized outcrops are known, with historic grades of up to 13%
Total Rare Earth Oxide (TREO).
Elevated REE grades in boulders
have been recently confirmed by Tasman, it said, using handheld Niton
XRF devices, which indicate the project to be strongly dominated by
Meanwhile, Siilinjarvi consists of two claim
applications totaling 450 hectares, covering outcrops of alkaline
intrusive and carbonatite, rock units, which are elsewhere known to host
REE mineralization. The project lies adjacent to the operating
apatite/phosphate mine of Siilinjarvi (owned by Yara International ASA)
30 km north of the city of Kuopio.
Geological Survey of Finland
records indicate that during historic exploration for apatite ore in
this area, alkaline rock units were discovered to be elevated in REEs,
but to Tasman's knowledge no focused exploration for these elements has
Finally, the Laivajoki project covers a 300 metre
by 4 km carbonatite intrusion that lies on a major structural boundary
between mafic volcanics and granite, approximately 100 km southeast of
the city of Rovaniemi. The area is secured by a single claim application
of 390 hectares in size.
In mineralogical studies of high REE
grab samples from the carbonatite, the Geological Survey of Finland
reported the occurrence of REE-bearing bastnasite, allanite, monazite
and zircon, Tasman said.
In addition to this transaction, Magnus
Minerals has been hired to manage exploration on Tasman's entire
Finnish exploration portfolio.
A summer work program of surface sampling and mapping is now underway, the company added.
purchase of the Korsnas South, Siilinjarvi and Laivajoki projects is
subject to stock exchange approvals. Issuance of half the shares (30,000
shares) is also subject to granting of the claims associated with the
Korsnas South project by the Finnish Mining Inspectorate.
The shares in Tasman will be subject to a hold period of four months from the date of issue.
Minerals retains a 2% Net Smelter Royalty (NSR) on the Finnish projects
and shall receive a 2% NSR on Tasman's other Finnish exploration
also said Monday that CEO Saxon will be presenting at the Marcum
MicroCap Conference on June 20 at the Roosevelt Hotel, New York City.
event is hosted by Marcum LLP, one of the top ten auditors of U.S.
public companies, and co-presented by CCG Investor Relations, a global
investor relations consulting firm.
Most recently in Sweden,
Tasman unveiled a preliminary economic assessment for its flagship heavy
rare earth and zirconium Norra Karr project in southern Sweden,
unveiling a low cost, and "stand out" asset.
Tasman's March 2012
PEA report, completed by Pincock, Allen & Holt, estimated a pre-tax
net present value of $1.46 billion at a 10 percent discount rate, with a
49.6 percent internal rate of return, and a payback period of 2.6
The project is also forecast to generate $5.3 billion in
revenue over the first 20 years, and $10.9 billion over the 40 year life
of the mine.