Tasman Metals signs contract for Norra Karr PEA

Tasman Metals (CVE:TSM) said Tuesday that it has awarded a contract for the preliminary economic assessment (PEA) of its Norra Karr heavy rare earth element (REE) project in Sweden.
Independent consultants Pincock Allen & Holt will conduct the study, which will begin this month, and is expected to be completed before year-end.
The report will use the updated NI 43-101 compliant resource estimate currently in the works, as well as metallurgical and mineral processing data to determine the scope of the potential mining operation.
"Tasman is pleased to have the internationally recognized technical group at PAH undertaking the company's preliminary economic assessment of the Norra Karr project," said president and CEO, Mark Saxon.
"The PEA is the first major technical, financial and engineering study to be performed on the Nora Karr project and pending a positive outcome, Tasman expects advance rapidly into the launch of the prefeasibility study in early 2012.
"Norra Karr's existing infrastructure and high grades of the highly sought REE dysprosium sets it apart from its peers in the heavy REE space."
REE demand is increasing, due to the metals unique properties that make them essential for high technology and environmentally-beneficial applications. Since over 95% of REE supply is sourced from China, the European Union is supporting policy to ensure domestic supply of the metals.
Tasman's current inferred mineral resource for the project shows 60.5 million tonnes grading 0.54% total rare earth oxide (TREO) and 1.72% zirconium, with 53.7% of the TREO being the higher valued heavy rare earths, at a cut-off grade of 0.4%.
But recent drill results show grades well above the current resource. In late June, drill hole NKA11038 found 0.68% total rare earth oxides (TREOs) and 1.85% zirconium oxide (ZrO2) over 241.3 metres, at a cut off of 0.2%.
Norra Karr is located in southern Sweden, 300 kilometres southwest of the capital Stockholm and lies in mixed farming and forestry land. The site is serviced by power, roads and water allowing all year round access.