An outstanding REE project in Europe for Europe
European Green Metals Ltd, the critical metals exploration and development company focussed in Europe, is pleased to announce signing of an agreement for the option to acquire the Olserum Rare Earth project in southern Sweden (‘Olserum’ or ‘the Project’) from Explora Minerals AB and European Mineral Exploration AB.
Highlights
- Olserum is a high value REE project in southern Sweden with potential to be fast tracked to production.
- 43-101 compliant Indicated Resource of 4.5Mt grading 0.6% Total Rare Earth Oxides and Inferred Resource of 3.3Mt grading 0.63% Total Rare Earth Oxides using a 0.4% cut-off.
- Resource open along strike and at depth.
- Beneficiation test work indicated that a proven flowsheet can generate strong recoveries of REE.
- Acquisition of option in line with EGM’s strategy to become a leading supplier of critical mineral in Europe for Europe.
EGM Chief Executive Officer David Hall said, “Olserum is an exciting REE development opportunity with the potential to be the first Rare Earth mine in Europe. Sweden is an excellent jurisdiction in which to operate and has a long history of mining. The Project fits within our investment thesis of acquiring projects that have the potential of supplying valuable Heavy Rare Earth’s from Europe for the production of permanent magnets vital to EV’s and wind turbines, and be a major contributor to the net zero ambitions of the EU.
“Importantly, beneficiation testwork has shown that REE can be recovered and that high grade concentrates can be produced by standard metallurgical processes. We will continue further due diligence to ensure that we can fast track the Project to a feasibility study by infill drilling to increase confidence to measured and indicated resource and undertake further metallurgical testwork to increase recoveries. We will also commence environmental base line studies.”
Details
Olserum is a 6.5 sq km REE project in southern Sweden, with excellent infrastructure and close to the port of Vastervik. The Project has a defined 43-101 compliant Indicated Resource of 4.5Mt grading 0.6% Total Rare Earth Oxides and Inferred Resource of 3.3Mt grading 0.63% Total Rare Earth Oxides using a 0.4% cut-off. The resource has an elevated contribution of high value critical REE namely dysprosium, yttrium, neodymium and terbium. It covers a strike of 400m by 100-150m wide, is tested to a depth of 250m and remains open at depth and laterally. The nearby prospects of Djupedal and Bersummen present upside to the Project.
31 drill holes totalling 5,297m of diamond drilling were completed by Tasman Resources (‘Tasman’) and the previous owner IGE Nordic (‘IGE’) with samples composited on 1m lengths. All assays by Tasman and IGE were completed at ALS Chemex’s Vancouver Laboratory.
A beneficiation process was developed in 2019 by GTK Mintec at Outokumpo labs in Finland which included grinding, wet low intensity magnetic separation (WLIMS) for removal of magnetite and REEs flotation consisting of one stage of roughing and two stages of cleaning. Selective flotation collector of REE minerals and suitable grinding size of feed material were determined and the REE concentrate and tailings were chemically and mineralogically characterized. The studies of process mineralogy showed that the REE-bearing minerals, monazite and xenotime, and apatite were successfully enriched from the concentrations of 0.6%, 0.31% and 2.6% in the feed to those of 17.0%, 8.9% and 65.0% in the concentrate with the recoveries of 79.0%, 81.3% and 71.0%, respectively.
The estimated cumulative cost for all work conducted to date at Olserum is estimated by the Board to be in the region of £1.5 million.
The grant of the option is secured by an initial £35,000 cash payment to the owners. The option can be exercised up to 23rd September 2023. The Consideration payable on the completion of the Share Purchase Agreement upon exercising the option shall be satisfied by £65,000 in cash which shall become immediately payable on the Listing of the EGM and £450,000 of convertible loan notes in the capital of the EGM subject to the terms of the Convertible Loan Note Instrument.
