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Tasman Metals Nora Karr Rare Earth Metals Project Excites Investors

Last updated: 10:42 23 Feb 2011 EST, First published: 11:42 23 Feb 2011 EST

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Tasman Metals (TSX-V:TSM), PINK:TASXF) has a focus on rare earth projects located in Sweden, Finland and Norway known as Särna, Otanmäki, Korsnäs, Alnön, and Biggejav’ri, with the bulk of exploration dollars directed into Norra Kärr, which is shaping up into an extremely rich, world class, rare earths project. Insiders control 16% of the stock.

The Norra Kärr property is located in south-central Sweden near the town of Gränna and along the eastern shore of Lake Vättern. It is a peralkaline nepheline syenitic complex, about 1,200 meters long and 400 meters wide, that intrudes a series of Precambrian granites and gneisses collectively known as the Vaxjo Granite. Rare earths were first identified in the deposit in 1906 and during intermittent exploration programs, over the next hundred years.

Tasman acquired the property by staking the 549 hectare property and obtaining a grant over the concession in August of 2009. Deposits with geological and mineralogical similarities to Norra Kärr include the Lovozero mine in northwestern Russia, Strange Lake controlled by Quest Rare Minerals (TSX-V:QRM),  Thor Lake under development by Avalon Rare Metals (TSX:AVL)  in northern Canada, and the Dubbo Deposit in Australia, under development by Alkane Resources (ASX:ALK).

Tasman has recently completed an  independent NI43-101 report for an Inferred Mineral Resource of 60.5 million tonnes grading 0.54% Total Rare Earth Oxides, at a cut off grade of 0.4%, and 1.72% of ZrO2 / Zirconium Oxide, 53.7% of the rare earth oxides being the higher value Heavy Rare Earth Oxides which include Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Tm2O3, Yb2O3, Lu2O3 and Y2O3. The total Inferred Tonnage of contained Rare Earths is 326,700 tonnes, with the deposit open at depth for additional mineralization below 110 meters, and open to the south.


Norra Kärr is believed to be the only NI 43-101 compliant Rare Earths Resource in mainland Europe. Sweden is mining friendly and a number of extractive projects are located in the vicinity of Norra Kärr. This will assist the company to attract a trained workforce and tap into local mining infrastructure, with roads, power, water, and active rail and port facilities located nearby. The deposit commences at surface will be amenable to low cost open pit mining.


Metallurgical test work indicates that the Rare Earths are concentrated in a mineral called eudialyte, which should simplify the recovery process. Current assaying indicates that Yttrium averages 35.1% and Dysprosium 4.8% of the total Rare Earths content, measured at 0.4% of the Deposit, which equates to 5.4 kilos of Rare Earths per metric tonne of ore. 

Calculating a “ballpark evaluation” quickly reveals the richness of this resource. According to Tasman, Yttrium is currently quoted at US$84.00 per kilo and Dysprosium at US$305 per kilo, which equates to $238.27 per tonne of ore, and assuming the balance of the Rare Earths price at US$40 per kilo, the total value of each tonne of ore is $361.11. Converting this to gold equivalent terms, at current gold prices of US$1,375 per ounce, the equivalent gold grade is 8.2 g/t. Converting 60.5 million tonnes at 8.2 g/t equates to approximately 16 million ounces.


In gold equivalent terms an open pit gold deposit of this size and grade would be classified as a world class elephant deposit valued at multi billions of dollars, with open pit grades equivalent to the richest deposits known. This calculation is entirely conceptual, but it indicates the richness and the potential return that may eventuate. This is obviously subject to clarification of metallurgical recovery issues and purity of end product and future Rare Earth prices.The process economics will also be assisted by the fact that the deposit carries very low levels of radioactive metals relative to peer projects. 


Byron Capital Markets forecasts shortages of Dysprosium, Terbium, Europium, and Yttrium by 2014. Current development stage projects in Australia and North America do not make a significant contribution to the supply of these metals, as it is the light Rare Earth Elements which include Lanthanum, Cerium, Praseodymium, Neodymium, Promethium, and Samarium, which will become more abundant as these projects come into production. 

Dysprosium and Terbium, which are heavy Rare Earths will remain in short supply favoring the economics of Norra Kärr. The Chinese are major producers of Rare Earths and are already putting quotas, taxes and cutting their exports of Rare Earths which are having a very bullish impact on current pricing. Many of these new projects outside of China will output on an annualized basis, between 5,000 to 20,000 tonnes of various Rare earths.  


Tasman also has a number of other exploration plays that have potential to develop into additional sources of Rare Earths. Otanmäki is a perkalkine Intrusion with historic resources at Katajakankas of 0.46 Million tonnes at 2.4% REE, 0.31% Y2O3, 0.76% Nb2O5, 1.1% ZrO2 and Kontioaho of 4 million tonnes at 0.52% REE, 0.16% Y2O3, 0.12% Nb2O5, and 2.8% ZrO2. The Korsnäs Project surrounds the old Korsnäs Mine that produced 900,000 tonnes of 3.59% Pb and 0.83% Rare Earths, has substantial historical drill data  indicating the presence of mineralization. Särna is an early stage project that hosts a perkalkine intrusion that contains an exposed area of 3 x 4 kilometers for initial sampling and survey work.


Tasman controlled projects are well placed to supply European Union consumers.  EU policies are being developed to promote the domestic supply of Rare Earth Elements to secure high-tech industry, which are increasingly dependent on a growing supply of these elements. Tasman recently commenced the next stage of drilling at Norra Kärr to increase confidence in the resource to Indicated status, and provide additional bulk sample for our ongoing metallurgical research. Data generated by this work will form the basis for a planned scoping study.

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