VANCOUVER, Oct. 13, 2011 /CNW/ - Tasman Metals Ltd. ("Tasman" or the "Company") (TSXV - TSM) (Frankfurt - T61) (Pink Sheets - TASXF), Mark Saxon, President & CEO is pleased to announce the acquisition of a 100% interest in a new heavy rare earth element (REE) project in southern Sweden, located only 100km east of the Company's flagship Norra Kärr project. The Olserum project was purchased outright from a private UK registered company, Norrsken Energy Ltd for a total consideration of 37,746 fully paid shares in Tasman Metals Ltd.
Olserum is located approximately 10km from the Baltic coast, 30km north of the town of Västervik and 200km SSW of Stockholm. The project is secured by a granted exploration claim 1100 Ha in size, and a surrounding exploration claim application 7800 Ha in size.
The REE potential of the Olserum region was first identified by the Swedish Geological Survey (SGU) in the early 1990's, when a number of REE anomalous samples were collected and assayed from several locations. The presence of yttrium (Y) enriched outcrops associated with historic iron ore prospects was noted. In 2003, the Swedish exploration company IGE claimed the area, concentrating on the iron ore workings at Olserum. During 2004 and 2005, a total of 27 diamond drill holes were drilled by IGE, 24 of which targeted the REE potential.
Drilling discovered an REE mineralized zone 600m in length and up to
100m wide. Drilling was performed on 40m spaced profiles with typically
two holes on each profile. Drilling results included (see table 1 for
TREO (total rare earth oxide) = sum of La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3,
Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3;
HREO (heavy rare earth oxide) = sum of Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3;
Most significant REO's by % are Y2O3, La2O3, Ce2O3, Nd2O3, Dy2O3
Mineralization occurs as two sub parallel zones, trending approximately east-west and dipping steeply to the north, with lower grade intervening material. These mineralized zones have been intersected over a 600m strike, and remain open at depth and to the east. Rare earth element bearing minerals identified at Olserum include xenotime, apatite, monazite and minor allanite. Host rock to mineralization is a biotite and amphibole bearing foliated felsic porphyry, with veins and patches of magnetite. It is interpreted that mineralization may represent heavy mineral sediments which have been subsequently metamorphosed and folded.
In 2005, IGE conducted an initial metallurgical test on a representative composite sample of drill core material. The test showed that a simple combination of gravimetric and magnetic separation produced a mineral concentrate containing 14% rare earth oxide, recovering 60% of the REE's. This result is considered very promising for a preliminary non-optimized test on a heavy REE project.
Tasman believes that an NI43-101 compliant resource can be established for Olserum with only limited further drilling. All drill core is accessible for re-sampling, and assays were completed by the ME-MS81 technique at ALS Chemex and are considered high quality. Original assay sheets are available. Tasman will implement a follow up drill program in order to have sufficient data for resource calculation. Tasman's claim holding surrounding the drilled area at Olserum has been the subject of very limited exploration for REE's, and additional prospect areas have already been identified.
"Tasman is pleased to add a new advanced heavy rare earth element project to our portfolio" said Mark Saxon, Tasman's President & CEO. "Grade and thickness of the existing drill intersections are very encouraging considering the high percentage of the high value heavy rare earth elements that are present. The effective metallurgical test, and the existing infrastructure on site, set Olserum apart as a high potential project. Olserum's close proximity to our flagship Norra Karr heavy rare earth project will allow it to be explored efficiently, and we will move quickly to complete further drilling, mineralogy and metallurgical studies."
The purchase of the Olserum project is subject to the Swedish Mining Inspectorate (Bergsstaten) granting permission for the transfer of the Olserum nr 2 claim, and to TSX Venture Exchange approval for the issuance of shares. The shares in Tasman will be subject to a statutory escrow period of 4 months from the date of issue.
About Tasman Metals Ltd.
Tasman Metals Ltd is a Canadian mineral exploration and development company focused on Rare Earth Elements (REE's) in the European region and is listed on the TSX Venture Exchange under the symbol "TSM". 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 actively supporting policy to promote domestic supply of REE's, to ensure the security of high-tech industry. Tasman's exploration portfolio is uniquely placed, with the capacity to deliver "high-tech" metals from politically stable, mining friendly jurisdictions with developed infrastructure.
The Company's Norra Karr project in Sweden is one of the most significant heavy REE resources in the world, and the only NI43-101 compliant REE resource in mainland Europe. With a TREO (total rare earth oxide) cut off of 0.4%, the Inferred Mineral Resource comprises 60.5 million tonnes grading 0.54% TREO and 1.72% ZrO2 (zirconium oxide), with 53.7% of the TREO being the higher value HREO (heavy rare earth oxide). The resource is unusually low in radioactive metals relative to peer projects, with less than 15 ppm each of uranium and thorium.
Tasman's current issued and outstanding share capital is 58,605,289 and the Company is well financed with a cash position of approximately C$14.5 million.
For more information regarding rare earth elements, see the Rare Metal Blog at www.raremetalblog.com or Resource Stock Digest at http://strategicmetalstocks.resourcestockdigest.com/.
On behalf of the Board,
Mark Saxon, President & CEO
The qualified person for the Company's exploration projects, Mark Saxon, President and Chief Executive Officer of Tasman and a Member of the Australasian Institute of Mining and Metallurgy and Australian Institute of Geoscientists, has reviewed and verified the contents of this release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), nor the Frankfurt Stock Exchange accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note to U.S. Investors Concerning Estimates of Inferred Resources. This news release uses the term "inferred mineral resource." We advise U.S. investors that this term is not recognized by the U.S. Securities and Exchange Commission. The estimation of inferrred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. U.S. investors are cautioned not to assume that estimates of inferred mineral resources exist, are economically minable, or will be upgraded into measured or indicated mineral resources.
Forward Looking Statements. This Company news release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.
Table 1: Full REE Results From Olserum Project in Parts
( m )
|LIGHT RARE EARTH ELEMENTS|
( m )
|HEAVY RARE EARTH ELEMENTS|