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Tasman Adds Three Rare Earth Projects To Portfolio In Finland

Europe-focused rare earth explorer Tasman Metals (CVE:TSM)(NYSE MKT:TAS) Monday acquired three new rare earth element exploration properties in central Finland.

The 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.

"Tasman is pleased to add these new rare earth element projects to our extensive Finnish portfolio," Tasman's president and CEO Mark Saxon said.

"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 automotive industries.

"All projects are known to have rare earth bearing minerals, and are supported by extensive existing infrastructure.

"We welcome the continued involvement of the Magnus Minerals team who will assist in the follow up of all of Tasman's Finnish projects."

The 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 (NYSEMKT:REE) - lead (Pb) mine that is currently under claim application by Tasman.

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 0.83% REEs.

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 light REEs.

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 been completed.

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.

The 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.

Magnus Minerals retains a 2% Net Smelter Royalty (NYSE:NSR) on the Finnish projects and shall receive a 2% NSR on Tasman's other Finnish exploration claims.

Tasman Metals also said Monday that CEO Saxon will be presenting at the Marcum MicroCap Conference on June 20 at the Roosevelt Hotel, New York City.

The 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 years.

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.