Nov 11, 2024

Prospech Limited Reports 11.4m @ 13,383 ppm TREO at Korsnäs Project, Finland

Introduction:

Prospech Limited (ASX: PRS) (Market Cap: $11M | Last Close: $0.028 | Cash Holding: $465K with a $2.3M raise planned) has reported significant rare earth element (REE) assay results from its Korsnäs Project in Finland, highlighted by 11.4m @ 13,383 ppm Total Rare Earth Oxides (TREO) from 102.7m, including 4.0m @ 32,831 ppm TREO from 106.7m.

Drill Results:

11.4m @ 13,383 ppm TREO from 102.7m (including 4.0m @ 32,831 ppm TREO from 106.7m) [KR-272]
17.4m @ 9,798 ppm TREO from 0.0m (including 3.0m @ 48,465 ppm TREO from 11.4m) [SO-187]
4.0m @ 32,831 ppm TREO from 106.7m (40.9 ppm Tb4O7; 227.4 ppm Dy2O3; 9,943 ppm NdPrO) [KR-272]‍
3.0m @ 48,465 ppm TREO from 11.4m (86.0 ppm Tb4O7; 313.4 ppm Dy2O3; 15,557 ppm NdPrO) [SO-187]

Project Overview:

The Korsnäs Project, initially developed as a lead mine, hosts extensive rare earth element zones that remain open along strike and at depth. The site features a series of layered carbonatite zones, each up to 20 metres thick and separated by 50 to 100 metres along strike. These REE enriched zones correlate with gravity anomalies, extending over a strike length of more than 5 kilometres.

Located in Finland, the project benefits from excellent infrastructure and a generally supportive regulatory environment. The current focus is on defining the extent and grade of REE mineralization, particularly the critical heavy rare earth elements (HREEs) such as dysprosium and terbium.

Program Details:

The latest results come from an ongoing program of sampling and assaying historic Korsnäs drill core from holes completed in the 1950s, 60s, and early 70s. This batch includes 307 samples from 25 holes. The program has identified significant zones of REE mineralization, with a particular focus on valuable magnet REEs such as neodymium (Nd) and praseodymium (Pr), as well as the critical HREEs dysprosium (Dy) and terbium (Tb). The mineralization is associated with carbonatite intrusions, typical of many REE deposits globally.

Understanding These Results:

The reported intersections represent high-grade REE mineralization, with Total Rare Earth Oxide (TREO) values exceeding 10,000 ppm (1%) over significant widths. The presence of elevated levels of heavy rare earth elements (HREEs) like dysprosium and terbium is particularly noteworthy, as these elements are crucial for producing high-strength magnets used in electric vehicles and wind turbines.

The high-grade zones, such as 4.0m @ 32,831 ppm TREO in KR-272 and 3.0m @ 48,465 ppm TREO in SO-187, are especially significant. The near-surface nature of some intersections (e.g., 17.4m @ 9,798 ppm TREO from surface in SO-187) are also notable.

Management Commentary:

Jason Beckon, Prospech Managing Director, stated:

"Korsnäs keeps delivering standout results, with recent recognition of high grade zones rich in critical Heavy Rare Earth Elements (HREEs) like dysprosium (Dy) and terbium (Tb).

“While Korsnäs is primarily a carbonatite-associated deposit known for valuable magnet REEs such as neodymium (Nd) and praseodymium (Pr), the presence of significant Dy and Tb mineralisation is a major advantage. These heavy REEs are crucial for producing high strength magnets which hold up under high temperatures and perform reliably in demanding applications like electric vehicles, wind turbines and high-efficiency motors.

“With current supply disruptions in China, securing a stable source of these materials is more important than ever. Prospech is looking to meet this need, positioning itself as a dependable future supplier of magnet critical HREEs. Our commitment to thoroughly assessing these enriched zones at Korsnäs reflects our confidence in the project’s potential and our determination to support the growing global demand for sustainable energy technologies. By developing Korsnäs as a secure supply source, we are not just meeting immediate industry needs; we’re playing a key role in strengthening the resilience of global rare earth supply chains for the long term."

Next Steps & Catalysts:

Prospech is continuing its comprehensive REE sampling program on the historic Korsnäs core. The company plans to use these results to inform future exploration and resource definition efforts.

Commodity Outlook:

Rare earth elements, particularly HREEs like dysprosium and terbium, are in high demand due to their critical role in clean energy technologies and electric vehicles. With current supply disruptions in China, the primary global producer, there is growing interest in developing alternative sources of REEs. The Korsnäs Project's potential for HREE production positions Prospech favorably in the evolving global REE market.

Conclusion:

The latest results from Korsnäs demonstrate significant potential for high-grade REE mineralization, including valuable heavy rare earths. With multiple high-grade intersections and indications of a large mineralized system, the project shows promise. As Prospech continues to advance the project, upcoming catalysts include further assay results and potential resource definition.

Sources:

PRS Drill Results Announcement

Additional Figures:

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Nov 11, 2024