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The next step in the effort to potentially turn Korsnäs into a mining community again involves seismic surveys. At the same time, the company behind the project is securing funding from investors.
European Resources and its Finnish subsidiary Bambra are currently working on several fronts to determine what lies beneath the ground in Korsnäs and how rare earth elements can best be extracted.
”Everyone knows about the old mine, but we have now identified at least seven rare-earth zones, which is significantly more than we expected,” says Managing Director Jason Beckton, who leads both the parent company and its Finnish subsidiary.
Benefiting from a warm spring
The next phase in Korsnäs involves seismic surveys to better understand the size of the zones. The method uses small devices to detect ground vibrations, with the data later analyzed to draw conclusions about subsurface structures.
Some measurements have already been carried out and verified against other data, increasing confidence in the method.
Göran Östberg, Site and Safety Manager at Bambra, notes that the warm spring has been beneficial.
”Drilling is expensive, so the more data we have before we start again, the better,” he says.
Once the new data has been collected, additional drilling is expected to take place in June–July. The results will add to an already extensive knowledge base.
Bambra has already completed its own drilling and also has access to historical data, including samples from as many as 471 previous drill holes.
Metallurgy in focus
At the same time, metallurgical testing is ongoing in several laboratories around the world. The goal is to determine the most profitable way to process the material.
Rare earth elements are dispersed within the host rock and require different processing methods depending on the composition.
”We are confident in the metallurgy, but the work is not yet complete. We are waiting for more results, but so far, so good,” says Jason Beckton.
In addition to primary extraction, the company is also evaluating the potential to recover materials from old tailings and existing concentrates.
Raising capital
European Resources is listed on the Australian Securities Exchange. It is a mineral exploration company with activities in Finland and Slovakia. Its current market capitalization is around €5.66 million.
The main focus is now on the Korsnäs project. As a pre-revenue company, it plans to raise additional capital to move forward. A rights issue is currently underway, allowing existing shareholders to subscribe for new shares.
At least €1 million secured
The company aims to raise up to €2.58 million, with a minimum of approximately €1.2 million secured through underwriting commitments. Company directors have also committed to participating in the issue.
Jason Beckton hopes to attract more European investors and plans to attend investor events across Europe.
”It’s not an end in itself to run around conferences. What matters is delivering solid results,” he says.
Environmental focus
The fact that Korsnäs has previously hosted mining operations aligns well with the company’s strategy, as it may shorten the path to production and allow the use of existing infrastructure.
”We aim for low production costs and simple logistics,” says Jason Beckton.
We aim for low production costs and simple logistics.
Environmental aspects, particularly related to water and air, are also key considerations. The planned operation is based on underground mining, which helps limit visible environmental impact.
However, it is still a bit too early to talk about actual mining operations. The company is first focused on gathering sufficient data to de-risk the project. Only after that will economic assessments and permit processes follow.
”We are fortunate to be working where we are and hope to expand operations in the future,” says Jason Beckton.
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