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New drilling results from European Resources’ Korsnäs project confirm a substantial rare earth mineralised zone. “The results are exceeding expectations,” says Managing Director Jason Beckton.
European Resources Limited has published three separate announcements in recent weeks regarding its Korsnäs project, together painting a clear picture of a company encouraged by what it has discovered so far.
“We are very pleased with the results. Our Korsnäs project is steadily advancing step by step,” says Jason Beckton, Managing Director of ASX-listed European Resources and its wholly owned Finnish subsidiary, Bambra.
During the winter, the company carried out exploration work and drilled new holes in the area surrounding the former Korsnäs mine. The results have now been received and they have surpassed expectations.
The company is targeting rare earth elements, particularly neodymium and praseodymium, both of which have been identified in higher concentrations than anticipated.
Minimal environmental impact
Göran Östberg, Bambra’s Site and Safety Manager, notes that the drilling programme proceeded according to plan and that the environmental impact remained minimal.
“During the process we also repaired an old road, which was appreciated locally and by landowners. It was only a few days’ work for an excavator and a few loads of crushed rock — nothing major, but locally important,” he says.
The results from the current drilling programme, completed at the end of January, support plans to move forward to the next phase of the project, which will include additional drilling, further analysis and advanced metallurgical testing.
Positive market reaction
The company’s latest announcements have been well received by the market. Since releasing the results in February, the share price has more than doubled over a period of two to three weeks.
Trading volumes have also reached record levels. Despite this, the company remains small by mining industry standards, with a market capitalisation of approximately EUR 5.61 million at the time of writing.
According to Beckton, the positive market response is important, not least because it improves the company’s ability to raise additional capital when needed. European Resources is still a prospect-stage, pre-revenue company, meaning operations have so far been financed primarily through capital markets.
Metallurgical progress
Rare earth elements are typically widely dispersed in host rock, making metallurgy a crucial factor in determining project viability. In practice, this involves crushing rock into smaller fragments and separating rare earth elements through a series of specialised processing methods.
The company is currently awaiting further metallurgical results from partner universities in Finland and laboratories in Australia. To accelerate progress, an additional laboratory in Jakarta, Indonesia, has also been engaged, and preliminary results have already been received. Bambra also cooperates with laboratories in Finland such as GTK Mintec, ALS and CRS Laboratories.
The company reports that it is satisfied with the findings so far, which are helping clarify how the material can most efficiently be processed, although further university research remains essential.
No remediation needed
A comprehensive environmental risk assessment concerning the former Korsnäs mine has recently been completed. The study was carried out as part of the state-funded KAJAK project, implemented by the Finnish Supervisory Agency.
The report, which exceeds 300 pages, concludes that there is no need for environmental remediation measures in the area.
“The new report is a positive development for us,” says Göran Östberg, noting that the findings provide a solid baseline should mining operations resume in the future.
The new report is a positive development for us.
Jason Beckton also emphasises that environmental responsibility is a key priority for the company. As the project grows, dedicated water management and environmental specialists will be appointed. The team already includes professionals with extensive experience from projects located in environmentally sensitive areas. Beckton himself participated in mining operations during the 1990s in a region that is home to Australia’s oldest living trees.
Östberg adds that there are many misconceptions about the mining industry, with new projects often associated with examples such as Talvivaara or large open-pit mines.
In Korsnäs, however, mining has historically been conducted underground, which is also the most likely approach for any future operations. Underground mining generally results in significantly less visible environmental impact. Furthermore, while Talvivaara experimented with new extraction methods, the Korsnäs project plans to rely on established and proven technologies like the former enrichment plant but with modern technologies.
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