VANCOUVER, Dec. 17, 2014 /CNW/ - Tasman
Metals Ltd. ("Tasman" or the "Company") (TSXV:TSM)
(Frankfurt:T61) NYSE-MKT: TAS). The Company
is pleased to announce it has entered into a letter of agreement
dated December 15, 2014, (the
"Letter Agreement") with Kipu Metals Corp. (the
"Vendor") under which the Company will acquire (the
"Acquisition") a 100% interest in a portfolio of stratiform
chromite projects in north-eastern Finland totaling 11,400 ha in size (the
"Chromite Portfolio") in exchange for the refund of costs
incurred to date of C$45,529 by the
Vendor. There is no additional consideration for the
Acquisition. Closing of the Acquisition is subject to TSX
Venture Exchange approval.
Mr. Michael Hudson, a director of
the Company, and Mr. Mark Saxon, the
Company's President, CEO and a director, are also directors and
shareholders of the Vendor. As a result, the Acquisition is a
related party transaction as such term is defined under
Multilateral Instrument 61-101 Protection of Minority Security
Holders in Special Transactions ("MI 61-101"). The
Acquisition is exempt from the valuation and minority shareholder
approval requirements pursuant to exemptions available to the
Company under MI 61-101 as the total consideration being received
by Mr. Hudson and Mr. Saxon does not exceed 25% of Tasman's market
capitalization.
Under the Acquisition, Tasman has acquired 2 chromite projects
(Akanvaara and Koitelainen) that lie approximately 75
km apart in north-eastern Finland
(Figure 1). The projects are secured by 120 exploration
claims and claim applications totaling 11,400 hectares in
size. North-eastern Finland
has been a very active exploration district, following the
discovery of the large Sakati Cu-Ni deposit by Anglo American, as announced in November 2011.
Highlights
- The Chromite Portfolio includes two projects with very
extensive previous drilling, metallurgical testing and historical
resources. Both are easily accessible by road;
- Projects lie along the geological trend of the producing Kemi
chromite mine;
- In addition to stratiform chromite, the projects have
demonstrated potential for both platinum group elements (PGE's) and
vanadium (V);
- Chromite and PGE's are both defined as critical raw materials
by the European Commission due to the highly concentrated current
supply. Europe is a major consumer
of chromite for stainless steel;
"Acquisition of this advanced chromite portfolio provides Tasman
with the opportunity to broaden our reach in the critical metals
arena within Europe" said
Mark Saxon, Tasman's President and
CEO. "While we maintain our focus on the exciting
developments underway at our Norra Karr heavy REE project in
Sweden, we remain active in the
pursuit of undervalued assets that suit our current portfolio and
strategy."
Based on its economic importance to European industry and a high
risk of supply disruption, both chromium and PGE's are defined as
"critical" raw materials within recent European Commission (EC)
publications (see:
http://ec.europa.eu/enterprise/policies/raw-materials/critical/index_en.htm),
in line with the balance of Tasman's existing project
portfolio.
Chromium (Cr) is an essential industrial element due in
particular to its strengthening effect on steel alloys and its
resistance to corrosion. Most (>90%) of the current global
chromite production is destined for use in the metallurgical
industry, in particular for stainless steel which requires a
minimum of 10.5% Cr by mass to impart favorable strength and
anti-corrosion properties. The remaining chromite is used in the
aeronautics (for the protection of aluminium aircraft bodies),
foundry, chemical and refractory sectors. Overall, demand
growth for stainless steel and therefore chromium is forecast in
the range 4-5% per year to 2020.
European stainless steel production is highly significant,
second only to China in scale and
accounting for some 20% of global output. Europe's share of world chromium metal demand
is equally significant, estimated by the European Commission at 1.8
million tonnes (approximately 18.5% of global consumption).
At present, 80% of this demand is supplied from South Africa, whilst together Kazakhstan and South
Africa hold greater than 85% of the currently known global
resources (USGS).
The Kemi mine of Outokumpu in northern Finland is the EU's only chromium
supplier.
Project Descriptions
The Akanvaara and Koitelainen chromite projects
are of a stratiform intrusion-hosted style that together with
similar deposits on the Kola
Peninsula of Russia
constitute one of the largest known undeveloped resources of
chromite in the world. The Akanvaara and Koitelainen
intrusions are part of a group of Archean/early Proterozoic mafic
layered intrusions within the Fennoscandian Shield, which show
cumulate igneous layering similar to other large layered intrusions
(Fiskenaesset, Burakovka, Bushveld), and host deposits of
chromite, vanadium, titanium, PGE's and gold.
Akanvaara
The Akanvaara layered intrusion is located 140 km northeast of
the town of Rovaniemi, with simple vehicle access through a network
of gravel logging and drill roads. The closest rail access lies
some 40km to the south, and a commercial airport in Kemijärvi being
62 km to the northeast. The Akanvaara project consists of 53
granted claims for 4750 hectares.
The Akanvaara mafic intrusion has a known surface area of about
50 km2, with a strike length along magmatic layering of
10 km and a total stratigraphic thickness of approximately 3.1
km. The intrusion is characterised by a persistently layered
sequence of mafic and ultramafic gabbro, pyroxenite, anorthosite
and chromitite (chromium enriched) above a lower chilled
margin.
The Geological Survey of Finland (GTK) discovered and explored the
Akanvaara intrusion from 1990 to 1999, at which point the project
was offered for tender. Work completed by GTK included ground
geophysical surveys (magnetic, electromagnetic, gravity); diamond
drilling of 118 holes for a total of 18,136 m; and laboratory scale
beneficiation testing on a number of mineralization styles.
Twenty three (23) chromitite layers were discovered within the
Akanvaara intrusion, each with different thickness, strike extent
and potential, across a total stratigraphic thickness of 1,100
m. Mineralized lenses vary from centimetre to tens of metres
in thickness.
Following drilling, GTK completed an historic resource
calculation on the 3 most persistent chromitite lenses and a
vanadium enriched gabbro. Cumulate layers are noted to be
very strike extensive with predictable grade and thickness.
Historical resource estimates are provided in Table 1 and are
based upon a report entitled "Akanvaaran intrusion kromi-,
kromivanadiini, vanadiini- ja platinametalli- kultaesiintynay" by
Mutatanen, T. 1998 on behalf of the Geological Survey of
Finland.
Table 1: Historical Resource Estimate for the Akanvaara
Chromite Project, Finland
|
|
|
|
|
|
Name
|
Historical
Resources
(Million
Tonnes)
|
Cr
%
|
PGE
ppm
|
V %
|
Comments
|
Akanvaara
LC*
|
27.0
|
15.7
|
0.60
|
0.00
|
|
Akanvaara
UC*
|
18.1
|
22.8
|
0.91
|
0.40
|
Reef thickness is 1
m, extent 7.9 km along strike, tonnage is estimated down to 300 m
vertical depth where the occurrence is open along dip.
|
Akanvaara
ULC*
|
10.0
|
15.3
|
0.00
|
0.00
|
|
Base
of Magnetic
Gabbro*
|
20.0
|
0.0
|
0.00
|
0.34
|
The 6 - 13 metres
thick basal part of the magnetite gabbro unit, with V-rich
magnetite. 20 million metric tons down to 100 metres (vertical)
depth, with 0.34 % V, 0.10 % Cu, and 2.5 g/t Ag.
|
*The data from these projects is historical in
nature and was compiled prior to the implementation of NI 43-101
reporting standards. Tasman has not completed sufficient
exploration to verify the estimates and we are not treating them as
NI 43-101 defined resources or reserves verified by a qualified
person; the historical estimate should not be relied upon.
GTK commissioned the Technical Research Centre of
Finland (VTT) for preliminary
mineral processing testing. Samples from the UC horizon were
used for flotation tests, which yielded a chromite concentrate with
33.8% Cr2O3 (chromium oxide) and 0.55% V with recovery of 92% and
88% respectively. The chromite concentrate was shown to be
relatively rich in iron, low in alumina and practically devoid of
magnesium. This suggests Akanvaara chromite-vanadium
concentrate may have potential as a metallurgical and chemical
grade raw material for production of ferrochrome, chrome-vanadium
alloys and chrome chemicals.
Flotation tests completed on the ULC material
gave a higher-grade concentrate of 38.3% Cr203, with the promising
recovery of 86%.
A series of magnetic concentrates (approximately
10 - 12 weight % of the feed) were produced from the Magnetic
Gabbro Unit which contained 1.55 - 1.59 weight % V with up to 60%
recovery of vanadium. A number of copper (Cu)-sulphide
concentrates were also produced by flotation of this Magnetic
Gabbro sample with a grade of 8 - 14% Cu, 1.4 g/t Au, 53 - 57 g/t
Ag, 0.073 g/t Rh and 0.068 g/t Pt.
Subsequent to GTK's tender, the property was held
by Finnish company Outokumpu, who evaluated Akanvaara for PGE's and
recognised that magnetite-bearing gabbros in the uppermost section
of the intrusion where little GTK drilling was complete were highly
anomalous in PGE's (to 1.26 g/t). Outokumpu completed 5 drill
holes and undertook extensive surface sampling.
Koitelainen
The Koitelainen layered intrusion is located 75
km northwest of Akanvaara. The nearest railroad is found in
Salla, 100 km to the south, and the area is accessible by car
through a network of gravel logging and drill roads. The
Koitelainen project consists of 67 claim applications for 6650
hectares and is totally contained within a Natura 2000 area.
The Koitelainen intrusion is a flat, oval-shaped
anticline, 26 km x 29 km in size with an estimated maximum
thickness of around 3.2 km. The interior of the anticline is
made up of Archean footwall rocks to the intrusion through which
the intrusion was emplaced. The intrusion is divided into an
ultramafic Lower Zone (LZ), a gabbroic Main Zone (MZ) and a
gabbroic Upper Zone (UZ).
Chromite mineralization at Koitelainen was first
discovered in 1977, and two principal levels of chromite
mineralization are now known. The Lower Chromitite (LC)
layers are found within a pyroxene cumulate, and are continuous in
drilling over a distance of about 20 km. Four to six layers
each over 0.3 m thick, with Cr2O3 from 10.6 to 32.2% have been
discovered, the thickest drill intersection being 2.9 metres.
The basal contacts are generally sharp; the hanging wall contact is
gradational from massive chromitite to chromite-disseminated
pyroxenite. The Upper Chromitite (UC) layer is a distinct
interval up to 2.2 metres thick containing 21% Cr2O3, 0.4% V and
1.1 ppm PGE. The UC is strike continuous, and compositionally
and mineralogically homogeneous.
From 1973 to 1999, 131 holes for a total of
16,440 m were drilled at a range of chromite, PGE and vanadium
targets at Koitelainen. All drilling was completed on behalf
of GTK, and the core remains in storage in Finland.
Using 42 drill holes, GTK undertook a resource estimate for a
vanadium enriched ilmenomagnetite unit, discovered within the upper
parts of the Koitelainen layered intrusion. Using 17 drill
holes and 4 drill holes, GTK completed historic resource
calculations on the Upper and Lower Chromitite horizons
respectively. The Upper Chromitite layer is 1.3 m thick, and
is noted to be very strike extensive with predictable grade and
thickness. Historical resource estimates are provided in
Table 2 and are based upon a report entitled "Koitelaisen
malmitutkimukset vuosina 1979-1989" by Mutatanen, T. 1989 on behalf
of the Geological Survey of Finland.
Table 2: Historical Resource Estimate for the Koitelainen
Chromite Project, Finland
|
|
|
|
|
Name
|
Historical
Resources
(Million
tonnes)
|
Cr
%
|
PGE
ppm
|
V %
|
Comments
|
Magnetite
Gabbro*
|
10.8
|
0.0
|
0.0
|
0.2
|
42 drill holes used
in resource calculation. 4 strike extensive mineralized
units, up to 40m thick.
|
Koitelainen
UC*
|
70.0
|
15.7
|
1.10
|
0.0
|
The distinct UC layer
averages 1.3 m thick. Resource to 500m vertical depth. 17
drill holes used in resource calculation.
|
Koitelainen
LC*
|
2.0
|
14.4
|
1.38
|
0.4
|
The three to six LC
layers extends for at least 20 km along strike.
|
|
|
|
|
|
|
*The data from these projects is historical in
nature and was compiled prior to the implementation of NI 43-101
reporting standards. Tasman has not completed sufficient
exploration to verify the estimates and we are not treating them as
NI 43-101 defined resources or reserves verified by a qualified
person; the historical estimate should not be relied upon.
Metallurgical testwork from Koitelainen has been
poorly recorded and appears limited to the Magnetite Gabbro.
In 1976, it is reported that drill core was used as feed materials
for weak magnetic separation testwork. Recovery of the
magnetic material was approximately 90%, with a concentrate grade
of 50-50% Fe and 0.8-1.2% V.
Tasman's Qualified Person, Mr. Mark Saxon, President and Chief Executive
Officer of Tasman and a Fellow of the Australasian Institute of
Mining and Metallurgy and Member of the Australian Institute of
Geoscientists, has reviewed and verified the contents of this news
release.
About Tasman Metals Ltd.
Tasman Metals Ltd is a Canadian mineral
exploration and development company focused on critical metals
including Rare Earth Elements (REE's) and tungsten (W) in
Scandinavia. Tasman is listed on the TSX Venture Exchange under the
symbol "TSM" and the NYSE-MKT under the symbol
"TAS". REE and tungsten demand is increasing, due to
the metals' unique properties that make them essential for high
technology and industry. Since over 95% of REE and 80% of
tungsten supply is sourced from China, the European Commission promotes policy
to develop domestic supply of critical metals to ensure the
security of industry. Tasman receives research funding from
the European Commission.
Tasman's exploration portfolio is uniquely placed, with the
capacity to deliver strategic metals from politically stable,
mining friendly jurisdictions with developed infrastructure and
skills. The Company's Norra Karr and Olserum projects in
Sweden are two of the most
significant heavy REE resources in the world, enriched in
dysprosium, yttrium, terbium and neodymium. The Company is
now focused on the safe, sustainable and responsible development of
its Scandinavian mineral portfolio.
On behalf of the Board,
"Mark Saxon"
Mark Saxon,
President & CEO
The TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange), the NYSE - MKT nor the Frankfurt Stock
Exchange accepts responsibility for the adequacy or accuracy of
this news release.
Cautionary Note to U.S. Investors Concerning
Mineral Resources and Reserves. In this news release, the
definition of "mineral resources" is that used by the
Canadian securities administrators and conforms to the definition
utilized by CIM in the "CIM Standards on Mineral Resources and
Reserves – Definitions and Guidelines" adopted on August 20,
2000 and amended December 11, 2005.
The standards employed in estimating the mineral
resources referenced in this news release differ significantly from
the requirements of the United States Securities and Exchange
Commission (the "SEC") and the resource information reported
may not be comparable to similar information reported by
United States companies. The
term "resources" does not equate to "reserves" and
normally may not be included in documents filed with the SEC.
"Resources" are sometimes referred to as
"mineralization" or "mineral deposits." While
the terms "mineral resource", "measured mineral
resource", "indicated mineral resource" and "inferred
mineral resource" are recognized and required by Canadian
regulations, they are not defined terms under standards in
the United States and normally are
not permitted to be used in reports and registration statements
filed with the SEC. The terms "mineral reserve," "proven
mineral reserve" and "probable mineral reserve" are
Canadian mining terms as defined in accordance with National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects ("NI 43-101") and the CIM - CIM Definition
Standards on Mineral Resources and Mineral Reserves, adopted by the
CIM Council, as may be amended from time to time by the CIM. These
definitions differ from the definitions in the United States Securities and Exchange
Commission Industry Guide 7 ("SEC Industry Guide 7") under
the Securities Act of 1933. Under Canadian rules, estimates of
inferred mineral resources may not form the basis of feasibility or
prefeasibility studies, except in rare cases. Disclosure of
"contained ounces" in a resource is permitted disclosure under
Canadian regulations; however, the SEC normally only permits
issuers to report mineralization that does not constitute
"reserves" by SEC standards as in place tonnage and grade without
reference to unit measures.
The estimation of measured, indicated and
inferred mineral resources involves greater uncertainty as to their
existence and economic feasibility than the estimation of proven
and probable reserves. U.S. investors are cautioned (i) not
to assume that measured or indicated resources will be converted
into reserves and (ii) not to assume that estimates of inferred
mineral resources exist, are economically or legally minable, or
will be upgraded into measured or indicated mineral
resources. It cannot be assumed that the Company will
identify any viable mineral resources on its properties or that any
mineral reserves, if any, can be recovered profitably, if at all.
As such, information contained in this news release and the
documents incorporated by reference herein concerning descriptions
of mineralization and resources under Canadian standards may not be
comparable to similar information made public by United States companies in SEC filings.
Cautionary Statements. Certain statements
found in this release may constitute forward-looking statements as
defined in the U.S. Private Securities Litigation Reform Act of
1995. Forward-looking statements reflect the speaker's current
views with respect to future events and financial performance and
include any statement that does not directly relate to a current or
historical fact. Such statements reflect the current risks,
uncertainties and assumptions related to certain factors including,
without limitations, competitive factors, general economic
conditions, customer relations, uncertainties related to the
availability and costs of financing, the interpretation and actual
results of the Norra Karr preliminary feasibility study, unexpected
geological conditions, success of future development initiatives,
imprecision in resource estimates, ability to obtain necessary
permits and approvals, relationships with vendors and strategic
partners, the interest rate environment, governmental regulation
and supervision, seasonality, technological change, changes in
industry practices, changes in world metal markets, changes in
equity markets, environmental and safety risks, 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. Forward-looking statements cannot be guaranteed
and actual results may vary materially due to the uncertainties and
risks, known and unknown, associated with such statements.
Shareholders and other readers should not place undue reliance on
"forward-looking statements," as such statements speak only as of
the date of this release.
SOURCE Tasman Metals Ltd.