EXHIBIT 99.1
AMENDED AND RESTATED
TECHNICAL REPORT
FOR
OLSERUM REE DEPOSIT,
SOUTHERN SWEDEN
AMENDED AND RESTATED
TECHNICAL REPORT
FOR
OLSERUM REE DEPOSIT,
SOUTHERN SWEDEN
Prepared for
TASMAN METALS LIMITED
Suite 1305 – 1090 West Georgia Street
Vancouver, British Columbia
V6E 3V7 Canada
By
Geoffrey Charles Reed
B AppSc, MAusIMM (cp)
Reed Leyton Consulting
PO BOX 6071
DURAL NSW 2158
AUSTRALIA
Report date: 2nd April 2013
Amended: 20th June 2013
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TABLE OF CONTENTS
1. | SUMMARY | 6 |
2. | INTRODUCTION | 10 |
Terms of Reference | 10 | |
Swedish Nomenclature | 10 | |
Disclaimer | 11 | |
3. | RELIANCE ON OTHER EXPERTS | 12 |
4. | PROPERTY DESCRIPTION and LOCATION | 14 |
Property Ownership | 14 | |
Swedish Mining Laws and Regulations | 15 | |
Environmental Liability and Permitting | 17 | |
5. | ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE and PHYSIOGRAPHY | 19 |
General | 19 | |
Climate | 19 | |
Accessibility | 19 | |
Local Resources and Infrastructure | 19 | |
Physiography | 22 | |
6. | HISTORY | 23 |
Historical Deposit Ownership and Exploration | 23 | |
Historical Estimates | 24 | |
7. | GEOLOGICAL SETTING and MINERALISATION | 25 |
Regional Geology | 25 | |
Local Geology | 25 | |
Major Rock Types | 27 | |
Mineralization | 29 | |
8. | DEPOSIT TYPES | 33 |
9. | EXPLORATION | 34 |
IGE Nordic AB (2003-2008) | 34 | |
Norrsken Energy Ltd (2008-2011) | 36 | |
Tasman Metals Ltd (2011-2013) | 36 | |
10. | DRILLING | 38 |
IGE Nordic AB (2003-2008) | 38 |
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Tasman Metals Ltd. (2011-2013) | 38 | |
11. | SAMPLE PREPARATION, ANALYSIS and SECURITY | 42 |
Surface Sampling | 42 | |
Drill Core Handling and Sample Preparation | 42 | |
12. | DATA VERIFICATION | 52 |
Density | 60 | |
13. | MINERAL PROCESSING AND METALLURGICAL TESTING | 62 |
14. | MINERAL RESOURCE ESTIMATES | 64 |
Resource Data | 64 | |
15. | MINERAL RESERVE ESTIMATES | 81 |
16. | MINING METHODS | 81 |
17. | RECOVERY METHODS | 81 |
18. | PROJECT INFRASTRUCTURE | 81 |
19. | MARKET STUDIES and CONTRACTS | 81 |
20. | ENVIRONMENTAL STUDIES. PERMITTING and SOCIAL or COMMUNITY IMPACT | 82 |
Environmental Permitting Requirements | 82 | |
21. | CAPITAL and OPERATING COSTS | 83 |
22. | ECONOMIC ANALYSIS | 83 |
23. | ADJACENT PROPERTIES | 83 |
24. | OTHER RELEVANT DATA and INFORMATION | 83 |
25. | INTERPRETATION and CONCLUSIONS | 83 |
26. | RECOMMENDATIONS | 84 |
27. | REFERENCES | 85 |
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LIST OF FIGURES | |||
Figure 1: Regional Location Plan of Tasman Metals Ltd’s Olserum REE Project, Sweden | 15 | ||
Figure 2: The Olserum Project Area is very close to water | 20 | ||
Figure 3: Olserum Project Area road access | 20 | ||
Figure 4: Olserum Project Area is close to Rail | 21 | ||
Figure 5: The Olserum Project Area is close to the Port of Vastervik | 21 | ||
Figure 6: Topography and Access of the Olserum Project Area | 22 | ||
Figure 7: Simplified Geological Map of Västervik area | 26 | ||
Figure 8: Preserved heavy mineral beds in Västervik formation | 27 | ||
Figure 9: Bi-directional ripple-laminated sandstone eroded by the overlying set | 27 | ||
Figure 10: BSE images of sample OLR12002b. | 30 | ||
Figure 11: Mineral chemistry of monazites from sample OLR12002b. | 32 | ||
Figure 12: Olserum Magnetite Outcropp Map 2005 | 34 | ||
Figure 13: Olserum Lithology Map 2005 | 35 | ||
Figure 14: Olserum Ground Magnetics Map 2007 | 35 | ||
Figure 15: Olserum Bedrock Map and Rock Code Mapping Locations 2012 | 36 | ||
Figure 16: Drilling at the Olserum Project Area, SWEREF99 TM Grid | 39 | ||
Figure 17: Drill Rig At The Olserum Project, 2012 | 41 | ||
Figure 18: Olserum Project – Core orientation marks on 2012 drilling program Drill core | 43 | ||
Figure 19: Olserum Project – Core logging facility | 44 | ||
Figure 20: Olserum Project – Density measurement equipment | 46 | ||
Figure 21: Olserum Project – Core cutting equipment | 46 | ||
Figure 22: Duplicate data for Ce, Dy and Y | 50 | ||
Figure 23: Olserum Project – Drill hole Collar June 2012 (with the author) | 52 | ||
Figure 24: Olserum Project – Drill hole Collar OLOO513, June 2012 | 53 | ||
Figure 25: Duplicat data for Ce, Dy and Y | 57 | ||
Figure 26: All 458 Bulk Density Determinations, Olserum | 61 | ||
Figure 27: Domain ‘RM’ Bulk Density Determinations | 61 | ||
Figure 28: Processing Flowsheet for Monazite REE Mineralization | 63 | ||
Figure 29: Histogram of raw Sample Lengths for Olserum | 67 | ||
Figure 30: Mineral Resource Cross Section. Olserum | 70 | ||
Figure 31: Olserum Log Histogram for TREO (ppm) | 72 | ||
Figure 32: Olserum Log Probability Plot for TREO (ppm) | 72 | ||
Figure 33: Olserum Dip Plan Continuity Plot for TREO (ppm) | 73 | ||
Figure 34: Olserum Variogram Plot for TREO (ppm) | 73 | ||
Figure 35: Olserum Directional Variogram Plot for TREO (ppm) | 73 | ||
Figure 36: Olserum Grade and Cumulative Tonnage At Various Cut Off Grades | 79 |
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LIST OF TABLES | |||
Table 1: Indicated Resource Estimate for the Olserum Deposit. | 8 | ||
Table 2: Inferred Resource Estimate for the Olserum Deposit. | 8 | ||
Table 3: Indicated Resource Estimate grade averages for all REO’s at various cut-offs | 8 | ||
Table 4: Inferred Resource Estimate grade averages for all REO’s at various cut-offs | 9 | ||
Table 5: Claim Details, Tasman Metals AB | 14 | ||
Table 6: Drilling History of the Olserum project | 23 | ||
Table 7: Olserum REE Project Historical Mineral Resource Estimate | 24 | ||
Table 8: Olserum Mineral Assays on Apatite Performed By EMP | 31 | ||
Table 9: Samples Collected by Tasman | 37 | ||
Table 10: Olserum Project - Summary of 2004/2005 and 2012 drilling program. | 38 | ||
Table 11: Olserum Drill Collar coordinates (SWEREF99 TM Grid) | 40 | ||
Table 12: Samples Collected by Tasman geologists and the Author | 42 | ||
Table 13: Samples Collected by Tasman geologists and the Author | 44 | ||
Table 14: Elements & Ranges (ppm). Method ME-MS81 | 48 | ||
Table 15: Accuracy and Precision of Certified Values and Chemex Assays | 49 | ||
Table 16: Check Sample Intervals By The Author | 55 | ||
Table 17: Drill Core Re-Sampled for Check Analysis. Matched With Original Assays | 58 | ||
Table 18: Olserum Drilling Database Summary | 64 | ||
Table 19: Olserum In Resource Drilling Summary | 65 | ||
Table 20: Summary Statistics all drillholes | 67 | ||
Table 21: Summary Statistics all Mineralised domains (RM) | 67 | ||
Table 23: Olserum Block Model Parameters 67 | 69 | ||
Table 24: Block Model Parameters for all Block Models | 71 | ||
Table 25: Search Parameters for Olserum | 71 | ||
Table 26: Estimation Parameters for Olserum | 71 | ||
Table 27: Indicated Resource Estimate for the Olserum Deposit. | 76 | ||
Table 28: Inferred Resource Estimate for the Olserum Deposit. | 76 | ||
Table 29: Indicated Resource Estimate grade averages for all REO’s at various cut-offs. | 77 | ||
Table 30: Inferred Resource Estimate grade averages for all REO’s at various cut-offs. | 77 | ||
Table 31: Olserum grade and cumulative tonnage at various cut off grades | 78 | ||
Table 32: Olserum – Drillholes and intervals Used in Resource Calculation | 79 | ||
Table 33: Olserum Follow Up Drilling Program | 84 | ||
Table 34: Olserum Metallurgical Test Program | 84 |
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1. | SUMMARY |
Reed Leyton Consulting (“ReedLeyton”) was requested by Tasman Metals Ltd. (“Tasman”) to provide a Technical Report that meets the requirements of Canadian National Instrument 43-101 (“NI 43-101”), for the Olserum rare earth element (REE) project, located in the vicinity of the village of Gamleby, southeastern Sweden. Olserum is an exploration project (“the Project”) for REE’s associated with a hydrothermally overprinted REE-bearing meta-sediment.
This report has been prepared in accordance with the guidelines provided in NI 43-101 technical report, Standards of Disclosure for Mineral Projects, dated June 30, 2011. The Qualified Person responsible for this report is Mr. Geoff Reed (“the Author”), Senior Consulting Geologist for Reed Leyton. Mr. Reed completed a site visit the week of June 10, 2012, to review existing geology, core logging and the project setting.
Tasman holds its mineral properties indirectly through its 100% owned subsidiary, Tasmet AB. Tasmet AB holds a 100% interest in six mineral claims that together form the Olserum Project. In October 2011, Tasman purchased one of the six Olserum mineral claims outright from a private UK registered company, Norrsken Energy Ltd for a total consideration of 37,746 fully paid shares in Tasman Metals Ltd.
The project area is located in the municipally of Västervik which lies within the county of Kalmar, southeast Sweden. It is located approximately 220 km southwest of the Swedish Capital Stockholm and 30 km northwest of the port town of Västervik.
The Olserum property has an undulating terrain at an average elevation of about 60m ASL. Pine and spruce dominates the vegetation with minor birch, alder and oak. Outcrops are abundant throughout the area and the property has a network of gravel roads connected to the main road together with an active railway which passes though the property.
Olserum has a temperate climate with warm pleasant summers and moderately cold winters. The winters are variable with snowfall depending on the particular year. Scandinavia, like the rest of north-western Europe, is influenced by the Gulf Stream which moderates the climate. Olserum receives 40-70 mm of rainfall per month.
Olserum is part of the Västervik formation which is a siliciclastic metasedimentary succession and was deposited in a delta environment between ~1.88 – 1.85 Ga at the southern Svecofennian continental margin. Following deposition, the Västervik formation was subsided and suffered high temperature / low pressure metamorphism when granites belonging to the Trans-Scandinavian Igneous Belt (TIB) intruded the sedimentary sequence. The Västervik Formation is a syncline with horizontal fold axis, up to 5 km thick and 50 km in length and trends northwest-southeast. Olserum lies as a window in the northwestern edge completely surrounded by TIB granites. Primary sedimentary structures have been documented in several places around the Västervik Formation together with observations of heavy mineral beds.
At Olserum, metamorphic grade has obliterated primary structures seen elsewhere around the Västervik Formation. The metasedimentary sequence in Olserum trends E-W, is approximately 600m by length and up to 100m wide. Its contacts towards the TIB granite are steep dipping towards north followed by thrusts faulting in the TIB at its northern contacts. The principal lithologies that comprise the Olserum metasedimentary sequence are predominantly biotite/amphibole bearing quartzite, quartzitic gneiss and gneiss being interpreted as former psammites, together with a biotite/magnetite bearing quartzite, being interpreted as former heavy mineral beds and now as placer deposits.
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The REE mineralization at Olserum is mainly hosted by the minerals monazite and xenotime. Apatite occurs in abundance but is only a minor REE carrier. Metamorphic events accompanied by metasomatism have hydrothermally overprinted REE-bearing metasediment. Although apatite, monazite and xenotime likely existed as primary minerals, studies suggest that the phosphate minerals are of metamorphic origin, formed by hydrothermal processes. Monazite and xenotime occurs abundant as inclusions in apatite, biotite and minor amphibolites but also as medium grained and coarse grained subhedral to euhedral grains in patches, veins and breccias. It is interpreted that apatite has formerly been a major REE carrier but was leached during metamorphism and precipitated monazite and xenotime hosted as inclusions in apatite. The inclusions occur mainly in the core of the apatites which suggest that the inclusions in the rims has at some stage been leached out and precipitated within the rock.
Due to the metamorphic and hydrothermal overprint the rare earth bearing phosphates have been widely distributed throughout the metasedimentary package, resulting in low grade but large tonnage mineralization with high percentage of heavy rare earth elements (HREE). The heavy rare earth elements are mainly situated in xenotime. The highest REE grade is associated with magnetite bands and veins hosted in biotite and/or amphibole rich quartzites. The host rock itself is mineralized through inclusions of monazite and xenotime in biotite and through thin irregular magnetite veins. This leads to the identification of mainly one domain, the Metasedimentary (MSED) which itself is mineralized and host to the sub-units Biotite-Magnetite-Rare earth bearing unit (BMR) and Biotite-Magnetite-Rare Earth-Skarny unit (BMRS).
A new Mineral Resource Estimate for Total Rare Earth Oxides (“TREO”), Total Heavy Rare Earth Oxides (“HREO”) and Total Light Rare Earth Oxides (“LREO”) is shown in Table 1-2 at varying cut-off grades. ReedLeyton however recommends 0.4% TREO as the appropriate applied cut-off for comparative purposes. This Mineral Resource Estimate has been prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards as adopted on November 27th 2010. The Project consists of an exploration property and it does not contain Mineral Reserves as defined by CIM standards.
The Mineral Resource Estimate was prepared using the following steps: data validation; data preparation; geological interpretation and modelling; establishment of block models; compositing of assay intervals; exploratory data analysis of TREO; variogram analysis; derivation of kriging plan and boundary conditions; grade interpolation of TREO; validation of TREO grade estimates; classification of estimates with respect to Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") guidelines; and then resource tabulation and resource reporting.
Classification was applied based on geological confidence, data quality and grade variability.
Mineral Resources were modeled by ReedLeyton Consulting applying six different total rare earth oxide (TREO) cut-off grades, with a base-case resource estimated using a TREO cut-off of 0.4% (Table 1 and 2). At this cut-off, Olserum hosts an Indicated Mineral Resource of 4.5 million tonnes grading 0.60% TREO and an Inferred Mineral Resource of 3.3 million tonnes grading 0.63% TREO both with 34% of the TREO being the higher value HREO. Table 3 and Table 4 provide the grade averages for rare earth oxides at the various cut-offs.
The calculated tonnage figures are literal, whereas the accuracy of the technique suggests that the values should be rounded to better reflect the order of accuracy. Hence the author has rounded the mineralisation tonnage to the nearest ten thousand tonnes as shown on Table 1 and 2.
In order to demonstrate that the mineralization as estimated in the block model has a reasonable expectation of being mined at some time in the foreseeable future, ReedLeyton completed a mining optimisation exercise. As
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the mining concept for the Olserum Deposit is currently surface mining, Whittle® software was used to generate a conceptual pit shell. Notwithstanding the pit optimisation exercise, it has not resulted in an engineered and operational open-pit mine design. Operating assumptions used for the Whittle® pit shell are provided in Section 14 below, and were based on the operating assumptions known from Tasman’s more advanced Norra Karr REE project that lies 100km northwest of Olserum with similar grade and surface aspect.
Overall, ReedLeyton considers these assumptions are fair for the purpose of determining reasonable prospects for economic extraction of the Olserum deposit but do not demonstrate that the mineralization is economic, since the exercise is not at the level of a Preliminary Economic Assessment and does not conform to the studies required for a Preliminary Economic Assessment.
ReedLeyton found that, apart from a portion of the mineralization that falls below the pit shells prepared, the majority of the resource block model reports from within the pit shell. The resource reporting below the pit shell is not considered impaired (and was not removed from the resource estimated herein) as it is of a grade that can be considered for possible future underground extraction (should the confidence in the resource estimates be improved).
Table 1: Indicated Resource Estimate for the Olserum Deposit.
TREO % Cut-off | Million Tonnes | TREO % | % of HREO in TREO | Dy2O3 | Y2O3 | Ce2O3 | Tonnes of Contained TREO |
0.7 | 1.0 | 0.89 | 32.3 | 0.029 | 0.180 | 0.270 | 794,791 |
0.6 | 1.7 | 0.78 | 32.9 | 0.026 | 0.161 | 0.241 | 1,208,894 |
0.5 | 3.0 | 0.68 | 33.3 | 0.023 | 0.142 | 0.213 | 1,695,737 |
0.4 | 4.5 | 0.60 | 33.9 | 0.021 | 0.128 | 0.194 | 2,076,567 |
0.3 | 6.3 | 0.53 | 34.4 | 0.019 | 0.115 | 0.176 | 2,381,878 |
0.2 | 7.7 | 0.48 | 34.5 | 0.017 | 0.104 | 0.166 | 2,505,535 |
Table 2: Inferred Resource Estimate for the Olserum Deposit.
TREO % Cut-off | Million Tonnes | TREO % | % of HREO in TREO | Dy2O3 | Y2O3 | Ce2O3 | Tonnes of Contained TREO |
0.7 | 0.9 | 0.85 | 31.8 | 0.029 | 0.167 | 0.270 | 794,791 |
0.6 | 1.6 | 0.77 | 32.5 | 0.026 | 0.155 | 0.241 | 1,208,894 |
0.5 | 2.5 | 0.69 | 33.6 | 0.024 | 0.145 | 0.213 | 1,695,737 |
0.4 | 3.3 | 0.63 | 33.7 | 0.022 | 0.132 | 0.194 | 2,076,567 |
0.3 | 4.2 | 0.57 | 33.9 | 0.020 | 0.121 | 0.176 | 2,381,878 |
0.2 | 4.7 | 0.54 | 33.9 | 0.019 | 0.113 | 0.166 | 2,505,535 |
Table 3: Indicated Resource Estimate grade averages for all REO’s at various cut-offs for Olserum.
TREO % Cut-off | La2O3 | Ce203 | Pr203 | Nd203 | Sm203 | Eu203 | Gd203 | Tb203 | Dy203 | Ho203 | Er203 | Tm203 | Yb203 | Lu203 | Y203 |
0.7 | 0.125 | 0.281 | 0.034 | 0.131 | 0.029 | 0.001 | 0.029 | 0.005 | 0.029 | 0.006 | 0.017 | 0.002 | 0.015 | 0.002 | 0.180 |
0.6 | 0.109 | 0.244 | 0.030 | 0.115 | 0.026 | 0.001 | 0.026 | 0.004 | 0.026 | 0.005 | 0.015 | 0.002 | 0.014 | 0.002 | 0.161 |
0.5 | 0.094 | 0.212 | 0.026 | 0.100 | 0.023 | 0.001 | 0.023 | 0.004 | 0.023 | 0.005 | 0.014 | 0.002 | 0.012 | 0.002 | 0.142 |
0.4 | 0.083 | 0.186 | 0.023 | 0.088 | 0.020 | 0.001 | 0.021 | 0.004 | 0.021 | 0.004 | 0.012 | 0.002 | 0.011 | 0.002 | 0.128 |
0.3 | 0.072 | 0.163 | 0.020 | 0.077 | 0.018 | 0.000 | 0.018 | 0.003 | 0.019 | 0.004 | 0.011 | 0.002 | 0.010 | 0.001 | 0.115 |
0.2 | 0.065 | 0.147 | 0.018 | 0.070 | 0.016 | 0.000 | 0.017 | 0.003 | 0.017 | 0.004 | 0.010 | 0.001 | 0.009 | 0.001 | 0.104 |
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Table 4: Inferred Resource Estimate grade averages for all REO’s at various cut-offs for Olserum
TREO % Cut-off | La2O3 | Ce203 | Pr203 | Nd203 | Sm203 | Eu203 | Gd203 | Tb203 | Dy203 | Ho203 | Er203 | Tm203 | Yb203 | Lu203 | Y203 |
0.7 | 0.118 | 0.270 | 0.033 | 0.129 | 0.030 | 0.001 | 0.029 | 0.005 | 0.029 | 0.006 | 0.016 | 0.002 | 0.014 | 0.002 | 0.167 |
0.6 | 0.105 | 0.241 | 0.030 | 0.115 | 0.027 | 0.001 | 0.026 | 0.005 | 0.026 | 0.005 | 0.015 | 0.002 | 0.013 | 0.002 | 0.155 |
0.5 | 0.093 | 0.213 | 0.026 | 0.102 | 0.024 | 0.001 | 0.024 | 0.004 | 0.024 | 0.005 | 0.014 | 0.002 | 0.012 | 0.002 | 0.145 |
0.4 | 0.084 | 0.194 | 0.024 | 0.093 | 0.022 | 0.001 | 0.022 | 0.004 | 0.022 | 0.005 | 0.013 | 0.002 | 0.011 | 0.002 | 0.132 |
0.3 | 0.077 | 0.176 | 0.022 | 0.084 | 0.020 | 0.000 | 0.020 | 0.003 | 0.020 | 0.004 | 0.012 | 0.002 | 0.010 | 0.001 | 0.121 |
0.2 | 0.072 | 0.166 | 0.020 | 0.079 | 0.018 | 0.000 | 0.019 | 0.003 | 0.019 | 0.004 | 0.011 | 0.002 | 0.010 | 0.001 | 0.113 |
Notes:
1 | Total Rare Earth Oxides (TREO) includes: La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3 |
2 | Heavy Rare Earth Oxides (HREO) includes: Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3 |
3 | The calculated resource is sensitive to cut-off grade which will be influenced by metallurgical operating costs. Bench scale metallurgical tests were completed on an Olserum composite sample by Swedish consultants Minpro AB in 2005. |
4 | The mineral resource estimate was completed by Mr. Geoffrey Reed, Senior Consulting Geologist of ReedLeyton Consultants Pty Ltd, and is based on geological and geochemical data supplied by Tasman, audited by Mr. Reed. Mr. Reed is an independent qualified person for the purposes of NI 43-101 standards of disclosure for mineral projects of the Canadian Securities Administrators. |
5 | The resource estimate has been classified as an Indicated and Inferred Resource based on the distance-space between sample data within the current deposit outline. Variograms were obtained from the variography study of TREO, with the continuity analysis showing a reasonable fit model in the major and semi major direction for the mineralised domains. |
6 | The resource estimate is based on: - A database of 31 drill holes totalling 5,297m of diamond drilling completed by Tasman and the previous owner IGE Nordic since 2004 where samples were composited on 1m lengths. All Assays by Tasman and IGE Nordic were completed at ALS Chemex’s Vancouver Laboratory. - Specific gravity (SG) has an overall mean of 2.70 g/cc from 458 SG readings. The mean of the mineralisation of 2.82 g/cc was used in the estimate and a mean of the host rock of 2.67 g/cc was used in the estimate - Block model was estimated by ordinary kriging interpolation method on blocks 5m (x) x 20m (y) x 10m (z). - Beneficiation test work has been completed at Olserum. Magnetic and gravity tests produced a 5.5% TREO grade concentrate with 78% recovery. Optimization is in progress. Hydrometallurgy tests are in progress and no information was available at the time of this resource calculation, however the xenotime/monazite mineralogy has been a previous source of REE’s and processing method is well known. |
7 | Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. Inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. |
The author confirmed with Directors of Tasman Metals Ltd that no material activity has taken place with regard to the projects since the author’s visit. The author believes that the site visit is still current, and that there is no material change since then to the information in this report.
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2. INTRODUCTION
Terms of Reference
Reed Leyton Consulting (“ReedLeyton”) was requested by Tasman Metals Ltd. (“Tasman”) to provide a Technical Report that meets the requirements of Canadian National Instrument 43-101 (“NI 43-101”), for the Olserum Project (“the Project”) which lies in the vicinity of the village of Gamleby, southeastern Sweden. This report has been prepared in accordance with the guidelines provided in NI 43-101 technical report, Standards of Disclosure for Mineral Projects, dated June 30, 2011. The Qualified Person responsible for this report is Mr. Geoff Reed (CP) (“the Author”), Senior Consulting Geologist for ReedLeyton. Mr. Reed completed a site visit the week of June 10, 2012, accompanied by Mr. Glenn Patriksson, Tasman’s Senior Geologist to review existing geology, core logging and the project setting.
Tasman holds its mineral properties indirectly through its 100% owned subsidiary, Tasman Metals AB. Tasman Metals AB holds a 100% interest in six mineral claims that together form the Olserum Project.
This Technical Report includes a Mineral Resource estimate. The Project consists of an exploration property and it does not contain Mineral Reserves as defined by CIM standards.
The following terms of reference are used in the Technical Report:
· | Tasman refers to Tasman Metals Ltd. |
· | ReedLeyton refers to Reed Leyton Consulting and its representatives. |
· | Project refers to the Olserum deposit located near Gamleby, Sweden. |
· | Yttrium and other rare earth element grades are described in terms of percentage (%), with tonnage stated in dry metric tonnes. |
· | Resource and Reserve definitions are as set forth in the “Canadian Institute of Mining, Metallurgy and Petroleum, CIM Standards on Mineral Resource and Mineral Reserves – Definitions and Guidelines” adopted by CIM Counsel on November 27, 2010. |
Swedish Nomenclature
Some Swedish names and abbreviations have been used in this report. The Swedish suffix “AB” is a contraction of “Aktiebolag” and means “company”.
Abbreviation | English | Swedish |
ASL | Above Sea Level | |
CDN$ | Canadian Dollars | |
HREO | Heavy Rare Earth Oxide | |
LREO | Light Rare Earth Oxide | |
NSG | Swedish Bureau of Mines | |
ppm | parts per million | |
REE | Rare Earth Elements | |
REO | Rare Earth Oxide | |
SBS | Swedish Inspectorate of mines | Bergsstaten |
SEK | Swedish Krone | |
SGAB | Swedish Geology Company | Sveriges Geologiska AB |
SGU | Geological Survey of Sweden | Sveriges Geologiska Undersökning |
TREO | Total Rare Earth Oxide |
Monetary amounts referred to are in Canadian dollars (CAD) or Swedish Kronor (SEK)
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Disclaimer
The statements and opinions expressed in this document are given in good faith and in the belief that such statements and opinions are not false or misleading at the date of this report.
This qualifying technical report includes "forward-looking statements" within the meaning of applicable securities laws. All statements, other than statements of historical fact included herein, including without limitation, statements regarding mineralization, grades and values, Mineral Resources estimates, and the possible future plans and objectives of Tasman are forward-looking statements that involve varying risks and uncertainties. There can be no assurance that any such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements can be identified by the use of words or variations of such words and phrases that refer to certain actions to be taken, anticipated, or forecast events or results that will occur or may be achieved.
Although the author has attempted to identify factors that could cause actual actions, events or results to differ materially from those suggested or described in forward-looking statements, there may be other factors that could cause unanticipated, unestimated or unintended actions, events or results. There can be no assurance or guarantee that any such forward-looking statements will prove to be accurate or even substantially correct, since actual results and future events could differ materially from those anticipated in such statements. The author and Tasman disclaim any intent or obligation to update any forward-looking statements except as may be required by applicable securities laws.
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3. RELIANCE ON OTHER EXPERTS
This Technical Report is based on reports, plans and tabulations provided by Tasman either directly from the exploration offices, or from reports by other organisations whose work is the property of Tasman. The historical work outlined in this report is based on published sources and unpublished reports, maps and data provided by Tasman. The data has been reviewed by Tasman to ensure its quality and accuracy. ReedLeyton have exercised all due care in reviewing the documents provided and attempted to verify the quality and accuracy of the data. It is believed that the supplied information and assumptions are factual and correct and that the interpretations are reasonable and there is no reason to believe that any material facts have been withheld.
ReedLeyton has independently calculated Mineral Resources for the Olserum deposit by using both historical and Tasman’s drilling and assay data. Data used for this calculation was provided in a database formed by Tasman. Reference to original data sources showed this database to be both correct and complete.
This Technical Report was prepared for Tasman by ReedLeyton and is based on information prepared by other parties. ReedLeyton has gained information provided in the following report:
· | IGE, 2007. The Rare Earth Deposit Olserum Sweden. IGE Nordic AB internal report. |
While it is apparent that the work of the IGE Nordic was completed in a very methodical and highly professional manner, ReedLeyton Consulting has not independently verified the accuracy and completeness of all of the information and data utilised by the IGE Nordic in its original estimates.
Personnel from ReedLeyton travelled to the Olserum Project with representatives from Tasman in June 2012. During this visit, a thorough validation of hole collar positions was undertaken using GPS. 16 drill holes from 14 drill hole positions were checked and found to be accurately surveyed. Drill collar orientation was also checked and found to be consistent with the drill database as supplied to the author. Key geological features were surveyed during this visit such as magnetite, apatite and monazite-rich outcrops. These were later reconciled with the extrapolated positions from the drill hole logging and found to correlate well.
The author also travelled to the core archive facilities of the Swedish Geological Survey in Malå where Tasman’s core is securely stored. Five holes were selected by ReedLeyton for re-logging which were laid out in their entirety and logged. The re-logging of these holes confirmed the correlation of the higher grade zones with zones of higher apatite/monazite intensity and subsequently assisted in the interpretation of the high grade domains within the broader resource area. ReedLeyton checked a random amount of hard copy logs against the data provided in the database. These did not indicate any issue with data integrity.
In the acquisition of Olserum from Norrsken Energy Ltd an access database was handed over which included drill hole collar, assay, deviation survey and logging done by IGE Nordic from their 2004-2005 drilling project. All original files including assay certificates are also in Tasman’s possession. The author is of the opinion that these documents are authentic. Adequate validation of this data was completed by Mr Geoff Reed.
While ReedLeyton has relied upon the above noted work, information and advice of other persons to prepare this Technical Report, Geoff Reed, the Qualified Person responsible for the preparation of this Technical Report does not disclaim any responsibility for the Technical Report on such basis. Mr. Reed has taken the steps which are appropriate, in his professional judgment, to ensure that that such work, information and advice relied upon is sound.
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Mineral law information and claim documentation was provided by Tasman staff, and confirmed via the Mining Inspectorate of Sweden website (www.bergsstaten.se). ReedLeyton believes that this information is reliable for use in this report, without a need to further independently verify its accuracy. ReedLeyton has not conducted land status evaluations, and has relied upon Tasman’s statements regarding property status, legal title, and environmental compliance for the Project. As such ReedLeyton and Geoff Reed, the Qualified Person responsible for the preparation of this Technical Report, disclaim responsibility for Section 4 of this Technical Report which is based entirely on such information and statements.
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4. PROPERTY DESCRIPTION and LOCATION
Property Ownership
The Olserum Project consists of six claims, Olserum nr2, Överum nr1, Överum nr2, Överum nr3, Överum nr4 and Överum nr5, together covering of 6230.8 hectares. Claim details are summarized in Table 5. Olserum nr2 was purchased outright by Tasman In October 2011, from a private UK registered company, Norrsken Energy Ltd for a total consideration of 37,746 fully paid shares in Tasman Metals Ltd.
The Project is located approximately 30 km northwest of the port town of Västervik and is centered at coordinate 580 078E / 64 23 773N by the Swedish coordinate system (SWEREF 99 TM). The Swedish coordinate system corresponds to 58 degrees 56.9074’minutes North and 16 degrees 21.1715’minutes East by WGS 84 world coordinate system.
The Project is situated in the municipally of Västervik which lies within the county of Kalmar. The general location of the project is shown in Figure 1.
Table 5: Claim Details, Tasman Metals AB
Olserum nr2 | Granted: | March 9, 2006 | ||
Valid to: | March 9, 2014 | |||
Area: | 1100.00 Ha | |||
Corner Points: | 1 | 6 425 696 N | 577 228 E | |
2 | 6 425 720 N | 579 124 E | ||
3 | 7 424 720 N | 579 136 E | ||
4 | 6 424 786 N | 584 634 E | ||
5 | 6 423 287 N | 584 651 E | ||
6 | 6 423 215 N | 578 654 E | ||
7 | 6 424 714 N | 578 636 E | ||
8 | 6 424 697 N | 577 137 E | ||
Överum nr1 | Granted: | December 15, 2011 | ||
Valid to: | December 15, 2014 | |||
Area: | 1303.93 | |||
Corner Points: | 1 | 6 428 891 N | 572 588 E | |
2 | 6 426 338 N | 576 467 E | ||
3 | 6 424 139 N | 576 493 E | ||
4 | 6 426 263 N | 571 045 E | ||
Överum nr2 | Granted: | December 15, 2011 | ||
Valid to: | December 15, 2014 | |||
Area: | 1126.00Ha | |||
Corner Points: | 1 | 6 426 338 N | 576 467 E | |
2 | 6 426 392 N | 581 015 E | ||
3 | 6 426 416 N | 583 014 E | ||
4 | 6 424 777 N | 583 034 E | ||
5 | 6 424 731 N | 579 146 E | ||
6 | 6 425 730 N | 579 134 E | ||
7 | 6 425 706 N | 577 115 E | ||
8 | 6 424 686 N | 577 127 E | ||
9 | 6 424 704 N | 578 626 E | ||
10 | 6 423 205 N | 578 644 E | ||
11 | 6 422 885 N | 578 648 E | ||
12 | 6 424 139 N | 576 493 E | ||
Överum nr3 | Granted: | December 15, 2011 | ||
Valid to: | December 15, 2014 | |||
Area: | 621.77 Ha | |||
Corner Points: | 1 | 6 423 205 N | 578 644 E | |
2 | 6 423 277 N | 584 662 E | ||
3 | 6 423 568 N | 585 598E | ||
4 | 6 423 340 N | 585 751 E | ||
5 | 6 422 898 N | 583 886 E |
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6 | 6 421 382 N | 580 835 E | ||
7 | 6 422 885 N | 578 648 E | ||
Överum nr4 | Granted: | December 15, 2011 | ||
Valid to: | December 15, 2014 | |||
Area: | 936.15 Ha | |||
Corner Points: | 1 | 6 431 298 N | 581 607 E | |
2 | 6 430 165 N | 582 970 E | ||
3 | 6 426 416 N | 583 015 E | ||
4 | 6 426 392 N | 581 015 E | ||
5 | 6 427 606 N | 581 301 E | ||
6 | 6 430 033 N | 580 272 E | ||
Överum nr5 | Granted: | December 15, 2011 | ||
Valid to: | December 15, 2014 | |||
Area: | 1175.69 Ha | |||
Corner Points: | 1 | 6 430 165 N | 582 970 E | |
2 | 6 426 716 N | 587 190 E | ||
3 | 6 426 126 N | 586 317 E | ||
4 | 6 425 502 N | 584 295 E | ||
5 | 6 424 792N | 584 304 E | ||
6 | 6 424 777 N | 583 034 E | ||
7 | 6 426 416 N | 583 015 E |
Figure 1: Regional Location Plan of Tasman Metals Ltd’s Olserum REE Project, Sweden
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Swedish Mining Laws and Regulations
Swedish mining laws pertaining to mineral exploration changed profoundly in 1992 when the new Minerals Act of 1991 (effective July 1 1992) for the first time allowed foreign ownership of mineral title in Sweden. The right of the Swedish state to acquire 50 per cent of a mine was repealed a year later. Exploration permits and mining licences approved before July 1 1992 are governed by the Minerals Act of 1974 that does not permit foreign ownership of mineral title or surface rights.
Further amendments were enacted in 1998 that include the requirement that the results of subsequent exploration work had to be reported upon surrender of the claims. However, upon request, these submissions
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were subject to a confidentiality period of up to four years. As a result of these changes, there are little or no exploration data in the public domain on claims that were worked in the years 1992 to 1998.
Rules and regulations pertaining to mining exploration in Sweden are clearly outlined in the “Guide to Mineral Legislation and Regulations in Sweden” (2000) available from the offices or the website of the Geological Survey (www.sgu.se). The Mining Inspectorate of Sweden provides clear directives, available from the Inspectorate website (www.bergsstaten.se), for conducting exploration. Another useful link that summarizes these laws and guidelines is A Guide to Mineral Legislation and Regulations: (http://www.geonord.org/law/minlageng.html)
Tasman has, or will address all requirements before undertaking any exploration activities. Tasman has the rights to access the property, and no restrictions or limitations as defined for work on the projects are evident. Tasman has the obligation to outline a work program and gain permission from landholders prior to accessing the properties, and to provide compensation for any ground-disturbing work conducted.
Exploration permits are granted for specified areas that are judged by the Mining Inspectorate to be of suitable shape and size that they are capable of being explored in “an appropriate manner”. The current rules do not require annual minimum expenditures on claims, but a land fee is due upon first application for an exploration permit in the amount of SEK20/hectare, covering an initial period of three years. If a claim or part of a claim is abandoned within 11 or 23 months of its granting date SEK16 or SEK10, respectively (of the original SEK20 fee) per abandoned hectare become refundable.
It is possible to extend the time a claim is held to a total of 15 years after the date of the original granting, but the annual fees per hectare increase substantially: SEK21/year/hectare for years four to six, SEK50/year/hectare for years seven to ten, and SEK100/year/hectare for years eleven to fifteen. No further extension of mineral exploration permits is allowed after year 15. The high fees in the later years discourage excessive claim holdings deemed to be of little value by the holder. An exploitation concession (mining permit) can be applied for at any time while a claim is in good standing, and may be granted for a period of up to 25 years.
An exploration permit (undersökningstillstånd) gives access to the land and an exclusive right to explore within the permit area. It does not entitle the holder to undertake exploration work in contravention of any environmental regulations that apply to the area. Applications for exemptions are normally made to the County Administrative Board.
An exploration permit is granted for a specific area where a successful discovery is likely to be made. It should be of a suitable shape and size and no larger than may be expected to be explored by the permit holder in an appropriate manner. Normally, permits for areas larger than a total of 100 hectares are not granted to private individuals. A permit is to be granted if there is reason to assume that exploration in the area may lead to the discovery of a concession mineral.
Compensation must be paid by the permit holder for damage or encroachment caused by exploration work.
When an exploration permit expires without an exploitation concession being granted, the results of the exploration work undertaken must be reported to the Mining Inspector. Exploration permits are applied for in paper to the mining inspector, using a map and list of coordinates that define the boundaries of the area in question; the metal being sought must also be stated.
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An exploitation concession (bearbetningskoncession) gives the holder the right to exploit a proven, extractable mineral deposit for a period of 25 years, which may be prolonged. Permits and concessions under the Minerals Act may be transferred with the permission of the Mining Inspector.
An exploitation concession relates to a distinct area, designated on the basis of the location and extent of a proven mineral deposit, and is normally valid for 25 years. A concession may be granted when a mineral deposit is discovered which is probably technically and economically recoverable during the period of the concession, and if the nature and position of the deposit does not make it inappropriate to grant a concession. Special provisions apply to concessions relating to oil and gaseous hydrocarbons. Under the provisions of the Environmental Code, an application for an exploitation concession is to be accompanied by an environmental impact assessment. Applications are considered in consultation with the County Administrative Board, taking into account whether the site is acceptable from an environmental point of view.
Under the rules of the Environmental Code, a special environmental impact assessment for the mining operation must always be submitted to the Environmental Court, which examines the impact of the operation on the environment in a broad sense. The Court also stipulates the conditions which the operation is to meet.
Land needed for exploitation is normally acquired by the mining company through contracts of sale or leases. If there is a contract of sale, a property registration procedure must generally be undertaken through the Land Survey authority in order for registration of title to be granted.
Before any land, inside or outside the concession area, may be used. It has to be designated by the Mining Inspector (markanvisning). This procedure usually regulates the compensation etc. to be paid to affected landowners, normally on the basis of an agreement between the company and the landowners, together with any other parties whose rights may be affected.
Mining companies (limited companies) pay corporations tax at a rate of 22% under the same rules as every other company. Accordingly, there are no special taxation rules for such companies. A royalty is paid on the value of minerals produced at a rate of 0.2%, which is shared between the landholder and the State each receiving 0.15% and 0.05% respectively.
The application fee for an exploration permit is SEK500 for each area of 2,000 hectares or part thereof. The exploration fee varies for different concession minerals and for different periods of validity. The application fee for an exploitation concession is SEK 6,000 per area.
Environmental Liability and Permitting
There are no known outstanding environmental liabilities on any of the licenses and, as required by Swedish law, all landowners identified by Tasman have been informed by the Swedish Inspectorate of Mines (Bergsstaten) that an exploration license has been applied for in accordance with Chapters 1.1 and 2 of the Mineral Act.
No environmental or planning permitting is required for geological mapping, rock chip sampling or soil sampling. Permits are required by district authorities for systematic till sampling, trenching and drilling programs. Such permits have been granted as required.
A nominal environmental bond is held by the Bergsstaten in the name of Tasman Metals AB against future disturbance that is not rectified.
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ReedLeyton consideration of the environmental and permitting aspects of the Olserum Project is based on discussions with representatives of Tasman, reports provided by Tasman and observations made during the site visit.
The Olserum asset is an early stage exploration project whose surface only has been disturbed by exploration drilling and may not attract severe environmental penalties. The Project is located in forestry and farming area 3 hours’ drive south of Stockholm and 30 kilometres from the port town of Västervik.
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5. | ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE and PHYSIOGRAPHY |
General
The Olserum property has an undulating terrain at an average elevation of about 60m ASL. Vegetation is dominated by pine and spruce with only minor deciduous trees like birch, alder and oak. Modest amounts of shrubby undergrowth occur. Outcrop is abundant throughout the area.
Olserum has a temperate climate with warm pleasant summers and moderately cold winters. Winters are variable in southern Sweden with snowfall depending on the particular year. Scandinavia, like the rest of north-western Europe, is influenced by the Gulf Stream which moderates the climate; the winter climate at this latitude would roughly be equivalent that in North America at about 5 to 10 degrees latitude further south. Except during periods of extreme winter conditions, the author is of the opinion that work could be carried out on this property on a year-round basis. Olserum receives on an average between 40-70 mm of precipitation per month.
The property is accessible by road from Stockholm on highway E22 approximately 250km south to the town of Gamleby, which lies in the archipelago of the Baltic east coast. 10km north of Gamleby a gravel road accesses Olserum from the main road to the centre of the property, a total distance of about 12 km. An active railway passes through the property and transports goods to the port in the town of Västervik which lies 30km to the southeast of Olserum.
Olserum is very close to infrastructure, services, electricity, supplies and a skilled and educated labour force. The city of Västervik lies about 30 km southeast of Olserum and has a population in excess of 20,000. The city is also the seat of Västervik municipality (kommun) hosting a population of 36,000 and is part of the larger Kalmar County (Län) which contains a population in excess of 230,000. The city is accessible by highway, rail or boat.
Northwest of Olserum, about 65 km along main road 35, lays the city of Linköping, boasting a population around 100,000. This city dates back 700 years and is known for its university and high tech industries, including the SAAB aircraft plant.
Climate
The climate is comparatively temperate, considering that Sweden is located at such a northern latitude. The climate is typical of Fennoscandia with cool summers and cold winters.The principal moderating influences are the Gulf Stream and the prevailing westerly winds, which blow in from the relatively warm Atlantic Ocean. In winter these influences are offset by cold air masses that sweep in from the east.
Field work in the area involving geochemical sampling and geological mapping is restricted to the Swedish summer (May to November), while drilling and geophysical surveying may be performed year round. Road access to all projects is via all-weather bitumen roads to the more major town centres, and then via secondary gravelled roads and forestry access tracks.
Local Resources and Infrastructure
The principal land use in the area is forestry. All social and industrial needs and services such as accommodation, provisions, supplies, communications etc. are readily and commercially available. They are of high standard,
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typical of the modern industrial democracy that is Sweden. The national power grid extends throughout the region; branch lines provide electricity to even the most remote hamlets. Water resources are plentiful. See Figures 2-5
Figure 2: The Olserum Project Area is very close to water
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Figure 3: Olserum Project Area road access
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Figure 4: Olserum Project Area is close to Rail
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Figure 5: The Olserum Project Area is close to the Port of Vastervik
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Physiography
The landscape was sculpted by extensive glaciers to form shallow lakes and extensive boggy lowlands during the most recent ice age, spanning a period between three and ten thousand years ago. Broad valleys were scoured out in the direction of glacial transport flanking low-lying hills underlain by resistant rocks. The landscape of Sweden is dominated by low rolling hills (70 percent) and flat lowlands (30 percent) comprised of bogs and lakes. Hills are mostly covered by glacial moraine and sands and forested, primarily with birch and pine.
Figure 6: Topography and Access of the Olserum Project Area
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6. HISTORY
The Olserum property is a recent discovery by Swedish standards, first identified in the 50’s during a regional exploration program. Several companies conducted exploration parallel to each other. However, it was not until the company ‘Stora Kopparberg AB’ investigated uranium in association with iron ore that Olserum was discovered. A number of uranium mineralized areas were discovered but none of economic importance.
Historical Deposit Ownership and Exploration
In the 70’s, the Swedish Geological Survey (SGU) continued to explore the sedimentary package around Västervik for uranium. The exploration included boulder hunting, radiometric and magnetic ground surveys, mapping and sampling. An attempt to classify the different types of uranium mineralisation was also completed. Uranium mineralisation was interpreted as mainly associated with magnetite bearing heavy mineral beds hosted in quartzitic gneisses. Apatite and monazite were identified together with anomalous values of yttrium, but was not investigated further for rare earths due to lack of demand at that time.
In 1990 SGU followed up earlier exploration with an attempt to identify and classify rare earth occurrences in Sweden. The previous exploration had only assayed for yttrium and not all REE’s, and in 1991 SGU followed up with site visits and sampling locations where anomalous yttrium assays or favorable REE geology was situated. Hence the rare earth mineralisation in Olserum was discovered in close association with the uranium and magnetite bearing heavy mineral beds.
In 2003 the Swedish exploration company IGE Nordic AB claimed Olserum and commenced a drilling program. By 2005 a total of 5130 meters in 31 drill holes had been completed at Olserum and adjacent areas. An internal mineral resource was calculated by IGE Nordic AB based on 15 drill holes, gave an indicated mineral resource of 2.8 million tonnes @ 0.83% TREO. This resource is historical in nature, does not meet the definitions of “mineral resource” or “indicated mineral resource” under the CIM Definition Standards on Mineral Resources and Mineral Reserves and cannot be relied upon. This resource is superseded by the resource as provided within this document in Chapter 14.
Additionally, IGE Nordic also completed a small scale test to prepare a mineral concentrate. This work was performed by Minpro in Stråssa, Sweden, who managed to produce a concentrate of weighing only 5% of the initial mass that contained 14% TREO at a recovery of 59%.
Table 6: Drilling History of the Olserum project
Hole Type | YEAR | Number of Holes | Meters | Tenement |
DD | 2003-05 | 31 | 5130.03 | Olserum |
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Historical Estimates
The Olserum deposit has an historical Mineral Resource estimate, which have previously been disclosed in accordance with paragraph 2.4(a) of the Instrument.
Table 7: Olserum REE Project Historical Mineral Resource Estimate at a TREO cut-off of 0.3**
Tenement | Tonnes (Mt) | TREO (%) | LREO % | HREO % | Tonnes of Contained TREO | |
Olserum 1 | 2.8 | 0.83 | 0.53 | 0.30 | 23,226 |
** The historical estimates quoted above are based on a report titled: “The Rare Earth Deposit Olserum, Sweden.” By IGE Nordic AB (Internal Report. 2007) where the estimate is described as a Mineraltillgång Indikerad (Indicated Mineral Resource). The resource was calculated using a wireframe method within the Micromine software, with a cut-off grade of 0.3% TREO and a minimum width of 4 metres.
Data used in calculating these Historic Mineral Resource Estimates is historical in nature and was not compiled in accordance with CIM standards. ReedLeyton Consulting has not completed sufficient exploration to verify the estimates or to classify the historical estimate as a current mineral resource. ReedLeyton Consulting is not treating them as CIM defined resources or reserves verified by a Qualified Person, and the historical estimate should not be relied upon. Other than the Mineral Resource Estimate provided in Section 14 of this Technical Report, ReedLeyton Consulting does not have, and is not aware of, any more recent estimates.
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7. GEOLOGICAL SETTING and MINERALISATION
Regional Geology
The Olserum REE mineralization is located in southeast Sweden about 10 km NW of the small town of Gamleby which lies upon the Baltic coast. It was discovered during uranium exploration in the 1950’s and was investigated for its rare earth content in the 1990’s.
The Olserum area is part of the Västervik Formation which is a metasedimentary succession that formed in the southernmost edge of the Svecofennian domain. The sequence was deposited between ~1.88-1.85 Ga, as recently determined by detrital zircon U-Pb analyses (Kleinhanns et al., 2012). The sediments have accumulated in tide dominated estuaries, river dominated deltas and in wave dominated shallow water environments within a back-arc basin as a response to a northward subduction zone (Sultan and Plink-Björklund, 2006).
Following deposition, the Västervik formation subsided and was intruded by granitoid melts between 1.85-1.8 Ga referred to as the Småland Granite belonging to the TransScandinavian Igneous Belt (TIB). The psammitic to pelitic sedimentary succession suffered high temperature / low pressure metamorphism which transformed the sequence to mica-bearing quartzites, gneisses and metapelites. However, primary sedimentary structures can still be observed in numerous places around the Västervik Formation. Within the sequence, intercalations of former black sand horizons rich in iron oxides occur in various abundance and thickness. The black sands are interpreted as alluvial deposits and being the dominant host to the rare earth mineralization. The Västervik Formation is at least 5 km thick and approximately 50 km in length. It is through a major compression event from the northeast-southwest formed as a syncline with a horizontal fold-axis trending northwest – southeast.
Local Geology
Olserum lies as a window in the north-western edge of the Västervik Formation completely surrounded by Småland granites. The surrounding granite is a red coloured, medium grained, generally massive to weakly foliated, mica deficient granite with minor disseminated magnetite. The granite has meter thick bands of conformable biotite rich gneisses and also abundant late irregular quartz veins. Some meter thick bands of REE bearing metasediment is locally tectonically intruded close to the contacts.
The Olserum metasediment trends generally E-W, is approximately 600m long and up to 100m wide. It has a total surface area of approximately 30 000 m2 (3 hectares). Amphibolite metamorphic grade has obliterated all primary sedimentary structures in Olserum which can be observed in several other places around the Västervik Formation. The contacts between the Olserum metasedimentary sequence and the Småland Granite are steep dipping towards north. Diamond drilling shows that the northern contact dips around 80 degrees towards north-northeast but also thrust faulting in the granite at its northern contact. The southern granite contact is more gradational but has been poorly investigated by drilling.
The dominant lithologies within the metasedimentary sequence are biotite/amphibole bearing quartzites, quartzitic gneiss and gneiss being interpreted as former psammites together with biotite/magnetite/apatite rich layers hosted in quartzite being interpreted as placer deposits. Extensive metasomatism accompanied metamorphic events leading to hydrothermal overprint and redistribution of the black sand horizons and the REE bearing phases. Therefore the REE bearing phosphate minerals are distributed throughout the
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metasedimentary package at Olserum, with high grade REE in the magnetite rich layers and low grade REE in the adjacent quartzites and gneisses.
The most abundant REE bearing minerals at Olserum are the phosphates monazite and xenotime. Apatite occurs in abundance but studies show that apatite only carries REE to a minor extent. All three phosphates are of metamorphic origin, formed by hydrothermal processes although a primary detrital origin is probable. Monazite and xenotime occur as inclusions in apatite and biotite and to a minor extent within amphiboles. It is suggested that apatite was a major carrier of REE but was leached during metamorphism, and monazite and xenotime was precipitated as inclusions in apatite. Due to the absence of monazite and xenotime in the rims of the apatite crystals, it is interpreted that any inclusions in the rims were leached out and precipitated elsewhere within the rock. Monazite and xenotime also occurs as medium grained to coarse grained subhedral to euhedral crystals in magnetite rich layers, veins and patches. The highest REE grades are associated with the magnetite rich bands and veins hosted in biotite/amphibole bearing quartzites. However, the host rock to the magnetite rich layers is REE bearing itself through fine grained inclusions of monazite and xenotime in biotite and amphiboles and through irregular magnetite veins and patches.
Figure 7: Simplified Geological Map of Västervik area
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Figure 8: Preserved heavy mineral beds in Västervik formation
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Figure 9: Bi-directional ripple-laminated sandstone eroded by the overlying set
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Major Rock Types
Granite (GRA)
The metasediment in Olserum is surrounded by younger granites that belong to the TransScandinavian Igneous Belt. It is a red, medium grained, massive to foliated rock. It has low biotite content and usually has weak magnetite dissemination. Quartz veins are abundant as are biotite and sillimanite rich layers. Occasionally granite is incorporated in the metasediment and at the northern contact overlapping of granite and metasediment is common together with occasional layers of high grade rare earth bearing units.
Gneiss (GNE)
Within the meta-sediment, particularly when close to the granite contact, the rock is more metamorphosed and has a more pronounced gneissic texture. The gneiss has often a clear granite component and is usually a red-grey gneissic rock. At the contacts, the granite and the gneiss often overlap, and there may be intruded magnetite layers rich in rare earth bearing minerals. This, together with mineralised filled fissures and veins due to remobilisation, makes the gneiss in part an anomalous rare earth enriched unit. It is not included within the Mineral Resource
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Metasediment (MSED)
This domain is the predominant rock type that incorporates all other rock units that belong to the sedimentary sequence. MSED may carry REE bearing minerals, and is therefore included within the Mineral Resource.
All of the rock types that comprise the metasedimentary unit (excluding the magnetite bearing layers) are generally variations of different proportions of quartz, feldspar, mica and amphiboles. The MSED is separated from gneiss texturally, with a stronger foliation in gneiss, and visually from quartzites by the higher quartz content. The difference is often very gradational. However, geochemically the rock types are very similar to each other and can in many cases not be distinguished.
The metasediment is generally a grey, medium grained foliated rock consisting predominantly of quartz with varying amounts of biotite and plagioclase. Accessory minerals are cordierite, sillimanite, chlorite, magnetite and amphibole. Drilling shows that metasediment carries much of the the REE’s, with monazite and xenotime common. The highest grades are associated with magnetite rich layers but mineralization also appears with magnetite rich veins, patches and as inclusions in biotite and amphiboles. It is often granitized towards the contacts where it becomes a gneiss.
Quartzite (QZT)
This is a quartz rich unit within the MSED domain. Plagioclase is low to absent, biotite can occur in abundance. Some amphiboles can also be present, but if together with magnetite it would be logged as the BMR unit described below. Although the QZT is sometimes difficult to distinguish from MSED, it is often found around the magnetite rich layers, being the host rock to BMR. The QZT rock type itself is regularly REE mineralized and thus part of the Mineral Resource.
Biotite, Magnetite and Rare Earth Element bearing rock (BMR)
The BMR unit represents the interpreted heavy mineral placer deposits. Due to the subsequent metamorphism, primary features do not exist and the layers have been recrystallized and remobilised. Its relatively ductile character has resulted in the BMR unit having an irregular distribution, and is seen as patches, veins, breccias and conformable layers within the metasedimentary unit.
The mineralogy of the unit is mainly composed of quartz, biotite, amphibole, cordierite, magnetite, apatite, monazite and xenotime. The unit is not consistent in grade or mineralogy and has therefore been subdivided into a magnetite poor unit (Biotite, Rare earth bearing rock, BR) and a amphibole skarny unit (Biotite, Magnetite, Skarny, REE bearing rock, BMSR). BMSR can be followed most consistently through the area due to the characteristic amphiboles, and is often associated with high grade mineralization.
Apatite often occurs as medium grained to very coarse grained subhedral to euhedral crystals. Occasionally, medium grained to coarse grained subhedral/euhedral monazite and xenotime is seen although not in same abundance as apatite. Studies show that the apatite has a significant amount of fine grained inclusions of mainly monazite and xenotime. Apatite seems to be low in REE and the main carrier is monazite and xenotime. Monazite appears as single crystals, as inclusions and as fissure and inter-granular fillings. It has been shown that biotite, which occurs in abundance, can carry inclusions of monazite and possible xenotime in significant amounts. These inclusions also seem to exist in the amphiboles.
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Gneiss Type 1 (GNE1)
This second type of gneiss occurs as gradational variation of from the above more quartzitic meta-sediment and the more granitic gneiss. It has a gneissic texture but is often more dull grey and blurry by the naked eye. This unit occurs at the granite contact zone also but is most common in the meta-sediment and adjacent to the above gneiss. As in both the meta-sediment and the gneiss above, patches, veins, fissures and layers of rare earth bearing minerals occurs in varying amounts throughout the unit, making GNE1 general higher in grade than above gneiss, although a large variation in grade exists. GNE1 is considered belonging to the MSED domain and therefore is included in the Mineral Resource when appropriate.
Mineralization
A study of the Olserum mineralization was completed by Freiberg University during 2012. The study included petrographic description of 18 polished thin sections by transmitted light microscopy. Additionally, six samples were chosen for further petrographic analyses on a Mineral Liberation Analyzer (MLA) together with an Electron MicroProbe (EMP) for mineral analysis of the REE bearing phases. The results presented below are the results of samples taken in well mineralized intervals and thus may not represent the overall petrography and mineralization. It is though believed that the different styles of mineralization presented here exist in various amounts throughout the Mineral Resource.
The characteristics of the major minerals are described in the order of relative abundance. The minerals included are apatite, quartz, biotite, amphibole, monazite and xenotime. Furthermore, cordierite, magnetite and chlorite occur in minor amount.
Apatite
Apatite occurs as subhedral to euhedral prismatic crystals, up to several centimeters in size but also as fine grained inter-granular infillings. It is abundant in all samples and exists in all paragenetic and textural associations. The majority of apatite displays a significant amount of crystallographically oriented inclusions of monazite and xenotime. The inclusions are more abundant in the core of the crystals than along the edges. Figure 10 is sample OLR12002b and shows brecciated fabric with cm sized apatite and monazite crystals in a groundmass of biotite and quartz with minor chlorite and amphiboles. Figure 10 displays Back Scattered Electron (BSE) images showing abundant monazite and xenotime inclusions in apatite together with monazite / apatite and monazite / xenotime intergrowth. Table 8 is mineral assays on apatite performed by the EMP. The mineral chemistry shows that the apatite TREO grades are low, often around 0.5%.
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Figure 10: BSE images of sample OLR12002b.
Numbers display analyzed monazite spots. Prefix “A” displays analyzed apatite. (a) Part of an apatite crystal with numerous inclusions of monazite and
xenotime. (b) Intergrowth of Monazite with apatite. (c) Subhedral xenotime intergrown with monazite.
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-10a.jpg)
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-10b.jpg)
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Table 8: Olserum Mineral Assays On Apatite Performed By EMP
Sample | 2b-A2 | 2b-A3 | 2b-A6 | 2b-A10 | 2b-A11 | 2b-A13 | 2b-A14 | 2b-A15 | 2b-A16 | 2b-A18 |
No | 85 | 86 | 89 | 93 | 94 | 96 | 97 | 98 | 99 | 101 |
Na2O | 0.08 | 0.05 | 0.07 | 0.05 | 0.10 | 0.08 | 0.09 | 0.06 | 0.04 | 0.04 |
Ce2O3 | 0.07 | 0.03 | 0.03 | 0.03 | 0.07 | 0.01 | 0.05 | 0.06 | 0.03 | - |
Cl | 0.08 | 0.08 | 0.08 | 0.08 | 0.07 | 0.07 | 0.07 | 0.08 | 0.06 | 0.07 |
Gd2O3 | 0.09 | 0.20 | 0.17 | 0.14 | 0.06 | 0.18 | 0.15 | 0.17 | 0.09 | 0.11 |
BaO | - | - | 0.02 | - | 0.02 | - | - | 0.02 | - | - |
MgO | 0.02 | 0.02 | 0.03 | 0.02 | 0.04 | 0.02 | 0.05 | 0.03 | 0.02 | 0.02 |
La2O3 | 0.06 | 0.05 | 0.05 | 0.05 | 0.06 | 0.03 | 0.07 | 0.07 | 0.06 | 0.07 |
SO3 | - | - | - | - | - | - | - | - | - | - |
Sm2O3 | 0.03 | 0.06 | - | - | 0.01 | - | 0.07 | 0.06 | 0.07 | 0.05 |
MnO | 0.10 | 0.10 | 0.12 | 0.11 | 0.10 | 0.10 | 0.09 | 0.09 | 0.10 | 0.08 |
Al2O3 | - | - | - | - | - | - | 0.03 | - | - | - |
CaO | 54.3 | 54.2 | 54.0 | 54.8 | 54.7 | 54.8 | 53.6 | 54.0 | 55.0 | 54.2 |
P2O5 | 44.4 | 44.3 | 43.4 | 44.0 | 44.4 | 43.8 | 43.4 | 43.9 | 44.0 | 43.8 |
Nd2O3 | 0.17 | 0.09 | 0.16 | 0.12 | 0.15 | 0.08 | 0.14 | 0.17 | 0.08 | 0.12 |
FeO | 0.17 | 0.19 | 0.23 | 0.18 | 0.23 | 0.18 | 0.37 | 0.17 | 0.18 | 0.23 |
SiO2 | 0.01 | 0.01 | 0.01 | - | 0.03 | 0.01 | 0.17 | 0.01 | - | - |
Y2O3 | 0.12 | 0.37 | 0.14 | 0.11 | 0.14 | 0.09 | 0.47 | 0.67 | 0.10 | 0.08 |
F | 2.56 | 2.85 | 2.45 | 2.61 | 2.32 | 2.21 | 3.37 | 2.63 | 2.18 | 3.36 |
Total | 102.25 | 102.57 | 100.89 | 102.22 | 102.50 | 101.74 | 102.15 | 102.14 | 101.94 | 102.27 |
Quartz
Quartz is an abundant mineral with a high textural diversity. It occurs as recrystallized blasts and agglomerates as well as fine grained groundmass and as intergranular infill. Quartz is often recrystallized and shows undulatory extinction. Quartz plays only a minor role in comparison to apatite and biotite with regard to monazite and xenotime inclusions.
Biotite
Biotite appears in small to several cm thick massive bands as well as disseminated crystals, intergranular infillings and nests. Biotite occurs in abundance and can carry considerable amounts of monazite and xenotime inclusions together with minor zircon.
Amphibole
Generally, amphiboles forms radial aggregates of subhedral to anhedral crystals. The composition suggests amphiboles from the gedrite series, often rich in iron. It occurs with textural diversity as massive, patches, intergranular infillings and as disseminations. Inclusions of monazite and xenotime can occur.
Monazite
There are generally two textural types recognized in thin section. One as cm sized subhedral crystals and the other as minute inclusions in apatite, biotite, cordierite and minor amphibole. In addition, it occurs as very fine grained vein fillings. Th and U content often produces radiation haloes. Figure 11 shows U and Th content
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based on 30 spot analyses in sample OLR12002b. From the diagram it can be seen that Th content range from 0.3 – 4 wt%. The U content is very low. The TREO / HREO diagram show high content of TREO in all analyzed spots. The HREO is around 2 wt% and suggest that the majority of the HREO in Olserum is situated in xenotime.
Figure 11: Mineral chemistry of monazites from sample OLR12002b.
(a) ThO2-UO2 diagram displaying a narrow spread ThO2 content but almost no UO2. (b) SiO2-CaO diagram with low
CaO contents but narrow spread SiO2 contents. (c) TREO-HREO diagram with low and similar HREO contents but high and similar TREO contents
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-11.jpg)
Xenotime
Of the selected samples there are no fine grained fissure fillings observed. Otherwise xenotime show a similar behavior to that of monazite. Furthermore there are no radiation haloes present. Detailed mineral chemistry has not been able to be performed on xenotime due to lack of reference material.
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8. DEPOSIT TYPES
Olserum is best described as a hydrothermally overprinted REE bearing metasediment deposit. The mineralization consists of the REE bearing phosphates monazite and xenotime which are hosted in magnetite rich layers/veins and occurs as coarse grained minerals of monazite/xenotime and as fine grained abundant inclusions in apatite, biotite or as patches suggesting an epigenetic crystallization promoted by metasomatic fluid percolation. It is interpreted that the magnetite rich layers were former heavy mineral beds, thus suggesting the Olserum precursor was a placer deposit which been subsequent metamorphosed and hydrothermally overprinted. Apatite, monazite and xenotime are found in rocks of nearly every metamorphic grade and have a wide P-T stability range.
Placer deposits are sand, silt and cobble size sediments deposited in streams, rivers and beaches and are also referred to as alluvial deposits. In order to accumulate in placers deposits minerals needs to be denser than quartz and resistant to weathering processes. A typical compound of placer material is black sand which is a mixture of iron oxides like magnetite, hematite and ilmenite together with heavy minerals like monazite, zircon, rutile, xenotime, chromite amongst others.
Globally, monazite alluvial accumulations are a valuable type of REE and Th deposits. Monazite’s high specific gravity and resistant to chemical weathering account for its association in placer deposits. Monazite weathers from alkaline crystalline rocks from the surrounding region and is transported downstream and deposited by alluvial processes. India has large monazite rich sand deposits but deposits also exist in many other places, for example Madagascar and South Africa.
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9. EXPLORATION
Prior to the involvement of Tasman Metals Ltd in the Olserum project, the most significant exploration was undertaken by Swedish mining company IGE Nordic AB in the period 2003-2006 (See Figures 12-14) .
IGE Nordic AB (2003 – 2008)
From 2003 to 2006, IGE Nordic AB undertook surface mapping, rock chip sampling, a small ground magnetic survey, drilled 31 holes, calculated an internal Mineral Resource and completed metallurgical testing. The drilling program is described in Section 10 below, internal Mineral Resource in Section 6 above and metallurgical testing in Section 13 below.
Figure 12 below shows the locations in outcrop of magnetite as mapped by IGE Nordic AB in 2005 on a local grid. The drilled area lies centrally within the map. Magnetite was deemed a significant exploration indicator.
Figure 12: Olserum Magnetite Outcrop Map 2005
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-12.jpg)
Figure 13 below shows the various lithologies in outcrop as mapped by IGE Nordic AB in 2005 on a local grid. The drilled area lies centrally within the map.
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Figure 13 : Olserum Lithology Map 2005
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-13.jpg)
Figure 14 below shows the locations of the IGE Nordic AB drilling and the coverage of the ground magnetic survey conducted by IGE Nordic AB in 2007.
Figure 14: Olserum Ground Magnetics Map 2007
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-14.jpg)
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Norrsken Energy Ltd (2008 – 2011)
UK registered Norrsken Energy Ltd acquired the Olserum project in 2088 from IGE Nordic AB, with a view to pursuing uranium exploration. IGE Nordic AB remained a shareholder in Norrsken Energy Ltd. Norrsken Energy Ltd completed no work on the project.
Tasman Metals Ltd (2011 – 2013)
Following acquisition of the Olserum project, Tasman has reviewed and interpreted historic information, undertaken field mapping and grab sampling over the historic resource area, completed a small drilling program, identified samples in drill core for mineralogical analysis and prepared and dispatched samples for metallurgical testing. Tasman’s drilling program is described in Section 10 below.
Grab sample locations are given in Figure 15. Samples were taken to confirm the tenor of mineralized outcrops around the area of interest.
Figure 15: Olserum Bedrock Map and Rock Code Mapping Locations 2012
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-15.jpg)
Nine surface samples were collected by Tasman geologists on mineralized outcrops from the Olserum project. The samples are not considered representative and have been superseded by Tasman’s drilling data. The samples covered mostly the main mineralized outcrops within the resource.
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Table 9: Samples Collected by Tasman
Tasman samples | Rock code | TREE (%) | Fe2O3 (%) |
411676 | GNE1 | 0.1 | 4.4 |
411677 | BMR | 7.34 | 9.3 |
411678 | BMR | 2.43 | 34.2 |
411679 | BMR | 1.31 | 10.7 |
411680 | GNE | 0.03 | 6.7 |
411681 | GNE | 0.03 | 6.1 |
411682 | BMR | 0.89 | 38.9 |
411683 | BMR | 0.50 | 22.1 |
411684 | MSED | 0.12 | 5.5 |
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10. DRILLING
IGE Nordic AB (2003 – 2008)
During 2004 to 2005 a total of 5130 meters in 31 drill holes had been completed at Olserum and adjacent areas. The bulk of drilling was done at the Olserum prospect where it tested perpendicular to strike on a profile spacing of approximately 40m. Two drill holes were usually drilled on every profile, generally 40m apart down dip. 12 of the drill holes were drilled from north towards south and three drill holes were drilled from south towards north with various dips.
Results from this drilling program were provided in full to Tasman Metals Ltd. Most drill collars remain visible in the field today and drill core is securely stored with the Geological Survey of Sweden.
Tasman Metals Ltd (2011 – 2013)
During 2012 Tasman drilled 5 diamond drill holes totaling 997m in order to confirm the previous drilling by IGE Nordic. Two of the drill holes were drilled as twin holes, two holes was drilled in existing profiles and one drill hole in-between profiles. Field mapping over the area was completed and grab samples taken to confirm the mineralized outcrops.
Of the 997m of drilling, 10.94m was overburden drilling, the remaining 986.06m being core. The drilling contractor was GeoGruppen using BQTK (40.7 mm) core barrels on a Diamec 252 drill rig built on a six wheeled truck. The objectives were to confirm the historic drilling by making two twin holes and to make infill drilling with additionally three holes. Drilling was conducted on two shift basis seven days a week. A total of 459 samples for assays were collected.
Of the 15 historic drill holes drilled by IGE Nordic, Tasman staff has re-logged every hole and done infill sampling where needed. The hole numbers from the historic holes starts with the abbreviation OL followed by the year (04 or 05) and ends with the hole number. The same is done for the holes drilled by Tasman with the exception of the abbreviation which instead is OLR.
All of the holes drilled by Tasman except one have been deviation surveyed by a Reflex Gyro together with 11 of the historic holes. The start azimuth was determined with Reflex EZ-Trac. A summary of the drilling is shown in Table 10 and location of the drill holes is shown in Figure 16.
Table 10: Olserum Project - Summary of 2004/2005 and 2012 drilling program.
Year | Number of Holes | Meters | Core Size | Drilled By |
2004-2005 | 15 | 2947.05 | WL56 | UNK |
2012 | 5 | 997.0 | BQTK | GeoGruppen |
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Core Recovery and Quality
Core recovery was determined prior to logging and sampling on standard core recovery forms. Core recovery was generally very good, close to 100%. The rock competence is generally high. Fractured rock is encountered in local fault zones and particular at the northern granite contact.
Core Orientation
All five of the drill holes in 2012 program used the Reflex ACT II RD core orientation tool. Principal foliation and magnetite horizons were intersected at medium to high angle to the long core axis depending on the dip of the drill hole. This suggests that where the drill hole dip was lower and correspond to a high angle intersection of the foliation. The true thickness was closer of drilled thickness than vice versa.
Figure 16: Drilling at the Olserum Project Area, SWEREF99 TM Grid
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-16.jpg)
Collar Location Surveys
Drill holes were laid out with the aid of a GPS with hole spacing confirmed by tape and compass. The Swedish company Metria AB (Swedish land survey) conducted a DGPS survey during which the location of all 5 holes drilled by Tasman in 2012 where measured with an accuracy of between 0.05 and 0.2 m (XYZ). In addition, a majority of the historic holes were controlled measured at the same time to confirm the historic coordinates. All of the checked historic drill hole coordinates were confirmed as accurate and were not needed to be updated.
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Downhole Surveys
The drill holes in 2004/2005 drill program conducted by IGE were surveyed by a magnetic survey tool with station readings every 5 m.
Due to the locally high magnetic disturbance Tasman used instead the Reflex GYRO tool with station readings every 3 m for the 2012 drilling program. Four of the five drill holes were surveyed. OLR12005 could not be surveyed due to a blockage. Tasman also re-surveyed 11 of the total 15 historic holes in order to get better quality data. Two of the historic drill holes are missing (OL0510 and OL0516) and could not be surveyed and another two drill holes (OL0511 and OL0519) could not be surveyed due to plugged holes. So in total 15 out of 20 drill holes that make up the Mineral Resource are GYRO surveyed. The surveys were carried out using a winch mounted on a four wheel bike. The Reflex GYRO survey was controlled checked by the site geologist during surveying. Once the survey was finished the data was transferred from the Reflex GYRO’s memory into the field PC.
The collar azimuth was determined by surveying the top 20 m of the drill holes using the magnetic instrument Reflex EZ-Trac. In a few cases there were suspicion that magnetic disturbance could affect the azimuth reading. Therefore several holes were control checked by Metria making a DGPS survey on the azimuth of the casing.
Table 11: Olserum Drill Collar coordinates (SWEREF99 TM Grid)
Hole_ID | Easting (m) | Northing (m) | RL (m) | Total Depth | Azimuth | Dip | Drill Type | Hole Size (mm) |
OL0401 | 580062.04 | 6423728.69 | 56.48 | 116 | 7.5 | 38 | DD | 32 mm |
OL0403 | 579993.85 | 6423857.83 | 53.73 | 157.2 | 200.5 | 55 | DD | 32 mm |
OL0507 | 580115.81 | 6423718.70 | 53.7 | 143.25 | 18.5 | 43 | DD | 32 mm |
OL0510 | 580168.08 | 6423839.44 | 55.92 | 190 | 200 | 60 | DD | 32 mm |
OL0511 | 580173.98 | 6423703.51 | 46.2 | 106.8 | 20 | 45 | DD | 32 mm |
OL0512 | 580111.10 | 6423802.37 | 61.35 | 190.6 | 198 | 50 | DD | 32 mm |
OL0513 | 580124.42 | 6423854.11 | 66.95 | 264.05 | 201.5 | 60 | DD | 32 mm |
OL0514 | 580086.43 | 6423864.38 | 61.19 | 245.95 | 210.5 | 61 | DD | 32 mm |
OL0515 | 580049.03 | 6423876.82 | 61.32 | 271.9 | 203.5 | 60 | DD | 32 mm |
OL0516 | 580036.60 | 6423840.69 | 54.39 | 170.95 | 211.5 | 46 | DD | 32 mm |
OL0517 | 580009.23 | 6423890.71 | 58.44 | 273.95 | 214 | 60 | DD | 32 mm |
OL0518 | 579971.16 | 6423903.48 | 60.32 | 274.2 | 197.3 | 60 | DD | 32 mm |
OL0519 | 579958.12 | 6423864.58 | 51.82 | 171.7 | 201.5 | 45 | DD | 32 mm |
OL0520 | 580202.65 | 6423824.99 | 60.45 | 174.1 | 202.5 | 60 | DD | 32 mm |
OL0521 | 580232.25 | 6423842.02 | 54.81 | 196.4 | 207 | 60 | DD | 32 mm |
OLR12001 | 580072.13 | 6423831.22 | 58.54 | 172.7 | 208.7 | 46 | DD | 32 mm |
OLR12002 | 580127.16 | 6423832.61 | 66.96 | 240.1 | 195 | 55 | DD | 32 mm |
OLR12003 | 580083.39 | 6423863.38 | 60.96 | 253.8 | 207 | 61 | DD | 32 mm |
OLR12004 | 579995.25 | 6423856.66 | 53.65 | 184 | 205 | 55 | DD | 32 mm |
OLR12005 | 580145.30 | 6423705.39 | 49.00 | 146.4 | 19 | 43 | DD | 32 mm |
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Figure 17: Drill Rig At The Olserum Project, 2012
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-17.jpg)
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11. SAMPLE PREPARATION, ANALYSIS and SECURITY
Surface Sampling
Nine surface samples were collected by Tasman geologists on mineralized outcrops from the Olserum project. The samples are not considered representative and have been superseded by Tasman’s drilling data. The samples covered mostly the main mineralized outcrops within the resource.
In addition, the Author collected two rock samples from the main mineralized outcrop within the central part of Olserum as part of his preparation of the NI43-101 report. The analyses and description of theses samples are provided in Table 12. Surface sampling by Mr Geoff Reed does not contribute to the Mineral Resource calculation contained within this report.
Table 12: Samples Collected by Tasman geologists and the Author
Tasman samples | Rock code | TREE (%) | Fe2O3 (%) |
411676 | GNE1 | 0.1 | 4.4 |
411677 | BMR | 7.34 | 9.3 |
411678 | BMR | 2.43 | 34.2 |
411679 | BMR | 1.31 | 10.7 |
411680 | GNE | 0.03 | 6.7 |
411681 | GNE | 0.03 | 6.1 |
411682 | BMR | 0.89 | 38.9 |
411683 | BMR | 0.50 | 22.1 |
411684 | MSED | 0.12 | 5.5 |
ReedLeyton samples | Rock code | TREE (%) | Fe2O3 (%) |
411674 | GNE | 0.055 | 7.3 |
411675 | BMR | 0.94 | 48.2 |
Drill Core Handling and Sample Preparation
Core Handling
At every run where possible, the drill crew drew a down hole orientation line on the core when the core was still left in the inner tube. Drill core was then placed by the drill crew in labeled wooden core trays together with depth blocks indicating the start and end of each run. Core trays were then transported to the closest access road and picked up by the site geologist for transportation to the logging facilities.
Geotechnical logging was carried out by Tasman’s geologist who pieced the core together before measuring, marked every meter with permanent markers and controlled checked it with drillers depth blocks.
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Figure 18: Olserum Project – Core orientation marks on 2012 drilling program Drill core.
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-18.jpg)
Core Logging
The historic drill core from 2004 – 2005 year drill program is stored at SGU’s drill core archive in Malå and was re-logged and infill sampled by Tasman staff. During logging, the sample intervals were checked and corrected where needed.
The 2012 drill program by Tasman was logged in Tasman’s own facilities at the town of Gränna, some 150 km west of Olserum.
Geotechnical logging of the core was carried out using customized logging sheets designed by Itasca Consultants AB. RQD, RMR and Q measurements and core orientation readings (when present) were taken prior to the geological logging. All original paper drill logs are kept on file.
Geological logging was carried out on paper forms and later transferred into Excel spreadsheets. The logging captured the borehole number, collar position, date drilled, ‘from-to’ intervals, grain size, Color, rock type description, mineralization and lithological codes.
Once geologically logged, core was then measured both magnetically using a handheld magnetic susceptibility meter and radiometrically with a RedEye Personal Radiation Detector. After marking the sample intervals, the core was photographed wet using a digital camera mounted on a tripod. Core pallets were sent to the certified laboratory ALS Chemex in Piteå in regular batches via independent contractor for sample preparation.
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Figure 19: Olserum Project – Core logging facility
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-19.jpg)
Core Sampling
Tasman geologist Glenn Patriksson supervised sampling of all holes drilled in 2004 - 2005 / 2012 and control checked the historic sampling done by IGE Nordic.
Sample intervals were emailed to ALS Chemex laboratory in Sweden where each interval was given a unique sample number. The sample numbers were taken from unique sample ticket booklets made for Tasman. The sample numbers are shown in Table 13.
Table 13: Samples Collected by Tasman geologists and the Author
SAMPLE_ID | STANDARDS | FIELD DUP | REJ DUP | BLANKS | CHECK | TOTAL | |
Tasman samples | |||||||
403650 – 403700 | 2 | 2 | 2 | 2 | 2 | 10 | |
403901 – 404000 | 6 | 5 | 5 | 2 | 5 | 23 | |
404251 – 404400 | 8 | 7 | 7 | 3 | 7 | 32 | |
404501 – 404582 | 5 | 3 | 3 | 2 | 3 | 16 | |
411001 – 411582 | 32 | 26 | 26 | 13 | 26 | 123 | |
SUM | 965 | 53 | 43 | 43 | 22 | 43 | 204 |
SAMPLE_ID | STANDARDS | FIELD DUP | REJ DUP | BLANKS | CHECK | TOTAL | |
ReedLeyton samples | |||||||
411583 - 411673 | 7 | 78 | 4 | 2 | 91 |
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The total number of samples is 965. A total of 53 standard samples were inserted at a rate of approximately 1 in 18 resulting in approximately 5.5% of the submitted samples being standards. In addition, a total of 151 samples were taken as field duplicates, reject duplicates, check samples and blanks which make up 15.6% of the total samples. Excluding standards, field duplicates, reject duplicates, blanks and check samples 761 samples totaling 1114.47m of the core was sampled.
Length of the sampled units varies from 0.15 – 2.50m as sampling respected lithological boundaries. Core was split by diamond saw at the ALS facilities in Öjebyn. One quarter of the core was placed in a numbered plastic bag together with the corresponding sample ticket and the other three quarters was left in the core tray. The core was cut taking in consideration the main foliation/banding of the rock. When it was possible to reassemble the core, the same quarter of the core was submitted for assay. The residual three quarters of drill core was viewed by the author in the SGU secure archive. The archive is a key access only facility and there is no evidence that samples have been disturbed in any way since cutting.
Density Measurements
Rock density measurements using the Archimedes principle (dry & wet mass and water displacement) were taken for every sample of the core from the 2012 drilling program. The density device comprised a 5 kg electronic scale below which a water bucket was placed. Attached to the scale, inside the water bucket was a core sampler holder. The density method is as follows:
· | The balance is always reset to 0.00 g before each reading. |
· | A dry length of core was placed on the scale and a record of the mass of the core in air was done. |
· | The sample was then put on the core sampler holder in the water filled bucket and the mass of the sample under water was done. |
· | The formula for calculating the density (specific gravity=SG) is: |
SG = Mass in Air
Mass in Air – Mass in Water
All information was recorded on density measurement papers and put in digitally to Excel spreadsheet.
Sample Quality
ReedLeyton believes that the sampling methods and approach employed by Tasman are reasonable for this style of mineralization and consistent with industry standards. The samples are representative and there appears to be no discernible sample biases introduced during sampling. The rocks on the property are fresh with little or no secondary minerals on the surfaces that would enhance metal values.
Cutting of core and dispatch to the ALS Chemex laboratory in Sweden is in keeping with industry practice and security of the delivery chain is more than adequate. All drilling and subsequent sampling and assaying during the 2012 drilling program was completed by independent persons and at no time was an officer, director or associate of Tasman involved.
Reed Leyton Consulting | Tasman Metals Ltd |
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Figure 20: Olserum Project – Density measurement equipment.
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Figure 21: Olserum Project – Core cutting equipment.
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-21.jpg)
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Core Sample Preparation
The author is independently familiar with the personnel and practices of the ALS Chemex facility in Piteå. Sweden. All drilling samples were prepared by ALS Chemex in Öjebyn and analyzed by ALS Chemex in Vancouver. Canada. This laboratory is ISO accredited (ISO/IEC 17025) and, in addition, has been accredited by Standards Council of Canada as a proficiency testing provider for specific mineral analysis parameters by successful participation in proficiency tests.
Crushing
On arrival at the ALS Chemex facility in Piteå, Tasman’s drill core samples were cross checked with paperwork emailed by Tasman’s geological staff, then sawed, dried and weighed. Samples that require crushing are dried at 110-120 C and then crushed with either an oscillating jaw crusher or a roll crusher. The entire sample is crushed, but depending on the method only a portion of the crushed material may be carried through to the pulverizing stage.
That amount, typically 250 g to 1 kg is subdivided from the main sample by use of a riffle splitter. If splitting is required a substantial part of the sample (the "reject" or spare) remains.
Pulverizing
After crushing, 250 g of was subdivided from the main sample by riffle splitter. This 250 g was then pulverized using a ring mill with a specification that greater than 85% of the sample should pass through a 75 micron (200 mesh) screen.
Approximately 10-15 g of the pulverized sample was then shipped to the ALS Chemex assay laboratory in Vancouver, Canada for analysis. The remainder of the crush reject and pulp are stored at ALS Chemex in Piteå.
All sample preparation and assaying during the 2012 drilling programs was completed by independent persons and at no time was an officer, director or associate of Tasman involved.
Sample Analysis
All samples taken during Tasman’s 2012 diamond drilling program at Olserum were analyzed at ALS Chemex in Vancouver, Canada using the ME-MS81 method as described below. REE rich samples that exceeded the reporting limit of the ME-MS81 method were further assayed by ICP-MS method ME-MS81h. A total of 8 of the samples were re-analyzed for rare earths.
The analytical specification for the ME-MS81 method is: A prepared sample (0.200 g) is added to lithium metaborate flux (0.90 g), mixed well and fused in a furnace at 1000°C. The resulting melt is then cooled and dissolved in 100 mL of 4% HNO3 / 2% HCl solution. This solution is then analyzed by inductively coupled plasma - mass spectrometry.
Twenty nine samples, representing all significant rock types were also analyzed by a multi element ICP-MS method (ALS Chemex method ME-MS81d) to gain further whole rock element data. This method is a combination of ME-MS81 and ME-ICP06 which adds 13 major elements so rock types can be determined.
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Table 14: Elements & Ranges (ppm). Method ME-MS81
Note: Some base metal oxides and sulphides may not be completely decomposed by the
Lithium borate fusion. Results for Ag. Co. Cu. Mo. Ni. Pb and Zn will not likely be
quantitative by this procedure.
Ag | 1-1000 | Ga | 0.1-1000 | Pb | 5-10000 | Tm | 0.01-1000 |
Ba | 0.5-10000 | Gd | 0.05-1000 | Pr | 0.03-1000 | U | 0.05-1000 |
Ce | 0.5-10000 | Hf | 0.2-10000 | Rb | 0.2-10000 | V | 5-10000 |
Co | 0.5-10000 | Ho | 0.01-1000 | Sm | 0.03-1000 | W | 1-10000 |
Cr | 10-10000 | La | 0.5-10000 | Sn | 1-10000 | Y | 0.5-10000 |
Cs | 0.01-10000 | Lu | 0.01-1000 | Sr | 0.1-10000 | Yb | 0.03-1000 |
Cu | 5-10000 | Mo | 2-10000 | Ta | 0.1-10000 | Zn | 5-10000 |
Dy | 0.05-1000 | Nb | 0.2-10000 | Tb | 0.01-1000 | Zr | 2-10000 |
Er | 0.03-1000 | Nd | 0.1-10000 | Th | 0.05-1000 | ||
Eu | 0.03-1000 | Ni | 5-10000 | Tl | 0.5-1000 |
For further details of all the procedures employed by ALS the reader is referred to the following website: www.alsglobal.com/Regions/Search.aspx. ALS’s website cites the following certifications:
“.... * NATA Accreditation (No. 825) – Accreditation is assessed to ISO/IEC Guide 25 "General Requirements for the Competence of Calibration and Testing Laboratories"
* ALS has certification to AS/NZS ISO 9001:2000 (No. 6112)
* ALS has in place a Quality Management System that is structured to conform to the requirements of ISO 9002. This covers aspects such as Contract Review. Document and Data Control. Inspection and Testing. Calibration. Corrective and Preventative Action. Internal Audits and Training.”
ReedLeyton considers that sample preparation and analysis procedures for all core samples are of industry standard and should minimize sample error and bias.
Tasman QA/QC
Standards
Tasman purchased one registered standard for REE’s from Ore Research and Exploration PL (OREAS) (www.ore.com.au). In addition OREAS have on Tasman’s request prepared two certified internal REE standards based on one low grade composite and one high grade composite from Tasman’s project Norra Kärr. These standards were inserted to the sample stream at a rate of approximately 1 in 18, resulting in approximately 5.5% of the submitted samples being standards. These samples allowed Tasman to monitor the quality of assays during the drilling program. A review of this standard data was completed by ReedLeyton as summarized in table 15 demonstrating that accuracy and precision of data was adequate during the duration of the drilling program and no regular bias is present within the data. Any slight assay bias suggests an under reporting of grade rather than over reporting.
In addition, ALS Chemex routinely inserts standard and blank samples into every sample batch. This QC data was supplied to Tasman and subsequently to ReedLeyton. A review of this data did not suggest any inconsistency in sample quality.
Reed Leyton Consulting | Tasman Metals Ltd |
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Table 15: Accuracy and Precision of Certified Values and Chemex Assays
Certified value 146 | Mean of 10 ALS Chemex Assays | Certified value NKA01 | Mean of 21 ALS Chemex Assays | Certified value NKA02 | Mean of 22 ALS Chemex Assays | |||
Ce | 4691 | 4799 | Ce | 626 | 632 | Ce | 1120 | 1114 |
Dy | 224 | 225.8 | Dy | 175 | 169.4 | Dy | 241 | 229 |
Er | 87 | 85.9 | Er | 129 | 127.5 | Er | 162 | 157.3 |
Eu | 127 | 136.2 | Eu | 10.8 | 11 | Eu | 18.2 | 18 |
Gd | 359 | 342.6 | Gd | 111 | 107.2 | Gd | 176 | 167.3 |
Ho | 36.8 | 37.8 | Ho | 40.4 | 39.9 | Ho | 53 | 51.4 |
La | 2513 | 2569 | La | 313 | 316.7 | La | 520 | 509 |
Lu | 6.3 | 6.6 | Lu | 18.3 | 17.6 | Lu | 21.1 | 20.2 |
Nd | 2182 | 2192 | Nd | 307 | 312.6 | Nd | 576 | 563 |
Pr | 548 | 563 | Pr | 79 | 79.5 | Pr | 143 | 143.2 |
Sm | 441 | 465 | Sm | 88 | 88.7 | Sm | 152 | 152 |
Tb | 47.2 | 46.6 | Tb | 24 | 23.6 | Tb | 34.8 | 33.7 |
Tm | 9.9 | 10.2 | Tm | 20.2 | 20 | Tm | 24.4 | 24 |
Yb | 53.5 | 50.9 | Yb | 128 | 124.5 | Yb | 147 | 146.2 |
Y | 905 | 917 | Y | 1131 | 1144 | Y | 1569 | 1626 |
U | 2.69 | 2.9 | U | 13.2 | 13.3 | U | 16.2 | 15.9 |
Th | 903 | 920 | Th | 7.6 | 7.4 | Th | 7.4 | 7.4 |
Field Duplicates
As part of the quality control process, Tasman took 43 field duplicate samples at a rate of 1 in 22 resulting in approximately 4.5% of the submitted samples being field duplicates. These samples allow Tasman to monitor the homogeneity of REE in the core. Any variation between parent sample and field duplicate sample could be accounted for by coarse grained mineralization influencing sample quality. All QA/QC data for this Project has been deemed acceptable for the purposes of the Mineral Resource estimation.
Reed Leyton Consulting | Tasman Metals Ltd |
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Figure 22: Duplicate data for Ce, Dy and Y
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-22a.jpg)
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-22b.jpg)
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![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-22c.jpg)
Core and Sample Security
ReedLeyton has discussed core and sample handling procedures with key geological and technical personnel. On the basis of these discussions, ReedLeyton believes that all core was well and securely packed and stored prior to transportation to the laboratory for processing. As a result ReedLeyton considers sample security to be adequate.
ReedLeyton also understands that at no time was an officer, director or associate of Tasman involved in the sample preparation or analytical work and an independent laboratory was employed for sample preparation and analysis. It is therefore ReedLeyton’s belief that it is highly unlikely that an officer, director or associate would have had the opportunity to contaminate the sample data.
The plastic bags containing samples where then handed over to ALS Chemex preparation laboratory in Piteå.
The rocks on the property are fresh with little or no secondary minerals on the surfaces that would enhance metal values.
Cutting of core and dispatch to the ALS Chemex laboratory in Sweden is in keeping with industry practice. and security of the delivery chain is more than adequate. All drilling and subsequent sampling and assaying during the 2012 drilling program was completed by independent persons and at no time was an officer, director or associate of Tasman involved.
Reed Leyton Consulting | Tasman Metals Ltd |
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12. DATA VERIFICATION
Site Visit
Personnel from ReedLeyton travelled to the Olserum Project with representatives from Tasman in June 2012. During this visit, a thorough validation of hole collar positions was undertaken using GPS. 16 drill holes from 14 drill hole positions were checked and found to be accurately surveyed. Drill collar orientation was also checked and found to be consistent with the drill database as supplied to the author. Key geological features were surveyed during this visit such as magnetite, apatite and monazite-rich outcrops. These were later reconciled with the extrapolated positions from the drill hole logging and found to correlate well.
The author also travelled to the core archive facilities of the Swedish Geological Survey where Tasman’s core is securely stored. Five holes were selected by ReedLeyton for re-logging which were laid out in their entirety and logged. The re-logging of these holes confirmed the correlation of the higher grade zones with zones of higher apatite/monazite intensity and subsequently assisted in the interpretation of the high grade domains within the broader resource area. ReedLeyton checked a random amount of hard copy logs against the data provided in the database. These did not indicate any issue with data integrity.
Figure 23: Olserum Project – Drill hole Collar June 2012 (with the author).
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-23.jpg)
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Figure 24: Olserum Project – Drill hole Collar OLO0513, June 2012 .
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-24.jpg)
Database Validation
In the acquisition of Olserum from Norrsken Energy Ltd an access database were handed over which included drill hole collar, Assay, deviation survey and logging done by IGE Nordic from their 2004-2005 drilling project. All original files including assay certificate is also in Tasman’s possession. The author is of the opinion that these documents are authentic. Adequate validation of this data was completed Mr Geoff Reed.
ReedLeyton completed a full review of Tasman’s drill hole database which included a review of all available assay certificates, drill logs, sample books and historical database. ReedLeyton found robust records allowing easy data auditing. A comparison was made between assay certificates for the 18 holes used in this Mineral Resource and the Tasman digital database.
During this review and audit by ReedLeyton, a number of observations were noted, these include:
Field checking of drill holes locations demonstrated accuracy in all cases;
· | Down hole survey certificates are available. Field checking, original drill logs, and database were all consistent showing the appropriate angle and inclination of the drill holes completed; |
· | Sample intervals were correct for assays entered. |
· | The assay certificates, drill logs and sample sheets were available for all drill holes; |
· | Loading of assay data from laboratory certificates was correct; |
· | During the 2012 drilling program, Tasman assayed all intervals for REE by the same analytical methods at the same laboratory; |
· | Approximately 1609m out of the total 3944.05m of the drilling was not sampled. as they were drilled into the host granite; |
Reed Leyton Consulting | Tasman Metals Ltd |
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During this audit, no issues with the conversion of the database were identified.
Quality Control Data
Assayers ALS Chemex automatically employed standards and blanks in their normal assay procedure. Tasman included their own standards in the sample stream in addition to ALS Chemex’s internal practice.
Tasman has documented its duplicate-assay and analytical control program and demonstrated that there is no evidence of major systematic errors or bias in that data.
Assessment of Project Database
The audit of Tasman’s data collection procedures and resultant database by ReedLeyton has resulted in a digital database that is supported by verified certified assay certificates, original drill logs and sample books. ReedLeyton has high confidence the REE assays used in the Mineral Resource Calculation are correct and were verified using the drill log and sample books. As comparison of the assay certificates and drill hole logs show consistency for the 2004/2005 and 2012 drill holes. ReedLeyton believes there is sufficient data to enable their use in a Mineral Resource estimate.
The un-sampled zones within the deposit appear to be insignificant to the deposit and only contain zones of low grade mineralization. As a result, ReedLeyton believes these zones should be classified as internal waste zones of different rock type in any resource calculation.
Based on data supplied, ReedLeyton believes that the analytical data has sufficient accuracy to enable a resource estimate for Olserum deposit.
Check Sampling by ReedLeyton
ReedLeyton independently re-sampled 78 intervals of 2004/2005 and 2012 year drill program. A range of rare earth elements assay values were selected independently by ReedLeyton from borehole intervals to review potential variance over a range of grades. These samples were independently selected and requested by ReedLeyton to be dispatched and assayed at ALS – Chemex Pitea. The analytical method applied was ALS Chemex suite ME-MS81, a lithium borate fusion technique which is recommended for REE analysis.
Final results were received by the author via direct email from ALS Chemex on 31 August 2012. The raw data, analysis certificate and supporting QC data were received. Figure 25 provides analytical values for Y, comparing the original sample value versus the check sample value. There is very good agreement between the individual samples over a range of grades.
All QAQC data for this project has been deemed acceptable for the purposes of estimation.
Reed Leyton Consulting | Tasman Metals Ltd |
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Table 16: Check Sample Intervals By The Author
Project | Hole Number | Check Sample From (m) | Check Sample To (m) | Check Sample Interval (m) | Check Sample Number |
Olserum | OLR12001 | 68.2 | 69.8 | 1.6 | 411584 |
Olserum | OLR12001 | 69.8 | 71.4 | 1.6 | 411585 |
Olserum | OLR12001 | 80.7 | 82.7 | 2 | 411586 |
Olserum | OLR12001 | 103.35 | 104.59 | 1.24 | 411587 |
Olserum | OLR12001 | 104.59 | 106.59 | 2 | 411588 |
Olserum | OLR12001 | 130.32 | 132.3 | 1.98 | 411589 |
Olserum | OLR12001 | 132.3 | 134.3 | 2 | 411591 |
Olserum | OLR12001 | 147.35 | 149.17 | 1.82 | 411592 |
Olserum | OLR12001 | 157.85 | 159.85 | 2 | 411593 |
Olserum | OLR12002 | 79.77 | 81.77 | 2 | 411594 |
Olserum | OLR12002 | 87.95 | 89.35 | 1.4 | 411595 |
Olserum | OLR12002 | 99.2 | 100.25 | 1.05 | 411596 |
Olserum | OLR12002 | 126.32 | 127.11 | 0.79 | 411597 |
Olserum | OLR12002 | 127.11 | 128.16 | 1.05 | 411598 |
Olserum | OLR12002 | 156.94 | 158.94 | 2 | 411600 |
Olserum | OLR12002 | 158.94 | 160.94 | 2 | 411601 |
Olserum | OLR12002 | 203.2 | 203.94 | 0.74 | 411602 |
Olserum | OLR12002 | 214.52 | 216.52 | 2 | 411603 |
Olserum | OLR12002 | 220.52 | 222.52 | 2 | 411604 |
Olserum | OLR12003 | 123.8 | 125.3 | 1.5 | 411605 |
Olserum | OLR12003 | 144.5 | 145.63 | 1.13 | 411607 |
Olserum | OLR12003 | 159.6 | 160.6 | 1 | 411608 |
Olserum | OLR12003 | 175.28 | 176.44 | 1.16 | 411609 |
Olserum | OLR12003 | 195.78 | 197.19 | 1.41 | 411610 |
Olserum | OLR12004 | 54.2 | 55.6 | 1.4 | 411611 |
Olserum | OLR12004 | 89.45 | 91.3 | 1.85 | 411613 |
Olserum | OLR12004 | 100.9 | 101.9 | 1 | 411614 |
Olserum | OLR12004 | 120.9 | 121.7 | 0.8 | 411615 |
Olserum | OLR12004 | 136.15 | 137.15 | 1 | 411616 |
Olserum | OLR12005 | 64 | 66 | 2 | 411617 |
Olserum | OLR12005 | 75.3 | 75.7 | 0.4 | 411618 |
Olserum | OLR12005 | 83 | 84 | 1 | 411620 |
Olserum | OLR12005 | 84 | 85 | 1 | 411621 |
Olserum | OLR12005 | 90.23 | 91.45 | 1.22 | 411622 |
Olserum | OLR12005 | 91.45 | 92.45 | 1 | 411623 |
Olserum | OLR12005 | 95.17 | 95.47 | 0.3 | 411624 |
Olserum | OLR12005 | 105.4 | 105.85 | 0.45 | 411625 |
Olserum | OLR12005 | 109 | 111 | 2 | 411626 |
Olserum | OLR12005 | 115.7 | 117.7 | 2 | 411627 |
Olserum | OL0507 | 64.25 | 65.25 | 1 | 411628 |
Olserum | OL0507 | 67.78 | 68.78 | 1 | 411629 |
Olserum | OL0507 | 76.78 | 77.78 | 1 | 411631 |
Olserum | OL0507 | 79.78 | 80.65 | 0.87 | 411632 |
Olserum | OL0507 | 96.65 | 97.65 | 1 | 411633 |
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Olserum | OL0507 | 97.65 | 98.65 | 1 | 411634 |
Olserum | OL0514 | 165.74 | 166.7 | 0.96 | 411635 |
Olserum | OL0514 | 166.7 | 167.7 | 1 | 411636 |
Olserum | OL0514 | 183.2 | 184.2 | 1 | 411637 |
Olserum | OL0514 | 184.2 | 185.2 | 1 | 411638 |
Olserum | OL0514 | 226.65 | 227.65 | 1 | 411640 |
Olserum | OL0514 | 227.65 | 228.65 | 1 | 411641 |
Olserum | OL0515 | 189.3 | 190.3 | 1 | 411642 |
Olserum | OL0515 | 190.3 | 191.3 | 1 | 411643 |
Olserum | OL0515 | 213.3 | 214.3 | 1 | 411644 |
Olserum | OL0515 | 214.3 | 215.3 | 1 | 411645 |
Olserum | OL0515 | 236.8 | 237.8 | 1 | 411647 |
Olserum | OL0515 | 237.8 | 238.8 | 1 | 411648 |
Olserum | OL0515 | 250.35 | 250.94 | 0.59 | 411649 |
Olserum | OL0518 | 111.75 | 112.75 | 1 | 411650 |
Olserum | OL0518 | 114.85 | 115.85 | 1 | 411651 |
Olserum | OL0518 | 117.85 | 118.85 | 1 | 411653 |
Olserum | OL0518 | 179.85 | 180.85 | 1 | 411654 |
Olserum | OL0518 | 183.15 | 184.15 | 1 | 411655 |
Olserum | OL0518 | 189.43 | 190.43 | 1 | 411656 |
Olserum | OL0519 | 123.75 | 125.75 | 2 | 411657 |
Olserum | OL0519 | 132.25 | 134.25 | 2 | 411659 |
Olserum | OL0519 | 139.85 | 140.85 | 1 | 411660 |
Olserum | OL0519 | 144.85 | 145.85 | 1 | 411661 |
Olserum | OL0519 | 148.85 | 149.85 | 1 | 411662 |
Olserum | OL0519 | 160.35 | 161.35 | 1 | 411663 |
Olserum | OL0520 | 116.4 | 117.4 | 1 | 411665 |
Olserum | OL0520 | 118.4 | 119.4 | 1 | 411666 |
Olserum | OL0520 | 119.4 | 120.4 | 1 | 411667 |
Olserum | OL0520 | 121.4 | 122.1 | 0.7 | 411668 |
Olserum | OL0520 | 122.1 | 123.1 | 1 | 411669 |
Olserum | OL0520 | 124.1 | 125.45 | 1.35 | 411670 |
Olserum | OL0520 | 135.7 | 136.8 | 1.1 | 411672 |
Check Analyses
Check analyses by Tasman Metals has consisted of a collection of Field Duplicates submitted within the batch data. Greater than 10% of each batch sent to ALS Chemex has been composed of these duplicates.
All QA/QC data for this Project has been deemed acceptable for the purposes of the Mineral Resource estimation.
Reed Leyton Consulting | Tasman Metals Ltd |
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Figure 25: Duplicate data for Ce, Dy and Y
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-25a.jpg)
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-25b.jpg)
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![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-25c.jpg)
Results and Discussion
Final results were received via direct email from ALS Chemex Both the raw data and the analysis certificate were received. Table 16 shows the analysis values for Ce, Dy and Y only. When comparing the original sample interval and value versus the check sample interval and value there is extremely good agreement between the individual samples.
Table 17: Drill Core Re-Sampled For Check Analysis. Matched With Original Assays
Project | Hole Number | Original Data Ce (ppm) | Original Data Dy (ppm) | Original Data Y (ppm) | Check Data Ce (ppm) | Check Data Dy (ppm) | Check Data Y (ppm) |
Olserum | OLR12001 | 3950 | 389 | 2090 | 3640 | 412 | 2260 |
Olserum | OLR12001 | 6940 | 640 | 3780 | 5810 | 590 | 3490 |
Olserum | OLR12001 | 6750 | 812 | 5140 | 7290 | 881 | 5500 |
Olserum | OLR12001 | 673 | 200 | 819 | 610 | 193 | 873 |
Olserum | OLR12001 | 200 | 41.9 | 195.5 | 254 | 39.7 | 192.5 |
Olserum | OLR12001 | 1360 | 79.5 | 287 | 1515 | 83.7 | 334 |
Olserum | OLR12001 | 3510 | 370 | 1585 | 3510 | 421 | 1835 |
Olserum | OLR12001 | 3200 | 318 | 1095 | 2450 | 208 | 710 |
Olserum | OLR12001 | 157.5 | 65.4 | 261 | 187 | 58.1 | 253 |
Olserum | OLR12002 | 167.5 | 22 | 127.5 | 122.5 | 22.4 | 132 |
Olserum | OLR12002 | 2580 | 452 | 2610 | 2050 | 463 | 2840 |
Olserum | OLR12002 | 2660 | 518 | 2860 | 4170 | 589 | 3130 |
Olserum | OLR12002 | 665 | 30.1 | 125.5 | 919 | 40.7 | 159.5 |
Olserum | OLR12002 | 2170 | 300 | 1340 | 2110 | 293 | 1260 |
Olserum | OLR12002 | 3560 | 238 | 993 | 3680 | 213 | 851 |
Olserum | OLR12002 | 2650 | 209 | 946 | 2750 | 220 | 983 |
Olserum | OLR12002 | 6040 | 623 | 2810 | 6200 | 551 | 2510 |
Olserum | OLR12002 | 4620 | 275 | 1245 | 6090 | 386 | 1770 |
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Olserum | OLR12002 | 4210 | 197.5 | 827 | 4550 | 224 | 957 |
Olserum | OLR12003 | 1180 | 166 | 1100 | 1240 | 182.5 | 1225 |
Olserum | OLR12003 | 2160 | 426 | 2850 | 1570 | 358 | 2370 |
Olserum | OLR12003 | 1925 | 300 | 1825 | 2230 | 278 | 1665 |
Olserum | OLR12003 | 1035 | 151 | 806 | 985 | 173 | 975 |
Olserum | OLR12003 | 1080 | 243 | 1620 | 1125 | 200 | 1250 |
Olserum | OLR12004 | 554 | 131 | 896 | 1435 | 189 | 1210 |
Olserum | OLR12004 | 484 | 61.4 | 374 | 473 | 60.6 | 373 |
Olserum | OLR12004 | 987 | 125.5 | 704 | 3490 | 227 | 1250 |
Olserum | OLR12004 | 12800 | 1340 | 9330 | 9720 | 1001 | 9130 |
Olserum | OLR12004 | 100.5 | 12.25 | 79.2 | 101 | 12.6 | 85.4 |
Olserum | OLR12005 | 644 | 25.4 | 102.5 | 505 | 21 | 84.3 |
Olserum | OLR12005 | 3640 | 430 | 1865 | 2570 | 306 | 1430 |
Olserum | OLR12005 | 3720 | 512 | 2350 | 4530 | 518 | 2550 |
Olserum | OLR12005 | 1970 | 322 | 1470 | 2390 | 290 | 1445 |
Olserum | OLR12005 | 5290 | 456 | 1915 | 2820 | 348 | 1695 |
Olserum | OLR12005 | 742 | 78.8 | 329 | 850 | 84.6 | 395 |
Olserum | OLR12005 | 2470 | 848 | 4040 | 2430 | 780 | 4020 |
Olserum | OLR12005 | 12600 | 1195 | 5600 | 7850 | 1001 | 5650 |
Olserum | OLR12005 | 651 | 63.4 | 310 | 563 | 49.8 | 275 |
Olserum | OLR12005 | 655 | 51.9 | 221 | 636 | 44.7 | 218 |
Olserum | OL0507 | 230 | 19.65 | 81.2 | 233 | 14.45 | 65.1 |
Olserum | OL0507 | 1175 | 250 | 1405 | 808 | 152.5 | 877 |
Olserum | OL0507 | 338 | 68.5 | 290 | 334 | 67.1 | 323 |
Olserum | OL0507 | 518 | 66.8 | 342 | 504 | 65.4 | 396 |
Olserum | OL0507 | 157.5 | 58.7 | 272 | 130.5 | 55.2 | 280 |
Olserum | OL0507 | 68.9 | 16.2 | 97 | 72.2 | 16.5 | 106 |
Olserum | OL0514 | 491 | 65.4 | 353 | 394 | 63.1 | 346 |
Olserum | OL0514 | 3720 | 300 | 1525 | 3510 | 285 | 1580 |
Olserum | OL0514 | 3390 | 200 | 816 | 1570 | 169.5 | 777 |
Olserum | OL0514 | 1290 | 120.5 | 551 | 708 | 97.3 | 485 |
Olserum | OL0514 | 553 | 103 | 667 | 537 | 107 | 744 |
Olserum | OL0514 | 339 | 80.9 | 512 | 212 | 70.3 | 476 |
Olserum | OL0515 | 726 | 115.5 | 631 | 781 | 132.5 | 792 |
Olserum | OL0515 | 4490 | 432 | 2610 | 6750 | 588 | 3500 |
Olserum | OL0515 | 734 | 90.2 | 521 | 821 | 94.3 | 563 |
Olserum | OL0515 | 457 | 43.5 | 255 | 232 | 44.7 | 297 |
Olserum | OL0515 | 2020 | 132 | 651 | 2250 | 154.5 | 769 |
Olserum | OL0515 | 3700 | 512 | 3030 | 3090 | 617 | 3940 |
Olserum | OL0515 | 599 | 212 | 921 | 745 | 193 | 891 |
Olserum | OL0518 | 4930 | 604 | 3980 | 1955 | 285 | 1855 |
Olserum | OL0518 | 1050 | 65.3 | 383 | 1465 | 100 | 534 |
Olserum | OL0518 | 484 | 16.5 | 82.5 | 478 | 18.2 | 90.1 |
Olserum | OL0518 | 268 | 27.4 | 167.5 | 287 | 23.7 | 139 |
Olserum | OL0518 | 463 | 49.1 | 295 | 382 | 39.7 | 245 |
Olserum | OL0519 | 945 | 144.5 | 999 | 726 | 103.5 | 669 |
Olserum | OL0519 | 770 | 92.9 | 496 | 662 | 101.5 | 521 |
Olserum | OL0519 | 230 | 65.3 | 340 | 344 | 59.3 | 300 |
Olserum | OL0519 | 382 | 35.1 | 197.5 | 545 | 44.6 | 229 |
Olserum | OL0519 | 787 | 59.8 | 310 | 673 | 54.8 | 264 |
Olserum | OL0519 | 4210 | 297 | 1205 | 5630 | 399 | 1575 |
Olserum | OL0520 | 370 | 15 | 58.1 | 392 | 15.8 | 59.5 |
Olserum | OL0520 | 985 | 74.3 | 337 | 986 | 77.9 | 300 |
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Olserum | OL0520 | 1865 | 323 | 1455 | 1715 | 349 | 1540 |
Olserum | OL0520 | 732 | 65.2 | 295 | 781 | 75.2 | 307 |
Olserum | OL0520 | 502 | 58.4 | 249 | 690 | 47.6 | 189.5 |
Olserum | OL0520 | 447 | 30.7 | 125.5 | 803 | 54.5 | 219 |
Olserum | OL0520 | 525 | 121.5 | 534 | 727 | 129 | 522 |
Olserum | OL0520 | 1150 | 128.5 | 562 | 675 | 114 | 544 |
Density
A total of 458 bulk density determinations have been completed with a range of values between 2.35 g/cc and 3.86 g/cc. The majority of determinations range from 2.6 g/cc to 2.9 g/cc (Figure 26). ReedLeyton has also divided the bulk density determinations by domain. The mean of the mineralization of 2.83 g/cc was used for the estimate (Figure 27). The density determinations were calculated wet and dry weight volume determinations. Figure 27 confirms that the majority of the determinations average 2.7 t/m3. The average for the waste rock determinations was 2.67 t/m3
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Figure 26: All 458 Bulk Density Determinations, Olserum
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-26.jpg)
Figure 27: Domain ‘RM’ Bulk Density Determinations
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-27.jpg)
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13. MINERAL PROCESSING AND METALLURGICAL TESTING
Following the discovery of significant mineralization at Olserum, IGE Nordic AB commissioned beneficiation tests to produce a physical concentrate.
Minpro AB (www.minpro.se) was selected as the processing research laboratory. Minpro is a Swedish production and consulting company working with research and process development in the field of minerals, mining and recycling. Minpro are well equipped and skilled for handling and dressing of ores and minerals and remain active in Sweden today.
The Author has sighted the original processing report (in Swedish) plus an English translation of this report, and the working/analytical sheets that describe the recovery process. The Author is of the opinion that these documents are authentic and represent work completed to a high standard. Adequate validation of this data was completed by Mr Geoff Reed. Furthermore, during checking of drill core the Author sighted numerous labelled locations in core where quarter core sample had been taken for the processing research.
In 2005, Minpro was asked to conduct bench scale concentration tests on a composite sample from Olserum. The aim was to investigate the possibility to make a physical mineral concentrate, thus substantially lower the tonnage needed to be transported for further processing. Simple gravity methods were considered worthy of first tests, due to the density contrast provided by the xenotime and monazite mineralization.
The tests included two attempts with gravimetric concentration at bench scale. A 23 kg composite sample of quarter core from four drill holes was crushed to -5 mm in jaw and cone crushers. The first test was done using a Mozley separator (comparable to a shaking table) and the procedure was as follows.
One representative sample of 1 kg was ground to -300 μm. The sample was passed through a weak magnetic separator to remove magnetite. The non magnetic portion was screened into one fine grained and one coarse grained fraction at 106 μm. The two fractions were then separated gravimetrically on a Mozley-separator in order to recover the heavy minerals.
When combining the two fractions (coarse and fine) a concentrate of 14% of the total mass grading 5.5% rare earth oxide, recovering 76% of the REE’s was produced. The concentration of the fine grained fraction yielded a concentrate of 4.5% of the total mass grading 13.7%, recovering 59% of the REE’s.
The second test used a Falcon centrifuge as a gravimetric separator. The 1 kg sample was ground to -300 μm. The total sample was then separated in the centrifuge. Due to the lack of previous separation into fractions, the method performed poorly.
The unoptimised Mozley-separator tests show excellent potential for recovery of a high value mineral concentrate from Olserum mineralization. The results are in line with REE projects being explored elsewhere with monazite/xenotime mineralogy (Northern Minerals Ltd, Namibia Rare Earths Ltd).
Tasman Metals Ltd has commissioned additional beneficiation testwork in the laboratories of the Geological Survey of Finland (GTK). Representative core sample has been provided to GTK. Mineral concentrate produced in beneficiation is planned to be used in future hydrometallurgical research.
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No hydrometallurgical testing has been completed on the Olserum deposit. Whilst hydrometallurgical methods present a key risk area in for REE projects, monazite/xenotime has a well established caustic leaching process as provided in Figure 28 below.
Figure 28: Processing Flowsheet for Monazite REE Mineralization
(After Hart and Levins)
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-28.jpg)
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14. MINERAL RESOURCE ESTIMATES
The Mineral Resources estimated and disclosed herein supersede the Historic Mineral Resources as quoted in Section 6 above and apply current practices and assumptions.
Resource Data
Drilling Data
· | Thirty Six (36) diamond drill holes totalling 6,127.1m drilled into the Olserum area in 2003- 2005 and 2012. |
· | Data relating to the collar locations, drill collar orientations and drill hole surveys were sighted by the Geoff Reed in sections and plans of the day. Individual hard copy data of down hole surveys or assays were sighted. |
· | Geoff Reed inspected the area with the Issuer’s personnel and was able to locate many 2012 drill hole collars, and selected 2003 -2005 collars. |
· | Due to the locally high magnetic disturbance Tasman used instead the Reflex GYRO tool with station readings every 3 m for the 2012 drilling program. Four of the five drill holes were surveyed. OLR12005 could not be surveyed due to a blockage in the hole. Tasman also re-surveyed 11 of the total 15 historic holes in order to get better quality data. Two of the historic drill holes are missing (OL0510 and OL0516) and could not be surveyed and another two drill holes (OL0511 and OL0519) could not be surveyed due to plugged holes. So in total 15 out of 20 drill holes that make up the Mineral Resource are GYRO surveyed. |
· | All drill core for Eighteen (18) in Resource diamond drill holes has been located by the Issuer’s staff in Granna, Sweden. Core from 11 holes has been inspected by Geoff Reed including 1 twin hole OLO0514. |
· | Eighteen (18) diamond drill holes were included in the current mineral resource estimation. Twin Holes not included in the resource calculation included OLO0514 and OLO0403. |
Table 18: Olserum Drilling Database Summary
Hole Type | Database | ||
Drill holes | |||
Series | Number | Metres | |
DD | OL | 28 | 4792.9 |
DD | DJU | 3 | 337.2 |
DD | OLR | 5 | 997.0 |
Total | 36 | 6127.1 |
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Table 19: Olserum In Resource Drilling Summary
Hole Type | Database | ||
Drill holes | |||
Series | Number | Metres | |
DD | OL | 13 | 2543.9 |
DD | OLR | 5 | 997.0 |
Total | 18 | 3540.9 |
Database Integrity
· | Capture of digital data was completed by the Issuer’s staff. Hard copy data has been verified and all data is stored in a database and managed by the Issuer. |
· | Drilling data from drill programs were transferred in digital format by the Issuer’s staff. |
· | Digital data has been both randomly and systematically checked by the author and shown to be correct using a number of checks listed below. Assay data in original laboratory sheets has not been sighted from the 2003-2005 drilling program. |
· | Digital data used in the current study has been checked and found to be accurate using the following checks. |
o | Check for duplicate collars. |
o | Check for twin holes. Two twin holes. |
o | Check for statistically anomalous down-hole surveys. |
o | Check for overlapping assays |
o | Check for zero-length assays |
o | Checks for holes bottomed in ore |
o | Check for assay values successively the same. |
o | Check for assay spikes. |
· | The digital data was compiled directly into Microsoft Excel by the Issuer, validated in Microsoft Access and exported into a csv format. The database was then imported into Maptek Vulcan software in the csv format. |
· | The database for Olserum was condensed to Twenty (20) drill holes, which provided the verified information for compositing (specifically the collar, Survey, lithology and assay tables). The database included drill holes with recorded collar elevation. |
Drill Spacing
· | Thirty two (32) drill holes for 6,127.7m of diamond drilling were drilled at Olserum. 20 drill holes intersected mineralisation and were subsequently assayed. |
· | Hole spacing was completed on a 40 metre by 40 metre drill pattern. |
· | For wire framing purposes 291 degrees strike was considered the optimal orientation. Strike of mineralisation varied from 280 degrees to 300 degrees |
· | Polygons were created every 40m through the twenty 20 resource drill holes at the project. |
Drilling Orientation
· | Holes have been drilled mostly at two orientations 20 degrees and 200 degrees at Olserum. |
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· | Due to the amount of drilling and orientation, the true thickness is generally considered to be 80% of drilled thickness. |
· | The likelihood that mineralisation is developed in an orientation other than that interpreted is considered to be low. |
Chemical Analysis
· | A total of 2262 samples from 36 drill holes were analysed in total at Olserum for diamond drill holes. |
· | A total of 1737 samples from 18 drill holes were analysed in total at Olserum for diamond drill holes with the current resource estimation. |
· | All samples taken during Tasman’s 2012 diamond drilling program at Olserum were analyzed at ALS Chemex in Vancouver, Canada using the ME-MS81 method as described below. Rare earth rich samples that exceeded the reporting limit of the ME-MS81 method were further assayed by ICP-MS method ME-MS81h. A total of 8 of the samples were re-analyzed for rare earths. |
· | The analytical specification for the ME-MS81 method is: A prepared sample (0.200 g) is added to lithium metaborate flux (0.90 g), mixed well and fused in a furnace at 1000°C. The resulting melt is then cooled and dissolved in 100 mL of 4% HNO3 / 2% HCl solution. This solution is then analyzed by inductively coupled plasma - mass spectrometry.” |
Sample Length
· | All holes drilled at Olserum were sampled with an average of one (1) metre intervals. Check sampling by the Issuer at the request of the author used identical sample intervals. |
· | Composites of the drill hole assays are generated using Maptek Vulcan software with run lengths of 1 metre. |
· | These composites honour the geological wireframes. Checking was undertaken by generating an Isis file and visually inspecting the result of the composite. |
· | Specific components of the compositing include |
o | Run Lengths of 1 metre; |
o | Data Fields for all REEs were composited; |
o | The composite file was then applied a tag for each composite with the character (gr(a to d) and rm(a to f)) in the ‘bound’ column. This new composite isis file was called olrrmgrsc.feb.isis and used in the estimation process. |
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Figure 29: Histogram of raw Sample Lengths for Olserum
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-29.jpg)
Table 20: Summary Statistics all drillholes
UNCUT
![](https://capedge.com/proxy/6-K/0000949353-13-000119/table-20.jpg)
Table 21: Summary Statistics all Mineralised domains (RM)
UNCUT
![](https://capedge.com/proxy/6-K/0000949353-13-000119/table-21.jpg)
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Relative Density
· | Using the bulk density (“BD”) density default function of Vulcan, the variable BD was populated. |
· | The value 2.82 was run according to density test work by the Issuer previously attributed to various assays within the geology database. The author has created a file with an average BD taken between various TREO % grades within the resource. A value of 2.67 was attributed to waste blocks outside the resource. |
Geological Model
· | Mineral Resources has been calculated by the author on the bearing of 291 degree strike. |
· | The project was drilled within an area approximately 400m x 100-150m. |
· | The mineralization was intersected on all the drilling sections and is so far known to at least a depth of 250m below the surface. |
· | Mineralization strikes NW-SE and dips varies between 70 and 85 degrees to the NE. |
· | Mineralization is present as six main mineralized bodies. |
· | Two block model were constructed, named olr_feb13.bmf and olr_feb13_ok.bmg. The parameters used in the setup file olr_feb13.bdf for Olserum. |
· | The block model was created using the one bdf file. This original block model contained only default values except for the variable domain, which was populated in relation to the six mineralized wireframes and four waste (granite) wireframes in which the blocks resided in. |
· | A rotation of 21 Bearing, 0 Plunge and 0 Dip was applied. |
· | Parent block size was 5m x 20m x 10m with sub blocks at 1m x 4m x 2m, with the mineralization limited to 5m X 20m x 10m. |
· | The variables include the type and their default values before estimation. |
Wire Framing
· | Using the above drill hole data, wireframing of the geological boundaries were performed by joining digitized section outlines at a 40m spacing. |
· | The digitized sections are snapped to drill holes within +/-20m influence using lithological boundaries for wireframe domains at Olserum. |
· | Vertical plane sections were digitised at 200 degree orientation at 40 m spacing. There is sufficient evidence for continuity of the mineralised envelope between sections. |
· | All modeled wireframes were checked in plan, cross section, long section and 3D rotated views |
· | All geological wireframes were checked for crossing, inconsistencies and closure. |
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Figure 30: Mineral Resource Cross Section, Olserum
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-30a.jpg)
Table 22: Olserum Mineralised Domains and Granite Domains
Type | Wireframes | Domains |
Mineralised | rlc_msed_sections1-6 | Rma-Rmb-RmcRmd-Rme-Rmf |
Granite | rlc_granite_sectionsP1-4 | Gra-Grb-Grc-Grd |
Grade Interpolation
· | Grade interpolation was undertaken using inverse distance and ordinary kriging defined by the domain wireframes. The allocations of composites were calculated using a hard boundary at the domain wireframes. |
· | Using Maptek Vulcan’s Estimation Editor the grade estimation was run for Olserum. Variables were populated using one single search ellipses with no cutoff to the mineralized domains. |
· | Constant parameters used in this block definition file (bdf) and block estimation file (bef) include: |
Table 23: Olserum Block Model Parameters
Model Name | olr_feb13_ok.bmf | ||
X | Y | Z | |
Origin | 580,300 | 6,423,550 | 0 |
Offset | 400 | 560 | 400 |
Block Size (Sub-blocks) | 5 (1) | 20 (4) | 10 (2) |
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Figure 30: Mineral Resource Cross Section. Olserum
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-30.jpg)
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Table 24: Block Model Parameters for all Block Models
Rotation | 21 degrees | ||
Attributes: | |||
Treo | Total Rare Earth Oxide | ||
Lreo | Light Rare Earth Oxide | ||
Hreo | Heavy Rare Earth Oxide | ||
Zr02 | Zirconium oxide | ||
Yt203 | Yttrium oxide | ||
U_ppm | U in ppm | ||
H_pct | H in ppm | ||
La203, Ce203, Pr203, Nd203, Sm203, Eu203, Gd203, | La oxide,Ce oxide,Proxide,Nd oxide,Sm oxide,Eu oxide,Gd oxide, | ||
Tb203, Dy203, Ho203, Er203, Tm203, Yb203, Lu203 | Tb Oxide,Dy Oxide,Ho Oxide,Er Oxide,Tm Oxide,Yb Oxide, Lu Oxide | ||
Th_ppm | Th in ppm | ||
samdis | Average distance to samples | ||
nodrill | Number of Drillholes | ||
Pass | 1=interpolated in first pass, 2=2nd pass, 3=3rd pass, | ||
numsam | Number of samples used for block grade interpolation | ||
bd | Bulk density | ||
mintype | Mineralisation Domain | ||
category | Measured = 1, indicated = 2, inferred = 3 |
Table 25: Search Parameters for Olserum
Pass | Min Sample | Max Sample | Distance |
1 | 10 | 40 | 100 |
2 | 5 | 40 | 200 |
3 | 2 | 80 | 300 |
Table 26: Estimation Parameters for Olserum
Domain | Strike | Dip | Plunge | Major | SemiMajor | Minor | Discretisation |
Rma-f | 21 | 18 | 0 | 5 | 2 | 1 | 4x:4y:2z |
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Figure 31: Olserum Log Histogram for TREO (ppm)
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-31.jpg)
Figure 32: Olserum Log Probability Plot for TREO (ppm)
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-32.jpg)
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Figure 33: Olserum Dip Plane Continuity Plot for TREO (ppm)
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-33.jpg)
When the mineralised Domain is coded for TREO and the data analysed there is interpreted to be one major population of data. Continuity analysis displays a reasonable fit of the model in the major and semi major axis direction however the minor axis could not be fitted with a reasonable model, Figures 35 and 36.
Figure 34: Olserum Variogram Plot for TREO (ppm)
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-34.jpg)
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Figure 35: Olserum Directional Variogram Plot for TREO (ppm)
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-35.jpg)
Minimum Width
· | No minimum width has been applied in the estimation of the Olserum Mineral Resources. |
Cut-off Grade
· | Cut-off grades between 0.2% and 0.7% have been assumed for the Mineral Resource estimation as provided in Table 27. The range of cut-off grades are in keeping with those used in similar REE projects that have a predominance of heavy REE’s. |
Additional Variables
Once the estimations had run, a number of additional variables were added or calculated. These variables included:
· | The category variable, category. A script, resourcecatflagged.bcf was run on the block model. This script looked at the nearest neighbor distance variable (“samdis”). If samdis was >0, then the category variable was set to inf (inferred). This variable was used to classify the resource. |
· | Using the BD density calculation function of Vulcan the variable bd was populated. The script was run according to density test work by the Issuer previously attributed to various assays within the geology database. The author has created a script file with an average BD taken between various TREO grades. |
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Mining Assumptions
· | The Olserum resource extends from surface to depth in a subvertical fashion. Due to the shallow/near surface nature of much of the resource, open pit mining is considered likely. Due to the heavy REE enriched nature of the mineralization, underground mining may be viable, should the resource confidence be increased and mineralization demonstrated to be economic. |
Metallurgical Assumptions
· | Gravity and magnetic processing was completed by a well known Swedish research facility. Recovery of 76% was achieved in single pass unoptimized testing. An acceptable recovery in excess of 75% may be assumed. Further beneficiation testwork is in progress at the time of writing. |
· | Hydrometallurgical testwork has not been substantially initiated by Tasman. While this remains an area of risk, the monazite/xenotime mineralogy has an established caustic flow sheet. The minerals have been a prior source of REE’s and ReedLeyton believes the limited data negatives effects the Mineral Resource. |
Expectation of Resource Being Mined
· | In order to demonstrate that the mineralization as estimated in the block model has a reasonable expectation of being mined at some time in the foreseeable future, ReedLeyton completed a mining optimisation exercise. |
· | As the mining concept for the Olserum Deposit is currently surface mining, Whittle® software was used to generate a conceptual pit shell. Notwithstanding the pit optimisation exercise, it has not resulted in an engineered and operational open-pit mine design. |
· | Operating assumptions used for the Whittle® pit shell were based on the Preliminary Economic Assessment data from Tasman’s more advanced Norra Karr REE project that lies 100km northwest of Olserum with similar grade and surface aspect. |
· | The economic assumptions used to derive the optimised pit shell include: |
o | Stripping Cost $tonne mined $3.66 |
o | Mining Cost $/tonne mined $3.66 |
o | Processing Cost $/tonne ore $41.48 |
o | REO Recovery 80.0% |
o | Discount to TREO Basket Price 38.0% (accounts for REO separation charge) |
o | Discounted TREO Price $31.0 kg |
o | 5 percent mining loss, 5 percent for mining dilution |
o | Exchange rate US$1 : CA$1 |
· | Overall, ReedLeyton considers these assumptions are fair for the purpose of determining reasonable prospects for economic extraction of the Olserum deposit but do not demonstrate that the mineralization is economic, since the exercise is not at the level of a Preliminary Economic Assessment and does not conform to the studies required for a Preliminary Economic Assessment. |
· | Optimised pit shell was calculated using a cut-off grade of 0.17% TREO and contained 6.3 million tonnes at an average grade of 0.526% TREO. Waste within the pit shell was 11.5 million tonnes at an average strip ratio of 1.84 tonnes of waste per tonne of ore. The optimised pit achieved a depth of 185m below surface. |
· | ReedLeyton found that, apart from a portion of the mineralization that falls below the pit shells as defined by the Whittle® model, the majority of the resource reports within the pit shell. The resource |
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reporting below the pit shell is not considered impaired (and was not removed from the resource estimated herein) as it is of a grade that can be considered for possible future underground extraction (should the confidence in the resource estimates be improved). |
· | ReedLeyton is unaware of any issues that materially and negatively affect the Mineral Resource estimate at Olserum. These conclusions are based on the following: |
o | The Company has represented that mineral rights have secure title. |
o | There are no known marketing, political or taxation limitations. |
o | There are no known infrastructure limitations. |
o | There are no issues with respect to environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant factors that ReedLeyton is aware of that would materially affect the Mineral Resource. |
Mineral Resource Estimate
This Mineral Resource estimate has been prepared in accordance with the CIM Definition Standards adopted on November 27th 2010. The classification of the resource at the appropriate levels of confidence are considered appropriate on the basis of drill hole spacing, sample interval, geological interpretation and all currently available assay data.
Mineral Resources were modeled by ReedLeyton Consulting applying six different total rare earth oxide (TREO) cut-off grades, with a base-case resource estimated using a TREO cut-off of 0.4% (Table 26 - and 27 ). At this cut-off, Olserum hosts an Indicated Mineral Resource of 4.5 million tonnes grading 0.60% TREO and an Inferred Mineral Resource of 3.3 million tonnes grading 0.63% TREO both with 34% of the TREO being the higher value HREO (heavy rare earth oxide). Table 28 and Table 29 provide the grade averages for rare earth oxides at the various cut-offs.
Table 27: Indicated Resource Estimate for the Olserum Deposit.
TREO % Cut-off | Million Tonnes | TREO % | % of HREO in TREO | Dy2O3 | Y2O3 | Ce2O3 | Tonnes of Contained TREO | |
0.7 | 1.0 | 0.89 | 32.3 | 0.029 | 0.180 | 0.270 | 794,791 | |
0.6 | 1.7 | 0.78 | 32.9 | 0.026 | 0.161 | 0.241 | 1,208,894 | |
0.5 | 3.0 | 0.68 | 33.3 | 0.023 | 0.142 | 0.213 | 1,695,737 | |
0.4 | 4.5 | 0.60 | 33.9 | 0.021 | 0.128 | 0.194 | 2,076,567 | BASE CASE |
0.3 | 6.3 | 0.53 | 34.4 | 0.019 | 0.115 | 0.176 | 2,381,878 | |
0.2 | 7.7 | 0.48 | 34.5 | 0.017 | 0.104 | 0.166 | 2,505,535 |
Table 28: Inferred Resource Estimate for the Olserum Deposit.
TREO % Cut-off | Million Tonnes | TREO % | % of HREO in TREO | Dy2O3 | Y2O3 | Ce2O3 | Tonnes of Contained TREO | |
0.7 | 0.9 | 0.85 | 31.8 | 0.029 | 0.167 | 0.270 | 794,791 | |
0.6 | 1.6 | 0.77 | 32.5 | 0.026 | 0.155 | 0.241 | 1,208,894 | |
0.5 | 2.5 | 0.69 | 33.6 | 0.024 | 0.145 | 0.213 | 1,695,737 | |
0.4 | 3.3 | 0.63 | 33.7 | 0.022 | 0.132 | 0.194 | 2,076,567 | BASE CASE |
0.3 | 4.2 | 0.57 | 33.9 | 0.020 | 0.121 | 0.176 | 2,381,878 | |
0.2 | 4.7 | 0.54 | 33.9 | 0.019 | 0.113 | 0.166 | 2,505,535 |
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The calculated tonnage figures are literal, whereas the accuracy of the technique suggests that the values should be rounded to better reflect the order of accuracy. Hence the author has rounded the mineralisation tonnage to the nearest ten thousand tonnes as shown on Table 26 and 27.
Table 29: The Indicated Resource Estimate grade averages for all of the rare earth oxides at the various cut-offs for the Olserum Deposit.
TREO % Cut-off | La2O3 | Ce203 | Pr203 | Nd203 | Sm203 | Eu203 | Gd203 | Tb203 | Dy203 | Ho203 | Er203 | Tm203 | Yb203 | Lu203 | Y203 |
0.7 | 0.125 | 0.281 | 0.034 | 0.131 | 0.029 | 0.001 | 0.029 | 0.005 | 0.029 | 0.006 | 0.017 | 0.002 | 0.015 | 0.002 | 0.180 |
0.6 | 0.109 | 0.244 | 0.030 | 0.115 | 0.026 | 0.001 | 0.026 | 0.004 | 0.026 | 0.005 | 0.015 | 0.002 | 0.014 | 0.002 | 0.161 |
0.5 | 0.094 | 0.212 | 0.026 | 0.100 | 0.023 | 0.001 | 0.023 | 0.004 | 0.023 | 0.005 | 0.014 | 0.002 | 0.012 | 0.002 | 0.142 |
0.4 | 0.083 | 0.186 | 0.023 | 0.088 | 0.020 | 0.001 | 0.021 | 0.004 | 0.021 | 0.004 | 0.012 | 0.002 | 0.011 | 0.002 | 0.128 |
0.3 | 0.072 | 0.163 | 0.020 | 0.077 | 0.018 | 0.000 | 0.018 | 0.003 | 0.019 | 0.004 | 0.011 | 0.002 | 0.010 | 0.001 | 0.115 |
0.2 | 0.065 | 0.147 | 0.018 | 0.070 | 0.016 | 0.000 | 0.017 | 0.003 | 0.017 | 0.004 | 0.010 | 0.001 | 0.009 | 0.001 | 0.104 |
Table 30: The Inferred Resource Estimate grade averages for all of the rare earth oxides at the various cut-offs for the Olserum Deposit.
TREO % Cut-off | La2O3 | Ce203 | Pr203 | Nd203 | Sm203 | Eu203 | Gd203 | Tb203 | Dy203 | Ho203 | Er203 | Tm203 | Yb203 | Lu203 | Y203 |
0.7 | 0.118 | 0.270 | 0.033 | 0.129 | 0.030 | 0.001 | 0.029 | 0.005 | 0.029 | 0.006 | 0.016 | 0.002 | 0.014 | 0.002 | 0.167 |
0.6 | 0.105 | 0.241 | 0.030 | 0.115 | 0.027 | 0.001 | 0.026 | 0.005 | 0.026 | 0.005 | 0.015 | 0.002 | 0.013 | 0.002 | 0.155 |
0.5 | 0.093 | 0.213 | 0.026 | 0.102 | 0.024 | 0.001 | 0.024 | 0.004 | 0.024 | 0.005 | 0.014 | 0.002 | 0.012 | 0.002 | 0.145 |
0.4 | 0.084 | 0.194 | 0.024 | 0.093 | 0.022 | 0.001 | 0.022 | 0.004 | 0.022 | 0.005 | 0.013 | 0.002 | 0.011 | 0.002 | 0.132 |
0.3 | 0.077 | 0.176 | 0.022 | 0.084 | 0.020 | 0.000 | 0.020 | 0.003 | 0.020 | 0.004 | 0.012 | 0.002 | 0.010 | 0.001 | 0.121 |
0.2 | 0.072 | 0.166 | 0.020 | 0.079 | 0.018 | 0.000 | 0.019 | 0.003 | 0.019 | 0.004 | 0.011 | 0.002 | 0.010 | 0.001 | 0.113 |
Notes:
1 | Total Rare Earth Oxides (TREO) includes: La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3 |
2 | Heavy Rare Earth Oxides (HREO) includes: Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3 |
3 | The calculated resource is sensitive to cut-off grade which will be influenced by metallurgical operating costs. Bench scale metallurgical tests were completed on an Olserum composite sample by Swedish consultants Minpro AB in 2005. |
4 | The mineral resource estimate was completed by Mr Geoffrey Reed, Senior Consulting Geologist of ReedLeyton Consultants Pty Ltd, and is based on geological and geochemical data supplied by Tasman, audited by Mr Reed. Mr Reed is an independent qualified person for the purposes of NI 43-101 standards of disclosure for mineral projects of the Canadian Securities Administrators. |
5 | The resource estimate has been classified as an Indicated and Inferred Resource based on the distance-space between sample data within the current deposit outline. Variograms were obtained from the variography study of TREO, with the continuity analysis showing a reasonable fit model in the major and semi major direction for the mineralised domains. |
6 | The resource estimate is based on: - A database of 31 drill holes totalling 5,297m of diamond drilling completed by Tasman and the previous owner IGE since 2004 where samples were composited on 1m lengths. All Assays by Tasman and IGE were completed at ALS Chemex’s Vancouver Laboratory. - Specific gravity (SG) has an overall mean of 2.70 g/cc from 458 SG readings. The mean of the mineralisation of 2.82 g/cc was used in the estimate and a mean of the host rock of 2.67 g/cc was used in the estimate - Block model was estimated by ordinary kriging interpolation method on blocks 5m (x) x 20m (y) x 10m (z). - Beneficiation test work has been completed at Olserum. Magnetic and gravity tests produced a 5.5% TREO grade concentrate with 78% recovery. Optimization is in progress. Hydrometallurgy tests are in progress and no information was available at the time of this resource calculation, however the xenotime/monazite mineralogy has been a previous source of REE’s and processing method is well known. |
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processing method is well known.
7 | Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. inferred mineral resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. |
Discussion
The drill-defined Mineral Resource at Olserum begins at surface and is open at depth and to the east. The resources comprise parallel bodies of mineralization, with lower grade intervening material, trending approximately east-west and dipping steeply to the north. Host rock to mineralization is a biotite and amphibole bearing foliated quartzite, with veins and patches of magnetite. It is interpreted that mineralization may represent heavy mineral sediments which have been subsequently metamorphosed and folded.
· | Mineral Resources has been calculated by the author on the bearing of 291 degree strike. |
· | The project was drilled within an area approximately 400m x 100-150m. |
· | The mineralization was intersected on all the drilling sections and is so far known to at least a depth of 250m below the surface. |
· | Mineralization strikes NW-SE. and dips varies between 70 and 85 degrees to the NE. |
· | Mineralization is present as six main mineralized bodies. |
· | The sample spacing is approximately 40m x 40m x 1.0m. |
· | No mining parameters are attached. |
· | The mineralization is remains open laterally and at depth. |
CIM Definition Standards
Following the enclosed audit of historical data, Tasman data, the compiled Tasman drilling database and the subsequent calculation of Mineral Resources, the quoted Mineral Resources at Olserum are subdivided into CIM-compliant indicated and inferred categories on the basis of the close density of drilling, checked grades and inter-hole continuity.
It is the opinion of the author that this Mineral Resource estimate for Olserum satisfies the definitions Indicated and Inferred Mineral Resources as per the CIM Definition Standards adopted November 27th, 2010.
Table 31: Olserum grade and cumulative tonnage at various cut off grades
Cutoff Grade % | Indicated and Inferred Tonnes (Mt) | Grade TREO % |
0.0 | 13.3 | 0.45 |
0.1 | 13.2 | 0.48 |
0.2 | 12.4 | 0.50 |
0.3 | 10.5 | 0.55 |
0.4 | 7.8 | 0.61 |
0.5 | 5.5 | 0.68 |
0.6 | 3.3 | 0.77 |
0.7 | 1.9 | 0.87 |
0.8 | 0.9 | 0.98 |
0.9 | 0.6 | 1.06 |
1.0 | 0.3 | 1.18 |
1.1 | 0.2 | 1.26 |
1.2 | 0.1 | 1.33 |
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Figure 36: Olserum Grade And Cumulative Tonnage At Various Cut Off Grades
![](https://capedge.com/proxy/6-K/0000949353-13-000119/figure-36.jpg)
Table 32: Olserum – Drillholes and intervals Used in Resource Calculation
Project | Hole Number | From (m) | To (m) | Interval (m) | TREO (%) |
Olserum | OL0510 | 167.55 | 190 | 22.45 | 0.289 |
Olserum | OL0512 | 99.2 | 139.5 | 40.3 | 0.414 |
Olserum | OL0513 | 173.44 | 247.6 | 74.16 | 0.661 |
Olserum | OL0515 | 184.4 | 242 | 57.6 | 0.605 |
Olserum | OL0516 | 90.6 | 141.3 | 50.7 | 0.433 |
Olserum | OL0517 | 172.9 | 207.7 | 34.8 | 0.3 |
Olserum | OL0518 | 172 | 204.9 | 32.9 | 0.256 |
Olserum | OL0519 | 88.85 | 127.75 | 38.9 | 0.504 |
Olserum | OLR12001 | 95.9 | 151.32 | 55.42 | 0.503 |
Olserum | OLR12002 | 131.46 | 210.85 | 79.39 | 0.701 |
Olserum | OLR12003 | 166.9 | 239.15 | 72.25 | 0.556 |
Olserum | OLR12004 | 94.8 | 154.3 | 59.5 | 0.702 |
Olserum | OL0512 | 141.7 | 162 | 20.3 | 0.203 |
Olserum | OL0513 | 257 | 264.05 | 7.05 | 0.532 |
Olserum | OL0515 | 247.2 | 257.94 | 10.74 | 0.385 |
Olserum | OL0516 | 145.05 | 146.38 | 1.33 | 0.886 |
Olserum | OL0517 | 232.65 | 246 | 13.35 | 0.404 |
Olserum | OL0518 | 220.75 | 243 | 22.25 | 0 |
Olserum | OL0519 | 140.85 | 153.75 | 12.9 | 0.335 |
Olserum | OLR12001 | 151.85 | 161.85 | 10 | 0.178 |
Olserum | OLR12002 | 213.84 | 234.64 | 20.8 | 0.75 |
Olserum | OLR12003 | 239.95 | 250.6 | 10.65 | 0.319 |
Olserum | OLR12004 | 159.6 | 175.8 | 16.2 | 0.303 |
Olserum | OL0401 | 11.5 | 77.85 | 66.35 | 0.502 |
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Olserum | OL0510 | 152 | 166.5 | 14.5 | 0.455 |
Olserum | OL0512 | 86.5 | 89.35 | 2.85 | 0.312 |
Olserum | OL0513 | 126.9 | 150.64 | 23.74 | 0.767 |
Olserum | OL0515 | 160.15 | 172.47 | 12.32 | 0.498 |
Olserum | OL0516 | 73 | 83.8 | 10.8 | 0.938 |
Olserum | OL0517 | 132 | 144 | 12 | 0.198 |
Olserum | OL0518 | 138 | 152 | 14 | 0.073 |
Olserum | OL0519 | 73.5 | 76 | 2.5 | 0.626 |
Olserum | OL0520 | 141 | 158.85 | 17.85 | 0.183 |
Olserum | OL0521 | 181.9 | 186.34 | 4.44 | 0.026 |
Olserum | OLR12001 | 75 | 95.34 | 20.34 | 0.916 |
Olserum | OLR12002 | 126.14 | 129.71 | 3.57 | 0.433 |
Olserum | OLR12003 | 151.1 | 162.15 | 11.05 | 0.662 |
Olserum | OLR12004 | 91.3 | 92.5 | 1.2 | 1.228 |
Olserum | OL0401 | 82.8 | 89.45 | 6.65 | 0.362 |
Olserum | OL0507 | 66.78 | 96.3 | 29.52 | 0.523 |
Olserum | OL0510 | 96.55 | 143 | 46.45 | 0.54 |
Olserum | OL0511 | 29.85 | 65.92 | 36.07 | 0.83 |
Olserum | OL0512 | 41.5 | 58.3 | 16.8 | 0.518 |
Olserum | OL0513 | 114 | 123.9 | 9.9 | 0.917 |
Olserum | OL0515 | 132 | 152.4 | 20.4 | 0.319 |
Olserum | OL0516 | 55.36 | 73 | 17.64 | 0.861 |
Olserum | OL0517 | 114.43 | 122.05 | 7.62 | 0.168 |
Olserum | OL0518 | 117.85 | 122.85 | 5 | 0.261 |
Olserum | OL0519 | 43.75 | 51.6 | 7.85 | 0.165 |
Olserum | OL0520 | 81.2 | 129.8 | 48.6 | 0.418 |
Olserum | OL0521 | 127 | 165.05 | 38.05 | 0.451 |
Olserum | OLR12001 | 57.26 | 75 | 17.74 | 0.629 |
Olserum | OLR12002 | 83.11 | 107.2 | 24.09 | 0.695 |
Olserum | OLR12003 | 125.3 | 147.15 | 21.85 | 0.573 |
Olserum | OLR12004 | 66.2 | 67.45 | 1.25 | 0.46 |
Olserum | OLR12005 | 49 | 123 | 74 | 0.369 |
Olserum | OL0517 | 250.9 | 256.4 | 5.5 | 0.371 |
Olserum | OL0518 | 248.395 | 249.8 | 1.405 | 1.227 |
Olserum | OL0519 | 160.35 | 162.4 | 2.05 | 1.253 |
Olserum | OLR12004 | 176.9 | 179.9 | 3 | 0.34 |
Olserum | OL0515 | 118.85 | 124.75 | 5.9 | 0.34 |
Olserum | OL0517 | 106.35 | 109.55 | 3.2 | 0.153 |
Olserum | OL0518 | 111.75 | 114.55 | 2.8 | 0.776 |
Olserum | OL0519 | 39.65 | 42.15 | 2.5 | 0.274 |
Olserum | OLR12004 | 48 | 56.15 | 8.15 | 0.416 |
The author confirmed with Directors of Tasman Metals Ltd that no material activity has taken place with regard to the projects since the author’s visit. The author believes that the site visit is still current, and that there is no material change since then to the information in this report.
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15. MINERAL RESERVE ESTIMATES
There are no mineral reserve estimates available to, or commissioned by the issuer.
16. MINING METHODS
There are no mining method studies available to, or commissioned by the issuer beyond the Whittle® pit model described above.
17. RECOVERY METHODS
The project is of advanced exploration stage, and recovery methods have not been finalised. A combination of magnetic separation, gravity separation and caustic leaching is supported by test work and published data.
18. PROJECT INFRASTRUCTURE
There is no infrastructure on site that is project – specific.
19. MARKET STUDIES and CONTRACTS
No Market Studies or Contracts exist for the Olserum Project
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20. | ENVIRONMENTAL STUDIES. PERMITTING and SOCIAL or COMMUNITY IMPACT |
Environmental Permitting Requirements |
The Swedish Environmental Code is a combined code which contains general requirements for the environment, land and water use, environmental impact assessments. The code also enables European Directives e.g. the water frame work directive to be incorporated into Swedish law. The code also regulates areas of national interest including Natura 2000 areas, reindeer herding and mineral deposits. The ESIA chapter in the code summarizes the legal requirements for an EISA. More information can be found in sub-decrees from different authorities. The Swedish legislation requires the applicant to undertake an environmental (and social) assessment (in Swedish “MKB”) at two different stages during the development of a mining project.
The first MKB is produced when applying for an exploitation concession in accordance with the Minerals Act (SFS 1194:45) from the Mining Inspectorate of Sweden (“Bergsstaten”). Although the exploitation concession follows the Minerals Act a MKB must be performed according to the requirements of the Swedish Environmental Code (1998:808). The produced MKB however, is to some extent simplified, e.g. no alternatives are needed to be presented or explored. The emphasis of the MKB is only to demonstrate that there are no obvious conflicts and that mining operation is possible with a minimum of impact on the surrounding land uses. The assessment is based on early project design information (“PEA” information). When granted, the company gets the sole right to the deposit for 25 years which at the end of the period may be extended further. Stakeholders also have the right to appeal to a higher court. Stakeholder consultation is in general not required but is recommended, and the County Administrative Board as well as the local municipalities (local environmental authorities) will provide comment on the MKB. Approval of the exploitation concession is required prior to submitting an application for an environmental permit to mine (“extraction permit”) to the Land and Environmental Court (In Swedish “Mark och miljödomstol”).
The environmental permit application, under the terms of the Environment Code (SFS 1998:808), also requires an MKB. But an extended one, which is based on a more defined (definite) project description (“PFS” or “FS” level) than the MKB prepared for the exploitation concession application. Several alternative ways of mining, TMF designs and locations etc. must also be evaluated and described as well as transportation and processing options, noise and vibration etc. The environmental permit application must also be followed by a technical description which describes the future operations in detail. Again, the application is evaluated by the Swedish Land and Environmental Court with input from various regulatory authorities, the County Administrative Board, Municipalities, Swedish EPA etc. Stakeholder consultation is required during the application process. Once granted, mining operations can be started. Stakeholders also have the right to appeal the permit to a higher court.
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21. CAPITAL and OPERATING COSTS
No capital or operating costs have been provided by the issuer.
22. ECONOMIC ANALYSIS
No economic analysis has been provided by the issuer.
23. ADJACENT PROPERTIES
There are no known operators of any directly adjacent property or locally adjacent properties.
24. OTHER RELEVANT DATA and INFORMATION
There is no other relevant data or information relating to the Olserum Project.
25. INTERPRETATION and CONCLUSIONS
The following interpretations and conclusions have been made on the Olserum deposit from the findings of the Technical Report:
· | The deposit has resources of sufficient quality that warrants additional investigation. |
· | A Mineral Resource estimate using an Ordinary Krieged interpolation method was completed by ReedLeyton. The Mineral Resource estimate in this Technical Report is reported using cut off grades which are deemed appropriate for the style of mineralization and the current state of the Mineral Resources. |
· | Of importance for mine planning, the model accommodates in situ and contact dilution but excludes mining dilution. Block size is similar (1 x 5 x 2 meters) to expected small-mining units conventionally used in this type of deposit and appropriate for an open pit mine. |
· | It is the opinion of the author that the Mineral Resources estimates for Olserum satisfy the definition of Mineral Resource as per the CIM Definition Standards adopted on or November 27th 2010. |
· | Potential for increasing of the Mineral Resources are good with mineralization open down dip, which requires further drilling to investigate potential. |
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26. RECOMMENDATIONS
The recommendations provided here are based on observations in the Mineral Resource estimate detailed in Section 14.
ReedLeyton recommends that Tasman complete in-fill drilling to increase the Mineral Resource confidence categorization of areas currently defined as Indicated to Measured. ReedLeyton estimates an additional 3000 m of in-fill and extensional drilling would be recommended, tightening the drill spacing to 20m sections and infilling some sections to 20m spacing to confirm inter-hole continuity in and around faulted zones. Deep drilling to ascertain the depth of the Olserum is also recommended.
Such drilling can be used to provide geotech data regarding rock stability in the area of the proposed pit. Additional holes may be required away from the mineralized area.
Table 33: Olserum Follow Up Drilling Program
FOLLOW UP DRILLING | UNITS | COST (CAD) |
10 x 300m DDH on infill sections | $120/m | $360,000 |
4 x 200m DDH for geotech | $120/m | $96,000 |
Geology, Logging, core cutting, support, geotech | $250,000 | |
TOTAL | $706,000 |
A program of expanded mineralogical and metallurgical research is recommended to determine extractability of the REE’s that are present at Olserum and identify preferred processing pathways for follow up research. This data will be key for any potential future Preliminary Economic Assessment, in combination with other technical and economic information. Expanded processing information shall also be required to increase the confidence of resources to measured status.
Table 34: Olserum Metallurgical Test Program
METALLURGICAL TESTING UNITS COST (CAD) | UNITS | COST (CAD) |
First metallurgical tests - beneficiation | $100,000/test | $100,000 |
Detailed Mineralogy | $25,000/test | $25,000 |
Follow up metallurgy testing - beneficiation | $100,000/test | $200,000 |
Metallurgical tests - hydrometallurgy | $50,000/test | $200,000 |
TOTAL | $525,000 |
Success in metallurgical research will provide encouragement to move towards bulk sampling and establishment of a pilot plant on site.
A Preliminary Economic Assessment that studies potential mining, processing, tailing disposal, community impact and environmental scenarios for Olserum and the associated cost centres is recommended pending the successful extraction of REE’s in metallurgical trials.
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27. REFERENCES
· | IGE Nordic AB, The RARE EARTH DEPOSIT OF OLSERUM SWEDEN, 2007 |
· | Gustavsson, Bo., 1990. Sällsynta jordartsmetaller I Sverige. SGU report, BRAP 90024. |
· | Gustavsson, Bo., 1991. Sällsynta jordartsmetaller, regional fältkontroll 1991 av arkivuppslag. SGAB report PRAP 91047. |
· | Kleinhanns, I.C., Fischer-Gödde, M., Hansen, B.T., 2012. Sr-Nd isotope and geochemical characterisation of the paleoproterozoic Västervik formation (Baltic Shield, SE-Sweden): a southerly exposure of Svecofennian metasiliciclastic sediments. International Journal of Earth Sciences 101, pp. 39-55. |
· | Löfvendahl, R., Åkerblom, Gustav., 1976. Uranprospektering I Västerviksområdet. SGU Report, BRAP 87003. |
· | Rydberg, Sten., 1972. Uranmineraliseringar i trakten av Västervik. SGU report. |
· | Sultan, L., Plink-Björklund, P., 2006. Depositional environments at a Paleoproterozoic continental margin, Västervik Basin, SE Sweden. Precambrian Research 145, pp. 243-271. |
Internal reports
· | Bachmann, K., Höfig, T., Gutzmer, J., 2013. Characterisation of heavy REE mineralization in the Olserum Prospect, southern Sweden. Report prepared for Tasman by Freiberg University, Germany. |
· | IGE, 2007. The Rare Earth Deposit Olserum Sweden. IGE Nordic internal report. |
· | Minpro AB, 2005. Indicative tests to pre-concentrate rare earth metals. Minpro report 6635. |
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