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Tasman Metals Limited (TSX: TSM) Advances Rare Earth Elements Project and Acquires an Important Tungsten Project in Mining-Friendly Sweden

on 12/13/2013

Rare earth metals and tungsten are increasingly becoming a critical part of the mining sector.  With applications in everything from automotive manufacturing to technology, Tasman Metals Ltd (TSX: TSM) is currently developing a project in mining-friendly Sweden. 


The President and CEO of Tasman Metals Ltd, Mark Saxon, spoke with Metals News about the progress of his project.  “Our major project is in Sweden, which is a traditional mining region.”  The project itself is a unique mix of rare earth elements, including the rare earth elements as well as yttrium, niobium and zirconium.  Saxon said, “There is nothing like it in Europe, it is a very unusual rock type.”

Because of the unique nature of the project and the location within Europe, Tasman Metals Ltd is in position to offer the rare earth elements to nearby buyers.  Saxon said, “Our business model is to provide rare earths to the German automotive and engineering markets.”  With support from the local government, the project has been moving along at a good pace of development.  Said Saxon, “We have taken it through discovery to the PEA and now have a 25 year mining license from the Swedish government.”  Saxon and his team will work next to determine the best method for getting the elements out of the ground.  He said, “The pre-feasibility study is the next step.”

As with all rare earth projects, finding the minerals is not nearly as difficult as determining the best ways to extract them from the minerals.  Saxon said, “The technical challenge for a rare earth project is the processing.”  With this Sweden-based project, Tasman Metals Ltd believes they will have an edge when it comes to processing.  Said Saxon, “We are in the process of expanding into larger scale testing and we think we will have some of the lowest processing costs in the industry.”


While the company has been moving forward with the rare earth project in Sweden, they have also been adding to their portfolio of projects.  Saxon said, “We have completed some acquisitions reflecting this challenging time in the market for many companies.”  One of those projects included another metals project within Sweden.  Said Saxon “We have purchased, at a very low cost, some tungsten projects in Sweden including a historic tungsten mine.  Saxon said, “We have access to all of the historical data and we are now compiling data and planning for drilling.    The benefit of this project is that it is historical and existing.  Saxon said, “It is not a green-fields project.  It is already a site that has produced significant quantities of tungsten.”  Tasman Metals Ltd will work to move the project forward into production as quickly as feasible.  Saxon said, “The timeline is driven by discovery.  It already has a shaft and we already have wealth of knowledge on the project history.”  The tungsten project provides a contrast to rare earth projects with few processing issues.  Said Saxon, “It is fairly straightforward processing, and we have the historic processing data to support that fact.  We could begin operations in four to five years as a reasonable target.”


The European governments have recognized the importance of mining – especially for rare earth elements, so much so that they are providing support to companies like Tasman Metals Ltd.  Saxon said, “One of the unique things we have in Europe is the influence of the European Commission.”  The European Commission is concerned about strategic reserves for metals, which has created an opportunity for Tasman Metals Ltd to be at the forefront of rare earth supply in the region.  Saxon said, “The European Union has had studies on ways to secure metals for Europe.”  In addition to presenting at conferences on a regular basis, Saxon mentioned that the company is receiving direct and indirect support from the governments in the area.  He said, “We are receiving both direct funding and indirect funding from the EC.”  Tasman Metals Ltd is getting backing that will help them to research and develop their projects.  This support has led the company to become leaders in the European mining sector.  Saxon said, “We present regularly in Brussels.  They understand the role that rare earth metals play in Europe.” 

European mining companies have been facing the same difficult markets that the rest of the globe has experienced.  Even with the challenges, Saxon is optimistic for the future.  He said, “It has been a tough period in the rare earth sector.”  He does see a difference between Tasman Metals Ltd and many other rare earth projects currently undertaking research.  Said Saxon, “Our market capitalization is improving in comparison to peers, due in part to our location and the benefit of existing infrastructure.  Said Saxon, “We are close to roads, rail and ports.”  This proximity to infrastructure will dramatically decrease the Capex on their project over the long term.  Saxon said, “Our capital costs are right around $300 million dollars.”  Another defining factor of their project is the type and distribution of metals they have discovered.  Saxon said, “Our project has the largest percentage of heavy rare earth element of the major projects, which makes our output both unique and valuable.”

 

With the heavy REE focus, the support of the government and infrastructure in place, Tasman Metals Ltd has a great chance to secure a place in the challenging market.  Saxon said, “The other unique selling point for us is our access to the German market with very safe and secure supply networks.  There is no other REE project with the same security of supply”  Located in mining-friendly Sweden with a project advancing toward a feasibility study, Tasman Metals Ltd and the team led by Mark Saxon are in a position to bring a new source of rare earth metals to the European markets. 

 

http://www.tasmanmetals.com/

Suite 1305 - 1090 West Georgia St.
Vancouver, BC V6E 3V7 Canada

Tel: 1.604.685.9316
Fax: 1.604.683.1585
Email: info@tasmanmetals.com

 



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