Nov 4, 2024

Prospech Limited Reports 20.6m @ 11,953 ppm TREO at Korsnäs Project, Finland

Introduction:

Prospech Limited (ASX: PRS) has reported additional assay results from historical drill core sampling at its Korsnäs Project in Finland, highlighted by 20.6m @ 11,953 ppm TREO from 53.8m.

Drill Results:

20.6m @ 11,953 ppm TREO from 53.8m (including 3,474 ppm NdPrO) (KR-107)
6.2m @ 14,014 ppm TREO from 174.7m (including 4,057 ppm NdPrO) (KR-138)
2.0m @ 41,270 ppm TREO from 177.4m (including 12,109 ppm NdPrO) (KR-138)
28.6m @ 2,802 ppm TREO from 106.2m (including 748 ppm NdPrO) (KR-147)
1.1m @ 12,005 ppm TREO from 126.9m (including 3,415 ppm NdPrO) (KR-147)

Project Overview:

The Korsnäs Project is located in Finland and was originally developed as a lead mine. It features extensive rare earth element (REE) zones that remain open along strike and at depth. The project comprises a network of layered carbonatite zones, each up to 20 meters thick and separated by 50 to 100 meters across strike. Five gravity anomalies have been defined over a 5 kilometer strike length.

Prospech has access to archived data from 471 historical drill holes through an agreement with the Geological Survey of Finland. This extensive dataset includes drill core, logs, plans and sections from the old Korsnäs lead mine and surrounding areas.

Program Details:

The current program involves sampling and assaying historical drill core from holes completed in the 1950s, 60s and early 70s. This batch of results includes 260 samples from 22 holes. The sampling program focuses on REE mineralization that was previously overlooked during lead-focused exploration. Results to date are forming the foundation for a future JORC-compliant resource estimate.

Understanding These Results:

The reported intersections represent significant REE mineralization that was not the focus of historical mining operations. Total Rare Earth Oxides (TREO) values over 10,000 ppm (1%) are considered high-grade for REE deposits. The NdPrO (neodymium and praseodymium oxides) content is particularly important, as these are critical rare earth elements used in permanent magnets.

The 20.6m intersection grading 11,953 ppm TREO in hole KR-107 is especially noteworthy, showing significant thickness and grade along the southern strike extension of the mine trend. The high-grade 2.0m interval of 41,270 ppm TREO in KR-138 demonstrates the potential for very high-grade zones within the broader mineralized system.

Management Commentary:

Jason Beckon, Managing Director of Prospech Limited, stated:

"Assay results from samples taken by Prospech geologists from the historical core from Korsnäs have been consistently strong and the latest batch is no exception, with a standout 20 metre intersection at more than 1% TREO, showing significant 29% NdPr enrichment along the southern strike extension of the mine trend. Our assay results from historical drilling and our own modern era drilling support an expectation of thick continuous zones of REEs in places previously discounted by the lead focused Korsnäs mining operations.

“Results from our recent drilling program, the first in the modern era, have validated the reliability of the extensive historical drill core preserved by the Geologic Survey of Finland.

“Assay data from samples taken by Prospech geologists from historical drill core reported to date, along with the recently announced and highly encouraging results from our modern drilling program, form a solid foundation for a future JORC compliant resource estimate, which we are progressing towards.

“Further samples taken from historical drill core are currently being assayed and we look forward to providing further updates as the results become available."

Next Steps & Catalysts:

Prospech is continuing to assay samples from the historical drill core. Results from these ongoing assays will be reported as they become available.

The company is progressing towards a JORC-compliant resource estimate for the Korsnäs Project, incorporating data from both the historical core sampling and recent modern drilling programs.

Commodity Outlook:

Rare earth elements, particularly neodymium and praseodymium, are critical for the production of permanent magnets used in electric vehicles and renewable energy technologies. The European Union has identified REEs as strategically important, with a focus on developing domestic supply chains. Finland's supportive mining jurisdiction and Korsnäs' location position the project favorably to potentially supply the growing European market for these critical minerals.

Conclusion:

The latest results from Korsnäs continue to demonstrate significant REE mineralization over substantial widths. With five identified gravity anomalies over a 5km strike length, the project shows potential for a large-scale REE system. Ongoing sampling of historical core and validation through modern drilling are building a solid foundation for resource definition. The project's location in Finland and focus on critical REEs align well with European strategic mineral initiatives.

Sources:

PRS Drill Results Announcement

Additional Figures:

Australia

ASX

Gold

Jan 16, 2022