Prospech Limited's Initial Inferred Resource Estimate at Korsnäs: A New REE Frontier
PROSPECH LIMITED. (PRS) Share Update December 2024 Tuesday 3rd
Prospech Limited Announces Initial Inferred REE Resource Estimate at Korsnäs
Prospech Limited (ASX: PRS) has announced an initial inferred mineral resource estimate for its Korsnäs project, marking a significant milestone in the exploration of rare earth elements in Europe.
Instant Summary:
- Initial inferred mineral resource estimate of 7.1Mt at 1.08% TREO.
- Exploration target adjacent to the inferred resource estimated at 10-12Mt at 1.0%-1.2% TREO.
- Resource based on 46 mineralized zones from historical and recent drilling.
- Focus on improving resource quality and quantity through further drilling and metallurgical testing.
Initial Resource Estimate
Prospech Limited has reported an initial JORC Code 2012 Inferred Mineral Resource Estimate (MRE) for its Korsnäs project, located on Finland's west coast. The estimate, derived from the company's 2024 drilling campaign and historical data, stands at 7.1 million tonnes at a grade of 1.08% total rare earth oxides (TREO) with a lower cut-off grade of 0.5% TREO.
The resource is based on 46 distinct mineralized zones identified from both recent and historical drilling data. Prospech anticipates that further drilling will consolidate these zones, potentially increasing the resource tonnage.
Exploration Target and Future Plans
In addition to the inferred resource, Prospech has identified an exploration target adjacent to and along the strike of the current resource. This target is estimated to be between 10 to 12 million tonnes at a grade of 1.0% to 1.2% TREO.
Prospech's Managing Director, Jason Beckton, emphasized the importance of ongoing drilling and metallurgical test work to improve the quality and quantity of the resource. The company is also focused on initial mine permitting and iterative economic reviews to assess the project's viability.
Strategic Importance
The Korsnäs project represents a significant addition to the EU's rare earth element resources, aligning with the region's goals to secure critical raw materials for the green energy transition. Prospech's exploration efforts are supported by the European Commission's REMHub program, which aims to enhance the EU's access to rare earth elements and permanent magnets.
The announcement of an initial inferred resource at Korsnäs is a positive development for Prospech Limited, potentially boosting investor confidence and stock value. The project's alignment with the EU's green energy goals could attract further interest and investment.
Investor Reaction:
Analysts are likely to view the announcement favorably, given the strategic importance of rare earth elements in the EU. However, the project's success will depend on further exploration and the ability to convert exploration targets into JORC-compliant resources.
Conclusion:
Prospech Limited's initial resource estimate at Korsnäs marks a promising start in developing a significant rare earth element resource in Europe. Investors should watch for further updates on drilling results and metallurgical testing, which will be crucial for the project's advancement.