REG - European Green Trns. - Sample Results from the Olserum REE Project

European Green TransitionAnnouncement

15/05/2024 07:00

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RNS Number : 4451O  European Green Transition PLC  15 May 2024

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018. With the publication of this
announcement via a Regulatory Information Service, this inside information is
now considered to be in the public domain.

 

 15 May 2024

European Green Transition plc

 

("European Green Transition", "EGT" or "the Company")

 

Channel and Grab Sample Results from the Olserum REE Project

 

 

European Green Transition (AIM: EGT), a company developing green economy
assets in Europe which aims to capitalise on the opportunity created by the
green energy transition, is pleased to announce further results from recent
channel and grab sampling at the Djupedal prospect within the Olserum Rare
Earth Elements (REE) project located in south Sweden.

 

Highlights

 

·      Channel samples taken over a 100 metre zone at Djupedal confirm
REE mineralisation including three metres grading 1.58% TREO and one metre
grading 2.27% TREO with c. 30% HREO average.

·      New rock chip grab samples grading 1.5% and 1.04% TREO from a
southerly dipping shear structure near the east of Djupedal, and close to a
dump with high-grade REEs (15-20% TREO), affirm the new geological model.

·      Combined rock chip and channel samples confirm an 800 metre long
mineralised trend at the Djupedal prospect.

·     Further mineralised shear zone with 1.77% TREO identified 930
metres south of Djupedal confirms regional-scale potential.

·      New airborne geophysics data released by the Swedish Geological
Survey (SGU) has been obtained and reprocessed, identifying further regional
targets.

·      Encouraging results support Directors' belief that the Company's
fully permitted low-cost drill programme scheduled for H2-2024 could confirm
project upside, supporting the aim of attracting a partner to fund a larger
scale, fully permitted programme.

 

 

Aiden Lavelle, Chief Executive Officer of European Green Transition, said:

 

"The results from this latest phase of sampling at the Olserum REE Project
confirm that the project has excellent potential to be expanded, with a large
new zone and several drill targets defined at the Djupedal prospect 2.5km
northwest of Olserum. The footprint of the Djupedal prospect alone is greater
than that of the Olserum Resource and its surrounds, and new mineralised
structures have been located in Djupedal and to the south where parallel
mineralised trends are now apparent. This project could have the potential to
become a meaningful source of critical and heavy REEs for the European market,
which to date has no domestic, secure supply of REEs, a critical component of
the green energy transition.

 

"These sampling results further increase our confidence of completing our
fully permitted and low-cost drill programme in H2-2024. We anticipate the
drill programme could confirm our assumption that this is a district scale REE
project with potential to be a significant project in Europe and to support
the Company's aim of attracting a partner to fund its future development and
potential commercialisation."

 

Channel Sample Results

The results announced today include six channel samples cut across mineralised
outcrops to obtain representative samples across exposed outcrops and 37 grab
samples across the Djupedal prospect. The channel samples consist of a total
of sixteen one metre samples of which twelve had significant mineralisation
and are reported below. The results confirm that the Olserum REE Project is
much larger than previously thought, with a new high-priority target
identified in the west of the Djupedal prospect between 580 metres and 680
metres northwest of the original Djupedal iron workings where REEs were first
identified.

 

Five out of the six channel samples were cut in this zone and all had REE
mineralisation with a best result of up to three metres grading 1.58% TREO in
OLS-CH-007.  Due to limited outcrop, OLS-CH-008 was taken across the same
structure but offset to the west and north and had higher grade with one metre
grading 2.27% TREO. The results of these two channels combined confirm that
higher grade mineralisation is present at Djupedal over several metres' width,
but outcrop of the mineralised structure is restricted due to the high biotite
content which weathers out.

 

Channel OLS-CH-009 was taken from an outcrop on the edge of a slope and field
approximately 420 metres east of the Djupedal zone and 200 metres southwest of
the Djupedal iron workings, and this also contained REE mineralisation with
two metres grading 0.54% TREO. Channel OLS-CH-009 is interpreted as low-grade
mineralisation in the hanging wall above a shallow southwest dipping structure
sampled 80m to the north and located closer to the high-grade dump material on
surface.

 

Djupedal Channel Sample Results from exposed outcrops. Reported intervals are
continuous.

 

 Channel ID  Interval (m)  Grade % TREO  % NdPrDy Oxides  Note
 OLS-CH-004  2             0.206         0.043            Djupedal West
 OLS-CH-005  1             0.540         0.103            Djupedal West
 OLS-CH-006  3             0.713         0.166            Djupedal West
 OLS-CH-007  3             1.577         0.307            Djupedal West
 OLS-CH-008  1             2.273         0.579            Djupedal West, offset extension of OLS-CH-007
 OLS-CH-009  2             0.543         0.125            Djupedal East Area

 

Grab Sample Results

In addition to the channel samples, the 37 rock chip grab samples taken during
the recent geological mapping add further weight to the continuity of
mineralisation across the Djupedal prospect and confirm a >800m long
mineralised trend hosted in altered granite with a well-developed mylonitic
shear foliation which is open to the west. The trend is associated with a
strong >1km x 250m magnetic anomaly. Magnetite is associated with the REE
mineralisation and strong magnetic anomalies, and confirmed REE mineralisation
in the sample data, combined with a better structural understanding, make for
compelling drill targets with excellent discovery potential.

 

New rock chip results include 1.5% and 1.04% TREO from a southerly dipping
shear structure near the east of the Djupedal prospect. These samples validate
the Company's new exploration model and confirm that a shallow
southwest-dipping structure or set of structures may be the host for the
high-grade dump material that is present on surface 90 metres to the west.
Another sample of the dump material weighing 2.26kg exceeded detection limits
of Ce (>5%) and Pr (>0.5%) and the total grade is in excess of 15.42%
TREO and comparable with a previous high-grade dump sample that assayed 20.45%
TREO. The sample has been sent for additional X-ray fluorescence (XRF)
analysis to determine the true grade. Targeting such high-grade material is a
key objective of the drill program scheduled to commence in H2-2024.

 

The strongest magnetic anomaly at Djupedal, located in the centre of the
prospect, is associated with a historic trench and dump of magnetite-biotite
rock which was previously unsampled. Five new samples from this site assayed
between 0.36% TREO and 1.04% TREO and this represents a strong drill target
despite the limited outcrop. The core of the magnetic anomaly measures c. 100
metres x 80 metres width and will be drill tested in the upcoming drill
program.

 

Figure 1: Distribution of rock sample locations to date across the Olserum
project

 

Potential District-Scale REE Project

A newly located magnetite-biotite altered shear zone at Stora Lockerum,
located 900 metres south of the Djupedal trend, has also been confirmed to be
mineralised with REEs. A single chip sample of strong alteration over a one
metre width returned 1.77% TREO with 0.393% NdPrDy oxides. The Stora Lockerum
sample lies on trend with the historic Bersummen Lake samples located to the
southeast. The Bersummen samples have been confirmed to contain REEs. A
previous sample taken by the Company at Bersummen had 0.73% TREO, while
historic samples taken by the previous operator had results of up to 3.73%
TREO are known. The new Stora Lockerum sample further confirms the regional
potential for further REE discoveries in the area and the new shear zone
hosted mineralisation model proposed by the Company following relogging of the
historic drill core and mapping of the Olserum area.

 

New Airborne Geophysics Data

The Company has obtained and reprocessed new high-quality airborne geophysics
data released by the Swedish Geological Survey (SGU) in late January 2024. The
survey was flown in 2023 over large parts of Kalmar County and includes
magnetics, radiometric, and electromagnetic datasets which can assist the
Company in identifying new REE targets across the large 101 sq. km licence
area to support the district scale potential of the project. The Olserum
project - which is designated as a project of National Interest for REEs by
the SGU - is located in a region which is under-explored but which is highly
prospective for critical minerals such as REEs. Additionally, the SGU is
commencing a new regional mapping program in the Västervik region around
Olserum, and we look forward to further updates as this mapping project
progresses and data becomes freely available.

 

 

Sample Information, Quality Assurance / Quality Control

Channel samples were cut with a diamond consaw, and all samples were one metre
long and c. 3-5cm wide with a continuous one metre sample collected in each
run. All channel samples are from surface outcrops. All samples were securely
bagged, cable tied, boxed, and shipped by courier to ALS Minerals in Malå,
Sweden. Pulps were prepared and dispatched to ALS Minerals in Loughrea,
Ireland and analysed by method ME-MS81h for ore-grade rare earth elements. The
Company submitted blind REE reference standards provided by Geostats Pty and
blanks within the sample stream to ALS and monitors the results for accuracy.
ALS also performs its own internal QA/QC procedures to assure the accuracy and
integrity of results.

 

Competent Person

All scientific and technical information in this announcement has been
prepared under the supervision of and reviewed and approved by EurGeol Aiden
Lavelle, M.Sc., P.Geo., EGT's Chief Executive Officer. Mr Lavelle has
sufficient experience relevant to the style of mineralisation and type of
deposit under consideration, and to the activity which he is undertaking to
qualify as a Competent Person in accordance with the guidance note for Mining,
Oil & Gas Companies issued by the London Stock Exchange in respect of AIM
Companies, which outlines standards of disclosure for mineral projects. Mr
Lavelle consents to the inclusion in this announcement of the matters based on
his information in the form and context in which it appears.

 

 

-ENDS-

 

 

Enquiries

European Green Transition plc

 Aiden Lavelle, CEO  +44 (0) 208 058 6129
 Jack Kelly, CFO

Panmure Gordon - Nominated Adviser and Broker

 James Sinclair-Ford / Dougie McLeod / Ivo Macdonald  + 44 (0) 20 7886 2500

 Mark Murphy / Hugh Rich / Rauf Munir

 

Camarco - Financial PR

 Billy Clegg, Elfie Kent, Lily Pettifar, Poppy Hawkins  europeangreentransition@camarco.co.uk + 44 (0) 20 3757 4980

Notes to Editors

 

European Green Transition plc (listed on the AIM London Stock Exchange under
the ticker "EGT") is a business operating in the green economy transition
space in Europe. EGT intends to capitalise on the opportunities created by
Europe's transition away from fossil fuels to a green, renewables-focused
economy. The Company plans to expand its existing portfolio of green economy
assets through M&A, targeting what it believes to be distressed and
undervalued projects. EGT sees substantial opportunities to deliver value from
its M&A pipeline, which includes critical material, wind, solar,
processing and recycling projects.

 

EGT's highly experienced leadership team have a strong track record of
building successful public companies through the acquisition of distressed
assets. EGT plans to replicate this approach, creating a sustainable and
profitable business while generating shareholder returns.

 

The Company's current portfolio of green economy assets includes the Olserum
Rare Earth Project in Sweden. The Olserum project is one of Sweden's projects
of "National Interest" and has the potential to become Europe's first
operating REE mine. EGT has taken an exclusive option over a copper tailings
recycling project in Cyprus with the potential to generate meaningful amounts
of copper, and with the site and surroundings offering an excellent long-term
location to establish a potential solar power facility. EGT owns additional
projects in northern Sweden and Germany which have defined and tangible upside
with potential to realise near-term inflection points in a cost effective
manner. EGT's objective is to build a profitable business while aiming to
monetise some of its assets through sale or partnership with larger industry
players or European end users. The team is focused on success while remaining
committed to its defined ESG strategy, ensuring excellent development
practices across all projects in addition to regular local community
engagement.

 

For more information visit www.europeangreentransition.com
(http://www.europeangreentransition.com) or follow us on Twitter
(https://twitter.com/EuropeanGreenT) , LinkedIn
(https://www.linkedin.com/company/european-green-transition-ltd/) , and
YouTube (http://www.youtube.com/@EuropeanGreenTransition) .

 

 

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