European Green Transition (EGT) has announced further results - following on from results announced on 15 May 2024 - from recent grab samples taken at the Djupedal prospect, the nearby Bersummen area, and the newly identified Stora Lockerum structure, all located within the Olserum rare earth elements project in south Sweden.
High-grade samples of dump material at Djupedal assayed 4.79%, 5.8% and 11.77% total rare earth oxides.
In addition, a sample from the March 2024 sampling results, which exceeded the detection limits, was re-assayed by X-ray fluorescence methods and assayed 15.27% TREO, of which 3.67% is high value NdPrDy oxides.
Further rock chip samples within the Djupedal prospect confirm continuity and extend mineralisation to one kilometre of strike length, with an outcrop sample further to the northwest assaying 0.74% TREO.
Six rock chip samples collected at the newly identified Stora Lockerum structure, 900 metres south of Djupedal, assayed up to 3.88% TREO with an average of 1.73% TREO. Historic trial workings for iron were also discovered, confirming the link between the magnetite iron and REE mineralisation in the district.
Four samples from the Bersummen area assayed between 0.9% TREO and 2.51% TREO, with samples up to 290 metres apart defining a potential new mineralised trend northwest of Bersummen.
"We believe that the Olserum REE Project has potential to be expanded into a district-scale REE system.” Said Aiden Lavelle, chief executive of European Green Transition.
“With additional time spent on the ground and results from this batch of samples collected in April, the team has increased our knowledge of the system, increased the strike length of the mineralisation at Djupedal to one kilometre, and 900 metres to the south extended the recently discovered Stora Lockerum structure to up to 500 metres, following its discovery in March. Additional samples from the Bersummen area also define a potential new trend over circa 300 metres and reaffirm our belief that this is a district scale REE system.”
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The shares ticked up to just over 16p on the news, meaning that they’ve risen by around 60 per cent since listing in April.
Will there be more to come in the second half of the year. Well, for one thing the company promised lots of dealflow. There has been some, but maybe there’ll be more.
But with regard to Olserum specifically, there’s lots of potential for positive news. These results presage a planned drill programme for the second half of the year, and the market does love a drill programme. The programme is permitted, and purported to be low cost, so it won’t exhaust the company’s resources by the time it’s complete.
And it could confirm the existence of a district-scale scale system and further project upside, thereby attracting in a partner to fund a larger scale programme.