High-Grade Sample Results from Olserum REE Project

European Green Transition PLC

05 June 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.

 05 June 2024

European Green Transition plc

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

 New High-Grade 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, in addition to the 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 ("REE") project in south Sweden.

Highlights

·    High-grade samples of dump material at Djupedal assayed 4.79%, 5.8% and 11.77% TREO ("Total Rare Earth Oxides").

·    A sample from the March 2024 sampling results, which exceeded the detection limits, was re-assayed by X-ray fluorescence ("XRF") 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 1km 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, 900m south of Djupedal, assayed up to 3.88% TREO with an average of 1.73% TREO while 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 290m apart defining a potential new mineralised trend northwest of Bersummen.

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

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

"We believe that the Olserum REE Project has potential to be expanded into a district-scale REE system. 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 1km, and 900m to the south extended the recently discovered Stora Lockerum structure to up to 500m following its discovery in March. Additional samples from the Bersummen area also define a potential new trend over c.300m and reaffirm our belief that this is a district scale REE system.

"Further samples from known structures and dumps at Djupedal confirm the potential for higher grade mineralisation which the geologists have now vectored in on and 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 the Olserum REE project is a district scale system with potential to be a significant REE project in Europe. Completing the programme should support the Company's aim of attracting a partner to fund its future development and potential commercialisation."

Rock Sample Results

The Company has received additional rock sample results for 25 rock chip samples taken at the Djupedal prospect, the Bersummen area and the newly identified Stora Lockerum structure, all located within the Olserum REE project.

Figure 1: Distribution of sample results across Olserum REE project showing district scale system and new Stora Lockerum trend

Figure 2: New sample highlights shown at the Djupedal prospect with purple shading representing magnetic anomalies spatially associated with REE mineralisation

Djupedal Results

Fifteen of the samples in the latest batch were taken in the Djupedal prospect area with the aim of increasing sampling coverage and testing the grade of outcropping alteration and structures and other dump material surrounding the old magnetite iron workings. A newly located dump, exposed due to recent forestry activity, was sampled 115m northwest of the previously sampled dumps. This sample, OLS-112, assayed 11.77% TREO with 2.41% NdPrDy (Neodymium, Praseodymium, Dysprosium) Oxides. Another dump sample located 20m southwest of this and adjacent to small trial workings or trenches over a few metres length assayed 4.79% TREO with 0.88% NdPrDy Oxides.

A sample which exceeded the detection limit for certain REEs, namely Ce and Pr, as part of the previous sampling batch was re-assayed by XRF methods in the ALS Brisbane lab and a new result of 15.27% TREO was determined, of which 3.67% is high value NdPrDy oxides. This sample which came from a dump adjacent to the iron workings at Djupedal also had 461 ppm Terbium (Tb) which is currently the most valuable REE.

These samples support the presence of higher-grade mineralisation beyond the original known dumps at the Djupedal prospect, and are consistent with the structural model for the Djupedal prospect. Of the 15 samples from Djupedal, 10 are from outcrop and the four best assays in outcrop were 3.91%, 2.64%, 1.83% and 0.74% TREO. Significantly, the outcrop sample OLS-100 with 0.74% TREO is located to the west of the prospect and extends the known mineralisation to 1km strike length compared to the >800m reported previously. This limited outcrop is altered with magnetite and highly sheared with coarse biotite bands and is interpreted as wallrock alteration to the target structure. A nearby boulder sample, OLS-101, assayed 0.54%. These samples add to the evidence of a significant mineralised zone at Djupedal with steep to moderate, southerly dipping structures that have never been tested by drilling.

Stora Lockerum Structure

Six grab samples from the newly discovered shear zone structure at Stora Lockerum which is roughly on trend but northwest of the Bersummen samples returned very encouraging mineralisation over 500m.  Four samples were of dump material from historic iron trial workings located 30m apart with results of 0.36%, 1.05%, 2.75% and 3.88% TREO while two samples with 1.07% and 1.29% TREO were outcrop samples.

Sample OLS-094 with 2.75% TREO (0.64% NdPrDy oxides) was a grab sample of sheared pink granite containing veins of biotite and magnetite from a spoil heap located on the structure. Sample OLS-095 from a separate spoil heap had 3.88% TREO (0.897% NdPrDy oxides) with banded biotite, magnetite and quartz. The samples taken to date at Stora Lockerum are along a 490m trend exhibiting similar mineralogy and textures to Olserum and Djupedal and these samples are further evidence of district-scale REE system with potential for higher grade mineralisation located along altered shear zones.

The Company previously announced a single rock chip sample over a one metre width in this area which assayed 1.77% TREO with 0.393% NdPrDy oxides. The Company anticipates that there is a good chance of expanding the strike length of these mineralised structures once the trend is mapped. These initial results from the Stora Lockerum target are further evidence of a district-scale REE system in this prospective and under-explored region of Sweden.

Bersummen Area

Four samples from the Bersummen area northwest of Bersummen lake assayed 0.9%, 1.06%, 1.16% and 2.51% TREO. Two samples, including the sample OLS-104 with 2.51% TREO (0.56% NdPrDy Oxides) were located up to 290m apart defining a potential new mineralised trend parallel to regional strike while two other samples were located in a large dome-shaped outcrop with visible apatite just south of this trend.  It was around this outcrop that a previous sample with 0.73% TREO was taken by the Company while historic samples taken by the previous operator had results of up to 3.73% TREO.

OLS-104, from a new sample location, was a 60cm chip sample in small cliff above the field edge and contained coarse biotite and apatite with minor visible xenotime and quartz.  The strike length between the initial samples from Stora Lockerum in the northwest to the Bersummen samples in the southeast is 1.4km. Further low-cost work will confirm if this represents a single structure or two near parallel or offset structures.

Sample Information, Quality Assurance / Quality Control

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. The rock chip and grab samples reported here may not be representative of more systematic sampling methods such as channel sampling and drilling over broad intervals but are considered an indication of the presence and potential for further mineralisation.  

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	[phone]
Jack Kelly, CFO

Panmure Gordon - Nominated Adviser and Broker

James Sinclair-Ford / Dougie McLeod / Ivo Macdonald Mark Murphy / Hugh Rich / Rauf Munir

+ 44 (0) 20 7886 2500

Camarco - Financial PR

Billy Clegg, Elfie Kent, Lily Pettifar, Poppy Hawkins

[e-mail] + 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 has taken a further exclusive option to develop a peatland carbon sink programme and in turn generate carbon credits at Altan in Donegal in the northwest of Ireland. 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.

 

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