Sample Results from the Olserum REE Project

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	[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 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 or follow us on Twitter, LinkedIn, and YouTube.

 

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