Tasman files amended and restated technical reports on its Norra Karr and Olserum properties and provides update on Norra Karr mining lease
July 12, 2013 (Source: CNW) — Tasman Metals Ltd. (“Tasman” or the “Company”) (TSXV:TSM) (Frankfurt:T61) (NYSE-MKT:TAS) announces that further to the Company’s news release of June 14, 2013, Tasman has filed amended and restated technical reports on its Norra Karr property (the “Norra Karr Report“) and its Olserum property (the “Olserum Report“) on SEDAR and the Company’s website. The Norra Karr Report and the Olserum Report were amended to address certain issues raised by the British Columbia Securities Commission as set out in the June 14, 2013 news release. The conclusions reached in the Olserum Report have not varied from those disclosed in the previously filed report on the Olserum property and the Company’s news releases datedFebruary 19, 2013 and February 27, 2013.
The Norra Karr Report includes the following changes from the disclosure set out in the Company’s news release dated March 21, 2012 (the “2012 Press Release“):
PEA Financial Highlights
- The discounted after-tax cash flow for the Norra Karr project is seen to be US$1,465 million at an 8-percent discount rate, declining to US$904 million and $622 million at discount rates of 12% and 15%, respectively. In the 2012 Press Release, the pre-tax cash flow was reported as US$1,464 million at a 10% discount rate;
- The internal rate of return for the Norra Karr project, on an after tax basis, is approximately 45%. In the 2012 Press Release, the pre-tax internal rate of return was reported to be 49.6%;
- Initial capital expenditures are US$266 million, including contingencies of US$42.8 million for mining (10%), processing (20%) and overall project contingency (20%). This is a reduction in initial capital from US$290 million as reported in the 2012 Press Release;
- Sensitivity analyses were performed on the economic model to assess the impact for changes in the rare earth oxides (“REO“) price deck, initial capital as well as changes to operational costs. Sensitivities were performed on both a pre-tax and after-tax basis. The economic model is most sensitive to changes in the REO basket prices followed by increases or decreases in operational costs and finally by initial capital expenditures in both pre- and after-tax cash flows. The 2012 Press Release reported sensitivities only on a pre-tax basis; and
- Given the positive financial analysis set out in the Norra Karr Report, a preliminary cost estimate of US$3.8 million is presented for geological, mining, metallurgical and environmental studies to advance the Project to the pre-feasibility stage. A cost estimate for advancing the Project was not presented in the 2012 Press Release.
- In the Norra Karr Report, references to “mineral inventory” or “block model mineral inventory” have been removed in order to comply with Section 2.3 (1)(a) of National Instrument 43-101 Standards of Disclosure for Mineral Projectsregarding the reporting of mineral resources.
The authors of the Norra Karr Report believe that the changes presented above will not have a material impact on the conclusions of the Norra Karr Report.
Further to Tasman’s news release of May 21, 2013, Tasman has been advised that the Mining Lease granted by the Swedish Mining Inspectorate (Bergsstaten) for its Norra Karr property is currently under appeal from certain stakeholders. The nature of the appeal shall determine the duration of the appeal process which may take up to 12 months. The Mining Lease remains in full effect.
About Tasman Metals Ltd.
Tasman Metals Ltd is a Canadian mineral exploration and development company focused on Rare Earth Elements (REE’s) in the European region and is listed on the TSX Venture Exchange under the symbol “TSM” and the NYSE-MKT under the symbol “TAS”. REE demand is increasing, due to the metals’ unique properties that make them essential for high technology and environmentally-beneficial applications. Since over 95% of REE supply is sourced from China, the European Union is actively supporting policy to promote domestic supply of REE’s, to ensure the security of high-tech industry. Tasman’s exploration portfolio is uniquely placed, with the capacity to deliver “high-tech” metals from politically stable, mining friendly jurisdictions with developed infrastructure.
The Company’s Norra Karr project in Sweden is one of the most significant heavy REE resources in the world. The resource is unusually low in radioactive metals relative to peer projects, with less than 15 ppm each of uranium and thorium.
For more information regarding rare earth elements, see the Rare Metal Blog at http://proedgewire.com/rare-earth/.
|On behalf of the Board,|
Mark Saxon, President & CEO
The qualified person for the Company’s exploration projects, Mark Saxon, President and Chief Executive Officer of Tasman and a Fellow of the Australasian Institute of Mining and Metallurgy and Member of the Australian Institute of Geoscientists, has reviewed and verified the contents of this release.
The TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), the NYSE – MKT nor the Frankfurt Stock Exchange accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note to U.S. Investors Concerning Mineral Resources and Reserves. In this news release, the definition of “mineral resources” is that used by the Canadian securities administrators and conforms to the definition utilized by CIM in the “CIM Standards on Mineral Resources and Reserves – Definitions and Guidelines” adopted on August 20, 2000 and amended December 11, 2005.
The standards employed in estimating the mineral resources referenced in this news release differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC“) and the resource information reported may not be comparable to similar information reported by United States companies. The term “resources” does not equate to “reserves” and normally may not be included in documents filed with the SEC. “Resources” are sometimes referred to as “mineralization” or “mineral deposits“. While the terms “mineral resource“, “measured mineral resource“, “indicated mineral resource” and “inferred mineral resource” are recognized and required by Canadian regulations, they are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed with the SEC. The terms “mineral reserve“, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101“) and the CIM – CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM. These definitions differ from the definitions in the United States Securities and Exchange Commission Industry Guide 7 (“SEC Industry Guide 7“) under the Securities Act of 1933. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or prefeasibility studies, except in rare cases. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measures.
The estimation of measured, indicated and inferred mineral resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. U.S. investors are cautioned (i) not to assume that measured or indicated resources will be converted into reserves and (ii) not to assume that estimates of inferred mineral resources exist, are economically or legally minable, or will be upgraded into measured or indicated mineral resources. It cannot be assumed that the Company will identify any viable mineral resources on its properties or that any mineral reserves, if any, can be recovered profitably, if at all. As such, information contained in this news release and the documents incorporated by reference herein concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by United States companies in SEC filings.
Cautionary Statements. Certain statements found in this release may constitute forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect the speaker’s current views with respect to future events and financial performance and include any statement that does not directly relate to a current or historical fact. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, uncertainties related to the availability and costs of financing, unexpected geological conditions, success of future development initiatives, imprecision in resource estimates, ability to obtain necessary permits and approvals, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, changes in world metal markets, changes in equity markets, environmental and safety risks, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Forward-looking statements cannot be guaranteed and actual results may vary materially due to the uncertainties and risks, known and unknown, associated with such statements. Shareholders and other readers should not place undue reliance on “forward-looking statements,” as such statements speak only as of the date of this release.
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