The Olserum Rare Earths project in Southern Sweden has the potential to be Europe’s first REE mine

The Olserum REE Project, located in southern Sweden, is a 100% EGT-owned, royalty-free exploration initiative by EGT. Originally covering 6.5 sq km, the project has expanded to now comprise of 102.1 sq km, aiming to tap into Europe’s growing demand for critical rare earth elements (REEs). This district-scale system holds a historic 43-101 compliant resource:

  • Indicated Resource of 4.5Mt grading 0.6% Total Rare Earth Oxides (TREO)
  • Inferred Resource of 3.3Mt grading 0.63% TREO using a 0.4% cut-off
  • High contribution of high value critical REEs – dysprosium, neodymium and praseodymium

Resource Highlights

The historic Olserum REE resource covers a strike length of 300m by 100-150m wide and is tested to a depth of 250m. It remains open at depth and laterally with significant potential to expand the resource based on new outcropping discoveries and positive channel sampling results 250m – 375m northwest of the historic resource at Olserum West.

The Djupedal prospect 2.5km northwest of the Olserum resource is a large 1km long target area consisting of intensely altered granite coincident with a large magnetic anomaly and several strongly mineralised outcrops.

Exciting high-grade targets at Djupedal yielded max assay values up to 20.45% TREO from dump samples near the workings. Other targets at Stora Lockerum and Bersummen present upside to the project with exciting initial grab sample results and several newly identified structures to target.

Metallurgical Highlights

New preliminary metallurgical studies commissioned by EGT and carried out by the GTK in Finland shows that the mineralisation style at Olserum is capable of producing a high-grade REE concentrate from simple magnetic separation followed by standard flotation. The concentrate can be further upgraded with high-intensity magnetic separation to separate the apatite from the monazite and xenotime leaving a concentrate with between 30-40.11% TREO in the tests conducted. The REE minerals recovered are monazite and xenotime, both phosphate minerals which are processed commercially at other sites globally.

2024 Drill Programme and Results to Date

In August 2024, a 1,500m scout drilling program was carried out to test targets at Djupedal and Olserum West, validating the geological model and the district scale potential. The initial results from the first four holes were published in November, with the remainder expected in Q4-2024 subject to laboratory turnaround times:

  • 5m grading 3.48 TREO including 0.5m grading 7.7% TREO in hole OLS24-01
  • 25m grading 0.72% TREO including 2.0m grading 1.18% TREO in hole OLS24-02

Strategic Importance and EU Critical Raw Materials Act

There are currently no REE mines in Europe despite the new EU Critical Raw Materials Act mandating that 10% of the domestic consumption of critical metals come from extraction within the EU. The value of the Olserum asset to Europe is significant and the work by EGT to date has further derisked the project with the aim of attracting a partner and monetising the project.

Map showing REE contents in rock samples from across the district.

Map showing the 100%-owned exploration permits and excellent infrastructure at Olserum, located 3 hours drive south of Stockholm in South Sweden.

Key Project Takeaways

Potential to become Europe’s first source of valuable Magnet Rare Earths, essential for producing permanent magnets used in EVs, batteries, and wind turbines, key to the EU’s net zero goals

REE project with ‘National Interest’ Designation from the Swedish Geological Survey

Favourable jurisdiction for development of green projects with proximity to the European car manufacturing centres and new gigafactory construction sites, positioning Olserum as a critical domestic supplier of REEs for sustainable technology

Deposit modeling, outcropping discoveries, and recent drilling results suggest significant grade and tonnage upside, with district-scale growth potential

Beneficiation testwork shows that REE can be recovered and that high grade concentrates can be produced by standard metallurgical processes

Stable jurisdiction, excellent infrastructure, environmental standards and strong community engagement facilitated by public meetings and transparent communication

Excellent access to site and logistically easy to advance

Positive initial results received from low-cost drill programme – seeking partner

Specific ESG Points:

Olserum is a low-impact project with an 8Mt resource (Boliden has processed over 60Mt from the Garpenberg zinc-lead mine and the resource at the Aitik copper deposit in Northern Sweden was 902Mt). The projected site could potentially fit within a 21 hectare area, the equivalent of the quarry at Gamleby, 7km to the south of Olserum.

The Olserum resource area is on commercial forestry lands away from settlements and EGT will adhere to the best industry practices for future drilling including recycling of water, removal of drill cuttings and capping of exploration holes.

The entire Vastervik region contains granites enriched with Uranium and Thorium, however, compared to other REE deposits globally, the levels at Olserum are low. Preliminary metallurgy tests indicated the natural radioactive elements are hosted in the monazite and xenotime elements.  This is not abnormal and as in all international operations, these elements would end up in a concentrate and removed according to legislation and best practise.  Stakeholders who have questions are actively encouraged to contact the Company who will happily talk through the environmental procedures.

The REE mineralisation at Olserum contains no sulphide. Therefore, the potential for acid mine drainage is limited compared to base metal mines. Copper, zinc and lead hosted in sulphide minerals with abundant pyrite can oxidise to create sulphuric acid over time. Monazite and Xenotime are phosphate minerals and are very stable compared to sulphides.