Sign of the times. Tasman Metals (TSM-V)
Jan 12th 2016 - NR
Last year was a challenging year for the mining and exploration industry in general and the rare earth element (REE) sector was not spared from the downturn. Although REE prices declined, traded volumes of the metals showed relative strength, with greater than 90% of supply still coming from Chinese sources. In response to the difficult conditions and lack of financing opportunities, many junior exploration companies that previously focussed on REE projects have now moved on to seek other corporate opportunities. Tasman remains a leader in a much reduced field of competitors.
One notable outcome of the past year was the bankruptcy filings of Molycorp Inc. which entered Chapter 11 bankruptcy protection in June 2015. The Mountain Pass mine, a significant resource of the lowest-value REEs lanthanum and cerium, has been placed on "care and maintenance" and it is not known if or when the operation will be restarted.
The Tasman Board remains optimistic for improved market conditions for REEs in 2016. Metal prices have stabilized, and the only significant western REE producer, Australia's Lynas Corp, is now cash flow positive. In China, the industry continues to be aggregated which over time may allow for tighter control over illegal Chinese mining and support higher REE prices.
Tasman is acting to increase the opportunities for revenue from our flagship Norra Karr heavy REE project in Sweden, in addition to those outlined in the 2015 Pre Feasibility Study (the "2015 PFS"). As previously reported, Norra Karr presents a unique opportunity not only for REEs but also for the supply of the industrial minerals nepheline and feldspar, which together comprise some 65% of the rock. Nepheline and feldspar have large European markets in ceramics, glass, plastics, cement, building material and metallurgical industries. Nepheline and feldspar are for example widely consumed in the manufacture of bathroom ceramics, roof and floor tiles, crockery, building fillers, paints, cement and even cosmetics. Tasman's test work on the nepheline/feldspar by-product from Norra Karr has shown it to be low in iron, and with key characteristics similar to material being used industrially across Europe today.
During 2016, Tasman's focus shall remain on the Norra Karr project, seeking to further optimize the current processing flowsheet for REEs, and develop markets for the industrial minerals. The Company starts the year with a sufficient cash balance, as it moved quickly to reduce overheads on the conclusion of the 2015 PFS. With the ongoing support of the European Commission funded EURARE project, the Tasman Board is confident significant progress can be achieved during 2016.
In light of the decision to reduce costs during challenging times, Tasman's Board has chosen to withdraw from the Finnish portfolio of chromite projects due to the relatively high permit holding costs in Finland.
We thank shareholders for their continued support, and look forward to working to advance our project portfolio during 2016.
About Tasman Metals Ltd.
Tasman is a Canadian mineral exploration and development company focused on critical metals including REE's and tungsten in Scandinavia. Tasman is listed on the TSX Venture Exchange under the symbol "TSM" and the NYSE-MKT under the symbol "TAS". REE and tungsten demand is increasing, due to the metals' unique properties that make them essential for high technology and industry. Since over 80% of REE and tungsten supply is sourced from China, the European Commission (EC) promotes policy to develop domestic supply of critical metals to ensure the security of industry. Tasman receives research funding from the EC.
Tasman's exploration portfolio is uniquely placed, with the capacity to deliver strategic metals from politically stable, mining friendly jurisdictions with developed infrastructure and skills. The Company's Norra Karr and Olserum projects in Sweden are two of the most significant known heavy REE resources in the world, enriched in dysprosium, yttrium, terbium and neodymium. The Company is now focused on the safe, sustainable and responsible development of its Scandinavian mineral portfolio.
On behalf of the Board,
Mark Saxon, President & CEO
Tasman Metals Ltd.
Investor Information
Mariana Bermudez
+1 (604) 685 9316
info@tasmanmetals.com
www.tasmanmetals.com |
