GCILatest sampling results confirm that EGT’s Olserum project has significant potential for expansion
Shares in European Green Transition () continued their upward journey, after the company announced further results from recent channel and grab sampling at the Djupedal prospect on the Olserum rare earths project in south Sweden.
Among the highlights from channel samples taken over a 100 metre zone at Djupedal was three metres grading 1.58% total rare earth oxides.
The company also intersected one metre grading 2.27% TREO with around 30% heavy rare earth oxides average.
The results announced 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.
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.
In addition, EGT also took 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).
The results from these affirm the new geological model.
Combined, the rock chip and channel samples confirm an 800 metre long mineralised trend at the Djupedal prospect.
In addition, a further mineralised shear zone with 1.77% TREO identified 930 metres south of Djupedal confirms regional-scale potential.
And separately, new airborne geophysics data released by the Swedish Geological Survey (SGU) has been obtained and reprocessed, identifying further regional targets.
"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,” said Aiden Lavelle, chief executive of European Green Transition.
“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.”
View from VOX
It’s all lining up nicely in advance of EGT’s fully permitted low-cost drill programme to get underway later in the year. This could easily confirm the project upside that now seems to be on offer, and in turn end up attracting a partner to fund the next stage of work.
Is Olserum a district-scale rare earths project?
That remains to be seen. But there certainly is potential for it to become the only major rare earths project in Europe. The shares ticked up at the open by just over 1.5% to 16.25p.
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