This was an interesting plug for Tasman Metals (TAS:AMEX,...

This was an interesting plug for Tasman Metals (TAS:AMEX, TSXV:TSM) on Rare Metals Blog. The author raised points that we've heard about Alkane for years.

1) Rich in HREE (relative to LREE)
2) Close to infrastructure
3) Low in thorium and uranium

But...

1) No mention of niobium/Ta production
2) Pre-feasibility study not due until 2013
3) 40-year instead of 80-year mine life (1M tpa scenario)

I think I'll buy some more ALK instead.

JT

http://www.raremetalblog.com/2012/03/tasman-buy-recommendations-list-continues-to-grow.html#more

TAS press release:

Tasman Metals Ltd. ("Tasman" or the "Company") (TSXV : TSM) (Frankfurt : T61); (NYSE AMEX : TAS). Mr Mark Saxon, President & CEO, is pleased to announce the positive technical and financial results achieved from the NI 43-101 Compliant Preliminary Economic Assessment (PEA) of the Norra Karr heavy rare earth element (REE) and zirconium (Zr) project in southern Sweden.

"The PEA clearly demonstrates the strong economics of this highly strategic project, with the majority of the projected cash flow sourced from the production of the critical heavy rare earth elements, dysprosium, terbium and yttrium" said Mark Saxon, Tasman's President and CEO. "Norra Karr is one of the largest and most economically robust projects amongst its peers, due to the high contribution of the high value critical rare earth elements, the substantial capital and operating cost benefits provided by existing infrastructure, and the simple mineralogy that allows ambient temperature and pressure processing."

PEA Financial Highlights Include:

$1,464 million before-tax value (NPV at 10% discount rate);
49.6% before-tax Internal Rate of Return (IRR);
Before-tax payback period of 2.6 years;
$5.3 Billion in revenue over the first 20 years and $10.9 billion over the 40 year life of mine;
Initial capital expenditures of $290 million (including contingency of $66.82 million or 30%);
Average annual operating expenses of $74.3 million or $10.93 per kg of mixed TREO concentrate;
Conservative basket price of US$51 per kg versus current China FOB basket price of US$184.85;
Key Project Attributes:

REE recoveries of 80% and byproduct zirconium recoveries of 60%;
Average annual mixed TREO concentrate production of 6,800 tonnes including 290 tonnes of dysprosium oxide (Dy2O3), 43 tonnes of terbium oxide (Tb2O3), 773 tonnes of neodymium oxide (Nd2O3) and 2,360 tonnes of yttrium oxide (Y2O3), in mixed concentrate form;
Average annual production of 15,000 tonnes of zirconium carbonate concentrate (on a 100% ZrO2 basis);
70% of the projected economic value of the project (86% of TREO revenue) is expected to be derived from the production of Norra Karr's four critical rare earth elements (CREE), dysprosium, terbium, neodymium and yttrium;
New "In Pit" mineral resource estimate of 41.6 Mt at 0.57% TREO with 51% HREO/TREO% and 1.70% Zr2O (Indicated),and 16.5 Mt at 0.64 % TREO with 49% HREO/TREO% and 1.70% Zr2O (Inferred);
40 year mine life;
Low start-up capital costs due to the excellent existing infrastructure at Norra Karr;
Proximal to operating ports with rapid access to the European market;
Simple process flow sheet and high recoveries due to success in bench scale metallurgical testing.
Preliminary Economic Assessment

Tasman's 100% owned Norra Karr project is the only NI 43-101 compliant REE resource in mainland Europe, located in mining-friendly Sweden. Norra Karr lies 15km NNE of the township of Gränna and 300km SW of the capitalStockholm in mixed forestry and farming land.

The PEA for Norra Karr was completed by leading independent mining consultants "Pincock, Allen & Holt" (PAH) ofDenver, Colorado. Metallurgical process design was completed by Mr John Litz of JE Litz and Associates, Colorado, on the basis of data provided from process testing of Norra Karr mineralization completed by SGS Canada Inc. (SGS) in Lakefield, Canada, and the Geological Survey of Finland (GTK) in Outokumpu, Finland.

The project is proximal to road, rail, power and operating ports, plus skilled personnel, minimizing the need for offsite infrastructure to be built by the Company. Development of the project will occur as an open pit mine, with crushing, grinding, beneficiation and mineral dissolution occurring in the immediate vicinity of the pit. High purity precipitates of a mixed rare earth carbonate concentrate and a zirconium carbonate concentrate will be produced.