Tasman Metals,  Ltd., (TSX.V : TSM; Frankfurt : T61; Pink Sheets : TASXF) a Canadian-based junior exploration and development company is working diligently on their European based Norra Karr deposit to develop heavy rare earth resources that can be sold to companies who need those minerals for manufacturing – in both technology and the automotive industries.

James Powell, Vice President of Corporate Development and Mark Saxon, CEO and President of Tasman Metals at the San Francisco Hard Assets Resource Investment Conference

Recently, Metals News spoke with both Mark Saxon, the CEO and President of Tasman Metals and James Powell, the Vice President of Corporate Development about their progress on the Norra Karr project and their projections for the use of rare metals and the European market.  Additional good news for Tasman Metals is that they are just about to be added to a new exchange, opening up their exposure to additional investors.  Said Saxon, “We are on the cusp of an AMEX listing. That will be great.” 

Saxon said, “Our key milestones have been met in Sweden.  We have done a lot of new drilling.”  That new drilling has led to the next step of working through additional studies to determine the extent of the project at Norra Karr.  He said, “We are in the process of doing a scoping study.” Powell explained that there are a variety of metals available at Norra Karr.  Said Powell, “The key metals will be dysprosium, yttrium, and terbium.”  Each of these metals has a variety of applications in both technology and automotive industries and has become a critical part of the manufacturing process.  Said Powell, “dysprosium is primarily used in high strength magnets and when added to neodymium-iron-boron magnets, it enables the magnets to withstand higher temperatures.  Yttrium and terbium are used in low power lighting and smart-phones.”  With the proliferation of technology, the products from Norra Karr are highly desirable.  Said Powell, “These are very key metals in demand.”  Though the prices have declined slightly over the last six months, Powell believes that there will be higher demand for heavy rare earths than the lights.  Said Powell, “The prices have dropped in general for all rare earths, however the lighter rare earths have experienced a more significant decline and the general consensus is that the light rare earths will be over supplied as the expected near term producers, Molycorp and Lynas, bring their projects on line.  For this reason, we believe the heavy rare earths will retain their value over the long term.”

Given the changes to the market, Tasman has made a continued effort to make strategic decisions for their business.  Said Saxon, “We review our plans all the time.  My belief is that as a junior we can commit ourselves to develop the capability to produce a concentrate rare earth product.”  This concentrate prevents Tasman from having to isolate individual oxides or metals.  He said, “It is a mixture of the rare earths all in one product.  That would then be sold on to a separation facility.”  The company’s expectation is that the concentrate can potentially be sold and processed right in Europe.  Said Saxon, “We feel that Norra Karr could become a significant supplier of rare earths to Europe going forward.  We are currently seeking European based partners with rare earth separation capabilities to ensure that those metals stay inside Europe.”  Keeping the product in Europe also gives Tasman the opportunity to build strategic relationships.  Said Saxon, “We are also talking to various partners in regards to several options to develop a rare earth supply chain within Europe.  The metals will be mined and processed into a concentrate within Sweden.  Separation may happen in another country with the end products flowing through to the technology and automotive markets, which are key markets for us.”

Currently, Tasman has 58 million shares, which would be fully diluted at 64 million shares.  They are currently trading in the $2.20 range which is off their high of $6 per share.  With a market valuation of $120 million, Saxon feels they are in a good position. He said, “We will finance when the market is right.”

Tasman has a unique position in Europe.  Said Saxon, “Every rare earth project is different.  The project has mainly heavy rare earths.  It is open-pittable which will keep our costs down and it is low in radioactive elements, which will also keep our costs down.”  With a 25 year mine life, Norra Karr should provide heavy rare earth metals for decades to come.  Another aspect of the Norra Karr project that is unusual is the state of rare earths themselves.  Said Powell, “Rare earths are unique because of their properties.  The overall market for rare earths is small as only small quantities are required in each end product however they are a key input to the multi-trillion dollar technology and automotive industries.   It is rare to find them in economical deposits, particularly the heavy rare earths. We believe that once the rare earth market reestablishes itself and the materials are more widely available, new uses will be developed for these materials.” Given the fact that Norra Karr is the only NI 43-101 compliant resource in mainland Europe, makes Tasman even more unique.  Said Saxon, “We have an advantage due to our proximity to Germany and its need for rare earths to support its technology and automotive industries.”

All of these aspects of Tasman's exploration and development business have made Saxon and Powell optimistic for the future.  Said Saxon, “The supply and demand fundamentals are excellent, and we can commit to a long take-off agreement.  We expect to have good news flow over the next few months and increased exposure in the US due to our pending AMEX listing.  We are continuing our development plan for Norra Karr and look forward to the release of our scoping study in the first half of 2012.”  With a unique metals profile in an industrially developed and mining-friendly location close to the European markets, Tasman Metals is in the position to offer heavy metals – which are more marketable than light rare metals – to the European markets for the next several decades.

For more information:

http://www.tasmanmetals.com

c/o Chase Management Ltd.

Suite 1305 - 1090 West Georgia St.

Vancouver, BC

Canada V6E 3V7

Telephone: +1 604 699 0202

Fax: + 1 604 683 1585

Email: info@tasmanmetals.com

Registered Office Sweden

c/o Folke Söderström

Tasmet AB

Kyrkgatan 41

BODEN

SWEDEN 961 35

Telephone: +46(0)921 501 60

Fax: +46(0)921 501 60