Funding Crunch Looms as Prospech Advances Critical Metallurgical Tests

Significant Resource Upgrade at Korsnäs

Prospech Limited has delivered a substantial boost to its Korsnäs rare earth element (REE) project in Finland, announcing a 90% increase in the inferred mineral resource estimate to 13.5 million tonnes at 1.02% total rare earth oxides (TREO). This upgrade provides a stronger foundation for the company’s ongoing efforts to develop a commercially viable processing route for REE recovery, a critical step given the strategic importance of rare earths in global technology supply chains.

The resource estimate is supported by both historic and recent drilling data, with mineralogical studies confirming geological continuity. Prospech’s Managing Director, Jason Beckton, highlighted that this milestone underpins their methodical metallurgical test work program, which aims to unlock the full potential of the Korsnäs deposit.

Advancing Metallurgical Test Work

During the quarter, Prospech collected a 500 kg bulk sample from the historic Lanthanide Concentrate Stockpile (LnCS), which has been dispatched to laboratories in Finland and Australia. The test work includes flotation, magnetic separation, and hydrometallurgical trials such as acid baking and rare earth precipitation. These tests are designed to evaluate mineral liberation, concentrate upgrade potential, and impurity removal, all critical factors in designing an efficient processing flowsheet.

Collaboration with Finnish institutions like Oulu University and GTK, supported by the EU-funded REMHub program, is a key component of this work. Results from these test programs are expected in the second half of 2025 and will inform further technical and economic assessments of the project.

Exploration Potential and Slovakian Copper-Gold Targets

Beyond Korsnäs, Prospech has defined an Exploration Target of 9 to 11 million tonnes at 0.9% to 1.1% TREO, indicating significant upside potential pending further drilling and metallurgical evaluation. Meanwhile, in Slovakia, reinterpretation of historical data at the Zlatno project suggests the presence of a previously underappreciated copper-gold porphyry system. Limited sampling has returned elevated gold values, though these results are preliminary and not yet compliant with modern resource estimation standards.

The company is considering further drilling in the second half of 2025 to test these targets, contingent on permitting and budget. This dual focus on rare earths in Finland and base and precious metals in Slovakia positions Prospech to diversify its portfolio in critical minerals.

Financial Position and Outlook

Prospech raised $1 million through a placement in May 2025 to fund its exploration and metallurgical programs. The company reported exploration expenditures of approximately $391,000 during the quarter, with cash reserves of $552,000 at quarter-end. While this cash position covers less than one quarter of current expenditure levels, management expressed confidence in securing additional funding through placement capacity and potential joint ventures, particularly given the positive momentum at Korsnäs.

Overall, Prospech’s latest quarterly report reflects tangible progress in resource development and metallurgical validation, alongside promising exploration avenues. The company’s strategic positioning within the European critical minerals supply chain could become increasingly significant as global demand for rare earths and copper-gold resources intensifies.