Prospech Achieves 10% REE Grade Boost, Shifts to ANSTO Hydrometallurgy

Flotation Screening Confirms Limited Upside

Prospech Limited has completed a flotation screening program on the Korsnäs Lanthanide Concentrate Stockpile (LnCS) in Finland, conducted by CORE, a leading Australian metallurgical laboratory. The program achieved a modest approximate 10% increase in total rare earth element (REE) grades and a 50% increase in phosphate grades by rejecting impurities such as alumina and silica. However, the company concluded that further flotation optimization would yield only marginal gains and would not represent an efficient use of shareholder funds.

Transition to Hydrometallurgical Processing with ANSTO

Building on these findings, Prospech has engaged ANSTO Minerals, the minerals division of the Australian Nuclear Science and Technology Organisation, to undertake a pre-leach and acid bake metallurgical test program. This approach targets direct hydrometallurgical treatment of the original Korsnäs concentrate, aiming to define an efficient extraction flowsheet for REEs. The program involves detailed mineralogical and elemental characterisation, diagnostic acid leaching tests, and acid bake/water leach sequences designed to optimize recovery and impurity removal.

Strategic Importance of Korsnäs and Collaborative Research

Korsnäs is situated in a historically significant lead mining district in western Finland, with REEs predominantly hosted in monazite associated with apatite. Finland’s status as a top-ranked mining jurisdiction underpins the project's strategic value, especially amid growing European and Western demand for secure, locally sourced rare earths critical to defence and advanced manufacturing sectors. Prospech is integrating ANSTO’s metallurgical findings with ongoing research at Oulu University, the Geological Survey of Finland, and PT Geoservices under the EU-funded REMHub consortium, aiming to develop a comprehensive end-to-end processing flowsheet.

Next Steps and Outlook

The company plans to ship a 20-30 kg sample of the original concentrate to ANSTO’s Lucas Heights facility in New South Wales to commence the test program. Concurrently, test work on tailings and drill core material is accelerating, supported by lessons learned from the flotation program. Prospech recently initiated a diamond drilling campaign to expand understanding of high-grade rare earth zones and secure additional metallurgical samples. While the metallurgical program remains at an early stage and does not yet support Ore Reserve or production targets, it represents a critical step toward unlocking the value of approximately 36,000 tonnes of historical concentrate stockpiled at Korsnäs.

Management Perspective

Managing Director Jason Beckton emphasised the strategic pivot, "The CORE flotation program has done its job, confirming the concentrate’s reasonable grade and limited upside from further flotation. Engaging ANSTO, with their expertise in rare earths, positions us to efficiently unlock value from the Korsnäs stockpile and future ore. This aligns with Europe's drive for domestic rare earth supply amid global geopolitical pressures." The company also announced an upcoming name change to European Resources Limited, reflecting its broader critical minerals ambitions in Europe.