Prospech (ASX:PRS) subsidiary Bambra Oy has been granted exclusive rights to conduct exploration over an area covering the historic Korsnäs lead mine in Ostrobothnia, Finland.
Prospech, which has a $5.93 million market capitalisation, says the local Korsnäs Municipality — which owns the surface areas of the historic mine site — supports Bambra’s exploration activities.
Under the terms of the agreement, which has a 5-year term and 5-year extension option, Bambra will pay the Korsnäs Municipality the same annual exploration fees as stipulated for exploration permits by the Mining Act of Finland.
The fees currently stand at €20 per hectare for the first 4 years, €30 per hectare for the fifth to seventh years, and €40 per hectare for the eighth to tenth years.
Prospech has immediate plans to review historical data now made available by the agreement.
Meanwhile, Prospech announces its collaboration between the company and the Geological Survey of Finland (GTK) has made ‘substantial’ progress in processing and analysing data and information.
So far, up to 499 drillhole logs have been converted into the Micromine software format, creating a structured database of drilling information, in conjunction with the scanning of 317 .TIF image files, including 102 sections files and 15 plan files being recorded.
This is expected to improve data accessibility.
The company also notes 115 historical drillholes from the Korsnäs area are being examined using a portable X-ray fluorescence instrument, which rapidly assesses core samples and has resulted in the selection of 1,230 samples for modern rare earth element (REE) assaying.
Prospech states this is a ‘valuable contribution’ to its ongoing exploration efforts, which are steadily advancing its understanding of the Korsnäs area’s geological potential and its REE resources.
Additional logging and sampling of the historic Korsnäs drillcore are scheduled to begin in November, with plans for subsequent confirmatory drilling, while Prospech awaits assays from samples gathered in August.
“Assays are expected soon“, Prospech Managing Director Jason Beckton says.
Speaking on the expansion, Beckton adds: “I’m pleased to share some significant developments in our ongoing collaboration with Korsnäs Municipality and Prospech. These developments are set to advance our exploration for rare earth elements in the Korsnäs region.
“These developments are set to advance our exploration for rare earth elements in the Korsnäs region“
Our exploration efforts have been significantly bolstered by historical drilling results, which have been corroborated through modern assaying techniques. These results confirm the presence of multiple REE mineralised zones within our property.
Our commitment to advancing our understanding of the Korsnäs area is unwavering.
Looking ahead, we’re scheduling further logging and sampling of the historic Korsnäs drill core in November, with subsequent confirmatory drilling in our planning.
Thank you for your continued support and commitment to our shared vision. Together, we are forging a path toward a brighter future for Prospech and our stakeholders.”
Prospech is a Slovakia and Finland-focused explorer with a goal of discovering, defining, and developing critical elements such as rare earths, lithium, cobalt, copper, silver and gold resources.
The historic Korsnäs lead mine was focused on lead production and generally overlooked and did not assay for REE mineralisation. The mine is located about 40km south of the town of Vassa.
Prospech had $1.609 million cash and cash equivalents at hand as of 30 June 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Prospech
