European Lithium Reports 90 Million Tonnes of Industrial Minerals at Tanbreez Project

Background to the ASX Query

European Lithium Limited (ASX: EUR) recently responded to a detailed ASX General Query Letter concerning disclosures made about its Tanbreez Rare Earth Project in Greenland. The ASX sought clarification on the company's Mineral Resource Estimates (MRE) and the basis for production targets and forecast financial information, particularly regarding industrial minerals arfvedsonite and feldspar.

The query followed EUR's March 2025 announcement of a maiden MRE of 45 million tonnes at 0.4% rare earth oxides and a subsequent April 2025 scoping study outlining production targets and financial forecasts, including substantial revenue projections from arfvedsonite and feldspar sales.

Clarifying the Mineral Resource Estimates

European Lithium clarified that while the original MRE announcement did not contain JORC-compliant resource estimates for arfvedsonite and feldspar, an addendum released on 29 May 2025 does. This addendum reports a combined total of 90 million tonnes of these industrial minerals, divided into 51 million tonnes of Indicated Resources and 39 million tonnes of Inferred Resources. Notably, as industrial minerals, these are not reported with reference to grades, which is standard practice.

The company confirmed it has gathered sufficient sampling data, including from the kakortokite host rock unit, to underpin these estimates. The kakortokite unit, a rhythmically layered igneous rock formation, is described as containing roughly 40% feldspar, 40% arfvedsonite, and 20% eudialyte, the latter being the primary rare earth-bearing mineral targeted for extraction.

Addressing the Kakortokite Cautionary Statements

ASX's query highlighted cautionary statements regarding the kakortokite host rock unit, which emphasize that the presence of the unit does not guarantee economic mineralisation and should not be solely relied upon for mine planning or economic projections. European Lithium responded by emphasizing the consistent and uniform nature of the kakortokite layering and the comprehensive sampling and assay work undertaken, which together provide a reasonable basis for the production targets and financial forecasts disclosed.

The company also referenced Clause 49 of the JORC Code, which supports reporting saleable industrial mineral products rather than traditional ore reserves, reinforcing the legitimacy of their disclosures for feldspar and arfvedsonite.

Pricing and Market Considerations

Regarding the pricing assumptions for arfvedsonite, European Lithium explained that these were developed through consultations with the Greenland Mineral Licence and Safety Authority, the Greenland Government, and local industries involved in black sand and brick manufacturing. While Greenland currently lacks an active local market for arfvedsonite concentrate, the company views this as a new business opportunity either locally or in European export markets.

Despite the absence of a competent person statement in the Scoping Study Announcement for these industrial minerals, European Lithium confirmed that its disclosures comply with ASX Listing Rules and that the responses were authorized by the board or delegated officers.

Implications for Investors and the Project

This correspondence sheds light on the complexities of reporting industrial mineral resources within the framework of ASX Listing Rules and the JORC Code. European Lithium’s detailed explanations aim to reassure investors about the robustness of its resource estimates and the reasonableness of its production and financial forecasts, despite inherent geological uncertainties and the early-stage nature of the project.

However, the absence of certain formal competent person certifications and reliance on conceptual geological models suggest that investors should approach the forecasts with measured caution while monitoring further technical updates.