European Resources Grows Korsnäs Resource and Sharpens Processing Route

Resource Growth and Exploration Target Expansion

European Resources Limited (ASX:ERE) has lifted the stakes at its Korsnäs rare earth element (REE) project in Finland, increasing the Inferred Mineral Resource Estimate (MRE) to 15.4 million tonnes at 1.00% total rare earth oxides (TREO) as of April 2026. This update is underpinned by new drilling and refined geological modelling, with the resource confined to hard-rock mineralisation above a depth of 400 metres, excluding historical underground stopes. Notably, the resource includes 22.7% neodymium-praseodymium (NdPr) enrichment, key elements for permanent magnets.

Alongside this, the company has expanded its Exploration Target to between 18 and 32 million tonnes at 0.8% to 1.0% TREO, nearly doubling the previous range. This target encompasses newly identified passive seismic anomalies outside the current resource area and projections of known mineralised zones at greater depths. However, the Exploration Target remains conceptual until validated by drilling.

Metallurgical Advances Point to Coherent Processing Route

Metallurgical test work progressed on two fronts during the quarter. GTK-Mintec’s beneficiation trials identified Wet High Gradient Magnetic Separation (WHGMS) as the preferred pre-concentration method, delivering significant TREO grade upgrades; up to 160% for allanite-dominant material and 220% for apatite-monazite-dominant samples; while maintaining reasonable recovery rates at lower magnetic field strengths.

Downstream hydrometallurgical testing by ANSTO Minerals has further clarified the mineralogical hosts and extraction pathways. The historical lanthanide concentrate, assaying 2.3% total rare earth elements plus yttrium (TREY), is dominated by monazite and apatite, with only minor allanite contribution. ANSTO’s post-quarter acid-bake and water-leach testing achieved an 83% extraction of magnet rare earths, including 88% praseodymium and 83% neodymium, marking a significant milestone in processing efficiency. Ongoing work focuses on optimising pre-leach conditions and impurity removal, particularly targeting aluminium, uranium, and thorium.

Passive Seismic Survey Uncovers New Targets

Geophysical exploration advanced with Phase 2 passive seismic Horizontal-to-Vertical Spectral Ratio (HVSR) surveys revealing six new anomalies south and east of the current Mineral Resource area. These anomalies, mostly outside historical gravity survey coverage, have prompted an application for the 6.3 km² Poikel exploration permit, extending the project area to 19.9 km². Phase 3 surveys are underway to broaden coverage, with Phase 4 planned to infill and prioritise drill targets. While passive seismic is a valuable targeting tool, the company emphasises that these anomalies require drilling to confirm any associated mineralisation.

Corporate and Financial Position

European Resources raised approximately A$2.57 million before costs through a renounceable rights issue during the quarter, issuing over 171 million shares and options. The capital will fund exploration across Finnish and Slovakian projects, metallurgical programs at Korsnäs, and general working capital. Exploration expenditure for the quarter was A$338,000, with related party payments of A$243,787 mainly for directors’ consulting fees. The company ended the quarter with A$1.76 million in cash, providing an estimated 2.5 quarters of funding at current expenditure levels.

Next Steps in Project Development

Looking ahead, European Resources plans to continue metallurgical optimisation with ANSTO and GTK-Mintec, including flotation and mini-pilot scale testing of WHGMS products. Additional concentrate generation from fresh drill core will support downstream hydrometallurgical trials. The company aims to complete Phase 3 passive seismic coverage and design Phase 4 infill lines to refine drill target selection. Crucially, drill testing of priority targets will be undertaken to convert the conceptual Exploration Target into a formal Mineral Resource Estimate.