THE FEN CARBONATITE COMPLEX, ULEFOSS, SOUTH NORWAY Summary of historic work and data Compiled and prepared by 21 st NORTH, Svendborg 12 May 2011 in commission for REE Minerals, Norway ________________________ ________________________ Anders Lie M.Sc. Geology Claus Østergaard M.Sc. Geology 21 st NORTH 21 st NORTH TABLE OF CONTENTS 1 PROJECT HIGHLIGTHS 6 RADIOMETRY 2 REGIONAL SETTING 7 REE MINERALISATION IN THE FEN COMPLEX 7.1 Introduction 3 HISTORIC EXPLORATION AND MINING 7.2 NGU works in the 1960s and 1970s 3.1 The Fen iron mines 1657-1927 7.3 Results 3.2 The Soeve niobium mines 1953-1965 8 EXPLORATION IN RECENT YEARS 3.3 Geophysical surveying and exploration for Th and REE 9 SLAG DUMP AT SOEVE NIOBIUM MINE 3.4 Junior exploration activities 2000- 10 REFERENCES 4 GEOLOGY APPENDIX A-C 4.1 Introduction A Rock samples – NGU 1967-1970 4.2 Rocks of igneous origin B Drill hole data 4.3 Metasomatic alteration and associated rocks C Radiometry and rock sample anomaly maps 5 LICENSE AREA – REE MINERALS Kullinggade 31 · DK-5700 Svendborg · Denmark · Ph(1) +45 4059 1012 · Ph(2) +45 6168 1015 1. Project highlights 9km2 world famous carbonatite complex sited at excellent position in south Norway Previously mined for iron from 1657-1927 [c. 1 Mt) and for niobium from 1953 to 1965 Limited knowledge on full REE composition – The majority of historic drill and surface rock data were only assayed for La, Sm, Eu, Yb and Y. A limited number of metallurgical samples and drill hole sections were also assayed for Ce, Pr, Nd, Gd and Dy. The Norwegian geological survey [NGU] conducted a detailed study on the REE potential from 1967-1970 focussed on the north-eastern part of the complex. The following main results and conclusions were obtained: o The best grades were observed in hematite-rich carbonatite (rodbergite) and iron (hematite)-ore o Metallurgical recoveries were low due to very fine grain-size of RE oxides (1µ). The grains size of RE oxides in calcite- (50-70% >43µ) and ankerite-dolomite carbonatite is significantly larger (70- 90% > 43µ). o Bulk sampling of iron rich carbonatite (rodbergite) returned 2.8% TREO [8 elements + Y] o Ankerite-calcite-dolomite carbonatite (rauhaugite) returns 1.51% TREO over 170 meter strike length [8 elements + Y] o Drill hole F1 returns 1.03% REO over 251 meters [6 elements + Y] o Drill hole F2 returns 1.06% REO over 190 meters [8 elements + Y] o Drill hole F3 returns 1.32% REO over 31 meters [8 elements + Y] Grab sampling with up to 4% REE and >50% Fe are reported from the untested Bjoerndalen area by junior exploration companies Carbonatite samples in distal parts of complex return up to 0.44% Y Slag dump at the historic Soeve niobium process plant comprises c. 600 tonnes of aluminum-rich waste material with an average grade of 1.12% REOs [Ce, La, Nd, Pr + Y] 50m line spacing heli-borne radiometric survey was completed by NGU in 2006 outlining near-surface thorium, uranium and potassium anomalies The Fen carbonatite complex hosts one of the world´s largest known thorium deposits. Uranium levels are low Excellent infrastructure and gentle terrain mostly comprising farmlands and forest in the license area Page 2 of 47 2. Regional Setting The Fen Complex, an early Cambrian intrusive complex of alkaline rocks and carbonatites, is situated in Nome municipality, Telemark County, 119 kilometers southwest of Oslo in the vicinity of the late Palaeozoic alkaline Oslo Rift. The intrusion has a roughly circular outcrop of 9 km 2 and is placed within Mesoproterozoic Telemark gneisses, which form part of the Gothian-Sveconorwegian terrane of southern Scandinavia (fig.1). The eastern parts of the complex are strongly enriched in REEs and the radioactive element thorium-232, and to a much lesser degree uranium-238. Concentrations of thorium in the eastern part of the complex are so significant that Norway is considered to host one of the world’s largest thorium deposits (OECD NEA and IAEA 2006). The location became famous in the geological community in 1921, after Broegger published his classic work on the intrusion. Broegger believed that carbonate rocks in the Fen Complex were of magmatic origin, and became one of the first proponents of the existence of carbonate magmas. The, at that time outrageous claim, was first generally accepted when carbonate lava was observed flowing from the Oldoinyo Lengai, a volcano in Tanzania early in the 1960s. Broegger introduced the term “carbonatite” for carbonate rocks of apparent magmatic origin, and named many rock types in this suite after localities in the Fen region. Today, the Fen complex is widely recognized as the type locality for carbonatites 3. Historic exploration and mining The Fen Complex has an old and interesting exploration history comprising several episodes of mining initiated as early in the mid-seventeenth century and later substantial work in the 1960s and -70s by the Norwegian Geological Survey [NGU] outlining the REE potential Most recently the complex has been surveyed for radiogenic elements, notably thorium. 3.1 The Fen iron mines 1657-1927 Iron ores associated with the carbonatites were worked in the eastern part of the Fen Complex for several hundred years involving both open pit as well as underground mining. The ore comprised hematite-rich carbonatites, known as rodbergite , which follows a system of N-S trending veins and dykes. Mining took place at several localities in and around the central complex with iron grades generally in excess of 50% Fe. The most extensive workings were in the Gruveåsen area, close to the eastern margin of the intrusion where operations by the 1920s had reached a level 225 meters below the surface of Lake Norsjø. Today, the existing surface exposures of both ore and associated carbonatite are deeply weathered and the underground workings of the mines are not open to the public without permission. Fresh exposures are mostly found along road sections in the vicinity of the mining areas. 3.2 Soeve niobium mine 1953-1965 The carbonatites of the Fen area are geochemically enriched in niobium. The main niobium-bearing mineral, pyrochlore was identified already in 1918 in a soevite rock next to Lake Norsjø. The niobium potential was first investigated in the late 30s by the Norwegian state and later by the Germans during the 2 nd WW who did a considerable research work with the aim of exploiting the resource. After the war, partly driven by American interest, a state-owned company, Norsk Bergverk A/S, was formed in 1951 in order to produce niobium concentrate and ferroniob from the pyrochlore-bearing soevites. The average grade was about 0.35-0.4% Nb 2O5. After extensive development work and ore dressing tests, mining started in 1953 as a quarry near Lake Norsjø. Further development involved construction of a 900 meter tunnel (Tuftestollen) towards the central parts of the soevite area producing about 100.000 to 150.000 tons of raw ore annually. The mining operations and development work carried out by Norsk Bergverk A/S have given a good knowledge of the structures in the soevite rocks and of the niobium mineralisation including the peripheral ore bodies at the Cappelen and Hydro deposits. The niobium mineralisation seems to be connected with N-S trending, partly brecciated, zones in the carbonatites. Page 3 of 47 Waste material from the production of ferroniob from the production was dumped as an aluminum-rich slag at a small hill next to the production plant in Soeve. The slag includes comprises 570 tonnes, which was covered and sealed by marine clays afterwards. The material is rich in radioactive elements and REEs (>1% REO). Leaching of the slag has enriched radiation locally and polluted nearby water ways; however, a strategy for handling and storing the material has not been decided upon by the local Municipality. 3.3 Geophysical surveying and exploration for Th and REE 1940s: Due to the extensive Quaternary clay cover in the Fen area, early geological mapping was supported by a ground-based geomagnetic survey using a 25 meter grid. Several, at that time, hidden rock units and contacts were outlined by this method. It was also discovered that the hematite was non-magnetic and only detected when associated with disseminated magnetite. 1950s-1970s : Prospecting carried out by Norsk Bergverk A/S during niobium mining in the 1950s and -60s showed a rather strong radioactivity in several parts of the Fen Complex. Furthermore, it was demonstrated that the highest concentration of REEs generally coincided with high Th contents. However, a planned study of the Th and REE potential was never carried out due to economic problems in the company. FSJ [a state-governed research group prospecting for REEs] was formed in 1967 as a national survey program for REEs in Norway and continued until 1970. C. 200 rock samples were collected along road sections and from historic mining pits in the Fen complex and historic drill holes were resampled and analysed. In addition, three new diamond drill holes were completed in what was regarded as the most prospective areas. The program concluded that substantial deposits of REEs occurred in an area of app. 1km 2 next to the historic Fen mining area. This area generally coincides with the iron-rich rodbergite, but also in the unaltered carbonatites significant enrichment of REEs was identified. Part of the sample and drill material was subjected to mineralogical studies and beneficiation test work carried out by the NGU; however, results were mostly discouraging with low recoveries due to the fine grain size of the ore.