Rare Earth Elements (REE) licence Mongolia ELSTEI Rare Earth Elements (REE) licence Mongolia June 2012
REE Elstei deposit Deposit location DSS owns 100% of shares of the Mongolian company EKTU which owns the exploration licence for Elstei deposit Elstei is located ca. 750 km to the south of the country’s capital Ulaanbaatar The licence covers the surface of 2,700 hectares Bayan Obo REE deposit Elstei
Percentage share of lanthanides and Y in the Elstei deposit REE Elstei deposit Geology Elstei is a rare earth elements (REE) vein deposit REE ore occurs within the carbonatite veins Major REE bearing minerals are bastnaesite and synchysite Elstei Lugin gol Percentage share of lanthanides and Y in the Elstei deposit La = 35.3 Ce = 47.9 Pr = 4.1 Nd = 10.2 Sm = 0.9 Eu= 0.2 Gd = 0.4 Tb = 0.0 Dy = 0.2 Ho = 0.0 Er = 0.1 Tm = 0.0 Yb = 0.0 Lu = 0.0 Y = 0.3
REE Elstei deposit Research works From June 2011 DSS carries out the geological works documenting the actual deposit reserves. Until December 2011 the deposit surface was recognised (geological mapping, trenching) and by digging two shafts with a total length of more than 30 meters.
Mineral reserves > 1% REE REE Elstei deposit Exploration works The result of geological works is documentation of 10 ore bodies and initial recognition of the subsequent five of the lower contents of REE On this basis we estimate that the reserves shall be probably 4 times larger than the archived and may contain ca. 4 ths tonnes of REO Mineral reserves > 1% REE Tonnage [kt] REO contents [%] REO [kt] Historically: 42,5 2,51 1,12 Estimated: ~170 ~4,48
REE Elstei deposit Exploration works From February 2012 DSS shall enter the final stage of the exploration, which after the drilling shall allow to prepare the application for granting for the mining licence and preparing the CPR (Competent Person Report)
Value of rare earth elements oxides: REE Elstei deposit Deposit value Rare Earth Oxide Elstei distribution % Price (2012-02-06) Total kg Total price yield 70% Lanthanum Oxide 35,3 50 1412000 70 600 000 49 420 000 Cerium Oxide 47,9 40 1916000 76 640 000 53 648 000 Neodymium Oxide 10,2 200 408000 81 600 000 57 120 000 Praseodymium Oxide 4,1 170 164000 27 880 000 19 516 000 Samarium Oxide 0,9 70 36000 2 520 000 1 764 000 Dysprosium Oxide 0,2 1420 8000 11 360 000 7 952 000 Europium Oxide 3800 30 400 000 21 280 000 Terbium Oxide 2820 - TOTAL: 98,8 100 301 000 000 210 700 000 Value of rare earth elements oxides: USD 210 million