1. Rare Earth Elements (REE) licence Mongolia
ELSTEI
Rare Earth Elements (REE) licence
Mongolia
June 2012

2. 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

3. 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

4. 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.

5. 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

14. 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)

15. Value of rare earth elements oxides:
REE Elstei deposit
Deposit value
Rare Earth Oxide
Elstei distribution %
Price ( )
Total kg
Total price
yield 70%
Lanthanum Oxide
35,3 50
Cerium Oxide
47,9 40
Neodymium Oxide
10,2
200
408000
Praseodymium Oxide
4,1
170
164000
Samarium Oxide
0,9 70
36000
Dysprosium Oxide
0,2
1420
8000
Europium Oxide
3800
Terbium Oxide
2820 -
TOTAL:
98,8
100
Value of rare earth elements oxides:
USD 210 million