Tantalus Rare Earths AG: DRILLING PROGRAM TO START IN MAY

Tantalus Rare Earths AG / Miscellaneous

04.05.2010 08:55

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TANTALUS RARE EARTHS' DRILLING PROGRAM TO START IN MAY


Dusseldorf, Germany, April 30th, 2010 - Tantalus Rare Earths AG ('Tantalus'
or the 'Company') is pleased to announce the start of the massive diamond
core drilling program on their rare earths-tantalum-niobium-zirconium
project for the second half of May 2010. The drilling contractor E Global
Drilling Corp., a division of Energold Drilling Corp. (www.energold.com)
has mobilized a first drill rig from southern Madagascar to Tantalus' 300
km² sized concession on the Ampasindava Peninsula, Antsiranana Province in
the north of the island. Two further diamond core drill rigs will soon
leave Tanzania and are expected to arrive on site in June. Tantalus plans
to drill a total of 40,000 m on three main targets in 2010 and 2011.
Drilling was scheduled to start in April but a longer and stronger rainy
season than usual made access to the drilling sites difficult. A local
construction company is currently refurbishing the access roads.

The target zones were delineated in 2008 by a high precision helicopter
borne radiometric and magnetic survey. In 2009, Tantalus' geological teams
have sampled outcropping REE-Ta-Nb-Zr mineralization over a total strike
length of approximately 20 km. Another 10 km of mineralization is suspected
to be buried by shallow overburden. The mineralization is hosted by a
Tertiary series of gently dipping, parallel alkaline granitic veins and
related skarns. The individual veins and their skarns can be followed over
several hundreds of meters and may reach thicknesses of up to 8 m. The best
samples returned grades of up to 2.5 % total rare earth oxides, 0.11 %
Ta2O5, 1.1 % Nb2O5 and 5.9 % ZrO2. The ore is generally poor in uranium (<
0.016 %) and thorium (< 0.1 %). The percentage of the much sought after
heavy rare earths is 27 % of total rare earths which is higher than in most
other projects.

Diamond drilling will start on Target n° 1 situated on the east coast of
the peninsula. The radiometric anomaly is some 12 km long and up to 700 m
wide. It's 2 km long central part is identical with the initial prospect
studied in detail by the Soviet Geological Mission between 1988 and 1991.
Target n° 2 is situated some 2 km further to the north-west and has the
same geological setting as Target n° 1 with numerous mineralized alkaline
granitic veins and skarns in Jurassic sediments. The anomalous zone is over
4 km long and up to 500 m wide.

Target n°3 on the western end of the concession is somewhat different as
only a part of the REE-Ta-Nb-Zr mineralization is hosted by alkaline
granitic veins and skarn. Here, the 2009 sampling campaign with trenching,
soil and outcrop sampling has shown a REE mineralization which in many
respects has similarities to the Chinese so-called REE bearing ion
adsorption clays. These clays are the World's major source of heavy rare
earth elements.  Even at low grades the REE contents of the clays are
easily extractable by in situ leaching methods. Currently, a detailed
mineralogical study on the REE bearing clays from this 2.7 km long target
is done by Dr. Thomas Hatzl, a specialist for clay minerals and rare earths
(www.mineral-consult.de ). First preliminary results have shown the
presence of newly formed (secondary) REE hydroxides and probably REE
carbonates. Leaching tests on fresh samples will start in May 2010.

Besides the drilling program on the three targets, Tantalus will continue
their exploration campaign in other parts of the concession and further
improve the infrastructure. Like in 2009, all samples will be submitted to
Alschemex, Johannesburg for lithium tetraborate fusion followed by ICP-MS.

Recently, Mr. Benoit M. Violette, PGeo., a Canadian Senior Geologist and
Qualified Person, has joined the exploration team in Madagascar. Mr.
Violette has over 30 y of experience in the exploration and development of
mineral deposits in North America and Africa. The Malagasy geological team
presently consists of six geologists. Once all three drill rigs are in
operation more geologists will be hired.
  
For further information, please visit www.tre-ag.com 


About Tantalus Rare Earths AG

The mission of Tantalus Rare Earths AG is the identification and
development of rare earth exploration and mining projects outside from
China, mainly focusing on Africa. Administratively, Tantalus Rare Earths AG
is located in Düsseldorf, Germany. Currently, the investment portfolio
consists of 100 % of the Tantalus Rare Earths Project in Madagascar.

Tantalus Rare Earths AG
Berliner Allee 12
40212 Düsseldorf
Deutschland 
T: +49 (0)211 52391 430
F: +49 (0)211 52391 200
e-Mail: contact@tre-ag.com
Internet: http://www.tre-ag.com/


04.05.2010 Ad hoc announcement, Financial News and Media Release
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