TANTALUS RARE EARTHS AG PUBLISHES PRELIMINARY ASSAY RESULTS - UP TO 31% REO

Tantalus Rare Earths AG / Miscellaneous

09.02.2010 08:55

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TANTALUS RARE EARTHS AG PUBLISHES PRELIMINARY ASSAY RESULTS - UP TO 31% REO

Dusseldorf, Germany, February 9th, 2010 - Tantalus Rare Earths AG
('Tantalus' or the 'Company') is pleased to announce the first preliminary
assay results of their massive sampling campaign conducted between
September and December 2009. Preliminary assay results show up to 31% of
total rare earth oxides, which are spectacular grades.

The 300 km² sized concession area is situated on the Ampasindava Peninsula,
Antsiranana Province in northern Madagascar. The concession area is
underlain by two Tertiary alkaline ring complexes that intruded into
Jurassic sediments.  The mineralization so far known is hosted by a series
of alkaline granitic vein systems dipping with 15 to 50  and related
skarns. Between 1988 and 1991, a Soviet geological team conducted an
extensive field survey along a 2 km long part of the mineralization. For
this section alone, a historic, non-JORC/NI43-101 compliant resource of
approximately 15 million tons @ 1.52% REE equivalent has been estimated,
given the current market prices, the estimated in-ground value comes to USD
1.5bn. An earlier sampling campaign by Tantalus confirmed the original
Soviet grades.

On behalf of the Company, Fugro Airborne Services carried out a
high-precision, helicopter borne radiometric and magnetic survey. The data
has been thoroughly analyzed and interpreted by K.P. Knupp, Earthmaps
Consulting, Namibia.  Besides the tectonic-geological interpretation which
has given a better understanding of the concession area, three distinct
radiometric anomalies of 12 km, 4 km and 2.7 km respective length and
maximum width of 700 m have been mapped. These anomalous zones are composed
of individual anomalies totaling over 30 km in strike length.  Over the
whole strike length these anomalies are regarded as highly prospective for
REE mineralization.

During the period from September to early December 2009, the anomalies were
systematically surveyed and sampled by Tantalus' geological teams. Up to
now, visible REE mineralization hosted by alkaline granites and related
skarns could be detected over 20 km strike length. The new mineralized
zones are more massive than the mineralization originally described by the
Soviets. For example, some 2 km north-west of the known mineralization, ore
boulders weighing some 150 to 200 t, have been discovered.

The western part of the southern alkaline ring complex, the so-called
Ampasibitika intrusion, is particularly poor in outcrops. Therefore, two,
2- 3 m deep trenches, each 100 m long, were excavated on a weak radiometric
anomaly. The 5 m long channel samples returned spectacular results. Up to
now, only 5 of 40 preliminary assay results have been received:


Sample                           Total of REO in %
TANT2-477053                     31,09
TANT2-477059                     9,16
TANT2-477067                     16,40
TANT2-477068                     2,95
TANT3-477076                     3,06




In both trenches only the clay layer derived from the weathering of the
underlying quartz syenites was channel sampled. On a world wide scale, REE
bearing clays, so-called ion adsorption clays, are the single most
important source for the sought after heavy rare earth elements. So far,
they are only mined in southern China, where the REE grades are much lower,
(< 1%).  Comparable high REE grades can form by tropical weathering
(lateritization) of suitable bedrocks.  The advantages of these REE bearing
clays are inexpensive mining methods, easy extraction of REE and very high
recovery grades of up to 99%.  Up to now it is estimated that these REE
bearing clays cover an area of well over 1 km² on the concession area. More
detailed sampling could, however, reveal that the mineralized area is
indeed much bigger.  First soil sample results in the outcrop-poor west of
the concession have returned preliminary grades ranging from 0.29 to 0.96%
TREO (total rare earth oxides). These are outstanding results for soil
samples and this underlines the regional potential for more widespread clay
hosted REE mineralization.

The samples have been submitted to OMNIS Laboratories, Madagascar. After
sodium borate fusion and acid digestion, the amount of total rare earth
oxides has been determined gravimetrically. All samples of the 2009
exploration campaign have been additionally submitted to ALS Chemex
Laboratories in Johannesburg and Vancouver. These results are pending and
expected later this month.  The ALS Laboratory Group, the parent company,
is a leading provider of assaying and analytical testing services for
mining and exploration companies with offices around the globe. The
standard procedure is lithium borate fusion, followed by acid digestion and
ICP-MS.  Every batch contains 5% of duplicates, standards and blanks.

Earlier results by the Soviet geological mission and own analyses have
shown that the Tantalus ore contains besides rare earths, appreciable
amounts of tantalum oxide (210 ppm), niobium oxide (1900 ppm) and zirconium
(some 2 %). According to the present knowledge, the ratio of light to heavy
rare earths is between 80/20 % to 67/33% which is very favorable when
compared to other projects. Uranium and thorium grades are low, below 0.1 %
for Th and 0.01 % for U. This again is very favorable as it decreases the
negative environmental impact and reduces ore processing costs.

Tantalus is continuing with its set exploration schedule. A massive 40,000m
drill program, consisting of RC and diamond drilling, will deliver
important results which are expected in the course of 2010. Currently, the
Company is finishing important infrastructure improvements on its property,
including the construction of access roads and bridges. Construction will
be finished in March 2010 and drilling will start in April 2010

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/




09.02.2010 Ad hoc announcement, Financial News and Media Release
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