European Resources Achieves 83% Rare Earth Extraction at Korsnäs Finland

ANSTO Reports 83% Magnet Rare Earth Extraction from European Resources' Korsnäs Concentrate

European Resources Limited (ASX: ERE) has reported a new metallurgical result from its 100%-owned Korsnäs rare earth elements project in Finland, with ANSTO Minerals achieving 83% combined magnet rare earth extraction from historical lanthanide concentrate using a direct acid-bake/water-leach test. According to the ASX announcement dated 8 July 2026, the work also delivered 86% extraction for total rare earths plus yttrium (TREY), with praseodymium at 88% and neodymium at 83%.

For investors, the update matters because metallurgical testwork helps answer a central question for any rare earth project: can the valuable elements be extracted efficiently enough to support a workable downstream process? In the report, European Resources indicated that the latest ANSTO work materially improves confidence in the Korsnäs processing pathway, while also defining the next stage of optimisation.

What Did the Latest ANSTO Test Show?

The direct acid-bake/water-leach test was conducted on untreated historical Korsnäs concentrate, rather than on material that had already gone through a pre-treatment stage. Even so, the reported extraction levels were strong across the key light and magnet rare earth elements.

The main results are summarised below.

In practical terms, the result suggests the monazite-rich component of the Korsnäs concentrate responds well to conventional acid-bake processing. That is important because neodymium and praseodymium are among the most commercially important rare earths, given their use in permanent magnets.

What Did the Managing Director Say?

"ANSTO's latest results are an important de-risking step for Korsnäs," said Jason Beckton, Managing Director. "The direct bake test has shown that the key magnet rare earths, praseodymium and neodymium, can be extracted at high levels from the historical concentrate using the acid-bake route."

Why Does the Mineralogy Matter?

The report makes clear that these extraction results did not emerge in isolation. They build on ANSTO's earlier mineralogical work, which identified monazite as the dominant rare earth host mineral in the EuR-1 composite concentrate, accounting for about 60% to 70% of the rare earth inventory. Apatite also contributes a meaningful share, particularly for some of the heavier rare earths.

This distinction is important because different minerals behave differently during processing:

• Monazite is generally well suited to acid-bake treatment
• Apatite can create complications because calcium can react during processing and reduce recovery of some elements
• As a result, the best overall flowsheet may require more than one processing step

According to the announcement, ANSTO's first progress report had already shown the concentrate assayed 2.3 wt% TREY, including 0.7 wt% magnet rare earths. The latest direct bake test was designed to check whether the monazite-hosted value could be extracted through a conventional route. Based on the reported bench-scale result, the answer appears favourable.

Acid-Bake and Pre-Leach Explained in Plain Language

Rare earth processing often sounds highly technical, but the main idea in this case is relatively straightforward.

An acid-bake/water-leach process involves mixing a concentrate with acid, heating it so the acid reacts with the minerals, and then washing the treated material with water so the dissolved rare earths move into solution. That solution can then be processed further to separate valuable elements from impurities.

A pre-leach is an earlier cleaning or conditioning step. Its purpose is to remove or manage minerals that may interfere with the main extraction stage. At Korsnäs, that matters because the company and ANSTO are dealing with a concentrate containing both monazite and apatite.

For non-specialist investors, the key point is this: processing strategy follows mineralogy. If most of the valuable rare earths sit in a mineral that responds well to an established method, technical risk is meaningfully reduced.

A Two-Stage Flowsheet Is Taking Shape

The direct bake test produced high extraction for light rare earths and the main magnet rare earths, while extraction for some heavier rare earths was lower. In the report, this was linked to the apatite-hosted component of the concentrate.

The technical explanation from ANSTO was that, under the direct bake conditions tested, part of the heavy rare earth assemblage appears to become tied up in low-solubility calcium sulphate products. In simpler terms, some of the heavy rare earths may be getting trapped during this stage rather than moving cleanly into solution.

That interpretation aligns with earlier hydrochloric acid pre-leach work, which reportedly showed a different pattern — lower extraction of the light rare earths, but a relatively better response from the apatite-associated heavy rare earth indicators.

Taken together, the work points toward a combined treatment sequence rather than a single-step solution. According to the announcement, the likely logic is:

1. Use a pre-leach step to manage calcite and apatite behaviour
2. Follow with acid-bake/water-leach to extract the monazite-hosted rare earths
3. Optimise the combined sequence to improve overall recovery, particularly for heavy rare earths

"The next phase will focus on optimising that sequence," said Dr Mark Steemson, Consulting Metallurgist and Process Engineer, after noting that the direct bake/water-leach test confirmed the earlier mineralogical interpretation.

For investors, this is a useful distinction. The current result is not presented as a finished commercial flowsheet. It is, furthermore, a bench-scale test result that helps define the route to further optimisation.

Impurities Are Now Better Defined

Rare earth process development is not only about extraction rates. It is also about how impurities behave, because those impurities can affect downstream purification costs and complexity.

In the latest ANSTO work, European Resources reported:

• Aluminium extraction of 46%
• Uranium extraction greater than 96%
• Thorium extraction greater than 97%

The report also noted that the TREY:Al ratio improved from 2.4 in the feed solids to 3.8 in the leach liquor, suggesting some relative upgrading of the rare earth fraction compared with aluminium during the leach stage.

High uranium and thorium extraction at this stage means those elements are moving into solution and will need specific management in later purification steps. However, the announcement frames this as normal for early-stage rare earth process development. The purpose at this point is to understand both value-bearing minerals and impurity behaviour before selecting a preferred flowsheet.

That framing matters. Rather than presenting these impurity issues as unexpected, the report treats them as defined technical tasks for the next phase of work.

How Has the ANSTO Programme Progressed?

The latest update sits within a broader, staged metallurgical programme that began in August 2025. The sequence outlined in the company's announcements is as follows:

This progression is relevant because process development in rare earths rarely turns on a single data point. Investors generally look for whether each round of testing narrows uncertainty and provides a clearer pathway to commercial assessment. Based on the report, that appears to be the role of the latest ANSTO result.

What Happens Next at Korsnäs?

According to the ASX announcement, the next workstreams are already defined. ANSTO is expected to focus on:

• Optimising calcite removal and apatite pre-leach conditions
• Testing combined pre-leach plus acid-bake/water-leach sequences
• Integrating hydrometallurgy with parallel beneficiation programmes
• Defining the preferred downstream flowsheet for both historical concentrate and future hard-rock testing

In addition, the Korsnäs project is progressing on other fronts. European Resources referenced a recent increase in the Exploration Target and noted that Phase 2 passive seismic surveying had identified new anomalies south and east of the current Mineral Resource Estimate (MRE) area. Metallurgical work is also advancing separately through the REMHub programme with GTK Mintec and Oulu University.

Why Does This Result Matter to Investors?

Rare earth projects can carry substantial technical risk because strong geology does not always translate into effective downstream recovery. For that reason, metallurgical results are often among the most important updates during early project evaluation.

The latest Korsnäs result matters for several reasons:

• The dominant host mineral appears processable using a conventional acid-bake route
• Nd and Pr extraction rates were high, which is material because those elements tend to be key value drivers in magnet rare earth projects
• The heavy rare earth challenge appears identified rather than unexplained, with pre-leach optimisation now the key task
• The work has been conducted by ANSTO, which the company described as having more than 50 years of minerals processing experience
• The processing route is becoming clearer, even though more work remains before a preferred flowsheet is selected

Investors should, however, note the limitations stated in the report. This was a single bench-scale direct bake/water-leach test, and further work is still required on reagent consumption, impurity removal, sequencing, product specification, and scale-up. The result improves technical confidence but does not by itself determine commercial outcomes.

The Broader Korsnäs Investment Picture

European Resources is presenting Korsnäs as more than an exploration story. The latest update shifts attention toward whether the project's mineralisation can support a practical downstream processing route.

According to the report, the current evidence suggests that the monazite-hosted component, which carries most of the rare earth inventory, responds well to treatment. The remaining challenge lies in improving recovery of the apatite-hosted heavy rare earth component through a complementary pre-leach stage.

For shareholders and potential investors, that is the main takeaway. The project's technical picture is becoming more defined, with a clearer separation between what has already been demonstrated and what still needs optimisation.

If future work can improve heavy rare earth recovery while managing impurity removal effectively, the Korsnäs flowsheet could continue to strengthen. At this stage, the ANSTO result gives European Resources a stronger processing foundation and a more focused development agenda for the next phase of testwork.

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