Tantalus’ 300-sq-km property is located in northern Madagascar on the Ampasindava Peninsula in Antsiranana Province, about 580 km northeast of the island’s capital, Antananarivo. Identified mineralization includes rare earth elements, as well as tantalum, niobium, zirconium, tin and hafnium.
       The property was extensively explored between 1988 and 1991 by a Soviet geological team that conducted a field survey along a two-kilometer-long strike length – providing Tantalus with an extensive geologic and geophysical database. After the Soviets departed at the close of the cold war, an Australian company acquired the rights to the project in 2003 but did no field work. Between 2004 and 2007, the World Bank funded a wide-spaced airborne magnetic survey, a reconnaissance stream sediment survey and geological mapping covering two-thirds of the island.
       Results from these surveys, as well as from subsequent exploration by Tantalus, strongly indicate the presence of not only rare earths, but significant amounts of tantalum oxide (210 ppm) niobium oxide (1900 ppm) and zirconium (some 2%). Sampling indicates heavy REE (rare-earth-elements) at ratios of 20% and 33% with light REE at 80% and 67%. These ratios of light to heavy rare earths compare very favorably to those found at other projects. Low grades of uranium and thorium reduce any negative environmental impact and reduce ore processing costs.
       The property’s polymetallic deposit appears to be hosted by a series of alkaline granitic vein systems dipping between 15 and 50° and related skarns. Veins are typically between 0.1 to 2.5 meters wide and lie within an envelope with a total thickness of up to 8 meters. The Soviet survey indicated the presence of a historic, non-JORC/NI 43-101 compliant resource of about 15 million tons grading at 1.52% REE equivalent. A high precision helicopter borne radiometric and magnetic geophysical survey conducted by Fugro Airborne Services in 2008 on behalf of Tantalus indicts the extent of mineralization is far greater than originally indicated by Soviet exploration in the late 1980s.
       “Given the current market prices, the estimated in-ground value is about $1.5 billion and, with further exploration, could increase to $15 billion,” says Hampel.

       Last year, Tantalus conducted a massive sampling program covering the airborne radiometric anomalies detected by Fugro Airborne Services. So far, three distinct radiometric anomalous zones of 12 km, 4 km, and 2.7 km lengths, respectively, with maximum widths of up to 700 meters have been mapped. Individual anomalies total over 30 km in strike length and are believed to be highly prospective for REE mineralization.
       Outcrops of REE mineralization were found over a strike length of more than 20 km. The new mineralized zones are much more massive than those discovered by the Soviet survey team. Surface sampling, including 2-3 meter deep trenches excavated in a weak radiometric anomalous area, returned most promising results with grades of up to 2.5 % total rare earth oxides, 0.11 % Ta2O5, 1.1 % Nb2O5 and 5.9 % ZrO2, Hampel said.
       What is particularly significant is the find of REE-bearing clays – considered the single most important source for heavy rare earth metals – presently are mined only in China. Soil sampling and trenching indicate the presence of these REE-bearing clays over several square kilometers.
       “These are outstanding results for soil samples and underlines the regional potential for more widespread clay hosted REE mineralization,” says Hampel. “The advantage for Tantalus is these REE-bearing clays are inexpensive to mine. The REE are easy to extract with recoveries of up to 99%.”
       Sample preparation is done at Als Chemex Laboratory in Johannesburg while the assays (Li-borate fusion followed by acid digestion and ICP-MS) is done by Als Chemex Vancouver. Als Chemex Laboratories are among the leading worldwide providers of assaying and analytical testing services for mining and exploration companies.
       Tantalus is scheduled to complete improvements to the project’s infrastructure by spring, including construction of access roads and bridges. The company then plans to begin a massive 40,000-meter drilling program that will extend until 2011.

       The management team at Dusseldorf, Germany-based Tantalus Rare Earths represents a strong mix of international business talents. CEO Peter Küsters is a registered lawyer and has provided auditing, consulting and compliance services for several securities trading banks. COO Wolfgang Hampel is a professional geologist with over two decades of international experience in mineral exploration, including holding senior positions in mining and consulting companies. Mathias Stüfe, a capital consultant for high net-worth individuals, is Chairman of the company’s Supervisory Board. Other Board members include Lee Goldsmith, a solicitor of the Supreme Board in England and Wales who has held several advisory board positions in renowned partnerships, and Prof. Dr. Hans J. Bocker a journalist, columnist and author who has held worldwide professorships and served as a corporate consultant and commodity expert.

       Tantalus Rare Earths AG is a holding company with two subsidiaries – Tantalum Holding Ltd. and Tantalum Rare Earth SARL. The Malagasy Tantalum Rare Earth SARL holds the license to the company’s Madagascar project. The exclusive 10-year research license is valid until 2013 and is renewable two times.
       The company is well-financed, with a budgeted 2010/2011 $10-million infrastructure and exploration program, including constructing a camp site, reconditioning 14 km of access roads, building new roads, drilling three separate targets, exploring regional outcrops, surface trenching, and a possible ground geophysical survey. A national highway is less than 10 km from the main mineralization, and a deepwater port and international airport is within 40 km. In 2011, Tantalus plans to develop a detailed geologic model of the deposit and produce an in-house resource estimate for an independent pre-feasibility study. The deposit itself is open-pittable over its entire length with later potential for underground mining. A favorable ratio of light to heavy rare earth elements compares well with other existing major REE projects in Australia and Canada.
       “Once in production, the Tantalus Project could become a steady supplier of rare earth metals, giving investors an outstanding opportunity to invest in the rare metals and rare earth elements,” says Hampel. “The upside potential of the Tantalus deposit is huge.”