Greenland Minerals and Energy Ltd
ASX : GGG

December 16, 2010 05:19 ET

Greenland Backs the Kvanefjeld Rare-Earth Uranium Project With a Green Light to Advance

PERTH, AUSTRALIA--(Marketwire - Dec. 16, 2010) - Greenland Minerals and Energy Ltd (ASX:GGG) ("GMEL" or "the rare earth elements company" - The permit has been issued in accordance with the recent amendment to the standard terms for exploration licenses in Greenland that creates a framework for the evaluation of mineral deposits that include uranium amongst other economic elements. Kvanefjeld is an unusual mineral deposit located near the southern tip of Greenland that is enriched in rare earth elements (REEs), uranium and zinc, and is widely known to contain one of the world's largest resources of rare earth minerals (REEs) (see Appendix1 for identified mineral resources).

GMEL is the first company in mineral-rich Greenland to receive permitting for the complete evaluation of a mining project that includes uranium amongst other economic minerals . The Company is listed on the Australian Securities Exchange (ASX) and trades under (ASX:GGG). The rare earth minerals and uranium evaluation permit has been issued following a hearing process in Greenland that involved the National Environmental Research Institute, the Ministry for Health, the Ministry of Domestic Affairs, Nature and Environment (NNPAN) as well as the South Greenland municipality. The permit is supplementary to the exploration license that covers Kvanefjeld and the broader northern Ilimaussaq complex (license 2010/02).

Critical components of a definitive, or bankable, feasibility study are the Environmental and Social Impact Assessments, which are to follow the guidelines established by Greenland's Bureau of Minerals and Petroleum (BMP). At the completion of the definitive uranium mining feasibility study, including the environmental and social impact assessments the Company will lodge an application for an exploitation license with the BMP.

Roderick McIllree, Managing Director of GMEL, commented, "We are extremely pleased to receive approval under Greenland's newly amended license terms and can now properly evaluate the Kvanefjeld project, inclusive of uranium. Kvanefjeld can now enter the next phase in the path to development and we will be working closely with Greenlandic stakeholders to determine the best possible development scenarios."

In 2011 GMEL is planning on closing out the current pre-feasibility study with a final report before commencing a definitive feasibility study in the latter half of the year. Results from the 2010 exploration program will be finalized and announced in early 2011.

John Mair, general manager of Greenland Minerals and Energy, says: 'In the last couple of years, the Western world suddenly realized that it is largely addicted to applications that rely on rare earth elements, and that China, the world's overwhelmingly dominant supplier, is limiting rare earth exports to prioritize its own domestic requirements. This has resulted in an unusual situation of significant long term demand increase coinciding with a radical change in market dynamics to create a large void in the global rare earth element supply.'

Mair summarizes the situation succinctly: 'Many people are surprised to realize that common rare-earth applications include cell phones, laptop computers, hybrid cars, flat screen display panels, computers, energy efficient lights and wind turbines. But once people recognize that many rare earths are critical in commonplace items in today's society, they quickly understand why rare earths are suddenly making the headlines.'

Mair's prediction that the major REE shortages will occur among the scarce heavy rare earths.

John Mair, general manager of business development at Perth-based Greenland Minerals, "It's only going to take probably five to six significant rare earths-producing mines to fulfill global demand for the next five to 10 years," said John Mair, whose project in Greenland may start in 2015. "The world doesn't need 50 new rare earth mines and that is where a bit of a bubble is starting to emerge."

"Simply put, Kvanefjeld is unique. It will be one of the largest rare earth and uranium resources on the planet, but importantly, the unusual minerals are readily amenable to processing, and that differentiates Kvanefjeld from many other uranium projects."

Rare Earth Newsletter Writers, Investment Conference Speakers, Jack Lifton, co-founder of Technology Metals Research, John Kaiser, author of the Kaiser Bottom-Fish mining newsletter, and the infamous 'gold bug', James Dines of the Dines Letter, have been announcing the coming rise and supply shortages in Rare Earth Minerals (REE). Rare earth supply issues are now discussed by global leaders, financial journalists, and thousands of mining investors who are following the "rare earth mania" closely and investing in junior exploration companies with promising Rare Earth Minerals (REE) deposits.

ABOUT GREENLAND MINERALS AND ENERGY LTD.

Greenland Minerals and Energy Ltd (ASX:GGG) is an exploration and development company focused on unlocking the mineral riches of southern Greenland. The Company's flagship project is the Kvanefjeld multi-element deposit (Rare Earth Elements, Uranium, Zinc), that is rapidly emerging as a premier specialty metals project. An interim report on pre-feasibility studies has demonstrated the potential for a large-scale multi-element mining operation.

For further information on Greenland Minerals and Energy visit www.ggg.gl 

Greenland Minerals and Energy Ltd is aware of and respects the Greenlandic government's stance on uranium exploration and development in Greenland – which is currently a zero tolerance approach. However, a new amendment has been introduced to the standard terms for exploration licenses in Greenland that creates a framework for the evaluation of projects that include uranium amongst other economic elements. Within this framework the Company is permitted to fully evaluate the Kvanefjeld project, inclusive of radioactive elements.

The Kvanefjeld Project is recognized as the world's largest undeveloped JORC-compliant resource of rare earth oxides (REO), in a multi-element deposit that is also enriched in uranium and zinc.

Greenland Minerals will continue to advance this world-class project in a manner that is in accord with both Greenlandic Government and local community expectations, and looks forward to being part of continued community discussions on the social and economic benefits associated with the development of the Kvanefjeld Project.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Jeremy Whybrow, who is a Member of The Australasian Institute of Mining and Metallurgy.

Jeremy Whybrow is a director of the company.

Jeremy Whybrow has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Jeremy Whybrow consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Read Full PDF Appendix 1. Statement of identified mineral resources, Kvanefjeld multi-element project, Greenland

             
At U3O8% cutoff grades1 Tonnes (million) U3O8%2 U3O8 lb/t TREO%3 Zn% Resource category
  365 0.028 0.62 1.06 0.22 Indicated
0.015  92 0.027 0.59 1.12 0.22 Inferred
  457 0.028 0.62 1.07 0.22 TOTAL
  276 0.032 0.70 1.13 0.23 Indicated
0.020 63 0.031 0.69 1.21 0.24 Inferred
  339 0.032 0.70 1.14 0.23 TOTAL
  207 0.035 0.77 1.20 0.23 Indicated
0.025  43 0.036 0.78 1.31 0.25 Inferred
  250 0.035 0.77 1.22 0.24 TOTAL
  1. There is greater coverage of assays for uranium than other elements owing to historic spectral assays. U3O8 has therefore been used to define the cutoff grades to maximize the confidence in the resource calculations.

  2. Additional decimal places do not imply an added level of precision.

  3. Total Rare Earth Oxide (TREO) refers to the rare earth elements in the Lanthanide series plus yttrium.

Note: Figures quoted may not sum due to rounding.

ABN 85 118 463 004

Contact Information

  • Greenland Minerals and Energy Ltd
    Roderick McIllree
    Managing Director
    +61 8 92261100
    www.ggg.gl
    or
    Professional PR
    David Tasker (Australia)
    +61 (0) 89388 0944
    or
    Threadneedle PR
    Laurence Read (UK)
    +44 (0)20 7653 9855