Greenland Minerals and Energy Limited
ASX : GGG

December 05, 2011 07:45 ET

Greenland Government Introduces Uranium Licensing Framework for Kvanefjeld Rare Earth-Uranium Project

PERTH, WESTERN AUSTRALIA--(Marketwire - Dec. 5, 2011) - Greenland Minerals and Energy Ltd ('GMEL' or 'the Company') (ASX:GGG) is pleased to announce that the government of Greenland has amended the terms of the Company's exploration license that covers the Kvanefjeld multi-element project such that it is now inclusive of uranium. Under the licensing framework in Greenland, the inclusion of uranium provides the company with the clear right to apply for the exploitation of uranium along with all other exploitable elements. The granting of an exploitation license will be dependent on establishing an environmentally and socially sustainable development scenario that is economically robust.

Kvanefjeld is a project of international strategic significance; through the production of uranium oxide, Kvanefjeld can become a cost-effective cornerstone producer of critical REEs; the REEs essential to energy efficient technologies and that are forecast to be in short supply for many years to come. The Kvanefjeld resource in its own right includes the world's largest JORC-code compliant resource of REEs, as well as a global top ten uranium resource. With the first resource estimates for Zones 2 and 3 slated for Q1 2012, the project's overall resource base will increase substantially, further consolidating the northern Ilimaussaq Complex as a prolific ore-field of genuine global significance.

The project is favorably located near existing infrastructure in southern Greenland. Deep water fjords provide direct shipping access to the project area, and an international airport is located approximately 35 km away. A nearby lake system has been positively evaluated for a hydro-electric scheme to power the Kvanefjeld project.

Metallurgical studies are now investigating a leach circuit to extract uranium and heavy REEs from a beneficiated mineral concentrate. Light REEs will then be recovered from the residue at an independent, demand-driven rate, mitigating market risk associated with bulk light-REE production and pricing uncertainty. This approach will see the projects economics underpinned by uranium and heavy Rare Earth Elements production, with flexible, cost-effective light Rare Earth Elements production capacity; a significantly different approach too many other emerging rare earth producers.

ABOUT GREENLAND MINERALS AND ENERGY LTD.

Greenland Minerals and Energy Ltd (ASX:GGG) is an exploration and development company focused on developing high-quality mineral projects in 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 http://www.ggg.gl.

ABN 85 118 463 004

Contact Information

  • Greenland Minerals and Energy Limited
    Roderick Mcillree
    Managing Director
    +61 8 9382 2322
    www.ggg.gl

    Professional PR
    David Tasker (Australia)
    +61 (0) 89388 0944

    Rostra Kommunikation
    Christian Olesen (DK)
    +45 (0)3336 0429