Greenland Minerals and Energy Ltd

February 17, 2011 07:01 ET

Greenland Minerals Confirms a Substantial New Rare Earth Element-Uranium Deposit With Big Drill Intercepts

PERTH, WESTERN AUSTRALIA--(Marketwire - Feb. 17, 2011) - Greenland Minerals and Energy Limited ("GMEL" a rare earth elements company) (ASX:GGG) is pleased to report drill intercepts from the 2010 drill program that confirm the discovery of a second substantial deposit of rare earth elements (REEs), uranium, and zinc in the northern Ilimaussaq Complex, in Greenland. The new discovery area, currently referred to as Zone 2, is located 6 km south of Kvanefjeld where the Company has defined one of the world's largest rare earth resources in a multi-element deposit that is also enriched in uranium and zinc. The current JORC-compliant resource inventory at Kvanefjeld contains 4.7 million tonnes of rare earth oxide, 128,000 tonnes of U3O8, and 1.0 million tonnes of zinc. The results reported herein are from holes drilled at Zone 2 during the 2010 field season. Of the twelve holes drilled to date, all have intersected mineralized lujavrite (host to resources at Kvanefjeld), and nine holes have each returned greater than 100m in cumulative intercepts.

Key Zone 2 intercepts include:

Hole ID   S006   185m @ 1.2% TREO,   442 ppm U3O8, 0.34%   Zn
                   
    S002   131m @ 1.3% TREO,   447 ppm U3O8, 0.34%   Zn
                   
    S001   116m @ 1.2% TREO,   440 ppm U3O8, 0.34%   Zn*
                   
    S008   64m @ 1.3% TREO,   462 ppm U3O8, 0.33%   Zn
                   
    S003   42m @ 1.4% TREO,   463 ppm U3O8, 0.39%   Zn
                   
    S003   46m @ 1.5% TREO,   415 ppm U3O8, 0.37%   Zn
                   
    *Intercept previously reported

Significantly, drilling to date has identified an upper lens at Zone 2 that locally exceeds 160m in thickness, and is of a higher-grade tenor than resources defined at Kvanefjeld. It offers the opportunity to add significant tones of higher-grade material to the Company's already extensive resource base. Importantly, Zone 2 remains open to the northwest, the direction in which the lujavrite horizon undulates before outcropping again at Kvanefjeld 6 km away. Mineralization also remains open to the east but plunges to greater depth. The style of mineralization is the same as that at Kvanefjeld, for which the Company has established as base-case process flow sheet that is outlined in the Interim Pre-feasibility Report.

The resources of the northern Ilimaussaq complex are both extensive and unique, and offer the potential to produce both a light and heavy rare earth product, uranium and zinc concentrates, fluoride compounds and a zirconium product. GMEL's base-case scenario evaluates an operation to produce a rare earth concentrate, and a uranium oxide product. Current metallurgical programs are advancing the process route to produce both a light and heavy rare earth product (including yttrium), uranium and zinc concentrates.

For further information on Greenland Minerals and Energy read the 10 page pdf company announcement.

Contact Information

  • Greenland Minerals and Energy Limited
    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