Greenland Minerals and Energy Limited
ASX : GGG

June 06, 2012 07:30 ET

Zone 3 Grows Kvanefjeld Project Resource Inventory to 575 Mlbs U3O8, 10.3 Mts Total Rare Earth Oxide

PERTH, WESTERN AUSTRALIA--(Marketwire - June 6, 2012) - Greenland Minerals and Energy Limited (ASX:GGG) -

Summary below (for full ASX announcement go to http://www.ggg.gl/docs/ASX-announcements/Zone-3-Mineral-Resource-Estimate.pdf).

Greenland Minerals and Energy Limited ("GMEL" or "the Company") is pleased to announce the first mineral resource estimate for the 'Zone 3' multi-element deposit. Zone 3 is the third deposit within the Northern Ilimaussaq project area for which a mineral resource estimate has been established. It follows on from the Kvanefjeld (619 Mt), and Zone 2 deposits (244 Mt). The Zone 3 resource estimate was independently prepared by SRK Consulting (SRK) and is reported in accordance with the Australian Joint Ore Reserve Committee (JORC) code.

Highlights:

• Zone 3 inferred mineral resource of 95 Million tonnes (Mt)* @ 300 ppm U3O8, 1.16 % total rare earth oxide (TREO)**, 0.28% zinc

• Zone 3 contained metal inventory of 63 Mlbs U3O8, 1.11 Mt TREO

• Global metal inventory now 575 Mlbs U3O8 and 10.3 Mt TREO; 2.24 Mt zinc (at 150 ppm U3O8 cut-off)

Rare earth resource inventory includes 370,000 t heavy REO, 840,000 t Y2O3

• Zone 3 remains open to the north, south, west and at depth

• Zone 3 resources hosted by the same rock-type as Kvanefjeld; conducive to the same enhanced processing method as outlined in the recently released Prefeasibility Study (May, 2012)

*At 150 ppm U3O8 cut‐off
** Total Rare Earth Oxide (TREO), refers to the elements in the lanthanide series + yttrium. Heavy Rare Earth Oxides (heavy REO), refers to the elements Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb and Lu

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.

Greenland Minerals and Energy Ltd will continue to advance the Kvanefjeld 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 targets, exploration results, geological interpretations, appropriateness of cut-off grades, and reasonable expectation of potential viability of quoted rare earth element, uranium, and zinc resources is based on information compiled by Mr Jeremy Whybrow. Mr Whybrow is a director of the Company and a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Whybrow has sufficient experience 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 by the 2004 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Whybrow consents to the reporting of this information in the form and context in which it appears.

The geological model and geostatistical estimation for the Kvanefjeld, Zone 2 and Zone 3 deposits were prepared by Robin Simpson of SRK Consulting. Mr Simpson is a Member of the Australian Institute of Geoscientists (AIG), and has sufficient experience 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 by the 2004 edition of the "Australasian Code for Reporting osf Exploration Results, Mineral Resources and Ore Reserves". Mr Simpson consents to the reporting of information relating to the geological model and geostatistical estimation in the form and context in which it appears.

ABN 85 118 463 004

Contact Information

  • Greenland Minerals and Energy Limited
    Roderick McIllree
    Managing Director
    +61 8 9382 2322
    http://www.ggg.gl

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