Greenland Minerals and Energy (GGG)

Shares / Stock Code

GGG

Stock Exchange / Sharemarket

ax

Greenland Minerals and Energy (GGG) is a mineral exploration and development company, focused on unlocking the mineral riches of Greenland, one of the world’s last natural resource frontiers. The company's aim is simple; to identify large mineral deposits with the potential to underpin long term, economically robust mining operations. This is achieved through technically-focused exploration, aggressive resource development programs, and a strong understanding of the fundamentals that drive the business of mineral exploration and development globally.

The company's flagship project is Kvanefjeld, a multi-element deposit located near the southwest tip of Greenland. Through focused exploration, Kvanefjeld is rapidly growing to become one to the world’s largest undeveloped deposits of rare earth elements, uranium and naturally occurring sodium fluoride, commodities with long term forecasts for strong demand increases.

Greenland Minerals and Energy Limited comprises a diverse team of minerals industry professionals with a shared vision. That vision is to discover and advance mineral resource projects through technical excellence and solid business and financial management, thereby generating wealth for their shareholders. They view the minerals industry as a global one, and in their assessment of favorable destinations for mineral exploration, Greenland meets all their criteria.

Greenland is a stable geopolitical region that is embracing natural resource development as the future foundation of its economy. It is highly prospective for a wide range of commodities, and remains grossly underexplored. Much of Greenland’s interior is covered by an icesheet, however, coastal areas are well exposed and provide a transect across the diverse geology of Greenland, exposing numerous mineral belts.

The company foray into Greenland commenced with the acquisition of an exploration license over the northern Ilimaussaq Intrusive Complex; a geological entity with extroidinary potential for specialty metal (particularly Rare Earth Elements) and uranium resources. Historic exploration within the licence area was conducted by Danish government agencies and focussed on a region known as Kvanefjeld Plateau, where an initial uranium resource had been defined in the 1970's. During this phase of work, uranium concentrations were obtained by spectral logging of drill cores, rather than geochemical methods. As a result, concentrations of other minerals of economic interest in the deposit remained largely unknown, along with the true value of the ores.

The company's team evaluated the geological setting and characteristics of the deposit, and concluded that it was potentially a lot more than a modest uranium occurrence, and that it was likely to represent a resource of a far larger scale that could contain economic concentrations of numerous other metals, particularly Rare Earth Elements (REEs). Since acquiring the project in mid-2007, aggressive exploration has proved this to be correct, and Kvanefjeld is now recognised as one of the world's largest undeveloped resources of rare earth elements and uranium. The ores are also strongly enriched in zinc and sodium fluoride. Several other highly prospective zones within the license area await drill testing, emphasing the extroidinary resource potential of the Ilimaussaq Complex.

Kvanefjeld Project

Kvanefjeld is an emerging multi-element deposit hosted within marginal phases of the Ilimaussaq Intrusive Complex, located near the southwest tip of Greenland. The deposit is exposed at surface along a series of undulating bluffs on a broad peninsula surrounded by deepwater fjords that run directly out to the Atlantic Ocean. Greenland Minerals and Energy acquired the project in mid-2007 and immediately launched a field program that included airborne radiometric and magnetic surveys, environmental studies, geological investigations and a 10,000m diamond drill program.

The 2007 drill program and geological work formed the basis for a first JORC-compliant resource estimation for the Kvanefjeld deposit that was announced to the Australian Securities Exchange in May, 2008. The resource was subsequently updated in August 2008 as more assay data from the 2007 drill program became available.

The results of the 2007 field program were considered extremely encouraging, and in 2008 the company undertook a second large-scale exploration program during which a further 19,300 m of core were drilled. The majority of these meters were drilled into Kvanefjeld, with the aim to improve the JORC resource category from “Inferred” to “Indicated”, as well as increasing the overall resource base. This aim was certainly acheived, and Kvanefjeld is now clearly one of the largest multi-element deposits of its kind globally. During the 2008 field season, a number of new multi-element targets were also drill tested (see “New Multi-Element Targets and Overall Resource Potential”).