Securing 100% ownership of the Kvanefjeld project is an important step and comes at a time when the Company is making major technical advances in process development that will strengthen Kvanefjeld's great potential, and the environment and social.
(prHWY.com) August 26, 2011 - Subiaco Western Australia 6904, Australia -- Securing 100% ownership of the Kvanefjeld project is an important step and comes at a time when the Company is making major technical advances in process development that will strengthen Kvanefjeld's great potential, and the environment and social impact assessments are progressing on schedule in close consultation with Greenlandic stakeholders. In the context of our future development, we believe the time is now right to secure 100% of what is clearly a tier 1 mining asset.
Feasibility studies, conducted in close-consultation with Greenlandic stakeholders and regulatory bodies, are well-advanced in identifying a robust and sustainable development scenario. Initial studies indicate that Kvanefjeld could be developed as a large-scale multi-commodity mining operation that would have one of the world's largest rare earth production capacities. The diversified revenue streams that would stem from multi-commodity production strengthen the projects economics, and ensure a highly-competitive equivalent cost of rare earth production.
This acquisition is in line with the GMEL's stated objective to develop the Kvanefjeld project. To this end the executive team recognised the importance to now move to 100% control of the asset in a manner that is clearly value accretive for the company's shareholder base. Importantly, 100% ownership will place GMEL in a strong position to engage potential strategic partners looking to gain access to the extensive resource base, and facilitate its development.
Greenland Minerals and Energy Ltd ("GMEL" or "the Company") today announces that it has finalised an agreement with Westrip Holdings ("Westrip") and Rimbal Pty Ltd ("Rimbal") to acquire the outstanding 39% of the exploration license (EL 2010/02) over the northern Ilimaussaq Complex in Greenland that contains the Kvanefjeld multi-element deposit (rare earth elements, uranium, zinc) and nearby satellite deposits; namely Zones 2 and 3.
Kvanefjeld's significance is underpinned by the world's largest JORC-code or NI 43-101 compliant resource of rare earth oxides with substantial resources of uranium and zinc (contained metal inventory of 6.6 Mt total rare earth oxide, 350 Mlbs U3O8, 3 Blbs zinc). Three drill rigs are currently operating on the recently discovered satellite deposits, with the program anticipated to lead to a substantial increase in the project's overall resource base.
Roderick McIllree, Managing Director of GMEL, stated,
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.
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 recognised 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, 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 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 deposit 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 of 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. Download Full Announcement
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