Greenland Minerals and Energy to update Kvanefjeld resource early 2015

Greenland Minerals and Energy (ASX:GGG) has completed an assay program on historic cores from its Kvanefjeld rare earth-uranium deposit in Greenland that confirms strong continuity of mineralisation.

The program was undertaken to increase the density of multi‐element geochemical data at Kvanefjeld prior to SRK Consulting updating the resource estimate in early 2015.   

Current resources are 956 million tonnes containing 575 million pounds uranium and 10.33Mt total rare earth oxide.

The 16 drill cores were drilled by Danish research agencies and were analysed spectrally for uranium and thorium content at that time but were not subject to chemical assay for multi-element data.
   
Assays are consistent with the rock type that hosts the Kvanefjeld Sørensen and Zone 3 rare earth and uranium deposits.

Earlier this month Tetra Tech completed engineering design work for the project. This is one of the major work programs that underpin the feasibility study which is set for completion in the first quarter of 2015.

In addition the Greenland’s Siumut Party which supports resource extraction formed the country’s new coalition government.

“The assay results from the historical cores have produced some excellent rare earth and uranium intercepts as we would expect from drill holes located within the Kvanefjeld resource shell” managing director Dr John Mair said.

“The strong continuity of mineralisation is testament to the quality of the Kvanefjeld deposit. The new geochemical data will be an important contribution to updating the mineral resource estimate which is scheduled to be finalised in early 2015.”


Historic Cores

The company re-logged the 16 drill cores that ranged from 70 metres to 200 metres in length and sampled them in accordance with the methodology it used on the Kvanefjeld project.

Each of these returned multiple rare earth and uranium intercepts.

Selected intercepts include:

- K030: 28 metres at 597ppm U3O8 1.6% TREO 0.28% zinc;
- K015: 15 metres at 535ppm U3O8 1.3% TREO 0.23% zinc;
- K042: 36 metres at 515ppm U3O8 1.6% TREO 0.30% zinc;
- K065: 33 metres at 506ppm U3O8 1.6% TREO 0.28% zinc;
- K021: 17 metres at 505ppm U3O8 1.4% TREO 0.22% zinc;
- K015: 23 metres at 495ppm U3O8 1.5% TREO 0.23% zinc;
- K017: 27 metres at 479ppm U3O8 1.7% TREO 0.08% zinc;
- K062: 85 metres at 420ppm U3O8 1.1% TREO 0.27% zinc; and
- K058: 48 metres at 420ppm U3O8 1.4% TREO 0.27% zinc.


Kvanefjeld Project

The Kvanefjeld feasibility study is evaluating a mine concentrator and hydrometallurgical refinery in Greenland treating 3 million tonnes of ore per annum.

The concentrator will produce 230000 tonnes per annum of a rare earth mineral concentrate which contains 14% REO and 0.25% U3O8.

Refining of this mineral concentrate is expected to produce 7000 tonnes per annum of critical rare earths 16000 tonnes per annum of light rare earths and 1.1 million pounds of U3O8.

Kvanefjeld has Resources of 956 million tonnes containing 575 million pounds uranium and 10.33Mt total rare earth oxide.

Some nearby elevated permanent lakes to the northeast of the plant site have been positively evaluated for hydroelectric power supply.

The use of hydropower will be provided as an option in the Mining Licence Application Study.

Initial investigations highlight substantial operating cost benefits as a result of utilising hydropower as well as providing greenhouse‐gas free sustainable energy for the operations.


Supportive Government

Earlier this month Greenland’s Siumut Party which received the most votes in November’s election formed a coalition with the Demokraatic and Atassut Parties after several days of negotiations.

Siumut had led the previous coalition government which voted in 2013 to repeal its zero-tolerance uranium policy.
   
Following the election Siumut Party leader Kim Kielsen emphasised his commitment to resource extraction and creating a stable investment environment.


Analysis

Greenland Minerals and Energy’s assay of historic cores at the Kvanefjeld project has returned intercepts including 28 metres at 597ppm U3O8 1.6% TREO 0.28% zinc and 85 metres at 420ppm U3O8 1.1% TREO 0.27% zinc.

The cores also demonstrate strong continuity of mineralisation at the project.

The new geochemical data will contribute to the updated resource estimate which is scheduled to be finalised in early 2015.

This will be followed by the feasibility study which is expected to be completed in the first quarter of 2015.

Kvanefjeld is also likely to benefit from a supportive government with the Siumut Party that pushed through the successful repeal of Greenland’s zero-tolerance uranium policy in 2013 once again forming the country’s coalition government.

Adding to the interest uranium prices received a boost in November after Japan cleared the way for the restart of the Sendai nuclear plant in northern Japan.

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