Greenland Minerals Limited (ASX: GGG), a multi-element mineral exploration ranging from the metals and mining sector announced the update on the optimization program of the Kvanefjeld Project. Based on the feasibility study on April 2016 addressing both processing performance and civil design and engineering in order to establish optimal capital and operating costs. For this program, the specialist group from leading industries provided their input.
As the Kvanefjeld has several unique attributes from the nature of ore bodies to the project setting, it is essential that the company takes a customized approach for establishing optimal development strategy, while maximizing project advantages and minimizing costs.
In the feasibility study of 2016, civil construction costs captured a larger component of the capital cost estimate. Based on this a group of specialist engineering firms came into the picture where they were assigned to review the optimization of the civil design followed by the utilization of local site aspects. In August 2018, the site was visited by a multi?disciplinary team that consists of Tetra Tech and PND Engineers, constructors Nuna Logistics and China Communications Construction who provided their input to optimize design studies and cost estimation.
Based on the site survey, Nuna Logistics shared the Kvanefjeld Project latest cost information. The input from Nuna Logistics significantly helped in the improvement of the overall design in order to match updated project requirements. It also worked with other consultants as well to derive their inputs for material selection and the methodologies for construction. Also, Nuna Logistics is excellent and experienced in terms of involving the local community. The company believes that Nuna’s experience executing projects in remote locations will be contributing to the success of the project. The revised version of the civil cost is now estimated to be US$175 million which includes the indirect cost and the contingency. As compared to the feasibility study of 2016, the civil cost has gone down by 44% driven by considerable reductions in civil earthworks for site preparation followed by latest port design and more use of local materials.
The optimization of the process plant included the concentrator circuit as well as the refinery circuit. This was possible as a result of collaboration with foremost Chinese technical institutes and Shenghe Resources Holding Co Ltd. The work is about to complete, and the testing of the new concentrator capability is being made. At present, a significant improvement is seen in the concentrator circuit as well as the refinery circuit. The company has also completed the concentrator updated process engineering design, this also involved the production of a concentrate of higher grade.
On the back of the Capital and operating cost reductions, Kvanefjeld is on course to become a low?cost, long?life producer of rare earth products.
There were other achievements since January 2019 as well where the company on 7 March 2019 announced that it signed an MoU with Kommune Kujalleq and Kommune Business Council for participation agreement where the three parties will be supporting and supplementing the Impact Benefit Agreement which is a part of a successful mining license application for Kvanefjeld project.
On 23 January 2019, GGG’s largest shareholder Shenghe formed JV to import radioactive material to China.
By the end of the trading session on 26 March 2019, the shares of GGG closed at A$0.053, up by 6% as compared to its previous closing price. The company has a market capitalization of A$56.63 million and has around 1.13 billion outstanding shares.