Greenland Minerals Limited (ASX: GGG), operational in Greenland since 2007, currently focuses on advancing its south west Greenland based - Kvanefjeld rare earth project. The Project has extensive resources with a key advantage of unique rare earth (RE) and uranium?bearing minerals, offering an attractive opportunity to evolve as a stable large-scale supplier of products at prices readily sustainable to end-users. With a global mineral resources of 1.01 billion tonnes (JORC?code 2012 compliant), the Project is cited to be a future cornerstone to global RE supply unfolding the revolution in the efficient use of energy.
GGG recently released its September 2019 Quarterly Report, a period that saw growing international interest with increasing recognition of the its strategic location, extensive endowment of mineral resources, and the will to work with foreign investors to develop its natural resource sector and diversify its economy.
EIA Update From Greenland’s EAMRA
In June 2019, GGG had lodged an application for an exploitation (mining) license for the Project with the Government of Greenland and received a formal application lodgement from Greenland’s Mineral License and Safety Authority. An Environmental Impact Assessment, a Navigational Safety Investigation Study and a Social Impact Assessment was submitted as supporting documents.
The United Nations Environment Programme, the International Council on Mining and Metals and the Principles for Responsible Investment co?convened a global tailings review to establish global best practices on tailings storage facilities, which is likely to conclude by year end.
In mid-October 2019, GGG notified that significant progress had been made towards finalising the EIA as its review was completed by Greenland’s Environmental Agency for Mineral Resource Activities (EAMRA) and the Danish Centre for the Environment (DCE). The latest review feedback divided outstanding environmental issues into below two categories:
- Type 1- wherein EAMRA entails more information prior to EIA acceptance for public consultation. These issues have been addressed in prior EIA work but have been evaluated by EAMRA to be further refined. GGG has engaged external consultants who will manage and complete the additional work, which is likely to conclude in a three?month period, post which the issues would be presented to EAMRA for review.
- Type 2- which can be answered post the formal public consultation process concludes.
Further meetings are planned with DCE and EAMRA to timely finalise the EIA. GGG views EAMRA’s structured approach as an important development, with the strategy focussing on closing the review process in a manner more in?line with other mining jurisdictions.
Technical Advancements at Kvanefjeld
The September quarter saw a steady flow of visitors to the Project site, reflecting the growing profile of the Project, including the below developments-
- Through late June and early July, field work program led by the US Geological Survey investigated the local and regional geology, including the examination of drill cores and broader geophysical surveys.
- In August, geologists from Shenghe and IMUMR were onsite for several weeks as part of ongoing field studies that feed into the broader technical work underway with GGG over the past 3 years.
- Presently, environmental baseline surveys for both water and dust monitoring are ongoing.
Laboratory Work Advancements
Post the major technical studies (reported in earlier quarters) that have focussed on metallurgical flowsheet optimisation, GGG shifted laboratory work to further improve radionuclide removal, which was highly successful with the elimination of thorium and residual uranium from intermediate rare earth concentrate, without rare earth losses.
Moreover, the process removed other non?radioactive species to improve the overall purity of intermediate rare earth concentrates. Currently, test work in the area is ongoing to ensure that intermediate products can be exported to a number of facilities for further processing to produce individual rare earth oxides and metals.
GGG notified that Perth-based SGS Oretest Laboratories has been successful in producing uranium oxide from the Kvanefjeld ore utilising the optimised flowsheet; the resulting uranium precipitate confirming that it meets all relevant specifications for a commercial uranium oxide product.
Outlook for Q4 2019
GGG believes that Q419 would mark a productive close to 2019, as additional work programs addressing Type 1 EIA issues areas will soon be underway and several teleconference/meetings with EAMRA are being scheduled.
Moreover, GGG aims to continue an engagement program with European industry to explore off?take and participation opportunities as interest increases in establishing clear supply lines of materials deemed critical to industry.
Meetings are being planned with Shenghe, GGG’s largest shareholder and a leader in RE processing technology. Shenghe is a single industry company with mining and processing activities in a number of Chinese centres and has commenced the strategy of extending business outside China to increase the focus on overseas resources and international markets.
Greeland Minerals and Shenghe are working to optimise Kvanefjeld, and develop the project as a low?cost, long?life cornerstone to future rare earth supply. A meeting in Copenhagen organised by Danish Industry would provide both companies with an excellent opportunity for meetings with a cross section of both government and industry representatives from Greenland and Denmark.
GGG’s Quarterly Cash Flow Statement
Below is GGG’s Cash Flow position for the quarter ended 30 September 2019:
In July 2019, the Company conducted a successful capital raise to secure $7 million with the participation of numerous Australian funds to advance the Project toward development amid the strengthening outlook for the rare earth sector.
Stock Price Information
GGG was trading at $0.105 by the close of trading on 4 November 2019 and has delivered a decent YTD return of 54.41%.
Currently, the Company is at the forefront of a strategic evolution in rare earth supply as significant changes are coming to global RE supply, with China looking to cap primary production in 2020, when demand is set to surge.
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