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Greenland Minerals’ (ASX:GGG) Q3 2020 Report Out, Kvanefjeld RE Project Clocks Progress

  • October 27, 2020 06:00 PM AEDT
  • Team Kalkine
Greenland Minerals’ (ASX:GGG) Q3 2020 Report Out, Kvanefjeld RE Project Clocks Progress

Summary

  • Exploration and development company Greenland Minerals (ASX:GGG) has released its September quarterly report.
  • Progress in the development of flagship Kvanefjeld rare earth (RE) project continued through the quarter.
  • Key milestones achieved were- conclusion of independent technical reviews of the Environmental Impact Assessment (EIA), completion of mining license application components, and outstanding performance of the optimised flotation circuit.
  • The Kvanefjeld project is well positioned to deliver long-term stable supply of critical REs to the European industry.
  • EU initiatives such as the Raw Materials Alliance point to the push to secure RE supply and emphasise on the strategic importance of the Kvanefjeld Project.
  • The Project will now move into the next phase of statutory public consultation.

The outlook for RE demand continues to strengthen, owing to the rapidly rising demand driven by electric vehicles, energy storage and wind turbines (amongst other applications). So much so, ADAMAS Intelligence forecasts that global annual demand for magnet RE oxides (Nd, Pr, Dy, Tb) will increase by 150% through to 2030.

Explorer and developer Greenland Minerals Limited (ASX:GGG) is focused on churning out high-quality mineral projects in Greenland. Its flagship projct the Kvanefjeld Rare Earth Project offers a fresh and easier path to RE production than conventional refractory sources.

To read more on how Greenland Minerals is placed amidst broader rare earth outlook, CLICK HERE

The Company reported significant progress in the development of the Project across Q3, 2020. Let us walk through the key milestones-

Kvanefjeld EIA Accepted By EAMRA

In September 2020, Greenland’s Environmental Agency for Mineral Resource Activities (EAMRA) informed that the independent scientific review of the Project EIA along with supporting studies were completed with mutual flexibility and cooperation. The EIA was finally assessed to meet all requirements of the EIA Guidelines for public consultation.

Every aspect of the Kvanefjeld Project is based on international environmental standards and the principles of ‘Best Available Technology’ and ‘Best Environmental Practice’.

Exceptional Performance by Locked Cycle Flotation Test Work

Through 2020, Greenland Minerals’ largest shareholder and a globally recognised RE specialist Shenghe Resources Holding Co Ltd. has been administering the locked cycle flotation test work at the BTMR laboratories in China.

The results were validated with check assays conducted at SGS Laboratories in Perth, Australia and an independent Chinese assay laboratory. The results revealed that 87% of the light REs and 68% of the heavy REs were amassed into a mineral concentrate, assaying 23.3% RE oxide.

The results confirm that-

  • The optimised flotation circuit has the ability to concentrate the REs into a much smaller mass than that of the original ore
  • A small refinery circuit for hydrometallurgical treatment seems possible
  • The unique RE minerals can be processed in a single stage atmospheric acid leach circuit
  • Impurities can be managed, allowing for the production and export of a clean intermediate RE product.
  • Configuration changes to the flotation circuit may enable greater fluoride removal before the main RE flotation stage. The fluoride will reportedly be recovered as fluorspar/ metspar.
  • Lower flotation reagent consumption and reduction of fluoride in tailings seems possible, minimising environmental impacts and promoting environmental management.

European Industry Engagement & EU Initiatives

Europe is a developing demand centre for REs, with rising level of interest as well as awareness in the security of supply.

Consequently, the European Raw Materials Alliance (ERMA) was launched by the European Commission in September 2020, recognising the importance of raw materials to the EU’s security, sustainability, and industrial leadership.

In Q3, Greenland Minerals presented to several European organisations to update on the Kvanefjeld Project:

  • GGG’s Exec. General Manager Jørn Skov Nielsen gave a presentation to Global Rare Earth Industry Association, based in Brussel.
  • Metallurgy Manager Damien Krebs gave a keynote presentation to a forum organised by the European Rare Earth Resources association.

Notably, there is an optimal development window for the Kvanefjeld Project, given its advanced status, favourable production profile across all key magnet REs, and competitive cost structure.

Way Forward

The translations of the EIA report to Greenlandic and Danish versions remain close to the completion, with language/grammar checks of translated documents almost finalised. Once this is done, components of a formal exploitation (mining) license application will be complete, and statutory processes can be scheduled to conclude permitting.

The preparation for the public consultation phase is underway. The Company is in consultation with Greenland’s Ministry for Mineral Resources and EAMRA. In the coming few weeks, Greenland Minerals may provide the timing of a public consultation phase, and ensuing steps to finalise the project permitting.

On financial front, the cash and cash equivalents at the end of quarter amounted to ~$5.8 million. Looking at stock performance, Greenland Minerals (ASX:GGG) shares traded at $0.28 on 27 October 2020.

 

 


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