Greenland Minerals and Energy's (ASX: GGG) flagship project is Kvanefjeld, a multi-element deposit located near the southwest tip of Greenland. Kvanefjeld is rapidly growing into one of the world’s largest undeveloped deposits of rare earth elements, uranium and naturally occurring sodium fluoride.
Greenland Minerals and Energy (ASX: GGG) is set to receive up to €375,000 toward metallurgical studies and logistical costs through its participation in the European Unions’ EURARE Project.
The company is a key participant in the project due to its Kvanefjeld uranium-rare earth project in Greenland.
In addition, the project provides the company an excellent avenue to target new minerals at Kvanefjeld and improve overall metal recoveries through collaborative research programs.
Sample material from 10.3 million tonne project will be one of the main source materials used in the EURARE test work programs.
The EURARE Project “Development of a sustainable exploitation scheme for Europe’s rare earth ore deposits”, seeks to establish a rare earth element value creation chain in Europe.
The company is one of four mining development companies involved in the project, with the remainder of the consortium made up of geological surveys, university‐affiliated research groups, metallurgical and engineering groups, equipment manufacturers, and end‐users.
Its respected technical expertise in the processing of REE‐uranium bearing ores had led the company to be appointed as the program leader for the work stream that addresses the beneficiation (concentration) of ores.
“Greenland Minerals and Energy bring one of the world’s great rare earth deposits to the EURARE program. Their technical experience in developing metallurgical processes for rare earth treatment provide a significant contribution to the project. A solid industry participant is needed for the success of the EURARE Project,” EURARE Project Coordinator Professor Ioannis Paspaliaris said.
The company has already developed a beneficiation circuit for the Kvanefjeld project that delivers an industry‐leading upgrade ratio, with test work for the circuit complete following two successful pilot plant operations.
The EURARE project, which has an overall budget of €9 million for the 60 month study period, seeks to perform pilot plants for both beneficiation and hydrometallurgical circuits in 2014 and 2015.
This advanced and large scale metallurgical testwork, which will utilise sample material from Kvanefjeld, will further increase the processing knowledge and will be of great benefit to the company.
The pilot plants are to be funded through the main EURARE program independent of company allotted funds, and, therefore, represent further significant indirect value.
Greenland Minerals has claim to the world’s largest rare earth resources, and one of world’s larger uranium resources at the Kvanefjeld Project.
It is also strategically located between North American and European markets at a lower latitude than long established mining regions of Alaska and northern Canada.
Notably, the Fjord system in south Greenland provides direct shipping access to project area, year round.
Project overall resource inventory at Kvanefjeld is 956 million tonnes containing 575 million pounds of U3O8, 10.33 million tonnes of total rare earth oxides and 2.25 million tonnes of zinc.
This has the potential to rival BHP Billiton’s Olympic Dam project in South Australia, with sufficient Resources to sustain a mine life of more than 50 years.
Greenland Minerals had earlier this year demonstrated that a high grade flotation concentrate can be produced from its Kvanefjeld project in southern Greenland where a feasibility study is currently underway and scheduled for completion this year.
A Mine and Concentrator Study released in March indicated that the initial 3 million tonne per annum project will generate a pre‐tax, ungeared internal rate of return of 32% and a cash payback period of three years, based on long term prices of US$70 per pound U3O8 and US$23 per kilogram total rare earth oxides (TREO).
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