Mineral exploration and development company Greenland Minerals and Energy (ASX: GGG) has reaffirmed its hopes to become a "world class mining operation in southern Greenland" during a technical update to the market.
The Australian-listed company's target is Greenland, one of the world’s last natural resource frontiers, and aims to identify large mineral deposits with the potential to underpin long term, economically robust mining operations.
The company's flagship project is Kvanefjeld, which is rapidly growing to become one to the world’s largest undeveloped deposits of rare earth elements, uranium and naturally occurring sodium fluoride, commodities with long term forecasts for strong demand increases.
The project is located on the South West tip of Greenland, within the Ilimaussaq alkaline intrusive complex, and on present parameters.
A recent upgrade to the JORC inferred resource estimate at Kvanefjeld, increased resources to: 4.9mt Mt rare earth oxide @ 1.1% REO and 283 Mlbs @ 208 ppm U3O8. 79% of the resource is in the indicated category.
A pre-feasibility study began in late 2008, drawing on historical studies and is currently due for completion in late 2009. The focus is on defining a process route to extract the elements of interest from the multi-element ores in an economically viable and environmentally responsible way.
In 2010, GGG hopes to increase community and governmental interaction to demonstrate how the development of Kvanefjeld would benefit Greenland.
At its current share price of around 50c, the company believes it is "grossly undervalued".