Greenland Moving Forward

In South Greenland two major multi-element rare earth projects are well advanced. The Tanbreez Ltd Kringlerne (Killlavaat Alannguat) zirconium-tantalum-rare earth element deposit is one of the world’s largest reserves of undeveloped heavy rare earth elements. The ore is contained within the rare earth silicate mineral eudialyte. The inferred resource is more than 4.7 billion tonnes of eudialyte containing ore with an average grade of 1.8% zirconium oxide, 0.2% niobium oxide, 0.5% light rare earth elements and 0.15% heavy rare earth elements.

Tanbreez Ltd is currently negotiating the terms of an exploitation licence application with the Government of Greenland. Across the fjord, forming the upper part of the same igneous intrusion, lies the Kvanefjeld (Kuannersuit) uranium, rare earth element and zinc deposit, held by Greenland Minerals and Energy Ltd.

A total resource estimate for the Kvanefjeld deposit comprises 1.01 billion tonnes containing 593 million pounds of U3O8, 11.14 million tonnes of Total Rare Earth Oxides (TREO), and 2.25 million tonnes of zinc. The TREO includes 0.37 million tonnes of heavy REO and 0.84 million tonnes of yttrium oxide. Greenland Minerals and Energy Ltd has completed the technical studies to support the impact assessment and the company is expected to submit a full exploitation licence application in 2016.

In Northeast Greenland Ironbark Zinc Ltd continues to move forward with their world class Citronen Fjord zinc-lead project. This deposit is one of the world’s largest undeveloped zinc-lead resources, at 30.0 million tonnes at 7.1% zinc + lead cut-off (5% zinc cut-off). Yearly production is expected to comprise 350,000 tonnes of zinc concentrate and 30,000 tonnes of lead concentrate with an expected mine life of 14 years.

The deposit is adjacent to a deep water fjord that is planned to provide near-mine ship docking and loading facilities. A full exploitation licence application has been submitted by Ironbark Ltd and the required public consultation process is underway. This year has also seen active and successful exploration in Greenland, notably by North American Nickel Inc and Greenland Resources Inc.

North American Nickel continues to identify and test new and existing nickel-copper-cobalt targets in its Maniitsoq project in West Greenland. North American Nickel has carried out a 6,700 line km helicopter-borne Versatile Time Domain Electromagnetic (VTEM) survey, a large drilling program, surface and borehole geophysical surveys, mapping, sampling and acquisition of high resolution satellite data.

Their significant drill intersections continue to demonstrate the widespread nickel prospectively of the region. Greenland Resources Inc has successfully completed a spring and summer drilling program on their Storø gold prospect, close to the capital, Nuuk.

Their infill drilling (almost 2,000 m in 2015) has tested the lateral continuation in the intervening valley floor of known mineralization on the adjacent mountains, and also has tested an extension of the Main Zone mineralization not previously drilled. Results indicate significant gold grades in the extension drilling, and indicate probable continuation of the mineralization across the valley floor (results pending).

Greenland is also highly prospective for a range of other commodities including titanium and vanadium, iron ore and iron alloys, tungsten and molybdenum, diamonds, and platinum group elements. Exploration and mining in Greenland is governed by the Minerals Licence and Safety Authority (MLSA), within the Ministry of Mineral Resources.

The MLSA acts as a ‘one-stop-shop’ for all enquiries and applications relating to exploration and mining licenses, also coordinating with other relevant agencies the requirements relating to social and environmental issues. The application terms for the various license types are set out with reference to the Mineral Resources Act in the applicable Standard Terms for each license type (www.govmin.gl).

For further information about the geology and mineral deposits of Greenland please address the website:

www.greenmin.gl or contact geology@nanoq.gl, or on the licensing and approvals process contact: mlsa@nanoq.gl.