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Interim Kvanefjeld results suggest development route
GREENLAND Minerals and Energy Ltd (GME) has outlined a potentially economic processing route for its large Kvanefjeld polymetallic deposit in Greenland, though it concedes that such deposits cannot be mined under the country’s regulations.
These regulations reflect a zero tolerance attitude towards uranium production in Greenland, but the company noted that a parliamentary debate on uranium in late 2008 indicated support in principle for an easing of the policy, particularly regarding by-product output of uranium from a Kvanefjeld operation.
Interim results from Greenland Minerals’ prefeasibility study for Kvanefjeld, in which it holds a 61% interest, indicate that treatment of the mineralisation via carbonate leaching using pressure autoclaves would yield recovery of about 34% for rare-earth oxides (comprising the lanthanoid series plus yttrium) and 84% for uranium.
The forerunner of GME’s processing technique was designed at Denmark’s Atomic Energy Commission and the Geological Survey of Greenland more than 20 years ago, focusing on uranium extraction and yielding a prefeasibility study in 1983. The firm then commissioned a group of consultants to develop the process.
This process would remove uranium from the mineralisation, described by GME as unique, before the production of a rare-earth concentrate using flotation, acid-leaching and refining. Mining and engineering studies by consultants Coffey Mining and AMEC Minproc designed a conventional open-pit operation with a feed rate of 10.8Mt/y.
Resources were calculated to be sufficient to support a 23-year mine life (using a cut-off grade of 0.015% U3O8), and annual rare-earth oxide output was forecast at about 44,000t, with 3,900t of uranium oxide equivalent.
Capital costs were estimated at US$2.3 billion to include the mine, processing and refining plants, a new port, power-generation plant, roads and accommodation.
GME said it is supporting a legal action by shareholders in its partner at Kvanefjeld (39%-owner Westrip Holdings Ltd) in an effort correctly to identify its joint-venture partner.
The board of directors of Westrip intend to transfer the 39% interest to Rimbal Pty Ltd, a private company of one of the directors of Westrip. |
