Company Comment and Investment Points from Resource Capital Research 

• Multi-element focus at Kvanefjeld- uranium component Valued in-ground at ~US$17 billion (US$60/lb) and REE at ~US$49 billion (US$10/kg).
• Potential to be one of the world’s largest REE and U308 deposits – plus economic potential NaF, Zn and Sn.
• JORC resource (Jun ’09) containing 283 mlbs U3O8, 4.9mt REO, 1mt Zn and 3.1mt NaF- defined over 2 km x 1 km, open at depth (>300m) and along strike.
• Metallurgical studies are advanced: process flowsheet includes alkaline/carbonate pressure leach for uranium, and separate flotation and leach for REO.
• Pre-feasibilitystudy,Feb’10:processing10.8 mtpa for 23 years, producing 43.7ktpa REO and 8.6mlbspa U3O8. Capex is US$2.31bn, opex US$41/t. NPV US$2.18bn.
• Mineral Resources Act came into force Jan ’10, transferring mineral rights from Denmark to Greenland.

Kvanefjeld Pre-Feasibility Study forecasts that a US $2.31bn mine could become one of the world’s mainsources of REE and uranium -current resource includes 283mlbs U3O8. Uranium mining negotiations are ongoing.

READ FULL Report “March Quarter 2010, Uranium Sector Review ©”