Greenland Minerals and Energy Limited (Greenland Minerals, GMEL, or the Company) is an Australian domiciled company that has been operating in Greenland since 2007. The Company’s primary focus has been on advancing the Kvanefjeld multi-element project (rare earth elements, uranium, zinc) through the feasibility phase and into mine development. In early 2007 at the point of acquisition Kvanefjeld was known to represent a historic uranium project, and the known resources did not comply with internationally-recognised reporting requirements. By late 2007, after the first drill program and resource estimate produced by GMEL, it was clear that Kvanefjeld had the potential to become a resource of genuine global significance, and importantly, it also demonstrated that Kvanefjeld was a polymetallic deposit, being strongly enriched in rare earth elements as well as uranium.
Over the next four years, GMEL has systematically advanced the project, which is now underpinned by a resource estimate that is the largest of its kind globally (largest JORC or NI 43-101 rare earth resource). The Company has also set about developing an extremely comprehensive understanding of the resources, and establishing the best possible processing route. An Interim pre-feasibility report was released in early 2010, which provided the first indication of a viable development scenario for a multi-element mining operation at Kvanefjeld. Since then, the Company has continued to make significant technical developments as it works toward establishing the best possible process flow sheet.
Importantly, the process flow sheet and economic metrics of the Kvanefjeld project that were outlined in the Interim report will soon be superseded owing to key technical developments that will inevitably lead to a far more efficient development scenario. Already, Kvanefjeld is widely recognized as having the potential to play a major role in future rare earth supply.
While there exists a perception that Greenland is remote, and logistically challenged, there are many inherent benefits to the natural geography of Greenland. Firstly, it is strategically located between North American and European markets. Southern Greenland is located at a lower latitude than much of Alaska, and the Yukon and Norwest Territories of Canada – all regions popular amongst mineral explorers and miners. Deep water fjords cut into the coastal fringes of Greenland meaning that most areas suitable for exploration are close to potential deepwater port facilities. The main source of power in Greenland is hydroelectricity, which has the scope to be expanded to facilitate large mining operations.