Zone 2

At Zone 2 lujavrite occurs below a naujaite cap, but thick layers of lujavrite outcrop in the steep slopes that run between the ridge crest at 700m elevation, and Tunugdliarfik fjord. GMEL reported in mid-2010 that drilling had encountered significant intercepts of lujavrite. The results of the first hole drilled at Zone 2 are reported below, and confirm the discovery of significant REE-uranium mineralization within several thick lujavrite lenses. Based on outcrop geology the lenses are broadly sub-horizontal. The grade and continuity of multi-element mineralization are particularly encouraging. A further 11 holes were drilled at Zone 2 during the 2010 field season, with many encountering substantial intersections of lujavrite. Following drilling conducted in 2011, an initial mineral resource estimate has now been produced by SRK consulting.

Caption: Long section through the geological model of the Zone 2 deposit. The model is constrained by both drill intersections and outcrop mapping of the lujavrite horizon. The deposit remains open to the north (left of page), with the lujavrite horizon undulating for 6km to the northern contact of the Ilimaussaq Complex where Kvanefjeld is located. Zone 2 is characterised by improving grades with proximity to surface. The model was generated using Leapfrog™ software. Big Ben, a well-known tall landmark, is shown at same scale to allow an appreciation of the vertical dimensions of Zone 2.

 

Caption: The mineralized panel of lujavrite outcrops in the slopes to Tunugliarfik Fjord. Initial drill intercepts produced some of the most significant drill intercepts from the entire Northern Ilimaussaq Project area (KS006 – 185m @ 1.2% TREO, 442 ppm U₃O₈, 0.34%  Zn). The slope is 700m vertically from ridge top to sea-level.

 

Caption: View over GMEL’s multi‐element project on the northern Ilimaussaq Complex in Greenland. Resources have been defined at Kvanefjeld and Zone 2, with Steenstrupfjeld and Zone 3 representing new areas of significant mineralisation. The distance from Kvanefjeld to Zone 2 is 6 km. The deposits identified represent the outcropping, and near surface expressions of a vast ore system that is interconnected at depth.

 

Statement of identified mineral resources, Zone 2 Multi‐Element Deposit, March 2012
Multi-Element Resources Classification, Tonnage and Grade											Contained Metal
Cut-off	Classification	M tonnes	TREO2	U3O8	LREO	HREO	REO	Y2O3	Zn		TREO	HREO	Y2O3	U3O8	Zn
(U3O8 ppm)1		Mt	ppm	ppm	ppm	ppm	ppm	ppm	ppm		Mt	Mt	Mt	M lbs	Mt
150	Inferred	242	11022	304	9729	398	10127	895	2602		2.67	0.10	0.22	162	0.63
200	Inferred	186	11554	344	10223	399	10622	932	2802		2.15	0.07	0.17	141	0.52
250	Inferred	148	11847	375	10480	407	10887	961	2932		1.75	0.06	0.14	123	0.43
300	Inferred	119	12068	400	10671	414	11084	983	3023		1.44	0.05	0.12	105	0.36
350	Inferred	92	12393	422	10967	422	11389	1004	3080		1.14	0.04	0.09	85	0.28
1There is greater coverage of assays for uranium than other elements owing to historic spectral assays. U3O8 has therefore been used to define the cutoff grades to maximise the confidence in the resource calculations.
2Total Rare Earth Oxide (TREO) refers to the rare earth elements in the lanthanide series plus yttrium.
Note: Figures quoted may not sum due to rounding.