For personal use only Unlocking the mineral potential of southern - - PowerPoint PPT Presentation

“Unlocking the mineral potential of southern Greenland” “Unlocking the mineral potential of southern Greenland”

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I m portant Notice I m portant Notice

This presentation contains only a brief overview of Greenland Minerals and Energy Ltd (Greenland Minerals) and its respective activities and operations. The contents of this presentation may rely on various assumptions and subjective interpretations which are not possible to detail in this presentation and which have not been subject to any independent verification. y p This presentation contains a number of forward looking statements. Known and unknown risks and uncertainties, as well as factors outside of Greenland Minerals’ control, may cause the actual results, performance and achievements

• f Greenland Minerals to differ materially from those expressed or implied in this presentation.

To the maximum extent permitted by law, Greenland Minerals and its officers, employees and advisers are not liable for any loss or damage (including without limitation any direct indirect or consequential loss or damage) suffered for any loss or damage (including, without limitation, any direct, indirect or consequential loss or damage) suffered by any person directly or indirectly as a result of relying on this presentation or otherwise in connection with it. The information contained in this presentation is not a substitute for detailed investigation or analysis of any particular issue and has been prepared without consideration of your objectives and needs and financial position. Current and potential investors and shareholders should seek independent advice before making any investment decision in regard to Greenland Minerals or its activates decision in regard to Greenland Minerals or its activates. JORC Compliance – Consent of Competent Persons Information in this presentation that relates to mineral resource estimation reflects information compiled by Mr Robert Spiers and Arnold van der Heyden. Resource estimation was undertaken by Mr Spiers who with Mr van der Heyden are full time employees of Hellman and Schofield Pty Ltd. Mr Spiers is a Member of the Australian Institute y p y y p

• f Geoscientists (AIG) and Mr van der Heyden is a member of the Australian Institute of Mining and Metallurgy

(AusIMM). Mr Spiers and Mr van der Heyden have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Spiers and Mr van der Heyden consent to the reporting of this i f ti i th f d t t i hi h it information in the form and context in which it appears.

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Presentation Overview Presentation Overview

• I ntroduction to Greenland Minerals and Energy
• Com pany’s focus: Specialty m etal m ineralization, Gardar alkaline

province, southern Greenland p o ce, sout e G ee a d

• I lim aussaq intrusive com plex and the Kvanefjeld project
• Overview of Rare Earth Elem ents; applications and m arkets
• Overview of Rare Earth Elem ents; applications and m arkets
• W orks program s undertaken to date; exploration and resources
• Kvanefjeld project: looking ahead

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Greenland Minerals and Energy Greenland Minerals and Energy

• Mineral exploration and developm ent com pany
• Mineral exploration and developm ent com pany
• Listed on the Australian Securities Exchange ( ASX: GGG)
• Head Office – Perth, Australia

Mi h l H hi N E i Ch i

,

• Operations base – Narsaq, Greenland

Michael Hutchinson – Non-Executive Chairm an

• Director of the London Metals Exchange, Chairman of RBS Sempra Metals Ltd.

Roderick McI llree - Managing Director

• Geologist with 8 years capital markets exposure
• Geologist with 8 years capital markets exposure

Dr Hans Kristian Schønw andt – Non-Executive Director

• Former Deputy Minister of Mines for Greenland

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Com pany Focus Com pany Focus

• Greenland – stable, highly prospective, underexplored, high

quality data/maps/reports, capable service providers

• Gardar alkaline province - one of the world’s best preserved

alkaline magmatic provinces

• hi hl

ti f diti ti l l i lt

• highly prospective for numerous commodities – particularly specialty

metals (rare earth elements, niobium, tantalum, lithium)

• Ilmaussaq intrusive complex – layered alkaline intrusion,

q p y ,

• Greenland Minerals acquired an exploration license for 80km2 over the

northern half of the Ilmaussaq complex in mid-2007.

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Greenland Geology Greenland Geology

Gardar Province

Gardar Province – Alkaline intrusions emplaced in a

Gardar Province (Mesoproterozoic)

continental rift setting (Ilimaussaq Intrusion)

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I lim aussaq I lim aussaq Com plex Com plex

Ilimaussaq Complex 7 False-colour image over south Greenland

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I lim aussaq I lim aussaq I ntrusive Com plex I ntrusive Com plex

Geology and Genesis Geology and Genesis Geology and Genesis Geology and Genesis

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I lim aussaq I lim aussaq I ntrusive Com plex I ntrusive Com plex Exploration History Exploration History

• Studied by geologists for almost 100 years

Known to be prospective for

• Studied by geologists for almost 100 years - Known to be prospective for

rare earth elements (REEs), niobium, tantalum, zirconium, uranium, fluorine

• Eudialyte ores (Zr, Nb, REEs) have been investigated numerous times over

Eudialyte ores (Zr, Nb, REEs) have been investigated numerous times over the last century, but there are no well-defined resource figures, and no production to date (similar ores are mined on the Kola Peninsula, Russia)

• Uranium enrichment identified in 1956 radiometric study – best developed
• n Kvanefjeld plateau, NW-margin of the Ilimaussaq complex. State

sponsored work programs conducted by GEUS (geological survey) and RISO (atomic energy agency) to evaluate the resource, and potential to RISO (atomic energy agency) to evaluate the resource, and potential to mine it.

• Work ceased in 1983 owing to negative sentiment toward uranium and

nuclear energy, and weak uranium prices.

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Em ergence of Specialty Metal Markets Em ergence of Specialty Metal Markets

• Early 1990’s – Specialty metals gain attention owing to the unique

properties of the metals and their application to emerging technologies

Em ergence of Specialty Metal Markets Em ergence of Specialty Metal Markets

properties of the metals and their application to emerging technologies

• Geologists at GEUS and University of Copenhagen published studies on

the potential for REEs, Nb, Ta and Zr resources in alkaline intrusions of the p , , Gardar province

• From late 1980’s China began to dramatically increase REE production,

leading to a suppression of REE prices

• Low labour and regulatory costs, and significant REE resources has

allowed China to become a dominant force in the REE industry supplying allowed China to become a dominant force in the REE industry, supplying >90% of global demand.

• 2005/06 – REE prices rise as world recognises the strategic importance of

p g g p REE’s, and supply issues begin to emerge.

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Rare Earth Elem ents Rare Earth Elem ents

• Group of specialty metals with

unique physical and chemical ti properties

• Increasing demand in technology

industries

• Essential components in many

emerging technologies

• Common Applications: Hybrid cars, ipods, laptops, flat screen televisions/monitors,

cell phones, rechargeable batteries, oil refining, catalytic converters, numerous medical applications, numerous military applications pp , y pp

• Typically reported as cumulative REO grade, with value dependant on the proportion of individual

REOs

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Rare Earth Elem ents Rare Earth Elem ents -

• Uses

Uses

Magnets (21% of consumption) Neodymium, Dysprosium

• REE make the worlds strongest permanent magnets
• Produce higher motor power and efficiency with reduced size and weight
• Increasing demand coming from hybrid car industry, wind turbines
• Used in hard-disk drives, mobile phones, iPods, laptops

Catalysts (19%) Lanthanum, Cerium

• Autocatalysts (catalytic converters) – reduce vehicle emissions

y ( y )

• Cracking catalysts – increase the efficiency of oil refining
• Diesel additives – reduce particulate emissions

Batteries (18%) Lanthanum, Cerium, Neodymium, Praseodymium

• Nickel-Metal Hydride (NMH) rechargeable batteries – REE make up

about 25% of batteries weight about 25% of batteries weight

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Rare Earth Elem ents Rare Earth Elem ents China China – Controlling REE Supply Controlling REE Supply g pp y g pp y

• In 1992 Deng Xiaoping stated:

“There is oil in the middle east; there is rare earth in China” – over the next 15 years China strategically moved to control REE market

• China produces >90% of global REE output, but already consumes >60%

C a p oduces 90% o g oba

• utput, but a eady co su

es 60%

• Progressively reducing export quotas, and increasing export taxes
• By controlling REE availability outside China, it encourages corporations to shift

y g y g p more of there manufacturing base to China, to help strengthen their economic growth rates and consolidate market position in many emerging consumer items

• Problematic situation – REEs are essential in modern and future technologies, but

are overwhelmingly controlled by one country There is a definite need for new, long-term REE suppliers based outside China

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Greenland Minerals and Energy Greenland Minerals and Energy

Multi Multi-

• Elem ent Exploration Program s

Elem ent Exploration Program s

• Undertaken two extensive exploration programs in 2007 and 2008

u t u t e e t p o at o

• g a

s e e t p o at o

• g a

s

• 2007 – Spent 40M (DKK) ~ $8.8M (AUD)
• Airborne magnetic and radiometric surveys, 10,000m diamond drill

program, environmental studies p g ,

• 2008 – Spent 73M (DKK) ~ $16.2M (AUD)
• 19,300m diamond drill program, ongoing environmental studies

g g g

• Drill core is assayed for 36 elements. The extensive geochemical database allows for resource

estimation as well as understanding zonation and variation throughout the ore body (as currently estimation, as well as understanding zonation and variation throughout the ore body (as currently defined).

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The The Kvanefjeld Kvanefjeld Deposit Deposit

Operations Operations

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I lim aussaq I lim aussaq I ntrusive Com plex I ntrusive Com plex

Key Geological Units Key Geological Units Key Geological Units Key Geological Units

4km

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The The Kvanefjeld Kvanefjeld Deposit Deposit

Geography Geography

Field of view approximately 8 km across

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The The Kvanefjeld Kvanefjeld Deposit Deposit

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Kvanefjeld Kvanefjeld -

• Resources

Resources

FIRST Multi-element resource (inferred category)

(JORC compliant, based on data from 2007 drill program)

334 million tonne ore body 334 million tonne ore body

Containing:

2.59 Mt Rare Earth Oxide 2.21 Mt Sodium Fluoride 0.1 Mt Uranium Oxide (223 Mlbs) *A new resource estimate will soon be available that incorporates data from the 2008 drill program.

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Kvanefjeld Kvanefjeld – – Multi Multi-

• Elem ent Ore

Elem ent Ore

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REE REE Resource Resource Com parisons Com parisons

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R d fi iti d i l

Pre Pre-

• Feasibility Study

Feasibility Study – – Key Aim s Key Aim s

• Resource definition and mine plans
• Metallurgy and process development
• Environmental baseline studies
• Capital development –

plant and infrastructure costs

• Production costs
• Marketing –

product pricing, off-take partners g p p g p

• Production quotas
• Timeline to production

p

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Kvanefjeld Kvanefjeld Looking Forw ard Looking Forw ard

• Can Kvanefjeld viably compete with Chinese to become a major REE

Kvanefjeld Kvanefjeld – Looking Forw ard Looking Forw ard

j y p j supplier?

• Strategic advantages:
• Kvanefjeld is one of the largest deposits of REEs in the world
• It is a true multi-element deposit – revenue streams from by-products

ill i i will improve economics

• Potential by-products: uranium, sodium fluoride, zinc

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U i ? U i ? Uranium ? Uranium ?

• World power crisis, climate change and the nuclear renaissance
• Crucial base load energy supply for the future – clean and efficient
• Currently uranium exploitation is prohibited in Greenland

As a multi element mine Kvanefjeld could underpin an economically robust

• As a multi-element mine, Kvanefjeld could underpin an economically robust

mining operation, that could operate for decades, employ hundreds of people and contribute significantly to Greenland’s GDP

• Greenland Minerals is hopeful of legislative changes that would permit

Greenland’s vast specialty metal resources to be exploited by permitting by-product uranium production from polymetallic, or multi-element

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resources

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SUMMARY SUMMARY

• Kvanefjeld is now recognised as one of the largest and most significant

multi-element (REEs, U, NaF) resources in the world

• Project currently in pre-feasibility phase; metallurgical studies are ongoing

to understand how to recover REEs from the Kvanefjeld ores

• The ores are polymetallic, and by-products will significantly increase the

economic strength and viability of a mining operation

• Kvanefjeld has the potential to underpin a large-scale, long-life, multi-

commodity mine, that could be one of the world’s largest supplies of REEs, certainly the largest outside China, as well as a potentially significant d f i

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producer of uranium.

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www.ggg.gl

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