world class production centre in greenland
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Objective Capital's Rare Earths, Speciality & Strategic Metals Investment Summit 2012 Ironmongers' Hall, City of London 13-14 March 2012 Speaker: John Mair, Greenland Minerals and EnergyTRANSCRIPT
RARE EARTHS, SPECIALITY& STRATEGIC METALSINVESTMENT SUMMIT
IRONMONGERS’ HALL, CITY OF LONDON ● TUESDAY-WEDNESDAY, 13-14 MARCH 2012
www.ObjectiveCapitalConferences.com
World class production centre in GreenlandJohn Mair – CEO, Greenland Minerals and Energy
“Specialty Metals for a Greener World”
Investor Presentation, February 2012
Important NoticeThis 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.
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 of 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 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.
JORC Code Compliance – Consent of Competent Persons
The information in this report that relates to exploration results, geological interpretations, appropriateness of cut-off grades, and reasonable expectation of potential viability of quoted rare earth element, uranium, and zinc resources is based on information compiled by Jeremy Whybrow. Mr Whybrow is a director of the Company and a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Whybrow has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Whybrow consents to the reporting of this information in the form and context in which it appears.
The geological model and geostatistical estimation for the Kvanefjeld deposit were prepared by Robin Simpson of SRK Consulting. Mr Simpson is a Member of the Australian Institute of Geoscientists (AIG), and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined by the 2004 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Simpson consents to the reporting of information relating to the geological model and geostatistical estimation in the form and context in which it appears.
Overview
Greenland – moving to a natural resource based economy
Uranium license issued late 2011, clear licensing framework
Kvanefjeld REE-Uranium project
Project geography, mineral resources
Process flow-sheet development - low technical risk, cost competitive
Beneficiation developments – heightened efficiency, lower costs
Atmospheric leaching – high U & heavy REE extractions
Forward strategy, funding options
ASX: GGG52 Week Range: $0.41 – 1.41 AUDShares: 410 MMarket Cap: $220 M AUDCash: $10.5 M AUDTop 20 shareholders control ~75%
Market Details:
Specialty metal focused exploration and development company operating in Greenland
Primary aim: developing the Kvanefjeld multi-element project (REEs, U, Zn)
Project features world-class REE-U resource base with clear potential to become large-scale, cost-effective producer with strong growth potential
Listed on the ASX (GGG), also trades on US OTC (GDLNF), and Frankfurt (G7P)
Fukishima
GreenlandAn Emerging Mineral Province
Politically stable democracy: Autonomous constituent country within Kingdom of Denmark
Increasing independence with transition from Home Rule to Self Rule
Greenland controls 100% of mineral rights, formerly shared with Denmark
Pro-mining government – increased independence is dependant on establishing strong minerals and hydrocarbon industries
High-prospectivity, strong geological survey and bureau of minerals and petroleum, clear permitting framework
Kvanefjeld license now inclusive of uranium, clear path to mining license6
Kvanefjeld
“A world-class project built on a solid technical foundation”
Subject of 20+ years of state-sponsored R&D (1960’s – 1983)
Uranium focus, >$50 M (todays dollars) invested historically
Extensive metallurgical and infrastructure studies, including hydropower
Project successfully piloted at large scale
Five years of R&D conducted by GMEL (2007 – present)
Multi-element focus – REEs, uranium, zinc +, approx $60 M (AUD) invested
Strong in-house project technical team established
Strong relationships developed in Greenland
Synergies between uranium and REE extraction identified, multiple process options
Significantly de-risked, emerging as major new uranium producer, dominant heavy REE producer, price maker in light REE concentrates
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Timeline of Activities“A systematic approach from the ground up”
2007 2008 2009 2010 2011
Metallurgicalstudies
commenced
4th JORCResource
U, REE, Zn
1st JORCResource
U
Acquired project
20,000m drillingEnvironmental
Baseline studies
Engineering studycommenced
2nd JORCResourceU, REE
14,000m drillingEnvironmental
Baseline studies
InterimPFS Report
5,000m drillingGeotech, Metallurgical
Sterilisation
10,000m drillingEnvironmental
Baseline studies
10,000m drillingEnvironmental
Baseline studies
PFScommenced
3rd JORCResource
U, REE, Zn
Greenland moves from home-rule to self-rule. Controls 100% of mineral and hydrocarbon rights
Commenced dialogue with new government
New evaluation framework for projects containing uranium
Change of government Terms of Reference for SIA and EIA
Approved
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UR
AN
IUM
LIC
EN
SE
Project Geography
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Overview of the Narsaq Peninsula, South Greenland Ideal project location, easily accessed
Northern Ilimaussaq Complex – Resources
619 Mt JORC resource defined at Kvanefjeld (6.6 Mt TREO, 350 Mlb’s U3O8’ 3 Blbs Zn),
Initial Zone 2 target - >200 Mt, Zone 3 - > 50 Mt – resource estimates – late Q1 2012
7km
8km
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JORC-Code Compliant Resources*
619 Mt global resource, 71% Indicated Category
Metal inventory: 6.6 Mt TREO @ 1.1%, 3 Blbs Zn, 350 Mlbs U3O8
Orebody outcrops, low waste-ore ratio (<1)
High grade lenses near surface (1.4% TREO, 400 ppm U3O8)
Heavy rare earth content 370 – 520 ppm, yttrium oxide ~ 1000 ppm
*Mineral resource estimate produced by SRK Consulting, Perth, March 2011
Kvanefjeld Plateau – Mineral Resources
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185m @ 440 ppm U3O8, 1.2% TREO131m @ 447 ppm U3O8, 1.3% TREO 66m @ 474 ppm U3O8, 1.6% TREO 60m @ 486 ppm U3O8, 1.2% TREO
Zone 2 – A Major New REE-Uranium Deposit (initial resource – Q1 2012)
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Equivalent valuation of the project resource
USD 2 Billion to USD 5 Billion
Olympic Dam’s resources are 5,404 Mlbs
Recent M&A activity with uranium mining companiesUranium endowment valued in range of USD 4.2/lb to USD 8.5/lb
STRATEGIC SIGNIFICANCE OF URANIUM RESOURCE
Kvanefjeld Thor Lake Mountain Pass
Mt Weld Strange Lake
Nolans Bore Dong Pao Dubbo Zirconia
Bear Lodge Hoidas Lake0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
Comparison of Rare Earth ResourcesSources: IMCOA, Company Websites @ Q1 2011
Resources that are considered as compliant with international reporting codes, April 2011
Con
tain
ed R
EO
, (M
illio
n To
nnes
)
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Market AnalysisCritical Rare Earths – As Defined By US Dept of Energy, 2010
First new supply will be LREEs
Kvanefjeld - A cornerstone of future ‘Critical Rare Earth’ supply
Projected supply of ‘critical rare earths*’ from emerging ex-China projects*Critical rare earths (as identified by the US DOE as being critical to energy efficient technologies , and in short supply for the longer term)Source: Technology Metals Research – Critical Rare Earths Report, 2011
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Value Distribution& Market Risk
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Feasibility Program and Process Development
Major technical advances through 2011
Beneficiation method established and successfully piloted
Opened multiple process options, highest upgrade ratio in industry
Metallurgical leaching studies complete
Conventional atmospheric leach extracts 90-95% of uranium and heavy REEs
Single leach circuit to extract uranium and REE’s – synergy advantage
Confirms fundamental mineralogical advantage of Kvanefjeld
Unique does not mean complex, now demonstrated to be advantageous
Flotation Pilot PlantPhase 1. Sequential Flotation of Zinc, Phosphate-group REE-U minerals (steenstrupine, vitusite)
Concentrate 1. Saleable sphalerite (Zn) concentrate, Concentrate 2. Phosphate minerals >85%TREO, 70% U into <15% of the mass (concentrate >15% TREO)
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Flow sheet risk analysis recently completed – 6 options evaluated
• Finalising prefeasibility program, enhanced flowsheet parameters Q2, 2012
• Established an efficient flowsheet, low-technical risk, highly scalable
• No longer require high pressure whole-of-ore alkaline leaching for uranium extraction, followed by acid leach circuit for REE extraction
• Single conventional leach circuit preferentially targets key economic components
• Smaller scale leach circuit required owing to up-front beneficiation
• Designed to mitigate market risk through focus on heavy REEs and uranium, which results in strong pricing power for light REEs
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Establishing a simple, effective flowsheet with low technical risk;
Many peer projects require complex and costly ‘mineral cracking’ – Kvanefjeld does not
2009 2010 2011 2012 20142013 2015
Pilot Plant
Pre-Feasibility Studies
Resource Definition
Environmental Impact Assessment
Construction
Feasibility Study
Social Impact Assessment
Application for Exploitation License
Government endorsement of commencement of Studies inclusive of
radioactive elementsMine commissioningFirst production Q1
2016
LOOKING FORWARD
Front End Engineering Design
Exploitation Licence Approved
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Since 2007 significant milestones have been met on schedule
Project fundamentally de-risked – technically, politically, corporately
Kvanefjeld is a unique project:
Top-ten global uranium producer, one of worlds largest exploitable resources
Dominant heavy REE producer, price maker in LREEs owing to price insensitivity
Highly accessible project location, optimal geography, airport, shipping access, potential for hydropower, low political risk & pro-mining government
Unique minerals demonstrated to be highly amenable to beneficiation and conventional leaching; strong advantage over many projects that look to process highly refractory ores
Greenland Minerals now well-positioned to look to strategic partnerships
Extensive interest from Asian, European and North American corporations
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Status Summary
Looking Forward
Q1 2012 - Closing out comprehensive pre-feasibility program
Established optimal process flowsheet, uranium & heavy REE focus
Low-technical risk, improved capital and operating costs
Major increase to global resource with initial Zone 2 and 3 resource estimates
Looking to formalise strategic partnership
Kvanefjeld is a highly strategic project – cost effective, long life supply of critical metals – uranium and ‘critical rare earths’ – highly attractive proposition to major industrials/utilities
Facilitate definitive feasibility program and project development
Aim is to align with major industrials and end users to ‘join the dots’
Minimise dilution to capital structure, maximise shareholder value
Establish new incorporated joint venture structure, further de-risk project
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Consistent stakeholder engagement since commencing operations = strong stakeholder support
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Advancing one of the worlds most strategically important projects
Kvanefjeld is a unique project; potential global top 10 U3O8 producer, dominant heavy REE producer; low-cost, low risk light REE producer
World class JORC-compliant multi-element resource with enormous upside
Clear potential for Kvanefjeld to become the world’s new large-scale, long term supplier of critical REEs (potential to supply ~ 20% of future ‘critical REE’ demand)
Multi-commodity approach – low risk approach to rare earth production
Project built on years of high quality technical studies
Flagship project of Greenland’s emerging minerals industry, strong stakeholder support
Strong interest from potential strategic partners – facilitate development and drive value growth
SUMMARY
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View over the broader geography of the Kvanefjeld multi-element project. The distance from Narsaq to Narsarsuaq airport is approximately 45km. Lake systems have been extensively studied for the development of hydro-electric power. The fjords remain ice free, year round and provide ideal access for shipping directly to and from the project area. A number of sites are now being evaluated for the location of the processing plant and associated infrastructure.
Project Ownership Structure
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Recent agreement reached for GMEL to acquire balance of project for $39 M, 7.825 M shares. 5M options (ex $1.50)
Multi-Element Resources, Classification, Tonnage and Grade Contained MetalCut-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 Indicated 437 10929 274 9626 402 10029 900 2212 4.77 0.18 0.39 263 0.97150 Inferred 182 9763 216 8630 356 8986 776 2134 1.78 0.06 0.14 86 0.39150 Grand Total 619 10585 257 9333 389 9721 864 2189 6.55 0.24 0.53 350 1.36
200 Indicated 291 11849 325 10452 419 10871 978 2343 3.45 0.12 0.28 208 0.68200 Inferred 79 11086 275 9932 343 10275 811 2478 0.88 0.03 0.06 48 0.20200 Grand Total 370 11686 314 10341 403 10743 942 2372 4.32 0.15 0.35 256 0.88
250 Indicated 231 12312 352 10950 443 11281 1032 2363 2.84 0.10 0.24 178 0.55250 Inferred 41 11251 324 10929 366 10426 825 2598 0.46 0.02 0.03 29 0.11250 Grand Total 272 12152 347 10947 431 11152 1001 2398 3.30 0.12 0.27 208 0.65
300 Indicated 177 13013 374 11437 469 11906 1107 2414 2.30 0.08 0.20 146 0.43300 Inferred 24 13120 362 11763 396 12158 962 2671 0.31 0.01 0.02 19 0.06300 Grand Total 200 13025 373 11475 460 11935 1090 2444 2.61 0.09 0.22 164 0.49
350 Indicated 111 13735 404 12040 503 12543 1192 2487 1.52 0.06 0.13 98 0.27350 Inferred 12 13729 403 12239 436 12675 1054 2826 0.16 0.01 0.01 10 0.03350 Grand Total 122 13735 404 12059 497 12556 1179 2519 1.68 0.06 0.14 108 0.31
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.
Kvanefjeld Multi-Element Project, Statement of Identified Mineral Resources, March 2011
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