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RARE EARTHS, SPECIALITY& STRATEGIC METALSINVESTMENT SUMMIT      Exploring the Karrat REE deposit in Greenland      Hugh Ma...
Avannaa Resources  Exploring the Karrat REE deposit in Greenland                       Objective CapitalRare Earths, Speci...
Avannaa key facts1.   Founded in UK in 2006. Not listed. Focussed on Greenland     exploration, where founders have worked...
Why Greenland?• Excellent geology – the same geology in Australia, Canada and  southern Africa hosts world class mineral d...
Management TeamDr. Nicholas Rose: CEO     Ph.D. Geology, Stanford University, 1989     Active in Greenland since 1982 on a...
LicencesLicence                                     Awardnumber    Region                     km2     date   Targets2007/5...
Avannaa is a leading Greenland explorer                km2 under licence7000600050004000300020001000   0              Numb...
Projects                         IC Christensen Land copperKarrat REE                      Central East Greenland         ...
Karrat REE             •   Large tonnage             •   Open pit             •   HREO enriched             •   Next to co...
Karrat REE location                         History                         New rare earth element deposit, discovered by ...
Karrat REE two locations   Niaqornakavsak   NIAQ     10 km             Umiamako Nuna             UMIA
NIAQ geology            • Host rock is              Paleoproterozoic              metasediments and              metavolca...
Stratigraphy
NIAQ looking south         NIAQ 3,4,5        NIAQ 1,2        NIAQ 6,7,8East                                               ...
NIAQ cross section 3,4,5
NIAQ bulk sample site    UMIA           NIAQ
NIAQ       UMIA
NIAQ dimensions• Tabular body hosting the REE• 1.5 km long, striking east west• True thickness pinches and swells from 10....
NIAQ REE  • REE mainly hosted by    bastnaesite, monazite,    allanite and other REE    silicates.  • TREO+ Y 1.36 wt% ave...
Calcium carbonate banded horizonMajor Mineralogy                                         Magnetite• Calcium carbonate ~80-...
Black layered carbonateMajor Mineralogy• Anandite (Ba-S mica) ~50-80%• Magnetite, Ilmenite, Calcite,Apatite, EdenitePrimar...
NIAQ Chondrite normalized core data                      10000                  La                                        ...
Working Theory• Source fluid is from a ferrocarbonatite.• We believe that the mineralized horizon is not a  carbonatite ba...
Karrat vs. Bayan Obo100000 10000  1000   100              Karrat              Ffe - Primary Ore              MFe    10    ...
NIAQ 1.36 wt% TREO+Y,     13.06% HREO+Y                  Me2O3          RE2O3                   kg RE2O3Element ppm*      ...
NIAQ key metrics                             2014 FOB     Feb 2011 FOB$ kg RE2O3 product         $         32   $         ...
NIAQ 2014 FOB prices                                          26 million tonnes ore                  2014 FOB prices      ...
NIAQ Feb 2011 FOB prices                                          26 million tonnes ore             February 2011 FOB pric...
NIAQ comparison                          $kg REO vs Mkt Cap          $80.00                                               ...
Umiamako Nuna                                       Drill siteLooking south from summit                                   ...
Support Services•   ALS Chemex•   AMEC•   Moose Mountain•   P-MET•   PFU-APS•   SGS Lakefield•   Stanford University•   Wa...
Metallurgy NIAQ                  Bulk sample                 Comminution and                  characterisation            ...
Next steps• Current activity   – Commercial modelling   – Metallurgical testing   – Scoping level     assessment• Future a...
Contact  Avannaa Resources LimitedDronningens Tværgade 48 st.tv      1302 København K          Denmark     e-mail enquirie...
Exploring the Karrat REE deposit in Greenland
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Exploring the Karrat REE deposit in Greenland

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Objective Capital's Rare Earths, Speciality & Strategic Metals

Investment Summit 2011
Ironmongers' Hall, City of London
17 March 2011
Speaker: Hugh Mackay, Avannaa Resources

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Transcript of "Exploring the Karrat REE deposit in Greenland"

  1. 1. RARE EARTHS, SPECIALITY& STRATEGIC METALSINVESTMENT SUMMIT Exploring the Karrat REE deposit in Greenland Hugh Mackay – Chairman, Avannaa Resources IRONMONGERS’ HALL, CITY OF LONDON ● THURSDAY, 17 MAR 2011 www.ObjectiveCapitalConferences.com
  2. 2. Avannaa Resources Exploring the Karrat REE deposit in Greenland Objective CapitalRare Earths, Speciality & Strategic Metals Investment Summit London, 17 March 2011 www.avannaa.com
  3. 3. Avannaa key facts1. Founded in UK in 2006. Not listed. Focussed on Greenland exploration, where founders have worked since 19822. Experts at grassroots mineral exploration, experts on the geology of Greenland3. Objective is to find giant deposits of gold, base metals and diamonds.4. Focus on competitive edge in grassroots exploration and bring in development partners to take mines into production
  4. 4. Why Greenland?• Excellent geology – the same geology in Australia, Canada and southern Africa hosts world class mineral deposits.• Under-explored, high potential for significant discoveries• Greenland government is pro-mining and single government agency acts as administrative partner• No royalties, favourable deductions on capital, no ring-fencing• 30 % corporate tax• Simple logistics, extensive access to deep tidal water, ocean moderated climate• Modern society with educated, problem-solving workforce
  5. 5. Management TeamDr. Nicholas Rose: CEO Ph.D. Geology, Stanford University, 1989 Active in Greenland since 1982 on a variety of research and mineral exploration projects, and has a total of 18 field seasons in Greenland. Research fellow at Lawrence Livermore National Laboratory (California) and University of Copenhagen. Managed projects for several mining exploration companies working in Greenland during the 1990’s including Inco, Quadrant Resources and Diamet and has worked as a geologist in exploration projects in Greenland since 1986. Excellent network in the Greenland geological and mining community.Dr. Stefan Bernstein: Exploration Director Ph.D. Geology, University of Copenhagen, 1994 Senior scientist in Danish geological community, including five years at the Geological Survey of Denmark and Greenland (GEUS). Resident in Greenland 2 years as leader of Denmark’s Arctic research station. 24 research and exploration seasons in all parts of Greenland including work with Platinova, Quadrant, NunaOil, RTZ, Strathcona, Corona and Teck. Intimate knowledge and direct involvement with most major deposit finds in Greenland within the last 15 years. Author of >30 scientific papers.Hugh Mackay: Chairman B.Sc. (Hons) Geology, University of Edinburgh, 1982; Sloan M.Sc., London Business School, 2001. International management experience in disciplined corporate environments in oil exploration with BP and Enterprise Oil. Management team in 3 start up companies culminating in $50 million trade sale of The Peak Group to AGR ASA. Special experience of exploration portfolio management and business development. Hands on experience of company start-up, managing growth, trade sale and mergers. Several expeditions to Greenland since 1982.The Avannaa management team are also the founders of the company
  6. 6. LicencesLicence Awardnumber Region km2 date Targets2007/52 Disko 8 2007 Diamonds2008/27 Saqqaq/Itilliarsuk 140 2008 Au, Fe2008/33 Eqi 70 2008 Au2010/05 Karrat REE 122 2010 REE2010/20 Flammefjeld 14 2010 Mo, Au2010/31 Nuussuaq 24 2010 Zn2010/32 IC Christensen Land 405 2010 Cu2011/30 ICC extension 4096 2011 Cu2011/31 Kangerluarsuk 112 2011 SEDEX Pb-Zn2011/40 Central East Greenland 1072 2011 Cu Total 6063
  7. 7. Avannaa is a leading Greenland explorer km2 under licence7000600050004000300020001000 0 Number of licences 16 14 12 10 8 6 4 2 0
  8. 8. Projects IC Christensen Land copperKarrat REE Central East Greenland copperSEDEX lead-zincItilliarsuk gold, iron Flammefjeld Mo/AuQeqertaa diamond
  9. 9. Karrat REE • Large tonnage • Open pit • HREO enriched • Next to coast
  10. 10. Karrat REE location History New rare earth element deposit, discovered by Avannaa 2007: discovery during regional prospecting 2008: verificationLicence data 2009: bulk sampling, prospecting - confirmed2010/05, 122 km2 and enlarged deposit – applied for more ground2007/08, 84 km2 2010: drill 1740m, bulk & channel sampling, prospecting
  11. 11. Karrat REE two locations Niaqornakavsak NIAQ 10 km Umiamako Nuna UMIA
  12. 12. NIAQ geology • Host rock is Paleoproterozoic metasediments and metavolcanics of the Karrat Group • REE mineralization is aNIAQ lithologically distinct horizon of banded carbonates in an amphibolite unit
  13. 13. Stratigraphy
  14. 14. NIAQ looking south NIAQ 3,4,5 NIAQ 1,2 NIAQ 6,7,8East West NIAQ Bulk
  15. 15. NIAQ cross section 3,4,5
  16. 16. NIAQ bulk sample site UMIA NIAQ
  17. 17. NIAQ UMIA
  18. 18. NIAQ dimensions• Tabular body hosting the REE• 1.5 km long, striking east west• True thickness pinches and swells from 10.3 to 32.5 m, structurally controlled o• Dips south at 32• 56 m asl highest outcrop• 165 m bsl deepest drill penetration• 26 million tonnes is reasonable resource target• Open in two dimensions
  19. 19. NIAQ REE • REE mainly hosted by bastnaesite, monazite, allanite and other REE silicates. • TREO+ Y 1.36 wt% average in bulk sample. Up to 2.45% in core. • HREO+Y 13.06% average in bulk sample. Up to 30% in core.
  20. 20. Calcium carbonate banded horizonMajor Mineralogy Magnetite• Calcium carbonate ~80-90%• Grunerite (Fe-Mg amphibole),Magnetite, Ilmenite, Fluorite,Anandite (Ba-S mica)Primary REE mineral• Bastnasite 25 µm Bastnasite Calcite BSE Electron Microprobe – Stanford University
  21. 21. Black layered carbonateMajor Mineralogy• Anandite (Ba-S mica) ~50-80%• Magnetite, Ilmenite, Calcite,Apatite, EdenitePrimary REE minerals• Bastnasite, Monazite, Allanite SEM BSE image – Stanford University
  22. 22. NIAQ Chondrite normalized core data 10000 La Ce Pr Nd Sm Sample/Chondrite Eu Gd 1000 Tb Dy Ho Er Tm Yb Lu 100 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 Atomic Number CI Chondrite data after Anders and Greeves (1989)
  23. 23. Working Theory• Source fluid is from a ferrocarbonatite.• We believe that the mineralized horizon is not a carbonatite based primarily on the overall whole rock chemistry.• SiO2 content of the horizon varies between 15- 25%, in a carbonatite we would expect to see values below 5%.• CaO content varies between 18-20%, in a carbonatite we would expect to see values >30%.
  24. 24. Karrat vs. Bayan Obo100000 10000 1000 100 Karrat Ffe - Primary Ore MFe 10 AeFe RiFe DFe 1 La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu
  25. 25. NIAQ 1.36 wt% TREO+Y, 13.06% HREO+Y Me2O3 RE2O3 kg RE2O3Element ppm* factor ppm RE2O3 wt%RE203 in % tonneLa 2245 1.173 2633.4 0.263% 19.3% 2.63Ce 5036.9 1.171 5898.2 0.590% 43.3% 5.90Pr 470.1 1.17 550.0 0.055% 4.0% 0.55Nd 2003.6 1.166 2336.2 0.234% 17.2% 2.34Sm 358.2 1.16 415.5 0.042% 3.1% 0.42Eu 106 1.158 122.7 0.012% 0.9% 0.12Gd 270.1 1.153 311.4 0.031% 2.3% 0.31Tb 38.8 1.151 44.7 0.004% 0.3% 0.04Dy 180.8 1.148 207.6 0.021% 1.5% 0.21Ho 28.2 1.146 32.3 0.003% 0.2% 0.03Er 69.1 1.143 79.0 0.008% 0.6% 0.08Tm 7.9 1.142 9.0 0.001% 0.1% 0.01Yb 42.6 1.139 48.5 0.005% 0.4% 0.05Lu 5.5 1.137 6.3 0.001% 0.0% 0.01Y 721.5 1.269 915.6 0.092% 6.7% 0.92Total 11584.3 13610.4 1.361% 100.0% 13.61*Analyses from average bulk sample nos 2523 - 2530Bold = critical supply issues in medium term
  26. 26. NIAQ key metrics 2014 FOB Feb 2011 FOB$ kg RE2O3 product $ 32 $ 123$ tonne ore $ 432 $ 1,669In ground value (billions) $ 11 $ 4326 million tonnesAverage bulk sample
  27. 27. NIAQ 2014 FOB prices 26 million tonnes ore 2014 FOB prices RE2O3 NIAQ in product ground Me2O3 RE2O3 kg RE2O3 2014 price NIAQ $ NIAQ $ value $Element ppm* factor ppm RE2O3 wt%RE203 in % tonne kg RE203 kg tonne ore billionLa 2245 1.173 2633.4 0.263% 19.3% 2.63 $ 4.06 $ 0.79 $ 10.69 $ 0.28Ce 5036.9 1.171 5898.2 0.590% 43.3% 5.90 $ 2.08 $ 0.90 $ 12.27 $ 0.32Pr 470.1 1.17 550.0 0.055% 4.0% 0.55 $ 43.87 $ 1.77 $ 24.13 $ 0.63Nd 2003.6 1.166 2336.2 0.234% 17.2% 2.34 $ 46.06 $ 7.91 $ 107.61 $ 2.80Sm 358.2 1.16 415.5 0.042% 3.1% 0.42 $ 5.58 $ 0.17 $ 2.32 $ 0.06Eu 106 1.158 122.7 0.012% 0.9% 0.12 $1,086.10 $ 9.80 $ 133.32 $ 3.47Gd 270.1 1.153 311.4 0.031% 2.3% 0.31 $ 13.70 $ 0.31 $ 4.27 $ 0.11Tb 38.8 1.151 44.7 0.004% 0.3% 0.04 $1,166.09 $ 3.83 $ 52.08 $ 1.35Dy 180.8 1.148 207.6 0.021% 1.5% 0.21 $ 254.59 $ 3.88 $ 52.84 $ 1.37Ho 28.2 1.146 32.3 0.003% 0.2% 0.03 $ 66.35 $ 0.16 $ 2.14 $ 0.06Er 69.1 1.143 79.0 0.008% 0.6% 0.08 $ 48.92 $ 0.28 $ 3.86 $ 0.10Tm 7.9 1.142 9.0 0.001% 0.1% 0.01 $ 90.00 $ 0.06 $ 0.81 $ 0.02Yb 42.6 1.139 48.5 0.005% 0.4% 0.05 $ 25.00 $ 0.09 $ 1.21 $ 0.03Lu 5.5 1.137 6.3 0.001% 0.0% 0.01 $ 522.83 $ 0.24 $ 3.27 $ 0.09Y 721.5 1.269 915.6 0.092% 6.7% 0.92 $ 23.22 $ 1.56 $ 21.26 $ 0.55Total 11584.3 13610.4 1.361% 100.0% 13.61 $ 31.75 $ 432.08 $ 11.23*Analyses from average bulk sample nos 2523 - 2530Bold = critical supply issues in medium term
  28. 28. NIAQ Feb 2011 FOB prices 26 million tonnes ore February 2011 FOB prices NIAQ in 2011 RE2O3 ground Me2O3 RE2O3 kg RE2O3 price kg product NIAQ $ value SElement ppm* factor ppm RE2O3 wt%RE203 in % tonne RE203 NIAQ $ kg tonne ore billionLa 2245 1.173 2633.4 0.263% 19.3% 2.63 $ 92.10 $ 17.82 $ 242.53 $ 6.31Ce 5036.9 1.171 5898.2 0.590% 43.3% 5.90 $ 95.10 $ 41.21 $ 560.92 $ 14.58Pr 470.1 1.17 550.0 0.055% 4.0% 0.55 $ 140.50 $ 5.68 $ 77.28 $ 2.01Nd 2003.6 1.166 2336.2 0.234% 17.2% 2.34 $ 156.00 $ 26.78 $ 364.45 $ 9.48Sm 358.2 1.16 415.5 0.042% 3.1% 0.42 $ 95.10 $ 2.90 $ 39.52 $ 1.03Eu 106 1.158 122.7 0.012% 0.9% 0.12 $ 800.00 $ 7.21 $ 98.20 $ 2.55Gd 270.1 1.153 311.4 0.031% 2.3% 0.31 $ 58.00 $ 1.33 $ 18.06 $ 0.47Tb 38.8 1.151 44.7 0.004% 0.3% 0.04 $ 800.00 $ 2.62 $ 35.73 $ 0.93Dy 180.8 1.148 207.6 0.021% 1.5% 0.21 $ 460.00 $ 7.01 $ 95.48 $ 2.48Ho 28.2 1.146 32.3 0.003% 0.2% 0.03 $ 66.35 $ 0.16 $ 2.14 $ 0.06Er 69.1 1.143 79.0 0.008% 0.6% 0.08 $ 340.00 $ 1.97 $ 26.85 $ 0.70Tm 7.9 1.142 9.0 0.001% 0.1% 0.01 $ 90.00 $ 0.06 $ 0.81 $ 0.02Yb 42.6 1.139 48.5 0.005% 0.4% 0.05 $ 33.40 $ 0.12 $ 1.62 $ 0.04Lu 5.5 1.137 6.3 0.001% 0.0% 0.01 $ 365.00 $ 0.17 $ 2.28 $ 0.06Y 721.5 1.269 915.6 0.092% 6.7% 0.92 $ 113.00 $ 7.60 $ 103.46 $ 2.69Total 11584.3 13610.4 1.361% 100.0% 13.61 $ 122.65 $ 1,669.33 $ 43.40*Analyses from average bulk sample nos 2523 - 2530Bold = critical supply issues in medium term
  29. 29. NIAQ comparison $kg REO vs Mkt Cap $80.00 10000 $70.00 2800 2500 Mkt cap S million $60.00 1000Skg REO $50.00 343 352 268 211 365 216 $40.00 145 100 107 $30.00 46 $20.00 10 $10.00 $- 1 $ kg REO Mkt Cap $ All values based on 2014 FOB, company data from websites and SEDAR as at 20 Nov 2010. Mkt Cap FT.com 13 Dec 2010.
  30. 30. Umiamako Nuna Drill siteLooking south from summit Looking north toward summit Potential REE mineralisation observed in field at several locations. 200m section tested by drilling in two holes. Possible extraction by simple quarry.
  31. 31. Support Services• ALS Chemex• AMEC• Moose Mountain• P-MET• PFU-APS• SGS Lakefield• Stanford University• Wardrop
  32. 32. Metallurgy NIAQ Bulk sample Comminution and characterisation Magnetic Non mags Flotation Roasting separation Calcine Conc. Mags Water/Mild Acid leaching Acid leaching acid leaching Lixivium Lixivium LixiviumIon exchange/ Ion exchange/ Ion exchange/ Precipiation Precipiation PrecipiationPreferred Less possible Possible
  33. 33. Next steps• Current activity – Commercial modelling – Metallurgical testing – Scoping level assessment• Future activity NI 43-101 compliant: – Indicated resource – Preliminary Economic Assessment
  34. 34. Contact Avannaa Resources LimitedDronningens Tværgade 48 st.tv 1302 København K Denmark e-mail enquiries to: hgm@avannaa.comtelephone: +44 7771 660 539 www.avannaa.com
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