World class production centre in Greenland
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Objective Capital's Rare Earths, Speciality & Strategic Metals ...

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 Energy

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  • GMEL acquired the Kvanefjeld project in 2007A JORC compliant resource, 43,000t of uranium metal [equivalent 112M lbs of U3O8]Thorough, professional, high quality research focused on UraniumFirst objectives were to:To develop a better understanding of the orebody Increase the size and quality of the resource“Discovery” of the REE’sA “new ore type”Test work and engineering studiesPreliminary flow-sheet developedUpdate and refinement of Danish studies demonstrates U and REE extraction via alkaline pressure leachDemonstrate that uranium and REEs can be extracted economically

World class production centre in Greenland World class production centre in Greenland Presentation Transcript

  • RARE EARTHS, SPECIALITY& STRATEGIC METALSINVESTMENT SUMMIT World class production centre in Greenland John Mair – CEO, Greenland Minerals and Energy IRONMONGERS‟ HALL, CITY OF LONDON TUESDAY-WEDNESDAY, 13-14 MARCH 2012 www.ObjectiveCapitalConferences.com
  • Investor Presentation, February 2012“Specialty Metals for a Greener World”
  • Important NoticeThis presentation contains only a brief overview of Greenland Minerals and Energy Ltd (Greenland Minerals) and its respectiveactivities and operations. The contents of this presentation may rely on various assumptions and subjective interpretations which arenot 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 factorsoutside of Greenland Minerals‟ control, may cause the actual results, performance and achievements of Greenland Minerals to differmaterially 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 ordamage (including, without limitation, any direct, indirect or consequential loss or damage) suffered by any person directly orindirectly 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 hasbeen prepared without consideration of your objectives and needs and financial position. Current and potential investors andshareholders should seek independent advice before making any investment decision in regard to Greenland Minerals or itsactivates.JORC Code Compliance – Consent of Competent PersonsThe information in this report that relates to exploration results, geological interpretations, appropriateness of cut-off grades, andreasonable expectation of potential viability of quoted rare earth element, uranium, and zinc resources is based on informationcompiled by Jeremy Whybrow. Mr Whybrow is a director of the Company and a Member of the Australasian Institute of Mining andMetallurgy (AusIMM). Mr Whybrow has sufficient experience relevant to the style of mineralisation and type of deposit underconsideration 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 thereporting 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 ofmineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Personas 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 andcontext 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
  • 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) Market Details: ASX: GGG 52 Week Range: $0.41 – 1.41 AUD Shares: 410 M Market Cap: $220 M AUD Cash: $10.5 M AUD Top 20 shareholders control ~75%
  • Greenland An Emerging Mineral ProvincePolitically stable democracy: Autonomous constituent country withinKingdom 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 onestablishing strong minerals and hydrocarbon industriesHigh-prospectivity, strong geological survey and bureau of minerals andpetroleum, clear permitting frameworkKvanefjeld license now inclusive of uranium, clear path to mining license 6
  • 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 scaleFive 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 7
  • Timeline of Activities “A systematic approach from the ground up” 10,000m drilling 20,000m drilling 5,000m drilling 10,000m drilling 14,000m drilling Environmental Environmental Geotech, Metallurgical Environmental Environmental Baseline studies Baseline studies Sterilisation Baseline studies Baseline studies Metallurgical URANIUM LICENSE studies PFS Interim Engineering study commenced commenced PFS Report commenced 1st JORC 2nd JORC 3rd JORC 4th JORC Resource Resource Resource Resource U U, REE U, REE, Zn U, REE, Zn 2007 2008 2009 2010 2011Acquired project Change of government Commenced dialogue Terms of Reference with new government for SIA and EIA Approved Greenland moves from home-rule to self-rule. Controls 100% of mineral and hydrocarbon rights New evaluation framework for projects containing uranium 8
  • Project GeographyOverview of the Narsaq Peninsula, South GreenlandIdeal project location, easily accessed 9
  • Northern Ilimaussaq Complex – Resources619 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 10
  • Kvanefjeld Plateau – Mineral Resources 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 11
  • Zone 2 – A Major New REE-Uranium Deposit (initial resource – Q1 2012) 185m @ 440 ppm U3O8, 1.2% TREO 131m @ 447 ppm U3O8, 1.3% TREO 66m @ 474 ppm U3O8, 1.6% TREO 60m @ 486 ppm U3O8, 1.2% TREO 12
  • STRATEGIC SIGNIFICANCE OF URANIUM RESOURCERecent M&A activity with uranium mining companies Uranium endowment valued in range of USD 4.2/lb to USD 8.5/lb  Equivalent valuation of the project resource  USD 2 Billion to USD 5 Billion Olympic Dam‟s resources are 5,404 Mlbs 13
  • Comparison of Rare Earth Resources Sources: IMCOA, Company Websites @ Q1 2011 7.00 6.00Contained REO, (Million Tonnes) 5.00 4.00 3.00 2.00 1.00 0.00 Kvanefjeld Thor Lake Mountain Mt Weld Strange Nolans Dong Pao Dubbo Bear Lodge Hoidas Pass Lake Bore Zirconia Lake Resources that are considered as compliant with international reporting codes, April 2011 14
  • Market AnalysisCritical Rare Earths – As Defined By US Dept of Energy, 2010 First new supply will be LREEs 15
  • Kvanefjeld - A cornerstone of future „Critical Rare Earth‟ supplyProjected 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 16
  • Value Distribution & Market Risk 17
  • Feasibility Program and Process DevelopmentMajor 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 18
  • 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) 19
  • 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 20
  • 21
  • Establishing a simple, effectiveflowsheet with low technical risk;Many peer projects require complex andcostly ‘mineral cracking’ – Kvanefjelddoes not 22
  • LOOKING FORWARD Resource Definition Application for Exploitation License Pre-Feasibility Studies Feasibility Study Pilot Plant Front End Engineering DesignGovernment endorsement Environmental Impact Assessment of commencement of Studies inclusive of Exploitation Licence radioactive elements Approved Social Impact Assessment Mine commissioning First production Q1 2016 Construction 2009 2010 2011 2012 2013 2014 2015 23
  • Status Summary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 24
  • Looking ForwardQ1 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 estimatesLooking 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 - 25
  • Consistent stakeholder engagement since commencing operations = strong stakeholder support 26
  • SUMMARY 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 27
  • View over the broader geography of the Kvanefjeld multi-element project. The distance from Narsaq to Narsarsuaqairport 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 numberof sites are now being evaluated for the location of the processing plant and associated infrastructure. 28
  • Project Ownership Structure Recent agreement reached for GMEL to acquire balance of project for $39 M, 7.825 M shares. 5M options (ex $1.50) 30
  • Kvanefjeld Multi-Element Project, Statement of Identified Mineral Resources, March 2011 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 Indicated 437 10929 274 9626 402 10029 900 2212 4.77 0.18 0.39 263 0.97 150 Inferred 182 9763 216 8630 356 8986 776 2134 1.78 0.06 0.14 86 0.39 150 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 0.68 200 Inferred 79 11086 275 9932 343 10275 811 2478 0.88 0.03 0.06 48 0.20 200 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 0.55 250 Inferred 41 11251 324 10929 366 10426 825 2598 0.46 0.02 0.03 29 0.11 250 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 0.43 300 Inferred 24 13120 362 11763 396 12158 962 2671 0.31 0.01 0.02 19 0.06 300 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 0.27 350 Inferred 12 13729 403 12239 436 12675 1054 2826 0.16 0.01 0.01 10 0.03 350 Grand Total 122 13735 404 12059 497 12556 1179 2519 1.68 0.06 0.14 108 0.311There 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. 31