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Abstract
-- The Kvanefjeld resource (greater than 1 billion tonnes, JORC-code 2012) will support an initial mine life of 37 years and provide scope to both expand production and extend the life of the mine significantly. -- The Project will produce rare earth products, uranium oxide, zinc concentrate and fluorspar. -- The capital cost of the Project is $1,361M, comprising $1,121 M of project costs (plant, utilities, indirect costs and contingency) and US$240 M of associated infrastructure costs (power, port, village). -- The cost of producing the primary product, a critical rare earth concentrate, is US$8.56/kg REO (after by-product credits) making Kvanefjeld one of the world's lowest cost rare earth producers. -- The Project has an after tax net present value of US$1.4 Billion (at a discount rate of 8%) and an internal rate of return of 21.8%. -- The forecast basket price for the Company's critical rare earth concentrate is US$78.6/kg REO producing an operating margin of approximately US$70/kg. -- The incremental cost of recovering the uranium from the high-grade mineral concentrate is less than US$6/lb U3O8, which will place Kvanefjeld into the bottom quartile of the cost curve for current uranium production
Greenland Minerals and Energy Limited ('GMEL' or 'the Company') (ASX:GGG)(OTC PINK:GDLNF)(FRANKFURT:G7P) is pleased to announce the completion of a Feasibility Study (the Study) into the development of the Kvanefjeld rare earth - uranium Project (the Project). The Project, located in southern Greenland, comprises several large multi-element deposits rich in rare earth elements, uranium and zinc. Collectively, these deposits represent one of the world's largest identified mineral resources of rare earths and uranium.
GMEL continues to advance its dialogue with China Non-Ferrous Metal Industry's Foreign Engineering and Construction Co. Ltd. (NFC) under the terms of a 'Memorandum of Understanding'. NFC and GMEL are working to cooperate on the separation of the critical rare earth concentrates from Kvanefjeld into high-purity individual rare earth oxides, and the subsequent product marketing to end-users globally. NFC is a leader in rare earth separation technology and is also a highly-reputed engineering, procurement, construction (EPC) contractor. NFC was involved in the preparation of the Feasibility Study and completed the capital cost estimate based on detailed engineering design conducted by Tetra Tech Proteus.