PriceSensitive

Greenland Minerals (ASX:GGG) almost ready to move rare earths project to next phase

Materials
ASX:GGG
27 October 2020 16:07 (AEST)
Greenland Minerals (ASX:GGG) - Former Managing Director, John Mair

Source: Sirmitciaq AG

Greenland Minerals (GGG) is working to move its Kvanefjeld rare earths project to the next phase of development after a productive September quarter.

The company hit a major milestone for its Greenland-based project in the form of a completed Environmental Impact Assessment (EIA) for the mine.

This means all components of a mining licence have been completed. As such, Greenland will move the rare earths project to a statutory public consultation phase.

According to GGG, the Kvanefjel Project is rich in neodymium, praseodymium, terbium, and dysprosium. Moreover, the project has a mineral resource of more than one billion tonnes and an ore reserve of 108 million tonnes to sustain a 37-year mine life.

The project is near the southern tip of Greenland.

While the company landed EIA approval from Greenland’s Environmental Agency for Mineral Resource Activities (EAMRA) in September, however, the EIA report will need to be translated to Greenlandic and Danish for its acceptance to be formalised.

Greenland Minerals said translations should be completed by October, after which a language quality check will be conducted by the EAMRA and the Ministry of Mineral Resources, which will take around one week.

Once this is done the public consultation phase can begin.

As far as GGG’s cash position us concerned, the company had total cash outflows of around $1.15 million over the quarter, made up primarily of exploration and evaluation costs.

Still, Greenland Minerals had just under $5.8 million in available funds at the end of September — meaning it has enough cash on hand to operate for another five financial quarters at current spending levels.

GGG shares are down a slight 1.75 per cent this afternoon, currently worth 28 cents each at 2:57 pm AEDT. The company has a $335.27 million market cap.

Related News