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Greenland Minerals Ltd, test work continues to increase overall recoveries

Team Veye | 28 Oct 2020 ASX - GGG
Greenland Minerals Ltd, test work continues to increase overall recoveries

Greenland Minerals Ltd (ASX: GGG)

September 2020 Quarterly Report

Greenland Minerals Ltd (ASX: GGG) (‘GML’ or ‘the Company’) on 27 October 2020 reported on Q3, 2020 activities, and progress in the development of the Kvanefjeld rare earth project.

Highlights:

  • Major Kvanefjeld Project milestone
  • Independent scientific review of Environmental Impact Assessment (EIA) complete
  • The project fulfils Greenland Guidelines, meets international standards and principles of ‘Best Available Technology’ and ‘Best Environmental Practice’
  • Translations of EIA to Greenlandic and Danish close to completion
  • All components of formal exploitation (mining) license application will then be complete, such that statutory processes can be scheduled to conclude permitting
  • Preparation for the public consultation phase underway in consultation with Greenland’s Ministry for Mineral Resources and Environmental Agency for Mineral Resources Activities, schedule to be set when language/grammar checks of translated documents finalised

(Chart source: TradingView)

  • Ongoing test work continues to increase overall rare earth recoveries
  • Locked cycle flotation test work producing rare earth mineral concentrate of >23% rare earth oxide (REO)
  • Rare earth recoveries in mineral concentrate increased to 85% (previously 80%): Light REO recovery 87%, heavy REO recovery 68%
  • Increased recoveries will increase Project output and profitability
  • European engagement increasing with strong EU focus on rare earth supply
  • The criticality of rare earth supply to European industry emphasized at the launch of European Raw Materials Alliance in September
  • The company presented to Global Rare Earth Industry Association (Brussels based), and European Rare Earth Resources (formerly EURARE)
  • Initial engagement of the European Rare Materials Alliance (Data Source – Company Reports)

 

Veye’s Take

The Quarter saw a major project milestone achieved with the conclusion of independent technical reviews of the Environmental Impact Assessment. All components of a mining license application had now been completed with the Social Impact Assessment and Maritime Safety study having previously been accepted. The Project will move into the next phase which is a statutory public consultation phase. Major progress in permitting comes at an important time with the outlook for rare earth demand continuing to strengthen. The stock, after moving out of the Bollinger band, could not sustain and return to 20 SMA. It faces strong resistance at $0.35 beyond which it can have the potential to grow substantially. “Buy” was given to “Greenland Minerals Ltd” at the price of $0.145 on 16 July 2020. It has already grown by more than 93% in just three and a half months only. Veye maintains a "Hold" on “Greenland Minerals Ltd” at the current price of $0.28

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