REG - GreenRoc Mining PLC - Amitsoq Graphite: Phase 2 Drilling Campaign

GreenRoc Strategic MaterialsAnnouncement

06/06/2022 07:01

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RNS Number : 6828N  GreenRoc Mining PLC  06 June 2022

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GreenRoc Mining Plc / EPIC: GROC / Market: AIM / Sector: Mining

6 June 2022

GreenRoc Mining plc

("GreenRoc" or the "Company")

 

Amitsoq Graphite Project Update

Phase 2 Drilling Campaign

 

GreenRoc Mining plc (AIM: GROC), a company focused on the development of
critical mineral projects in Greenland, is pleased to announce details of the
forthcoming drilling programme at the Amitsoq Island Graphite Project in
southern Greenland ("Amitsoq" or the "Project"), one of the highest-grade
graphite deposits in the world.

 

Key Points

·      Phase 2 drilling operations due to commence at Amitsoq later this
month and is expected to last for around 12 weeks.

·      Plan to drill up to 27 holes for a total of up to ~3,200m, with
the aim of increasing and upgrading the current Maiden JORC Resource of 8.28Mt
at 19.75% Graphitic Carbon ("C(g)").

·      Drilling will test the revised Exploration Target ("ET")
announced for the Amitsoq Island deposit on 12 May 2022, being 5-15 Mt at a
grade range of 18-22% C(g).

·      Strong confidence that a higher-tonnage, higher-category Resource
can be established with Phase 2 drill results expected to support creation of
a mine plan to input into a feasibility study.

·      Significant further upside remains - the Kalaaq deposit, to the
south of Amitsoq Island and also part of the Project, is currently undrilled,
with a maiden drill programme planned for 2023 to test this deposit.

·      Environmental baseline studies will also continue to progress,
providing the foundations for the development of an Environmental Impact
Assessment ("EIA") for Amitsoq.

 

GreenRoc's Interim CEO, Lars Brünner, commented:

"We've confirmed that Amitsoq hosts a graphite resource that has one of the
highest average grades globally, which can be upgraded to a more than 99.95%
pure graphite product, making it extremely desirable to EV lithium-ion battery
producers - the drivers of a large proportion of soaring market demand. Our
focus is now on building the resource tonnage to maximise the commercial value
of the Project.

 

"With the Amitsoq deposit remaining open along strike and down dip, and the
recently expanded Exploration Target, we are confident that a more
significant, high-category Resource can be established.  If, for instance,
drilling converts the upper end of the ET into JORC Resources, this will see
the current resource estimate for contained graphite increase from 1.63 Mt to
4.93 Mt.  It is also worthwhile noting that the Kalaaq deposit to the south
of Amitsoq Island is yet to be drilled, providing further upside potential and
giving an indication of just how extensive the Project's resource could be.

 

"Given the success of our maiden drill programme and our improved knowledge of
the Project, we're excited to commence this Phase 2 campaign, the results from
which should enable us to start designing a mine plan to feed into a
feasibility study.  With the EIA also underway, we remain more committed than
ever to fast-tracking the Project into the development phase and look forward
to sharing results in due course."

 

Details

Following the Maiden Resource estimate announced on 8 March 2022, GreenRoc
will soon commence a 27-hole, 3,200m Phase 2 diamond drilling programme at the
Amitsoq Island Graphite Deposit in southern Greenland, with the aim of
increasing the Maiden JORC Resource both in terms of overall tonnages and
resource classification.

 

The successful Phase 1 drilling programme (for 1030.85m in total) was carried
out between June and August 2021. A total of 10 intersections of graphite were
achieved with five intersections on each of the Upper Graphite Layer ("UGL")
and Lower Graphite Layer ("LGL") horizons. On 8 March 2022, GreenRoc published
a Maiden Resource for the Amitsoq Island Deposit of a combined Indicated and
Inferred JORC Resource of 8.28 million tonnes (Mt) at an average grade of
19.75% C(g), giving a total graphite content of 1.63 Mt. This includes a
particularly high-grade contribution from the Lower Graphite Layer of 3.67 Mt
at a grade of 21.19%, for 0.775 Mt of contained graphite. This Maiden Resource
confirms Amitsoq's position as one of the very highest-grade graphite deposits
globally and supports the Company's objective of fast-tracking the Project
into the development phase.

 

Seven drill pads have been prepared to infill between the Phase 1 holes in
order to upgrade the current JORC Resource (Figure 2), with 27 holes planned.
The hole positions have been designed to target the more prospective and
thicker LGL at a 50m spacing. Three of these infill pads will be situated on
top of the steep ridge that forms the southern tip of the island. Four of the
pads will be stepped back on the western face of the island to test the
down-dip continuation of both the UGL and LGL in order to increase the
resource estimate. The geological model shows that the mineralisation is open
down-dip to the west and along strike to the north.

 

From each pad, it is planned that four holes will be drilled with varying
azimuth and dip, with the exception of Pad F where three holes will be drilled
(Table 1). NQ core will be used for Phase 2 drilling as it has proven to be
the most suitable size of drill core for this type of deposit.

 

Table 1. Phase 2 Boreholes

 PAD  HOLE  AZIMUTH (GRID)  DIP  Easting (UTM 23N)  Northing (UTM 23N)  Hole Depth (m)
 C2   1     0               -90  492954.7           6683283.6           148
      2     50              -55  492954.7           6683283.6           117
      3     100             -65  492954.7           6683283.6           106
      4     150             -55  492954.7           6683283.6           117
 L    5     0               -90  492870.5           6683235             136
      6     45              -50  492870.5           6683235             112
      7     90              -65  492870.5           6683235             96
      8     140             -60  492870.5           6683235             100
 J    9     0               -90  492779.5           6683286.9           153
      10    50              -50  492779.5           6683286.9           125
      11    90              -60  492779.5           6683286.9           110
      12    140             -55  492779.5           6683286.9           117
 F    13    0               -90  492890             6683148.4           132
      14    100             -60  492890             6683148.4           92
      15    150             -50  492890             6683148.4           104
 I    16    90              0    492795.7           6683142             131
      17    45              -45  492795.7           6683142             111
      18    85              -60  492795.7           6683142             92
      19    145             -55  492795.7           6683142             99
 H    20    0               -90  492772             6683041.3           139
      21    75              -55  492772             6683041.3           101
      22    115             -45  492772             6683041.3           99
      23    150             -50  492772             6683041.3           111
 M    24    0               -90  492985.3           6683349.7           147
      25    55              -50  492985.3           6683349.7           119
      26    20              -65  492985.3           6683349.7           132
      27    340             -65  492985.3           6683349.7           160
                                                    Total               3206

 

 

Figure 3 shows a 3D view of the southern part of Amitsoq Island facing east
and showing the position of Phase 1 (black) and Phase 2 (yellow) drill pads on
the topography.

 

Figure 4 shows a cross-section view of Amitsoq Island facing north-east with
the intersections from Pad B holes during the 2021 Phase 1 drilling campaign
returning intersections from the LGL of up to 16.49m at 22.82% C(g). It also
shows the projected intersections of the UGL and LGL for Pads L and J, which
are stepped back on the western face of Amitsoq Island down-dip to test the
extension of these graphite layers at depth and increase the resource.

 

GreenRoc's field exploration team of geologists and assistants, Danish and
Greenlandic drill crew and environmental contractors are being accommodated on
a GreenRoc chartered vessel anchored close to the drill site as well as at an
onshore camp for the duration of the programme, which is expected to last for
around 12 weeks. Helicopter support will be provided in order to transport
equipment to and from site.

 

Other Field Work

Environmental Baseline Studies

Experienced environmental consultants BioApp Greenland will be continuing with
the second year of environmental baseline studies, contributing towards the
Environmental Impact Assessment ("EIA") which will be required to apply for a
mining licence at Amitsoq.

 

**ENDS**

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation and the Directors of the Company are responsible for
the release of this announcement.

 

Glossary

 

 Indicated Resource  Indicated Resources are economic mineral occurrences that have been sampled
                     (from locations such as outcrops, trenches, pits and drill holes) to a point
                     where an estimate has been made, at a reasonable level of confidence, of their
                     contained metal, grade, tonnage, shape, densities, physical
                     characteristics.
 Inferred Resource   An Inferred Resource means that part of a mineral resource for which quantity
                     and grade or quality are estimated on the basis of limited geological evidence
                     and sampling. Geological evidence is sufficient to imply but not verify
                     geological and grade or quality continuity.
 JORC                The Australasian Code for Reporting of Exploration Results, Mineral Resources
                     and Ore Reserves ('the JORC Code') is a professional code of practice that
                     sets minimum standards for Public Reporting of minerals Exploration Results,
                     Mineral Resources and Ore Reserves.
 Maiden Resource     The first Mineral Resource estimate to be completed on a project.
 Measured Resource   An Indicated Resource which has undergone enough further sampling to be
                     declared as an acceptable estimate, at a high degree of confidence, for the
                     grade and quantity of the mineral resource. A Measured Mineral Resource is
                     that part of a Mineral Resource for which quantity, grade or quality,
                     densities, shape, and physical characteristics are estimated with confidence
                     sufficient to allow the application of Modifying Factors to support detailed
                     mine planning and final evaluation of the economic viability of the deposit.

                     A Measured Mineral Resource has a higher level of confidence than that
                     applying to either an Indicated Mineral Resource or an Inferred Mineral
                     Resource.  It may be converted to a Proved Mineral Reserve or to a Probable
                     Mineral Reserve.
 Mineral Resource    A Mineral Resource is a concentration or occurrence of solid material of
                     economic interest in or on the Earth's crust in such form, grade (or quality),
                     and quantity that there are reasonable prospects for eventual economic
                     extraction. The location, quantity, grade (or quality), continuity and other
                     geological characteristics of a Mineral Resource are known, estimated or
                     interpreted from specific geological evidence and knowledge, including
                     sampling. Mineral Resources are sub-divided, in order of increasing geological
                     confidence, into Inferred, Indicated and Measured categories.

 NQ                  Core diameter of 47.6mm and a hole diameter of 75.3mm.

 Strike              The direction and length of a geological feature (for example, a vein or rock
                     formation) measured on a horizontal surface.

 

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or
anticipated future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as general economic, market and business conditions, competition for qualified
staff, the regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties regarding
the timing and granting of prospecting rights, uncertainties regarding the
timing and granting of regulatory and other third party consents and
approvals, uncertainties regarding the Company's or any third party's ability
to execute and implement future plans, and the occurrence of unexpected
events.

 

Actual results achieved may vary from the information provided herein as a
result of numerous known and unknown risks and uncertainties and other
factors.

 

Competent Person Declaration

The information in this release that relates to Exploration Results has been
reviewed by Mr Mark Austin. Mr Austin is a member of SACNASP (Reg. No.
400235/06), Fellow of The Geological Society and Fellow of the Geological
Society of South Africa. He has a B.Sc. Honours in Geology with 38 years'
experience.

 

Mark Austin has sufficient experience that is relevant to the style of
mineralisation and type of deposit under consideration and to the activity
being undertaken to qualify as a Competent Person as defined in the 2012
Edition of the 'Australasian Code for Reporting of Exploration targets,
Exploration Results, Mineral Resources and Ore Reserves', also known as the
JORC Code. The JORC code is a national reporting organisation that is aligned
with CRIRSCO. Mr Austin consents to the inclusion in the announcement of the
matters based on his information in the form and context in which they appear.

 

For further information, please visit https://greenrocmining.com/
(https://greenrocmining.com/) or contact:

 

 GreenRoc Mining Plc                                  +44 20 3950 0724

 Lars Brunner, Interim CEO

 Cairn Financial Advisers LLP (NOMAD)                 +44 20 7213 0880

 James Caithie / Sandy Jamieson / Louise O'Driscoll

 ETX Capital (Broker)                                 +44 20 7392 1494

 Tom Curran / Thomas Smith

 St Brides Partners (Financial PR & IR)               +44 20 7236 1177

 Susie Geliher / Oonagh Reidy / Charlotte Page

About GreenRoc

GreenRoc Mining Plc is an AIM-quoted company, which is developing mining
projects in Greenland in high-demand and high-value critical minerals.

Led by a group of highly experienced mining industry professionals, GreenRoc
has a portfolio of 100% owned projects:

·      Amitsoq Graphite, one of the highest-grade graphite deposits in
the world with a combined Indicated and Inferred JORC Resource of 8.28 million
tonnes (Mt) at an average grade of 19.75% giving a total graphite content of
1.63 Mt.

·      Thule Black Sands Ilmenite ('TBS'), which has an initial Mineral
Resource of 19Mt@ 43.6% Total Heavy Minerals with an in-situ ilmenite grade of
8.9%.

·      Melville Bay Iron, which has a Mineral Resource Estimate of 67Mt
at 31.4% iron and has been proven to be processable to a high-grade, 70%
concentrate with low impurities.

·      Inglefield Multi-Element, which has the potential to host a range
of mineralisation styles, including iron oxide-copper-gold.

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