REG - GreenRoc Mining PLC - Amitsoq Update: Kalaaq Exploration Target Upgrade

GreenRoc Strategic MaterialsAnnouncement

13/06/2022 07:00

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RNS Number : 5597O  GreenRoc Mining PLC  13 June 2022

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

13 June 2022

GreenRoc Mining plc

("GreenRoc" or the "Company")

 

Amitsoq Graphite Project Update

Significant Tonnage Upgrade to Kalaaq Exploration Target

 

GreenRoc Mining plc (AIM: GROC), a company focused on the development of
critical mineral projects in Greenland, is pleased to announce a significant
increase to its Exploration Target at the Kalaaq prospect, part of the Amitsoq
Graphite Project in southern Greenland ("Amitsoq" or the "Project"), one of
the highest-grade graphite deposits in the world.

 

Highlights

·      Following additional channel and field sampling along with field
mapping as part of the 2021 field season, the Exploration Target for Kalaaq
has now been updated.

·      The Exploration Target 1  has increased from a tonnage range of
4Mt-7Mt at a grade range of 23-29% Graphitic Carbon ('Cg') (as announced by
Alba Mineral Resources plc on 7 May 2021) to a tonnage range of 6 Mt-10 Mt at
a grade range of 17-33% Cg.

·      Results confirm significant resource potential of this as yet
undrilled deposit, which is open along strike (predominantly to the south) and
down dip.

·      Kalaaq is one of two key deposits identified at Amitsoq, the
other being the Amitsoq Island Deposit, which has a combined Indicated and
Inferred JORC Resource of 8.28 Mt at an average grade of 19.75% Cg, giving a
total graphite content of 1.63 Mt, and an Exploration Target of 5-15 Mt at a
grade range of 18-22% Cg.

·      Drilling is due to resume at Amitsoq Island later this month,
targeting resource expansion to support a feasibility study, with Kalaaq to be
drilled next year.

·      Graphite is a core component of EV batteries, which is driving
demand and prices; the high quality and flake size of Amitsoq's product is
ideal for the manufacture of battery grade spherical graphite required for the
anode of lithium-ion batteries, thus well positioned to capitalise on the Net
Zero transition.

·      Demand for graphite is forecast to soar 10-fold; UBS estimates a
natural graphite deficit of 3.7Mt by 2030, representing circa 37% of the
market.

 

GreenRoc's Interim CEO, Lars Brünner, commented:

"The Amitsoq Project, comprising the Amitsoq Island and Kalaaq deposits, is
one of the highest-grade graphite deposits globally.  Our focus is to
continue building resource tonnage to a level that will support a detailed
feasibility study, as part of our strategy to fast-forward this Project into
commercial production.  This Kalaaq Exploration Target, coupled with the
current maiden resource at Amitsoq Island of 8.28Mt at an average grade of
19.75% Cg, underpins the significant resource and, in turn, the enormous value
potential of Amitsoq.  Additionally, we have designed a clear development
strategy to ensure GreenRoc delivers on this.

 

"Recent corporate investment activity in Greenland's strategic minerals space
tells us that the time is now to advance exploration at our flagship projects.
We intend to drill Kalaaq in 2023 in order to convert a substantial portion of
the Exploration Target there to a compliant resource.  Meanwhile,
preparations for Phase 2 drilling at the Amitsoq Island deposit are well
underway, and we expect to commence drilling this month as we target a
higher-tonnage, higher-category resource which will support the development of
a mine plan and feasibility studies.  We look forward to sharing further
updates on our activities at Amitsoq in the weeks and months ahead."

 

Figure 1. Amitsoq Graphite Project in southern Greenland, showing Amitsoq
Island graphite deposit to the north (site of the former graphite mine) and
Kalaaq deposit to the south

 

Details

Alba Mineral Resources plc, which previously owned the Amitsoq project before
spinning out its entire Greenland portfolio to GreenRoc in September 2021,
commissioned Dr John Arthur (CGeol FGS) to prepare an Exploration Target for
the Kalaaq deposit in southern Greenland.  Dr Arthur is a Chartered Geologist
and qualifies as a Competent Person/Qualified Person (as defined by CRIRSCO
and the majority of National Reporting Organisations).  The Exploration
Target subsequently announced on 7 May 2021 had a tonnage range of 4 Mt-7 Mt )
(assuming a density of 2.63t/m3)  and a grade range of 23-29% Graphitic
Carbon ('Cg').

 

Following the conclusion of the 2021 field season at Kalaaq, Dr Arthur was
commissioned by GreenRoc to update his Exploration Target.  Following a
detailed assessment of all pertinent data sets, Dr Arthur has concluded that
the volume and grade ranges for the Kalaaq Exploration Target are between 6
and 10 million tonnes (assuming a density of 2.63t/m3) with a grade range of
between 17-33% Graphitic Carbon, for between 1 Mt and 3.3 Mt of contained
graphite.

 

In accordance with the JORC Code (2012), the potential quantity and grade of
the above Exploration Targets is conceptual in nature, there has been
insufficient exploration to estimate a Mineral Resource and it is uncertain if
further exploration will result in the estimation of a Mineral Resource.

 

The data used for the revised Exploration Target includes all surface channel
sampling and field mapping carried out during the 2021 field season as well as
information validated from previous surface mapping and investigations.

 

The revised Exploration Target incorporates additional areas along strike to
the south (inland) from the previous reported Exploration Target as well as
the newly discovered bodies in the south-east and south-west.  Based on the
apparent continuity seen from the extended field mapping, the Competent Person
considers an appropriate range for the Exploration Target tonnage to be
between 6-10Mt and the range of grade (at a cut-off of 0.0% Cg%) to be between
17-33%.

 

In addition to the sampling, geophysical (beep mat) surveys and detailed
structural mapping carried out previously, the updated Exploration Target for
Kalaaq draws on additional field work carried out in 2021, namely additional
mapping carried out further inland to the south, south-east and south-west and
an additional 11 sample sites, seven of which were targeted channel samples
for detailed sampling of the exposed mineralisation.

 

Figure 2. Exploration at Kalaaq showing the updated sample locations and results of updated field mapping after the 2021 field season.

 

Geological domain modelling was carried out to model the results of the field
exploration data using the Seequent Leapfrog Geo® software.  Continuity
appears to be justifiable along strike as evidenced from the exposure on
surface and identifiable topographic and structural features from surface
mapping and structural analysis.  A high degree of confidence in the
geological continuity of the deposit structure is thus interpreted, at least
in the vicinity of the sampling and mapping programmes.

 

Peer Group Comparison

The Amitsoq project is among the very highest-grade graphite projects in the
world, with, to the Company's knowledge, only Talga's Vittangi project having
higher average grades amongst all advanced (ie at least to Resource definition
stage) projects globally.

 

If the revised Exploration Targets for each of the Amitsoq Island deposit and
Kalaaq are successfully converted into defined Resources following the planned
further drilling, this would maintain Amitsoq's position as one of the
highest-grade projects globally with total Resource tonnage comparable to that
of Vittangi (see Table 1).

 

Table 1. Comparison between GreenRoc and Talga flagship graphite projects

 

 Company          Market Cap          Project                     Reserves (Mt)  Resources (Mt)  ET (Mt)  Grade (%)  Contained Ore (Mt)  Combined Contained Ore (Mt)  Stage
 Talga Group      A$385.5m            Vittangi (Sweden)           2.26                                    24         0.5447              7.74                         Feasibility

                  (ASX: TLG)
                                                                  30.1                                    24.1       7.2
 GreenRoc Mining  £6.7m               Amitsoq Island (Greenland)                 8.28                     19.75      1.63                2.53-4.93                    Resource and ET

                  (AIM: GROC)                                                                                                            (midpoint 3.73)
                                                                                                 5-15     18-22      0.9-3.3
                  Kalaaq (Greenland)                                                             6-10     17-33      1.0-3.3             1.0-3.3                      ET

                                                                                                                                         (midpoint 2.15)

 

Amitsoq Drilling Update

Further to our RNS of 6 June 2022, preparations on site for the phase 2
drilling programme at the Amitsoq Island deposit are well advanced, and
drilling is expected to commence this month (see Figure 3 below).

Figure 3. Installation of base camp at Amitsoq in readiness for start of phase
2 drilling (June 2022).

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

 Cg%                  Contained graphite as a percentage of the total rock.
 cut-off              Applicable to Resources only. The minimum grade required for a mineral or
                      metal to be economically mined (or processed). Material found to be above this
                      grade is considered to be ore, while material below this grade is considered
                      to be waste.
 Exploration Results  Exploration Results include data and information generated by mineral
                      exploration programmes that might be of use to investors but which do not form
                      part of a declaration of Mineral Resources or Ore Reserves.
 Exploration Target   An Exploration Target is a statement or estimate of the exploration potential
                      of a mineral deposit in a defined geological setting where the statement or
                      estimate, quoted as a range of tonnes and a range of grade (or quality),
                      relates to mineralisation for which there has been insufficient exploration to
                      estimate a Mineral Resource.
 graphitic            of, relating to, resembling, or having the structure of graphite.
 graphitic carbon     Carbon may be present in rocks in various forms including organic carbon,
                      carbonates or graphitic carbon. Carbon in rocks may be reported as fixed or
                      total carbon (i.e. organic carbon + carbon in carbonate minerals + carbon as
                      graphite) or as graphitic carbon (i.e. total carbon - (organic + carbonate
                      carbon)).
 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.
 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.
 Ore Reserves         The economically mineable part of a Measured or Indicated Mineral Resource. It
                      includes diluting materials and allowances for losses which may occur when the
                      material is mined. Appropriate assessments, which may include feasibility
                      studies, have been carried out, and include consideration of and modification
                      by realistically assumed, mining, metallurgical, economic, marketing, legal,
                      environmental, social and governmental factors. These assessments demonstrate
                      at the time of reporting that extraction can reasonably be justified. Ore
                      Reserves are sub-divided in order of increasing confidence into Probable Ore
                      Reserves and Proved Ore Reserves.
 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 and
Mineral Resources has been reviewed by Dr John Arthur.  Dr Arthur is a Fellow
of The Geological Society of London and a Chartered Geologist (FGS CGeol no.
1005744) and 28 years' experience in the minerals and mining industry.

 

Dr Arthur 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. Dr Arthur consents to the inclusion in the announcement of the
matters based on his information in the form and context in which they appear.

 

**ENDS**

 

For further information, please contact:

 GreenRoc Mining Plc                                                            +44 20 3950 0724

 Lars Brünner, 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 Ltd (Financial PR & IR) Susie Geliher / Oonagh Reidy /      +44 20 7236 1177
 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.

 1  In accordance with the JORC Code (2012), the potential quantity and grade
of this Exploration Target is conceptual in nature, there has been
insufficient exploration to estimate a Mineral Resource and it is uncertain if
further exploration will result in the estimation of a Mineral Resource.

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