REG - GreenRoc Mining PLC - Exploitation Licence Application Process Update

GreenRoc Strategic MaterialsAnnouncement

07/02/2024 07:00

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RNS Number : 2470C  GreenRoc Mining PLC  07 February 2024

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

7 February 2024

GreenRoc Mining plc

("GreenRoc" or the "Company")

 

Update on Application Process for Amitsoq Exploitation Licence and Other
Licence Changes

 

GreenRoc Mining plc (AIM: GROC), a company focused on the development of
critical mineral projects in Greenland, announces that, following a
modification to Greenland's mining laws that became effective on 1 January
2024, the Company expects to be in a position to apply for an Exploitation
Licence for its Amitsoq Graphite Project ("Amitsoq") in South Greenland in the
first half of 2024. The Company also announces certain other licence changes
affecting its project portfolio in Greenland.

 

Key Points

·   A change in Greenland's mining laws that became effective on 1 January
2024 is expected to significantly reduce the timeline for GreenRoc to apply
for and obtain an Exploitation Licence for Amitsoq.

·   As such, GreenRoc is now targeting H1 2024 for the filing of its
application for an Exploitation Licence, paving the way to a possible licence
grant before the end of 2024.

·   The prospect of an early Exploitation Licence award is expected to
assist GreenRoc in its endeavours to secure development finance for the
Amitsoq Project.

·    Application has been made to extend GreenRoc's existing exploration
licence package in South Greenland to encompass the last area of significant
graphite mineralisation in proximity to Amitsoq which is not already under
licence to GreenRoc.

·    The exploration licence for the Melville Bay Iron Project has been
surrendered.

 

Details

Amitsoq Exploitation Licence Permitting Process

A change in Greenland's mining laws, effective 1 January 2024, now allows an
Exploitation Licence to be applied for and granted prior to the final approval
of a project's Environmental Impact Assessment ("EIA"), Social Impact
Assessment ("SIA") and Impact Benefit Agreement ("IBA"). Previously, an
Exploitation Licence could only be applied for once the lengthy EIA and SIA
processes had been completed and formally approved and an IBA between the
Government of Greenland, GreenRoc and the local Municipality had been
negotiated and signed.

This change, allowing the process for the grant of an Exploitation Licence to
run in parallel with the EIA and SIA processes, rather than having to wait for
the latter to be completed, means that the additional time required to achieve
an Exploitation Licence should be considerably reduced.

Under the new law, provided the holder of an Exploration Licence has
substantiated and delineated a viable mineral deposit which it intends to
exploit, and has complied with its licence obligations, the licence holder
will be entitled to be granted an Exploitation Licence.  Before an
Exploitation Licence can be granted, the licence holder must submit a Project
Description and Scoping Studies  for its EIA and SIA.  Those documents must
then be translated and published for public consultation for at least 35
calendar days. Once the applicant has addressed any pertinent issues raised in
the public consultation, it will then be entitled to the grant of an
Exploitation Licence.

GreenRoc believes this change in the law is likely to shorten the Exploitation
Licence permitting process for the Amitsoq Graphite Project by several months,
given that its has already formally submitted to the Greenland Government both
its draft Project Description for Amitsoq, in December 2023, and its draft EIA
and SIA Scoping Studies, in January 2024.  Further, GreenRoc has also
fulfilled the condition requiring a viable mineral deposit to be substantiated
and delineated at Amitsoq, as supported by the results of the independent
Preliminary Economic Assessment ("PEA") published in October 2023.  The
Company will therefore be in a position to submit an application for an
Exploitation Licence once the Project Description and EIA and SIA Scoping
Studies have been approved by the Government and are ready for translation,
and thus prior to the commencement of the public consultation. It is expected,
therefore, that this application will be submitted in the first half of 2024,
paving the way to the possible grant of an Exploitation Licence before the end
of 2024.

Changes to Exploration Portfolio Licences

The Company is also pleased to provide an update on certain licence-related
matters concerning its exploration portfolio in Greenland.

An application has been submitted to expand GreenRoc's exclusive Mineral
Exploration Licence ("MEL") 2022-03 near Nanortalik in South Greenland.
Covering approximately 50km², the expansion area applied for (Figure 1) is
the last remaining area in the vicinity of GreenRoc's existing mineral
exploration licence package in South Greenland which is known to host
significant graphite mineralisation and which is not already under licence to
GreenRoc.

The application area lies due east of Nanortalik and is immediately adjacent
to existing licence area MEL 2022-03. The area includes several historical
recordings of high-grade graphite mineralisation (Figure 2).  The target area
has become open for application due to the surrender of the area by the
previous licence holder in January 2024.

Subject to grant of the licence extension, GreenRoc will hold the exclusive
exploration rights to all prospective ground in the world-class Nanortalik
Graphite District, which hosts the Amitsoq Graphite Mine, the Kalaaq Deposit
and several other high-grade graphite prospects (See RNSs of 8 November 2021
and 11 October 2022).

Finally, in order to consolidate its resources and focus on developing the
Amitsoq Graphite Deposit into a producing mine, the Company has decided to
relinquish its exploration licence MEL 2017-41 in North Greenland,
encompassing the Melville Bay Iron Project. The Company has no outstanding
obligations in respect of the relinquished licence and the relinquishment has
been approved by the Greenland Government.

Figure 1. GreenRoc's exclusive licences MEL 2013-06 (including the Amitsoq
deposit) and MEL 2022-03 and the newly applied for area in light green (which
will form part of MEL 2022-03 upon grant). The red symbols mark the known
occurrences of graphite mineralisation.

Figure 2. Known graphite occurrences (Loc 2 and Loc 7) in the area of the new
licence application, and a geological marker horizon shown as white dotted
lines, as viewed from the north-west (SRK Report, 2015).

GreenRoc's CEO, Stefan Bernstein, commented:

"The changes in the Greenlandic Mineral Law that came into effect on 1 January
2024 are very positive  for GreenRoc. The fact that our application for an
Exploitation Licence can now run in parallel with the Environmental and Social
Impact Assessment studies we are undertaking should significantly shorten the
processing time for the Exploitation Licence. It also futher illustrates
Greenland's commitment to simplifying its mineral administration in order to
establish a solid mineral extractive industry in the country."

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.

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.

 

 

**ENDS** 

 

For further information, please contact: 

   GreenRoc Mining Plc                                        +44 20 3950 0724

   Stefan Bernstein, CEO 

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

   James Caithie / Sandy Jamieson / Louise O'Driscoll 

  
   SP Angel (Broker)                                          +44 20 3470 0500

   Ewan Leggat / Charlie Bouverat

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

   Paul Dulieu / Isabel De Salis / Isabelle Morris            greenroc@stbridespartners.co.uk

  

 

About GreenRoc

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

 

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

 

·    The Amitsoq Graphite Project, the Company's flagship project and one
of the highest-grade graphite deposits in the world with a combined Measured,
Indicated and Inferred JORC Resource of 23.05 million tonnes (Mt) at an
average grade of 20.41% graphite, giving a total graphite content of 4.71 Mt;
and

 

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

 

About Amitsoq

Amitsoq is located in the Nanortalik region of southern Greenland and has been
confirmed as one of the highest-grade flake graphite projects in the world.
GreenRoc is focused on fast-tracking the development of Amitsoq into a
producing mine in the shortest possible timeframe to meet critical demand from
Electric Vehicle ('EV') manufacturers in Europe and North America for new,
high grade and conflict-free sources of graphite.

 

Key points about Amitsoq:

·    GreenRoc holds the Amitsoq exclusive exploration licence MEL2013_06
of a total of 72.52km2 in the South of Greenland.

·    Amitsoq has a total inferred, indicated and measured JORC Resource of
23.05 million tonnes (Mt) at an average grade of 20.41% Graphitic Carbon
("C(g)"), giving a total graphite content of 4.71 Mt.

·    Results of the Preliminary Economic Assessment were released on 31
October 2023 stating a post-tax NPV8 of US$179M at an IRR of 26.7%. Capex
estimated at US$131M including a 25% contingency.

·    Independent micronisation and spheronisation test work has proven
that Amitsoq graphite can be easily upgraded to high-grade anode-quality
graphite, otherwise known as high purity spherical graphite or cSPG, a key raw
material in the manufacturing of EVs.

·    In GreenRoc's test work programmes, Amitsoq spheronised graphite has
achieved higher than 99.95% purity with relatively little energy input and
processing and using the milder alkaline purification method compared to the
industry standard hydrofluoric acid, boding well for future production costs
and sustainability commitments.

·    Electrochemical testing of Amitsoq graphite anode material in a
Li-battery cell shows that it performs very well, in part due to its good
crystallinity.

·    Significant further upside exists at Amitsoq as the Amitsoq Island
Deposit is open in at least two directions with potential for considerable
further expansion via the similarly high-grade Kalaaq Mainland Deposit as well
as a series of other high-grade targets on GreenRoc's licence package.

·    The deposit was in small-scale production about 100 years ago, and
there remains considerable underground mine development in place from that
time, which will be of considerable benefit to GreenRoc in the mine
construction phase.

·    Following a detailed evaluation process, the European Raw Materials
Alliance has expressed its support of GreenRoc and its Amitsoq graphite
project, stating that "GreenRoc's graphite resource is of global importance
and, together with the Company's strategy, will enable the European Union to
achieve a certain level of independence for the electrical vehicle supply
chain. ERMA has approved the Amitsoq Graphite project and will engage to
support its development and financing to produce these critical raw materials
for the benefit of the European Union goals." (see RNS dated 8 February 2023).

·    In October 2023, GreenRoc was awarded a grant of approximately
£250,000 by the Automotive Transformation Fund in the UK to part-finance a
feasibility study into the establishment of a graphite spheronisation
processing plant to produce active anode material from graphite concentrate
delivered from Amitsoq. This feasibility study is expected to be completed in
H1 2024.

 

 

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