The information is for shareholders and not intended to guide any investment decisions in Greenland Minerals and Energy Ltd (GGG). Some of the information is intended as a guide to the potential of the Kvanefjeld project but is not predictive. Consideration of the technical and financial factors requires skilled analysis and understanding of their context. The project is considered to be at an advanced exploration stage and will require regulatory approvals and securing of finance and there is no certainty that these will occur. Any potential investors should conduct their own research and consult their professional advisors before making any decisions about investing in GGG.
The changing world of Uranium • Project offered to the company Early October 2006 • The company has taken a LONG TERM view on Uranium • Uranium prices have been moving steadily up. • Uranium (U 3 O 8 ) was approximately US$40 a pound early 2006 • Uranium (U 3 O 8 ) was approximately US$75 a pound early 2007 • Uranium (U 3 O 8 ) is now approximately US$100 a pound after having reached a high of US$133 in July 07 • The company perceives a shift in attitude worldwide by governments towards the exploitation and use of Uranium and is positioning the company ahead of this change
Project Location
Title • Currently the license does not include Uranium. • However; • Advice from The Bureau of Minerals and Petroleum (BMP) in Greenland and Nuna Law (Greenland's leading law firm), both indicate exploration ( and mining) as a by-product of normal activities may be applied for. It is with this in mind that the company is utilising Uranium as a real time pathfinder to locating the Kvanefjeld orebody and to direct future exploration. • Laws in Greenland relating to Uranium exploration and exploitation are currently under review in regards to policy, these views are expected later this year.
Local facilities Kvanefjeld ~8km by dirt road Deep water port The town of Narsaq has a skilled population of approx 3500.
Kvanefjeld Orebody Kvanefjeld
Kvanefjeld Multi-element Project • Huge Upside (open to South, West & at depth). • Large Uranium Resource Identified. • Coincident additional occurrences of • Lithium • Beryllium • Zirconium • Rare Earth Elements (REE) • Sodium Fluoride (>5%) • Ex-Deputy Minister of Mines for Greenland Mr. Hank Schønwandt has joined the board as Executive Chairman. • Options to Acquire up to 100%.
Pathfinder benefits • The company is using Uranium as a path finder to the orebody • Kvanefjeld comprises multi-element mineralisation high in concentrations of Niobium, Tantalum, Beryllium, Lithium, Sodium Fluoride as well as Uranium. • Uranium, due to its radioactive nature is readily detected regionally by airborne radiometric surveys and at a finer scale (hand specimen or drill core) by using a Scintillometer. • Thus provides rapid & effective way of defining Kvanefjeld ore body.
2007 Field Season • Detailed radiometric survey completed over Kvanefjeld. • Up to 11,000m of drilling budgeted for 07 season. • Completed 8,000m of diamond drilling to date. 2 diamond drill rigs on site. 3 rd requested for 2008. • • Helicopter supported. • Drill camp for 30 people. • Single largest exploration program ever to have occurred in Greenland. • Spectral re-assay of old holes to confirm resource. Company applied to Danish Gov. agency to take possession of the 11,000m of historical core. Expected during Sept 2007 • Up to 22,000m of results expected from this season for resource modeling purposes
1957–1983 Danish Atomic Energy Agency + Danish Geological Survey completed 11,000m of diamond drilling defining resource* of 126mt @ 400ppm U 3 O 8 . Resource verified by Nuclear Energy Agency OECD (2006 Red Book) 43,000 tonnes U metal = 50,700 tonnes U 3 O 8 = >112,000,000lb U 3 O 8 *This resource has been identified as an Inferred Resource by our consulting geologist , refer our 21 May 2007 announcement.
Less than 10% of the mineralised complex has been drill tested. An ultra detailed radiometric survey has detected further possible target areas
The company has the rights for all minerals on 2005/28 (northern License) and Uranium, REO’s, lithium, Beryllium + sodium fluoride on 2005/29 (southern license).
Examples of higher grade mineralised zones throughout the orebody Kvanefjeld Figure 4
Local geology and historical drill hole locations More than 70 historical diamond holes have been drilled into the Kvanefjeld project since 1959. 11,000m budgeted (~50 holes) from 2 drill rigs expected for this season. (8,000m currently) Up to 22,000m of results anticipated to be collected this field season
Historical drill locations. These holes and a 1km adit through the central system formed the basis for Inferred Resource of 50,700t U 3 O 8 . 20,000t was mined from the adit 4500t was taken for metallurgical test work. Pilot plant constructed in Copenhagen.
Section through Kvanefjeld The company is utilising Uranium mineralisation as a real time pathfinder for the multi-element orebody
Note section A-B Also shown are this years planned holes In addition 12 more holes are planned for the mine area and southern and western extension
8km Joint venture area (Northern portion) Current drilling area Priority Target High priority 50,700t U 3 O 8 Target area Kvanefjeld Inferred Resource Priority Target JV area (Southern portion) Port town of Narsaq
Radiometrics over Kvanefjeld highlighting extensions to mineralisation (red and yellow signifies v. high readings) Expected Resources Historical Kvanefjeld Inferred This newly identified Resource, extension could impact 50,700t significantly on the U3O8 existing resource. Potential resources
Recent drill results Recent drill results from holes 74, 75, 82, and 108 66.52m @ 843ppm U 3 O 8 in hole K108 (from 1.6 metres) • • 66.51m @ 480ppm U 3 O 8 in hole K108 (from 106 metres) • 43.61m @ 593ppm U 3 O 8 in hole K82 (from 12.5 metres) • 33.80m @ 529ppm U 3 O 8 in hole K075 (from 66.3 metres) • 53.11m @ 504ppm U 3 O 8 in hole K74 (from 97.2 metres)
From To Intersection espU 3 O 8 K074 20.82 364 0.94 21.76 30.31 372 46.54 76.85 97.25 150.36 53.11 504 K075 69.05 102.85 33.8 529 29.91 433 108.15 138.06 221.35 273.15 51.8 305 K078 37.34 42.66 5.32 533 50.95 80.66 29.71 529 12.11 426 84.55 96.66 124.94 162.86 37.92 397 195.94 232.06 36.12 363 K081 1.45 14.45 13 603 50.62 382 27.14 77.76 31.41 350 85.25 116.66 128.44 230.06 101.62 286 K082 12.55 56.16 43.61 593 101.05 142.65 41.6 402 159.25 173.06 13.81 319 274.54 290.26 15.72 290 K108 1.64 68.16 66.52 843 22.72 461 79.34 102.06 106.05 172.56 66.51 480
Conclusions from work thus far; • The results are inline with historical resource estimates. • Drilling intersected mineralisation at 300m depth; on average 100 metres deeper than previous resource modelling. • Mineralisation is open at depth. • Drilling has extended mineralisation to the South and West. • The mine area and northern area proven to be contiguous; this area was not included in the historical resource. • Significant additional mineral assemblages identified supporting the company’s view that Kvanefjeld is one of the largest Rare Earth Oxide, Uranium and Fluorine deposits in the world.
Apart from additional elements Kvanefjeld is rich in Uranium Other Uranium Deposits Comparison Kvanefjeld: 50,700 tonnes U 3 O 8 Inferred Resource (400ppm). Expected to increase significantly during early 08 re-estimate Market Cap AU$270m fully diluted. Langer Heinrich 47,930 tonnes U 3 O 8 Global Resource @ 640ppm. Market Capitalisation AU$3.7bn Rossing Uranium Mine 190,000 tonnes U 3 O 8 current Mine Resource @ ~320ppm. Supplies ~7% of world demand. 1 tonne U 3 O 8 = 0.848 tonnes U metal 1 lb U 3 O 8 = 0.385 kg U metal
The Kvanefjeld intrusion is truly a world class multi-element orebody Niobium & Tantalum presence proven during historical work Rare Earth Oxides historical indication of > 3% Beryllium historical indication of 0.1% Be Lithium historical indication of 600-1900ppm Sodium Fluoride Visual identification of >10% in core. Significant portions of the orebody are water soluble
Major Developments • Hans Kristian Schønwandt, ex Deputy Minister of Mines Executive Chairman, August 2007. • U$8.8M capital raising (8.8m shares at AU$1) completed with Sampension, the leading Danish Municipal Superannuation Fund taking the majority. • Contact made with Danish Atomic Energy Agency (RISO) feasibility study project manager (1977-1984), Jorgen Jensen. Jorgen has access to entire dataset of historical feasibility study. • Site visit by BMP Greenland undertaken September 1 st . BMP very supportive.
Upcoming milestones 1 of 2 • Current - Results have started to flow to market. • October - Public presentation in Nuuk expected. Greenlandic-Danish commissions debate increased Greenlandic self-governing inc. transfer of mineral rights to Greenland . • Late 2007 - Greenland and Danish Parliament debate recommendations. All issues expected to be ratified including the transfer of these rights to Greenland .
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