Greenland Resources Inc. (Cboe CA: MOLY | FSE: M0LY) (“Greenland
Resources” or the “Company”) is pleased to announce that it
submitted to the Greenland Minerals Licenses and Safety Authority
an updated version of the Environmental Impact Assessment (the
“EIA”) for the Malmbjerg Molybdenum Project in east Greenland (the
“Project”) authored by WSP Danmark A/S.
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the full release here:
https://www.businesswire.com/news/home/20241203118140/en/
The updated EIA incorporates the new legal provisions set under
the Mining Act that came into effect in January 1, 2024 as well as
numerous current studies and empirical results highlighted below.
Although the EIA is not part of the requirements to obtain an
exploitation license under the new Mining Act (where the Company
expects positive news soon), it remains an important regulatory and
industry requirement to advance towards production.
Executive Chairman Dr. Ruben Shiffman noted, “We have invested a
great deal of care in the environmental aspects of our mine design.
While most of the existing mines are old and have large
environmental bonds posted with regulators due to more stringent
current environmental rules than in the past; offer lower quality
product and are far away from the EU (the 2nd largest Mo and Mg
user where EU has no extraction), our Project offers high quality
product, a new mine design, no environmental liabilities, and high
sustainability with lower CO2 vs existing mines in a like-minded EU
associate country”.
Highlights of the updated version include:
- On environmental impacts of the Project, using an assessment
risk scale of very low, low, medium and high, sixteen out of
nineteen environmental impacts analyzed are assessed to be low or
very low and four medium. On environmental risks due to accidents
and natural disasters, all three risks analyzed which include risk
of tailings disposal from the Tailings Management Facility (TMF),
contamination of land and fresh water and contamination of the sea
due to shipping accidents are assessed to be of low environmental
risk.
- Results from an updated independent TMF feasibility study
(2024) that among others, determine the dam classification risk
factor under the Canadian Dam Association (CDA) guidelines. CDA
guidelines rank in severity from Low, Significant, High, Very High
to Extreme potential losses, including catastrophic scenarios,
under four areas (population, life, environmental and cultural,
infrastructure and economics). The proposed contained TMF was
assigned a Low Dam Classification risk in all four areas under
CDA.
- Conclusions of a six-month study on saturated columns testing
and water quality predictions studies for the TMF supernatant
concentrations (from the concentrator to before the discharge into
the TMF, while in the TMF and in any potential dilution zone) over
the life of mine to be below water quality guidelines.
- A prefeasibility study on renewable energy generation to power
a significant part of the energy required in the Project using wind
and solar energy. This adds to the significant decarbonization
achieved with the proposed aerial conveyor that transports downhill
35,000 tonnes per day of ore from the mine to the concentrator,
producing no CO2 and generating electricity through regenerative
braking.
- Results from the Project’s sustainability report published in
2024 that among others estimates the Scope 1 and 2 greenhouse gas
emissions of the Project ranking it 35% lower of CO2-eq/lb Mo
emissions vs comparable mines under the current NI 43-101
Feasibility Study scenario and 73% lower CO2-eq/lb Mo emissions
using the renewable scenario of wind and solar energy.
- Results of a technical report on a Malmbjerg dust dispersion
model showing that Total Suspended Particulate concentrations for
regulated metals using geostatistical methods and a 90th percentile
confidence interval scaling method within a 10km project area
radius, to be below the regulatory metal criteria
concentrations.
- Estimations of salinities and fresh water supply in the project
area; an updated closure plan; a mitigation plan for rock storage
facilities a review of various alternative TMF options and
locations and conclusions on the preferred TMF.
Qualified Person Statement
The news release has been reviewed and approved by Mr. Jim
Steel, P.Geo., M.B.A. a Qualified Person as defined by Canadian
Securities Administrators National Instrument 43-101 “Standards of
Disclosure for Mineral Projects”.
Greenland Resources Inc.
Greenland Resources is a Canadian public company with the
Ontario Securities Commission as its principal regulator and is
focused on the development of its 100% owned Climax type primary
molybdenum deposit located in central east Greenland. The Project
has copper and also magnesium, a market dominated 98% by China. The
Malmbjerg molybdenum project is an open pit operation with an
environmentally friendly mine design focused on reduced water
usage, low aquatic disturbance and low footprint due to modularized
infrastructure. The Malmbjerg project benefits from an NI 43-101
Definitive Feasibility Study completed by Tetra Tech in 2022, with
an US$820 million capex and a levered after-tax IRR of 33.8% and
payback of 2.4 years, using US$18 per pound molybdenum price. The
Proven and Probable Reserves are 245 million tonnes at 0.176% MoS2,
for 571 million pounds of contained molybdenum metal. As the
high-grade molybdenum is mined for the first half of the mine life,
the average annual production for years one to ten is 32.8 million
pounds per year of contained molybdenum metal at an average grade
of 0.23% MoS2, approximately 25% of EU total yearly consumption.
The project had a previous exploitation license granted in 2009.
With offices in Toronto, the Company is led by a management team
with an extensive track record in the mining industry and capital
markets. For further details, please refer to our web site
(www.greenlandresources.ca) and our Canadian regulatory filings on
Greenland Resources’ profile at www.sedarplus.com.
The Project is supported by the European Raw Materials Alliance
(ERMA). ERMA is managed by EIT RawMaterials, an organization within
the EIT, a body of the European Union.
About Molybdenum and the European Union
Molybdenum is a critical metal used mainly in steel and
chemicals that is needed in all technologies in the upcoming green
energy transition. When added to steel and cast iron, it enhances
strength, hardenability, weldability, toughness, temperature
strength, and corrosion resistance. Based on data from the
International Molybdenum Association and the European Commission
Steel Report, the world produced around 576 million pounds of
molybdenum in 2021 where the European Union (“EU”) as the second
largest steel producer in the world used approximately 24% of
global molybdenum supply and has no domestic molybdenum production.
To a greater degree, the EU steel dependent industries like the
automotive, construction, and engineering, represent around 18% of
the EU’s ≈ US$16 trillion GDP. Greenland Resources strategically
located Malmbjerg molybdenum project has the potential to supply in
and for the EU approximately 25% of the EU consumption, of
environmentally friendly high-quality molybdenum from a responsible
EU Associate country, for decades to come. The high quality of the
Malmbjerg ore, having low impurity content in phosphorus, tin,
antimony, and arsenic, makes it an ideal source of molybdenum for
the high-performance steel industry lead worldwide by Europe,
specifically the Scandinavian countries and Germany.
Forward Looking Statements
This news release contains "forward-looking information" (also
referred to as "forward looking statements"), which relate to
future events or future performance and reflect management’s
current expectations and assumptions. Often, but not always,
forward-looking statements can be identified by the use of words
such as "plans", "hopes", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates", or
"believes" or variations (including negative variations) of such
words and phrases, or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. Such forward-looking statements reflect management’s
current beliefs and are based on assumptions made by and
information currently available to the Company. All statements,
other than statements of historical fact, are forward-looking
statements or information. Forward-looking statements or
information in this news release relate to, among other things: the
Company’s objectives, goals or future plans; planned capex
financing and outcomes of due diligence reviews; construction and
engineering initiatives for the Malmbjerg molybdenum project;
statements, exploration results, potential mineralization, the
estimation of mineral resources and reserves, and their valuation,
exploration and mine development plans, timing of the commencement
of operations and estimates of market conditions.
These forward-looking statements and information reflect the
Company’s current views with respect to future events and are
necessarily based upon a number of assumptions that, while
considered reasonable by the Company, are inherently subject to
significant operational, business, economic and regulatory
uncertainties and contingencies. These assumptions include: future
planned development and other activities on the Project; favourable
outcomes of due diligence reviews; planned energy requirements of
the Project; obtaining the permitting on the Project in a timely
manner; no adverse changes to the planned operations of the
Project; continued favourable relationships with local communities;
current EU and other initiatives remaining in place into the
future; expected demand for molybdenum in the EU and abroad,
including by companies that expressed an interest in purchasing
molybdenum; our mineral reserve estimates and the assumptions upon
which they are based, including geotechnical and metallurgical
characteristics of rock confirming to sampled results and
metallurgical performance; tonnage of ore to be mined and
processed; ore grades and recoveries; assumptions and discount
rates being appropriately applied to the technical studies;
estimated valuation and probability of success of the Company’s
projects, including the Malmbjerg molybdenum project; prices for
molybdenum remaining as estimated; currency exchange rates
remaining as estimated; availability of funds for the Company’s
projects; capital decommissioning and reclamation estimates;
mineral reserve and resource estimates and the assumptions upon
which they are based; prices for energy inputs, labour, materials,
supplies and services (including transportation); no labour-related
disruptions; no unplanned delays or interruptions in scheduled
construction and production; all necessary permits, licenses and
regulatory approvals are received in a timely manner or at all; and
the ability to comply with environmental, health and safety laws.
The foregoing list of assumptions is not exhaustive.
The Company cautions the reader that forward-looking statements
and information include known and unknown risks, uncertainties and
other factors that may cause actual results and developments to
differ materially from those expressed or implied by such
forward-looking statements or information contained in this news
release and the Company has made assumptions and estimates based on
or related to many of these factors. Such factors include, without
limitation: the favourable results of the SIA (Social Impact
Assessment) and EIA (Environmental Impact Assessment); favourable
local community support for the Project’s development; the
projected demand for molybdenum both in the EU and elsewhere,
including by companies that expressed an interest in purchasing
molybdenum; the current initiatives and programs for resource
development in the EU and abroad; the projected and actual status
of supply chains, labour market, currency and commodity prices
interest rates and inflation; the projected and actual status of
the global and Canadian capital markets, fluctuations in molybdenum
and commodity prices; fluctuations in prices for energy inputs,
labour, materials, supplies and services (including
transportation); fluctuations in currency markets (such as the
Canadian dollar versus the U.S. dollar versus the Euro);
operational risks and hazards inherent with the business of mining
(including environmental accidents and hazards, industrial
accidents, equipment breakdown, unusual or unexpected geological or
structure formations, cave-ins, flooding and severe weather);
inadequate insurance, or the inability to obtain insurance, to
cover these risks and hazards; our ability to obtain all necessary
permits, licenses and regulatory approvals in a timely manner;
changes in laws, regulations and government practices in Greenland,
including environmental, export and import laws and regulations;
legal restrictions relating to mining; risks relating to
expropriation; increased competition in the mining industry for
equipment and qualified personnel; the availability of additional
capital; title matters and the additional risks identified in our
filings with Canadian securities regulators on SEDAR+ in Canada
(available at www.sedarplus.ca). Although the Company has attempted
to identify important factors that could cause actual results to
differ materially, there may be other factors that cause results
not to be as anticipated, estimated, described, or intended.
Investors are cautioned against undue reliance on forward-looking
statements or information. These forward-looking statements are
made as of the date hereof and, except as required by applicable
securities regulations, the Company does not intend, and does not
assume any obligation, to update the forward-looking information.
Neither the Cboe Canada Exchange nor its regulation services
provider accepts responsibility for the adequacy of this release.
No stock exchange, securities commission or other regulatory
authority has approved or disapproved the information contained
herein.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241203118140/en/
For further information please contact: Ruben Shiffman, PhD
Chairman, President Keith Minty, P.Eng, MBA Engineering and Project
Management Jim Steel, P.Geo, MBA Exploration and Mining Geology
Nauja Bianco, M.Pol.Sci. Public and Community Relations Gary Anstey
Investor Relations Eric Grossman, CPA, CGA Chief Financial Officer
Corporate office Suite 1810, 25 York Street, Toronto, Ontario,
Canada M5J 2V5 Telephone 1-844-252-0532 Email
info@greenlandresourcesinc.com Web www.greenlandresources.ca
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