TIDMGROC
RNS Number : 1907L
GreenRoc Mining PLC
12 May 2022
To view the RNS with illustrative diagrams and maps, please use
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GreenRoc Mining Plc / EPIC: GROC / Market: AIM / Sector:
Mining
12 May 2022
GreenRoc Mining plc
("GreenRoc" or the "Company")
Amitsoq Graphite Project Update
Significant Tonnage Upgrade to Amitsoq Island Exploration
Target
GreenRoc Mining plc (AIM: GROC), a company focused on the
development of critical mineral projects in Greenland, is delighted
to announce a significant increase to the Exploration Target for
the Amitsoq Island graphite deposit (the "Amitsoq Island Deposit"
or the "Deposit") at the Amitsoq Graphite Project in southern
Greenland ("Amitsoq" or the "Project"), one of the highest-grade
graphite deposits in the world.
Highlights
-- Following the Maiden Resource estimate announced on 8 March
2022, the Exploration Target for the Amitsoq Island Deposit has now
been updated.
-- The Exploration Target[1] has increased from a tonnage range
of 1.7 Mt-4.5 Mt at a grade range of 24-36% Graphitic Carbon ('Cg')
(as announced by Alba Mineral Resources plc on 7 May 2021) to a
tonnage range of 5-15 Mt at a grade range of 18-22% Cg.
-- The Maiden Resource for the Amitsoq Island Deposit (announced
by GreenRoc on 8 March 2022) defined a combined Indicated and
Inferred JORC Resource of 8.28 million tonnes (Mt) at an average
grade of 19.75% Cg, giving a total graphite content of 1.63 Mt.
-- The Deposit is open along strike (predominantly to the north)
and down dip to the west, and this will be tested in the Phase 2
drilling programme this year.
-- There is additional considerable upside potential to come
from the, as yet undrilled deposit, (the "Kalaaq Deposit") to the
south of Amitsoq Island; a revised Exploration Target calculation
is being undertaken for this deposit.
-- Graphite is a core component of an Electric Vehicle ("EV")
battery and this is driving graphite demand and prices, with UBS
estimating a natural graphite deficit of 3.7Mt by 2030,
representing circa 37% of the global market.
-- GreenRoc's technical work to date has confirmed that Amitsoq
graphite can be upgraded to a more than 99.95% pure graphite
product, which is the specification requirement for EV batteries,
making GreenRoc well positioned to capitalise on the transition to
Net Zero.
GreenRoc's Interim CEO, Lars Brünner, commented:
"Amitsoq is one of the highest-grade graphite deposits globally,
and our graphite has been shown to be amenable to the production of
the high purity graphite, which is the requirement for EV
batteries. Our focus now is on building our Resource tonnage to a
level that will support a detailed feasibility study. The current
Maiden Resource of 8.28Mt at an average grade of 19.75% Cg, giving
a total graphite content of 1.63 Mt, is a fantastic result but we
are confident we can improve this further and in so doing
strengthen the commercial value of the Project.
"More than half of the Exploration Target area for Amitsoq
Island remains undrilled and the upcoming drill programme will
focus on unlocking this Resource potential. We look forward to
sharing further details in due course."
Figure 1 . Amitsoq Graphite Project in southern Greenland,
showing Amitsoq Island Deposit to the north (site of the former
graphite mine) and Kalaaq Deposit to the south
Details
The Company commissioned Dr John Arthur (CGeol FGS) to prepare a
revised Exploration Target for the Amitsoq Island 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).
Followed a detailed assessment of all pertinent data sets for
the Amitsoq Project, Dr Arthur has concluded that the volume and
grade ranges for the Amitsoq Island Exploration Target are between
5 and 15 million tonnes (assuming a density of 2.63t/m3) with a
grade range of between 18-22% Cg, for between 900,000 and 3.3
million tonnes of contained graphite.
In accordance with the JORC Code (2012), the potential quantity
and grade of the above Exploration Target for the Amitsoq Island
Deposit is conceptual in nature, there has been insufficient
exploration to estimate a Mineral Resource in respect of the area
covered by the Exploration Target and it is uncertain if further
exploration will result in the estimation of a Mineral Resource in
respect of that area.
The data used for the revised Exploration Target includes all
drilling, 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 Exploration Target is constrained within the area
immediately north (along strike) and west (down dip) from the
previously reported MRE ( Figure 2). In the case of the Amitsoq
Island Deposit, given the apparent continuity seen in the initial
drill results and from the extended field mapping, the Competent
Person considers an appropriate range for the Exploration Target
tonnage to be between 5-15Mt and the range of grade (at a cut off
of 0.0% Cg) to be between 18-22%.
In addition to the diamond drilling, 18m of surface exposure of
the graphitic body were channel sampled in 12 channel sample
locations. Some of the channel samples were located on the drill
lines and several also sampled around the historic mine
location.
The graphite deposit at Amitsoq Island is subdivided into an
upper and lower unit (UGL and LGL) and both units outcrop along the
eastern slope of the island. Historical mining was carried out on
the higher grade LGL unit and the upper levels of the mine are
still accessible with care and allowed the field team to
investigate limited exposures of the deposit underground.
Figure 2. Outline of the area defined as Exploration Target
(green) showing the relationship with the current Mineral Resource
outline (marked Indicated and Inferred) and drilling (marked with
black dots and drill hole numbers)
The surface exposure of both the LGL and UGL units is visible
and can be followed over a strike length of several kilometres. The
2021 field team carried out detailed surface mapping over the
southernmost 1km strike length of the units adjacent to the drill
pads and for approximately 600m further north.
A revised Exploration Target calculation for the Kalaaq Deposit
is being undertaken and will be announced also, in due course.
Methodology
Geological domain modelling was carried out using the Seequent
Leapfrog Geo software(R) and used a combination of the drill
intersection results along with the surface mapping and channel
sample results. Continuity appears to be good along strike as
evidenced from the continuous exposure on surface and, based on
pre-drilling interpretation from surface mapping and structural
analysis, the drilling intercepted the deposit generally where
expected and thickness was in most cases thicker than expected. A
high degree of confidence in the geological continuity of the
deposit structure is thus interpreted, at least in the vicinity of
the drilling and mapping.
Drilled thicknesses were variable with a minimum of <1m and a
maximum of 17m with a mean of 5m. the LGL unit has a mean thickness
of 7.5m while the UGL is thinner with a mean of 3m.
The assay results from the drilling, along with the observed
contact styles seen on surface, indicate that the contact between
deposit and host rock are very sharp with little or no transition
zone. The grade is consistent and continuous in nature in both the
LGL and UGL units.
Block Modelling was performed after compositing the assay grades
within the domained deposit boundaries to a 1m composite. A
sub-blocked model was created in order to allow better block
definition along the boundaries. The model was also rotated to
orientate the y axis with 030(o) N. Grade modelling for the Mineral
Resource statement was performed using ordinary kriging after
initial semi-variogram analysis. Further planned drilling will aim
to infill the current drilling as well as provide additional
intersections at depth with the aim of increasing the reliability
of the current 3D modelling and variography.
The kriging was carried out in three expanding search patterns
based on the results of the initial variogram modelling. The
initial search radius used a 150x200m ellipse and a minimum of four
composites. This was followed by two wider searches at 300x500m and
1000x1000m to fill the remaining volume of the modelled domain. The
maximum extent of Indicated and Inferred category blocks was
constrained by the second search radius (500m in the strike
orientation and 300m down dip). All blocks within the third
category have not been classified as Mineral Resource and the
volume and extent of the blocks filled using the third expanded
search have been used as the underlying basis for the Exploration
Target range of grade and tonnes outlined above.
Peer Group Comparison
The Amitsoq project is among the very highest-grade graphite
projects in the world (see Figure 3) with, to the Company's
knowledge, only Talga Group Ltd's ("Talga") Vittangi project having
higher average grades amongst all advanced (ie at least to Resource
definition stage) projects globally.
Figure 3. Global graphite projects ranked by average grades.
Amitsoq Island Deposit shown in light blue.
If the upper end of this revised Exploration Target for the
Amitsoq Island Deposit is successfully converted into defined
Resources following the planned further drilling, this would place
Amitsoq not only as one of the highest-grade projects globally but
also with Resource tonnes which compare favourably with those of
Vittangi (see Table 1). Further, this does not take into account
any future Resources to be derived from GreenRoc's separate,
high-grade Kalaaq Deposit (for which a revised Exploration Target
is awaited).
Table 1. Comparison between Talga and GreenRoc flagship graphite
projects
Company Market Project Reserves Resources ET Grade Contained Combined Stage
Cap (Mt) (Mt) (Mt) (%) Ore (Mt) Contained
Ore (Mt)
A$412m
(ASX: Vittangi
Talga TLG) (Sweden) 2.26 24 0.5447
--------- -------------- --------- ---------- ------ ------ ---------- ----------- ------------
19.5 24 4.673 5.22 Feasibility
----------------------------------- --------- ---------- ------ ------ ---------- ----------- ------------
GBP6.7m Amitsoq
(AIM: Island
GreenRoc GROC) (Greenland) 8.28 19.75 1.63 Resource
--------- -------------- --------- ---------- ------ ------ ---------- ----------- ------------
5-15 18-22 0.9-3.3 2.53-4.93
----------------------------------- --------- ---------- ------ ------ ---------- ----------- ------------
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 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.
Without prejudice to the generality of the foregoing,
uncertainties also exist in connection with the ongoing Coronavirus
(COVID-19) pandemic which may result in further lockdown measures
and restrictions being imposed by Governments and other competent
regulatory bodies and agencies from time to time in response to the
pandemic, which measures and restrictions may prevent or inhibit
the Company from executing its work activities according to the
timelines set out in this announcement or indeed from executing its
work activities at all. The Coronavirus (COVID-19) pandemic may
also affect the Company's ability to execute its work activities
due to personnel and contractors testing positive for COVID-19 or
otherwise being required to self-isolate from time to time.
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
Lars Brünner, Interim CEO +44 20 3950 0724
Cairn Financial Advisers LLP (Nomad)
James Caithie / Sandy Jamieson /
Louise O'Driscoll +44 20 7213 0880
ETX Capital (Broker)
Tom Curran / Thomas Smith +44 20 7392 1494
St Brides Partners Ltd (Financial
PR & IR) Susie Geliher / Oonagh Reidy
/ Charlotte Page +44 20 7236 1177
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 the above Exploration Target for the Amitsoq
Island Deposit is conceptual in nature, there has been insufficient
exploration to estimate a Mineral Resource in respect of the area
covered by the Exploration Target and it is uncertain if further
exploration will result in the estimation of a Mineral Resource in
respect of that area.
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