GCIGreenRoc Mining discovers significant maiden resource at Amitsoq
(GROC ) said it finds itself in “a highly enviable position” after discovering a significant maiden ore resource at the Amitsoq Graphite Project in southern Greenland.
Greenroc, which was created to buy the spun-out assets of Alba Mineral Resources, said a maiden combined indicated and inferred JORC resource has been defined at Amitsoq of 8.28 million tonnes (Mt) at an average grade of 19.75%, giving a total graphite content of 1.63 Mt.
The company explained that this includes ‘a particularly high-grade contribution’ from the lower graphite layer of 3.67 Mt at a grade of 21.19%, for 0.775 Mt of contained graphite.
It said the resource confirms Amitsoq’s position ‘as one of the highest-grade graphite deposits globally,’ supporting the firm’s objective of fast tracking Amitsoq into the development phase.
In particular, the total graphite content of 1.63 Mt outlined by the maiden resource exceeds the upper end of the tonnage range in the previously declared Amitsoq Exploration Target (which implied between 0.408 to 1.620 Mt of contained graphite from the entire target area).
Over 25% of the contained graphite in the resource falls within the higher category of Indicated Resources, providing additional confidence that ‘a more significant, high-category resource can be established following the forthcoming phase 2 drilling campaign,’ it stated.
Greenroc highlighted that planning and procurement for the Phase 2 drilling campaign at Amitsoq is well underway with appointment of contractors due to be finalised this month.
The company outlined that 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.
In addition, Greenroc said metallurgical testing has confirmed that the Amitsoq graphite can be upgraded to a more than 99.95% pure graphite product, which is the specification requirement for EV lithium-ion batteries (the ultra-high growth sector of the graphite market).
Commenting on the maiden resource, GreenRoc’s Chief Executive Officer, Kirk Adams, commented: “This Maiden JORC Resource launches GreenRoc into the global graphite resource space with one of the highest-grade graphite projects in the world. We now find ourselves in a highly enviable position at Amitsoq following this outstanding maiden result.”
“Most graphite projects have average grades in single digit percentages and, according to S&P Global, the average grade of graphite resources worldwide stands at just 8.45%. The implication of our very high average grade at the Amitsoq deposit should not be overlooked, since it reduces the cost of mining and mineral production on a per tonne of concentrate basis, as well as reducing the amount of waste per tonne of ore mined,” he commented.
He told investors: “We believe the consistency and true widths of the orebodies at the Amitsoq deposit bode well for future mining and processing operations. Furthermore, it has been shown from previous metallurgical testing that this material can be upgraded to a more than 99.95% pure spherical graphite product, which is the requirement for EV batteries.”
He said global consumption of this type of high purity spherical graphite “is forecast to be at least 3 times higher by 2030, and supply shortages are predicted in the near to medium term.”
Therefore, he highlighted that the projected future need for high purity spherical graphite, which is driven by the explosive growth in electric vehicle sales, is now “growing very rapidly.”
“Despite the fact that more than half of the Exploration Target area for Amitsoq remains undrilled, this Maiden Resource has already exceeded the total resource tonnages predicted in that Exploration Target, as well as surpassing the total contained graphite target for the area. GreenRoc is now in the process of planning and procuring drilling services to drill out the remaining extent of the Exploration Target area at the Amitsoq Island deposit this summer.
“We are confident that the resource on Amitsoq Island will increase in both tonnes and classification following this year’s programme to the extent that we hope to have the resource basis to undertake a detailed feasibility study on the deposit. We are also mindful of the additional considerable upside potential still to come from the, as yet undrilled, Kalaaq Deposit to the south of Amitsoq. In summary, I believe that this Maiden Resource confirms Amitsoq as one of the leading graphite projects in the world, with both exceptional grades and significant tonnes, and with more to come from the 2022 drilling campaign,” he added.
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