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GreenRoc fast-tracks TBS ilmenite project and commences Phase 2 drilling at Amitsoq

11:33, 6th July 2022
Victor Parker
Vox Newswire
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GreenRoc (GROC Follow | GROC), a Greenland-focused mining company, announced today more details of its forthcoming field work programme at Thule Black Sands Ilmenite Project in Northwest Greenland (TBS). The Company also confirmed that Phase 2 drilling has commenced at its Amitsoq Graphite Project in Southern Greenland, which contains one of the highest-grade graphite deposits in the world.

Thule Black Sands Ilmenite Project

GreenRoc announced its field work programme at Thule Black Sands (TBS) is set to commence in Q3 2022, in line with the company's strategy to fast-track the project to mining development. GreenRoc had announced in April the appointment of two Denmark-based consulting firms to carry out an Environmental Impact Assessment (EIA) and a Social Impact Assessment (SIA) at TBS.

Today, GreenRoc further expanded that EIA consultants BioApp Greeland would commence second year environmental baseline studies to provide the foundation of the EIA. Similarly, consultants NIRAS will begin SIA workshops soon. A JORC resource capable of supporting a mining operation and the formal approval of an EIA and an SIA are necessary precursors to an application for a mining licence in Greenland.

GreenRoc's fast-tracking of TBS is testament to its confidence in the ilmenite project's potential. The TBS project's currently benefits from a maiden Mineral Resource Estimate (MRE) of 19Mt@43.6% total heavy minerals, with an in-situ ilmenite grade of 8.9%. The project awaits assessment by mineral sands experts IHC Mining of a 249-hole follow-up drilling programme undertaken in the summer of 2021. These assay results are expected in early August, with a revised assessment by IHC Mining to follow in September. GreenRoc expects the revised assessment to support an even larger Mineral Resource Estimate.

Additionally, GreenRoc has contracted international mining consultancy SLR Consulting to undertake preliminary studies on mining methods and processing plant options for both TBS and Amitsoq. These studies will feed into the EIA process and provide the foundations for future scoping work and other technical development work.

For all of the upcoming work at TBS, GreenRoc has chartered a dedicated vessel, which will act as both a means of transportation and a base camp for various field teams. The vessel is expected to arrive at TBS later in July.

Amitsoq Graphite Project

GreenRoc also provided another update on the Amitsoq Graphite Project today, following multiple announcements and target upgrades so far this year. GreenRoc first discovered a significant maiden ore resource at Amitsoq in March before updating the Project's exploration target. Last month, the company announced it was on track to commence Phase 2 drilling at Amitsoq. It also announced a significant upgrade to the Kalaaq prospect exploration target (Kalaaq is a key deposit at Amitsoq).

Today GreenRoc announced it has commenced that Phase 2 drilling programme. It is expected to take around 12 weeks, targeting an upgrade and increase of the current Maiden JORC Resource of 8.28Mt at 19.75% Graphitic Carbon.

 

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As seen in the chart above, Amitsoq is one of the highest-grade graphite deposits in the world. As more than half of the exploration target area for Amitsoq Island had been undrilled, GreenRoc’s programme is focused on unlocking this resource potential.

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. As a result, the company says it is well positioned to capitalise on the transition to Net Zero.

In a broader context, the demand for graphite is forecast to soar. UBS is estimating a natural graphite deficit of 3.7Mt by 2030, representing around 37% of the total global market. And according to Baker Steel, between 2020 and 2040, a 22-fold increase in graphite for energy technology demand is forecast, and a 10-fold increase across all applications, an increase second only to lithium.

Similarly, GreenRoc's Thule Black Sands Project is positioned to deliver good revenues from high-grade ilmenite deposits. Ilmenite prices have more than doubled in the last two years, driven in part by curtailed production from Rio Tinto's Richards Bay HMS mine, growing demand induced by world population growth, and a supply squeeze on ilmenite.

In addition to Amitsoq and Thule Black Sands, GreenRoc has two more projects. The Melville Bay Iron has an MRE of 67Mt at 31.4% iron and has been proven to be processable to a high-grade, 70% concentrate with low impurities. And the Inglefield Multi-Element Project so far shows promise to host host a range of mineralisation styles, including iron oxide-copper-gold.

Regarding today's announcement, CEO Stefan Bernstein concluded: "Our objective by the end of this summer is for Amitsoq to join TBS in having had the bulk of exploration activities completed so that we can focus thereafter on completing the regulatory and scoping studies which will enable exploitation licences to be applied for at both assets."

GreenRoc has been very active in project development since its AIM listing in September of last year. The company has pursued the right investments and is well-funded and well-positioned for continued expansion. Markets welcomed today's news with GROC shares up 4.7% in early trading.

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