GCIGreenRoc Mining reports significant upgrade to Amitsoq Graphite Project
(GROC ) has significantly increased the exploration target for the Amitsoq Island graphite deposit at the company’s Amitsoq Graphite Project in southern Greenland.
Following the maiden resource estimate announced on 8 March 2022, the exploration target for the Amitsoq Island deposit has now been updated, the Greenland-focused firm explained.
As a result, the exploration target has now 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 total tonnage range of 5-15 Mt at a grade range of 18-22% Cg.
The maiden resource estimate for the Amitsoq Island Deposit, which was reported back in 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.
GreenRoc explained 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.
The company said there is additional considerable upside potential to come from the, as yet undrilled deposit, which is also known as the “Kalaaq Deposit”, to the south of Amitsoq Island; Greenroc said a revised Exploration Target calculation is being undertaken for this deposit.
In a broader context, graphite is considered the core component of an Electric Vehicle (“EV”) battery, with the commodity driving global graphite demand and prices. UBS is estimating a natural graphite deficit of 3.7Mt by 2030, representing around 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. As a result, it says it is 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.”
Brünner stated: “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,” he added.
View from Vox
Amitsoq Graphite is considered one of the highest-grade graphite deposits in the world, and since more than half of theExploration Target area for Amitsoq Island remains undrilled, GreenRoc’s upcoming drill programme will focus on unlocking this resource potential.
If the upper end of the company’s revised exploration target for the Amitsoq Island Deposit is successfully converted into defined Resources following the planned further drilling, GreenRoc said 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.”
Graphite is required for lithium-ion batteries used in electric vehicles and represents between 20 and 24% of the material needed in a battery. According to analysts at 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.
Shares in GreenRoc Mining were trading 5.51% higher during late morning trading at 6.7p.
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