GCIGreenRoc's Phase 2 drilling at Amitsoq supports significant upgrade in resource tonnage
( ) announced this morning the completion of its Phase 2 drilling programme at the Amitsoq Graphite Project in southern Greenland. Results from all holes show mineable widths of high-grade graphite, and more than double the drilled extent of the deposit footprint. As a result, a significant upgrade in the Project's resource tonnage is expected.
Highlights
Drilling was completed on 17 September 2022, with 19 holes drilled for a total of 2,844m. All holes reached target depths and intersected significant graphite layers, extending the deposit to the west by c. 100m and to the northwest and the north by c. 150m in horizontal directions. This more than doubled the deposit footprint, which continues to remain open, the company said.
The Lower Graphite Layer (LGL) shows mineable thicknesses greater than 2.0m in all 19 holes with true thickness varying between 2.50m and 20.69m. The Upper Graphite Layer (UGL) shows mineable thicknesses greater than 2.0m in eight holes with true thickness varying between 2.72m and 7.99m. The LGL appears to form the main orebody of the deposit, with surface outcrops suggesting a potential continuation of significant LGL thicknesses for several hundred meters towards the north.
GreenRec reported exceptionally high grades of up to 23.01% graphitic carbon in the LGL, and up to 19.83% in the UGL in Phase 1, with Phase 2 drilling suggesting similar ore grades.
The results are expected to support a significant upgrade in the Projects' resource tonnage, with analytical results expected in Q4 2022. Despite extensive drilling, the deposit remains open towards the north, west and southwest, indicating significant further resource potential.
Stefan Bernstein, CEO, commented:
"Amitsoq continues to prove to be an exceptional graphite deposit. These drilling results have surpassed our expectations that were based on last year's already successful drilling programme and give me much excitement for the development potential ahead. The graphite layers show better continuity and greater thicknesses than we could have hoped for; to achieve true graphite layer thickness of up to 20.69m and consistent LGL thicknesses of more than 14m is a fantastic outcome and coupled with the graphite orebodies being open in three directions holds promise that we are truly developing a world-class graphite deposit at Amitsoq."
View from Vox
Today's results further solidify Amitsoq's status as one of the highest-grade graphite deposits in the world. The March 2022 maiden JORC Resource for Amitsoq showed 8.3m tonnes at an average grade of 19.75% Cg. Today's results support an upgrade to that resource tonnage, with further upgrades possible as the deposit remains open towards the north, west, and southwest.
Indeed, GreenRoc said today's results suggest the tonnage potential exists to support a significant new mining opportunity. The company's current focus is on delivering the upgraded resource tonnage as well as ongoing development work. GreenRoc has now completed its 2nd year environmental baseline work at Amitsoq, with EIA/SIA work in progress, and a view of completing feasibility studies in the near term to reflect the upgraded resource assessment and support a substantial mining operation at the site.
GreenRoc shares were up 3.45% today on the announcement.
In July, GreenRoc was granted a new exclusive Mineral Exploration Licence (MEL) by the government of Greenland, covering a potential southerly extension to the Kalaaq deposit (adjacent to Amitsoq island), as well as several known graphite showings that are separate from both the Amitsoq Island and Kalaaq deposits. Previously, GreenRoc had reported a significant upgrade to Kalaaq's exploration target.
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 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.
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