GreenRoc Mining plc (AIM: GROC), a company focused on the development of critical mineral projects in Greenland, is delighted to announce a significant maiden ore resource (“Maiden Resource”) at the Amitsoq Graphite Project in southern Greenland (“Amitsoq” or the “Project”), one of the highest-grade graphite deposits in the world.
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· 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.
· 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.
· This Maiden Resource confirms Amitsoq’s position as one of the highest-grade graphite deposits globally and supports the Company’s objective of fast tracking the Project into the development phase.
· 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 Maiden 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.
· 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 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.
· Metallurgical testing confirms 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).
GreenRoc’s CEO, 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.
“A review of our peers in this sector reveals that deposits with compliant resources above 20% contained graphite grade are scarce. 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.
“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. 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. The projected future need for high purity spherical graphite, driven by the explosive growth in EV sales, is growing very rapidly.
“Despite the fact that more than half of the Exploration Target area for Amitsoq Island 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.”
Figure 1 . Amitsoq Graphite Project in southern Greenland, showing Amitsoq Island graphite deposit to the north (site of the former graphite mine) and Kalaaq Deposit to the south.
The Maiden JORC Resource at the Amitsoq Island Project was calculated from 10 drill intersections drilled from three drill pads along the island’s ridge, to test the down-dip continuation of the Upper Graphite Layer (“UGL”) and the Lower Graphite Layer (“LGL”), which outcrop along the eastern face of the island. The assay results from the drilling programme were reported by the Company on 3 December 2021.
Further details in respect of the Resource are set out in Tables 1 and 2.
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.
For further information, please contact:
GreenRoc Mining Plc
Kirk Adams, CEO
+44 20 3950 0724
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