AuKing Mining (ASX:AKN) has entered a binding term sheet to earn up to 75% of the Qeqertaasaq Niobium and Rare Earths Project in western Greenland with no upfront cost.
The company can earn its interest by sole funding €10 million ($16 million) in exploration over six years across three stages, starting with €3 milion by September 2028 for an initial 30% stake.
The 64km² exploration licence covers the Qeqertaasaq carbonatite complex, a 5km by 3km intrusive system hosting shallow pyrochlore-bearing niobium mineralisation. Rare earth mineralisation occurs in steeply dipping veins, with the Discovery Vein extending over 750m of strike and at least 200m down dip.
Managing Director Paul Williams says the recent treaty between the US, Denmark, and Greenland has recognised the potential significance of Greenland’s critical minerals sector.
“One of the key reasons for securing Qeqertaasaq is the significant database of historical exploration, including more than 10,000m of drilling since the mid-1970s,” Williams says.
“A key early activity will be a thorough review of all available historical exploration data, prior to formulating the next phase of exploration activities.”
Historical exploration at Qeqertaasaq returned surface samples up to 11.80% niobium pentoxide (Nb2O5) and 12.30% total rare earth oxides (TREO).
Shallow drilling in 1975 delivered intersections including 15.90m @ 0.80% Nb2O5 from 3.60m and 10.40m @ 1.29% Nb2O5 from 1.90m. These, AuKing says, compare favourably with Canada’s Niobec operation, which averages 0.37–0.42% Nb2O5.
Deeper drilling in 1976 yielded 84.37m @ 0.51% Nb2O5 from 13.35m, including 32.43m @ 1.06% Nb2O5 from 44.47m.
Preliminary metallurgical testwork in 2011 demonstrated greater than 80% TREO recovery from coarsely crushed material under mild hydrochloric acid conditions at 50°C, without fine grinding or pre-concentration.
The project features year-round helicopter access from major airports; and the location itself remains snow- and ice-free.
The transaction requires Australian Securities Exchange confirmation that full quotation re-compliance will not be required under Chapter 11 of the listing rules.
AuKing intends to compile historical data before commencing resource definition drilling of 3,000–5,000m to establish an inferred mineral resource estimate, alongside bench-scale metallurgical sampling and testwork.
The company says it remains funded to support the transaction while continuing its 15,000m drilling program at the Tundulu Rare Earths Project in Malawi.
AuKing Mining is a mineral explorer and developer focusing on critical minerals, uranium, and base metals.
Write to Paula Fabe at Mining.com.au
Main image: AuKing Mining
