Greenland Mines (NASDAQ:GRML) says a high-case sensitivity in an initial assessment returns a pre-tax net present value (NPV) of up to US$2.05 billion ($2.86 billion) for the Sarfartoq Neodymium-Praseodymium Rare Earth Project in southwest Greenland.
The calculation gives the project an internal rate of return (IRR) of 118.6%, using an 8% real discount rate and including indicated and inferred mineral resources.
The high case assumes a rare earth basket price 15% above the study’s base assumptions, operating costs 15% lower, and capital costs 20% lower. The mine schedule, physical parameters, and metallurgical recovery remain unchanged.
An indicated-only version of the high case returns a pre-tax NPV of up to US$1.49 billion and an IRR of 92.7%.
No reserves have been estimated at Sarfartoq. Greenland Mines notes that inferred resources are considered too geologically speculative to support reserves and there is no certainty the assessment outcomes will be achieved.
Independent consultancy Agricola Mining Consultants prepared the assessment under US Securities and Exchange Commission Regulation S-K Subpart 1300.
The assessment covers only the ST1 deposit, one target within the broader 191km² Sarfartoq carbonatite district.
The study draws on an updated resource previously reported by Mining.com.au, comprising 6.9 million tonnes (Mt) @ 1.6% total rare earth oxides (TREO) in indicated resources and 5.3Mt @ 0.96% TREO in inferred resources.
The proposed nine-year operation would process around 1.4Mt annually at an average head grade of 1.32% TREO. Metallurgical test work produced a concentrate grading approximately 8.25% TREO at a design recovery of 63.6%.
Greenland Mines says projected annual neodymium-praseodymium (NdPr) oxide production from ST1 would equal about 34% of all NdPr oxide refined outside China, based on 2025 consumption levels.
President Bo Møller Stensgaard says the assessment captures only a small part of the broader licence.
“This initial assessment shows the extraordinary scale of value embedded in just a small portion of Sarfartoq,” Stensgaard says.
The company’s proposed acquisition of Sarfartoq remains subject to closing. Under the transaction, Canada’s Neo Performance Materials (TSX:NEO) is expected to become a strategic Greenland Mines shareholder and retain non-binding offtake rights over up to 60% of future concentrate production.
The concentrate could be processed at Neo’s Silmet rare earth separation facility in Estonia.
Greenland Mines plans infill drilling, pilot-scale metallurgical test work, mine engineering, and further environmental and social studies as it progresses Sarfartoq towards a Prefeasibility Study.
Five other known rare earth occurrences lie along the carbonatite complex’s approximately 32km outer ring structure. Greenland Mines says less than 1% of the licence has been explored in detail.
Its technical team is scheduled to return in September for drone-based magnetic surveying and follow-up exploration.
Greenland Mines is a Nasdaq-listed company with mining and biotechnology divisions. Its mining activities focus on critical minerals and precious metals projects in Greenland.
Write to France Pinzon at Mining.com.au
Images: Greenland Mines
