Greenland Minerals and Energy Limited

Kvanefjeld Feasibility Study

PERTH, WESTERN AUSTRALIA--(Marketwired - May 25, 2015) -

Study Highlights

• The Kvanefjeld resource (>1 billion tonnes, JORC-code 2012) will support an initial mine life of 37 years and provide scope to both expand production and extend the life of the mine significantly.
  
  
• The Project will produce rare earth products, uranium oxide, zinc concentrate and fluorspar.
  
  
• The capital cost of the Project is $1,361M, comprising $1,121 M of project costs (plant, utilities, indirect costs and contingency) and US$240 M of associated infrastructure costs (power, port, village).
  
  
• The cost of producing the primary product, a critical rare earth concentrate, is US$8.56/kg REO (after by-product credits) making Kvanefjeld one of the world's lowest cost rare earth producers.
  
  
• The Project has an after tax net present value of US$1.4 Billion (at a discount rate of 8%) and an internal rate of return of 21.8%.
  
  
• The forecast basket price for the Company's critical rare earth concentrate is US$78.6/kg REO producing an operating margin of approximately US$70/kg.
  
  
• The incremental cost of recovering the uranium from the high-grade mineral concentrate is less than US$6/lb U₃O₈, which will place Kvanefjeld into the bottom quartile of the cost curve for current uranium production
  
  

Greenland Minerals and Energy Limited ('GMEL' or 'the Company') (ASX:GGG)(OTC PINK:GDLNF)(FRANKFURT:G7P) is pleased to announce the completion of a Feasibility Study (the Study) into the development of the Kvanefjeld rare earth - uranium Project (the Project). The Project, located in southern Greenland, comprises several large multi-element deposits rich in rare earth elements, uranium and zinc. Collectively, these deposits represent one of the world's largest identified mineral resources of rare earths and uranium.