[LINK] Rare Earths

[stephen at melbpc.org.au]

In a world increasingly needing "rare earth" elements, currently almost
completely controlled & produced in China, this appears excellent news:


> From:   The Australian Investor
> Date:   Thu, 02 Dec 2010 18:16:54 +1100 
> Subject:   Business News and Market Wrap (snip)


Greenland Minerals and Energy Limited (ASX: GGG) has defined one of the 
largest rare earth element (REE) resources in the world at Kvanefjeld, 
Greenland, with the potential to meet the world's rapidly growing demand 
for rare earths. 

Managing Director Mr Roderick McIllree said the Company saw Greenland as 
a favourable mining location when it began looking a few years back as it 
was one of the world's most politically stable and prospective countries. 

GMEL launched a field program that included airborne radiometric and 
magnetic surveys, environmental studies, geological investigations and a 
diamond drill program. 

A large JORC-compliant multi-element resource (rare earth elements, zinc, 
and uranium) was defined at Kvanefjeld plateau, which represents just a 
small percentage of the broader Ilimaussaq ore field. 

The resource statement estimates the inventory of contained metal within 
a 457 Mt ore body to be: 4.91 Mt of Total Rare Earth Oxide (TREO), 0.99 
Mt and Zinc, 0.12 Mt of Uranium Oxide (283 Mlbs), and 3.09 Mt of NaF. 

"The project is not only financially viable, it is amazingly so," Mr 
McIllree commented. 

"It has the potential to produce 30 to 40% of the world's demand of these 
metals at a negative cost once the mine is up and running." 

To put the Project into perspective in comparison to others, it is equal 
to the Baiyun Obo Rare-earth Iron Mine in China which is the largest 
single source of rare-earths in the world. 

"Effectively what we have here is the equivalent in terms of metal 
content to a Rossing South and the Baiyun Obo mines both rolled into 
one," Mr McIllree stated. 

"People generally understand China is a dominant player but we see this 
Project as something that will eventually sit up alongside and compete 
directly with China." 

"Viewed from that point what that means is that this unique project has 
the capacity to form an effective a duopoly with China."

In closing, Mr McIllree said the key competitive advantage of an orebody 
like Kvanefjeld was threefold, 1. It is a poly-metallic providing 
protection in metal price volatility, 2. The commodities at Kvanefjeld 
are based around energy and 3. This orebody occurs less than 6km from 
tide water in a politically stable OECD country, i.e no nationalisation 
here!! 

 http://www.theaustralianinvestor.com.au/magazine.asp 

--

Cheers,
Stephen
Nb, $0 association.


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