pptKarenHanghj

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

A world of Minerals

- in Greenland

Dr. Karen Hanghøj

Head of Department of Petrology and Economic Geology

Geological Survey of Denmark and Greenland (GEUS)

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Minerals for clean energy and technology

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

CRITICALITY of 11 elements

From US National Research Council, Minerals, Critical Minerals and the U.S. Economy 2008

CRITICALITY

Impact of Supply

Restriction vs Supply Risk

The Impact of Supply

Restriction is a measure of

how important a mineral is

The Supply Risk is a measure

of how vulnerable the supply

is (reasons can be geological,

political, socio-economic,

related to conflicts etc.)

Cu

Li

Ta

Rh

Pt REE

Pd

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Criticality of minerals ’Supply risk’? Rare Earth Element example

From: Center for Strategic and International Studies. Rare Earth Elements: Geology, Geography, and Geopolitics

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

vendredi 16 novembre 2012 Service Ressources Minérales > 7

AND KEY METALLOGENIC PROVINCES

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Mineinfo – producing mines

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Skaergaard Au-PGE deposit

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

• North / South coordinates

59˚46’N / 83˚39’N

• 2,670 km N-S; 1,050 km E-W

• Coastline 44.087 km

• Total area 2,166,086 km2

12th largest nation

• Ice-free area 410,449 km2

60th largest nation; larger than Finland,

Germany, Poland, Norway

• 57,000 inhabitants

• 180 settlements, limited infrastructure

• The worlds largest island

• Fishery and block-grant main income

Greenland - what are the facts?

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Greenland Economy 2010 Subsidies from Denmark 3.301 Billion DKK

Export 2.418 Billion DKK

Shrimp 50 %

Greenland halibut

21 %

Other fish 10 %

Scallop and crab 4 %

Seal, whale and shark 2 % Other

6 %

Mining products 7 %

Danish Ministry of Foreign Affairs. Fact sheet:

Denmark-Greenland, February 2010

http://www.netpublikationer.dk/um/10180/html

/entire_publication.htm

Statistics Denmark, 2010

http://www.dst.dk/pukora/epub/upload/15197/

18fdk.pdf

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Legal background Act on Mineral Resources and Mineral Resource Activities (MRA) and Act

on Greenland Self-Government (AGSG)

• The Danish Parliament’s Act on Greenland Self-Government

(AGSG), entered into force on June 21, 2009

• AGSG gave Greenland’s exclusive authority over its own mineral

resources

• Greenland Parliament Act on Mineral Resources and Mineral

Resource Activities (MRA) Januar 1, 2010 entered into force Januar

1, 2010

• MRA establish the Self-Government of Greenland the sole right of

use of and the right to exploit mineral resources in the subsoil in

Greenland.

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

www.bmp.gl

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

BMP deals with all matters concerning exploration and exploitation of minerals, oil and gas including:

- Licensing policy and fiscal matters

- Applications for exploration and exploitation licenses

- HSE matters, including inspections

- Approval of seismic acquisition

- Exploration drilling

- Development & initiation of production

- Termination of production, etc.

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

• Collaborative partner and advisor to the Greenlandic government (BMP)

• Basic, geological, geophysical and geochemical investigations

• Geological interpretations and mineral resource assessments

• Advise, research and consultancy for private companies

• Databank for geological information about Greenland

• Communication and outreach of knowledge to government, private

companies and others

• Promotion of Greenland’s mineral resources

Geological Survey for Denmark and Greenland

(GEUS)

Department of Petrology and Economic Geology

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Exclusve licences

1 January 2012

Mineral Licenses

Prospecting license:

maximum of 5 years; non-exclusive

Exploration license:

renewable after 10 years; exclusive;

gradually increasing work-commitments.

Exploitation license:

Thirty years. Individual conditions, Tax-

based income generation

Statistics as per January 2012:

142 mineral licences

Exploration costs spent by the licencees in

2011: ~100 Million Euro

Further info on www.bmp.gl

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

0

10

20

30

40

50

60

70

80

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Antal forundersøgelsestilladelser

Antal efterforskningstilladelser

Antal udnyttelsestilladelser

Prospecting Licenses

Exploration Licences

Exploitation Licences

Licenses in Greenland 1997–2012

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Country distribution

• Exploration companies can

be registered abroad

(current 58 % are

Canadian or Australian

companies)

• 15 % of the exploration

companies operating in

Greenland are from the EU

(Denmark, Germany,

Czech Republic and United

Kingdom).

Country distribution (EU / non-EU)

EU

Outside EU

Country of origin

United KingdomSw itzerland

Norw ay

Iceland

Greenland

Germany

DenmarkCanada

Australia

Czech Republic

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Fe

Greenland – what is the potential?

• North Greenland: Pb-Zn-Cu

• East Greenland:

– Mo, Cu

– PGE, Au, Ni

• South Greenland:

– REE, Zr Nb, Ta, U, Th, F

• Archaean:

– Au, Ni, Fe, rubies

• Other potential resources:

– Fe

– Diamonds

– Graphite

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Greenland – what is the potential?

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

From Production to Product – The Value Chain

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Typical process value chain diagram for REE

Crushing

/milling Tailings

Magnet sep

+/- flotation

+/- leaching

Residual (silica gel)

Waste rock

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

From exploration to production –

many steps and a long time to adjust

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Greenland mining projects

Current exploitation licences

• Nalunaq Gold Mine – Angel Mining, London

– Target production 24,000 oz gold

• Seqi olivin mine – Minelco, Sweden

– Target production 1.5 Mt/yr

• Black Angel Mine – Angel Mining

– Target production 0.3 Mt/yr

• Malmbjerget – KGHM, Polen

– Target production 9 Mt/yr

Slide 24 af 20

Malmbjerget

Black Angel

Seqi

Nalunaq

Nalunaq Gold Mine is currently the only producing mine!

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Greenland mining projects

Advanced projects

• Isua Iron Project – London Mining Ltd

– Target production 32 Mt/yr

• TaNbREEZ Project – Rimbal Pty, Perth, Australia

– Target production 0.5 – 5 Mt/yr

• Citronen Zinc Project – IronBark Zinc, Australia

– Target production 3 Mt/yr

• Kvanefjeld REE-Uranium – Greenland Minerals Energy

– Target production 7.2 Mt/yr

• Fiskenæsset ruby project

Slide 25 af 20 The Fiskenæsset Ruby project looks to become another small scale mine!

Citronen

Isua

Fiskenæsset

Kvanefjeld TaNbREEZ

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Angel Mining (Gold) A/S

Nanortalik

Gold found in 1992 –

40 km from Nanortalik

Angel Mining (Gold) A/S – Nalunaq gold

• Underground mine

• New owner: Angel Mining (Gold) A/S

• Production 2004-2008

• Production re-started in 2011

26

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Malmbjerg Mo porphyry deposit

• Measured 52.9 [email protected]% MoS2

• Indicated 163.9 [email protected]% MoS2

• Inferred 12 [email protected]% MoS2

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Isua Banded Iron Formation

28

Isua deposit is located 155km south of Arctic Circle and 150km northeast of the

capital city Nuuk

100% owned by London Mining Plc

Deep water port; open water for year round shipping

First large scale mine in Greenland

Completed PFS for 5 mtpa and 10 mtpa and Scoping Study for 15 mtpa

BFS for 15 mtpa to be completed in primo 2012

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Isua Project Concept • 105km Port to Mine

access road

• Deep water port; exporting

wharf and service wharf

• Conventional and proven

plant designs for operation

• Concentrate delivered by

slurry pipeline to port

storage

• Fuel pumped to the mine

from port through a fuel

pipeline

• Power by diesel generators

• Small airstrip for

construction and operations

• Inter-connected

accommodation complex

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

30

Tanbreez

GME

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Kvanefjeld - Greenland Minerals and Energy Ltd.

JORC Estimated Resource:

619 Mt

6.6 Mt TREO

350 Mlb U3O8

1.36 Mt Zinc

Production 43,000 t TREO/yr

~88 % LREO and ~12 % HREO

Ongoing feasibility study

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

REE, Y, Zr, Nb, Ta in eudialyte

Ressource: 4 Bt @ 2 % ZrO2,

0.25 % Nb2O5, 0.5 % TREO,

0.1 % Y2O3 and 0.03 % Ta2O5

~88 % LREO and ~12 % HREO

~73 % LREO and ~27 % HREO

Mining application in 2012

Kringlerne -Tanbreez Mining Greenland A/S

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Boeing 727 landing at Citronen Fjord

Citronen Fjord Pb & Zn, Ironbark Zinc Ltd.

• Found in 1993

• 44 km drill holes

• 130 mio. tons Pb-

Zn ore.

• 700 km basin with

similar rocks - large

potential

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Fe

Greenland – what is the potential?

• North Greenland: Pb-Zn-Cu

• East Greenland:

– Mo, Cu

– PGE, Au, Ni

• South Greenland:

– REE, Zr Nb, Ta, U, Th, F

• Archaean:

– Au, Ni, Fe, rubies

• Other potential resources:

– Fe

– Diamonds

– Graphite

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D G E O L O G I C A L S U R V E Y O F D E N M A R K A N D G R E E N L A N D

Critical minerals – the potential in Greenland