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Greenland Energy and Minerals (ASX: GGG) target price $2.25 following +ve PFS

Sparty — Thu, 17 May 2012 03:28:46 GMT

Shaw Stockbroking increases Greenland Minerals valuation to $2.25 per share following positive Prefeasibility outcomes

Greetings!
Please follow this link to read full Shaw Stockbroking Company Report

Event

Completion of Pre-Feasibility Study (PFS) on the Kvanefjeld rare earth and uranium orebody, and now moving to Full Feasibility Study and completion of Environmental and Social Impact Assessments (EIA & SIA respectively) by year end.

Highlights

The main conclusion of the PFS is that the Kvanefjeld project generates a pre-tax NPV10% of US$4,631M based on a long term uranium price of US$70/lb and price basket of Total Rare Earths Oxides of US$41.60/kg. In a "post-tax" basis, the NPV10% is US$2,947M. Evaluation of a mine, mineral concentrator and intermediate refinery to treat 7.2Mtpa of ore to extract rare earth elements (REE), uranium and zinc has been assessed by the PFS.
GGG has identified a processing flow-sheet based on beneficiation of the mined ore to produce a high grade REE-uranium mineral concentrate, followed by conventional atmospheric acid leach, solvent extraction and precipitation to separate the uranium and rare earths into high quality, high value products. The processing plant is expected to produce four (4) main products including 2.6Mlbs of U3O8, 26,200tpa of Light Rare Earth Carbonates, 10,400tpa of mixed Rare Earth Carbonates and 4,200tpa of Heavy Rare Earth Hydroxide as well as a high grade Zinc Sulphide (ZnS) concentrate. Production startup in 2016. This new processing system is significantly more simplified and less risky than the 2009 high pressure leaching system, that incorporated autocalve technology.
Unit costs of production of less than US$31/lb U3O8 and US$8/kg TREO places Kvanefjeld in the bottom half of the cost curve for uranium producers and the lowest cost of the REE producers in the world. Capital costs of US$1.53bn have been reduced from the 2009 PFS of US$2.4bn due to operational efficiencies identified in the new processing system. Current resources of 861Mt of ore containing 512.8Mlbs of uranium, 9.22Mt of TREO and 1.98Mt of zinc with a project mine life of +100 years.

Shaw Stockbroking Recommendation

We have modelled the main components of the PFS to look at sensitivities to capital costs, the uranium price and a basket of rare earth products. Our key modelling uses a uranium price assumption of US$60/lb (GGG = US$70/lb) for the project life and a basket of rare earths pricing at US$41.65/kg (equal to the company's assumptions and assuming a 40% price discount for processing). These parameters give us a valuation for the project (ungeared) at the pre-tax level of US$3.808bn and US$3.080bn after tax using a discount rate of 10%. We have discounted this valuation by 50% for the binary nature of a zero-tolerance uranium stance by the Greenland Government on uranium mining and GGG's 61% interest in the project. On these assumptions, we have increased our price target to $2.25 from $1.80/share, a 350% premium to the current share price of $0.41. Shaw Stockbroking recommends BUY.

To read the full Company Report go to:
http://www.ggg.gl/docs/shaw-research/company-report-16-May-2012.pdf

Lynas LAMP world class standard

Sparty — Thu, 10 May 2012 13:43:38 GMT

International expert calls LAMP "world class"
Free Malaysia Today
PETALING JAYA: Lynas Corporation's rare earth plant in Gebeng has won recognition as a ?state-of-the-art facility? from an international expert who toured the plant on Tuesday. Alastair Neill, the executive president of Dacha Strategic Metals, ...
See all stories on this topic ?

Lynas suits set for June 12 and 19
New Straits Times
KUALA LUMPUR: Lynas Corporation Limited's application to get a court order to prevent anti-Lynas group, Save Malaysia Stop Lynas, from further publishing alleged defamatory statements in its blog will be heard at the High Court on June 19.
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Rare Earth Experts Impressed With Lynas Facility
Bernama
Alastair S Neill, a leading rare earth expert from Canada, who is also Executive Vice-President of Dacha Strategic Metals, said he was impressed with Lynas Corporation's production facility which was of world class standard.
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Greenland long life REE + Uranium confirmed PFS

Sparty — Fri, 04 May 2012 03:35:30 GMT

Kvanefjeld Prefeasibility Study Confirms a Long-Life, Cost Competitive Rare Earth Element - Uranium Project

Friday, 4th May, 2012

Click to see full Prefeasibilty Study ASX release

Key Study Outcomes Include:

The Prefeasibility Study outlines an initial development scenario with an annual mine throughput of 7.2 Mt, to generate four main products as well as a high-grade zinc sulfide concentrate:
- Uranium Oxide - 2.6 Mlbs pa U3O8
- Heavy Rare Earth Hydroxide - 4,200 tpa TREO
- Mixed Rare Earth Carbonate - 10,400 tpa TREO
- Light Rare Earth Carbonate - 26,200 tpa TREO
Unit costs of production are low; less than US$31/lb U3O8 and less than US$8/kg TREO (as contained in the three combined rare earth products). This places the Kvanefjeld Project into the bottom half of the cost curve for uranium producers and it will be one of the lowest cost REE producers worldwide.
The Kvanefjeld Project generates a pre-tax, ungeared internal rate of return of 32% and a cash payback period less than 4 years, based on long term prices of US$70/lb U3O8 and US$41.60/kg TREO. The pre-tax NPV is US$4,631 M (at 10% discount rate).
Capital costs of an open cut mine, a mineral concentrator and a refining plant, capable of treating 7.2 Mtpa, is estimated to cost US$1.53 Billion (inclusive of US$247 M contingency).
The Project has an initial mine life of over 33 years, based on the indicated mineral resources established near surface at the Kvanefjeld deposit. Construction is scheduled to commence in 2014 and first production in 2016.
Highly efficient process flowsheet established drawing on conventional, proven methodologies;
- Beneficiation utilising froth flotation achieves high up-grade ratio with dominant REE-uranium minerals concentrated into <15% of ore mass
- Atmospheric leaching of mineral concentrates using sulfuric acid results in >90% extraction of heavy REEs and uranium, with slightly lower LREE extraction. High purity concentrates recovered using solvent extraction.
The Kvanefjeld Mineral Resource contains 619 Mt and is located 7 km from tidewater, with deep fjords running directly to the North Atlantic Ocean. The resource is mostly outcropping and within 300 m of ground surface. Local infrastructure is well established, with the local town of Narsaq within 10kms of the mine and an international airport at Narsarsuaq 30 kms away.
Mining studies indicate a large open pit with a low waste strip ratio (1.1 tonne of waste for each tonne of ore) in addition to the highest grade material occurring at surface. Total life of mine production is 232.6 Mt at an average mine grade of 341 ppm U3O8 and 1.22% TREO.
The recent exploration programs have resulted in a significant increase in resource inventory, which now includes the new discovery at Zone 2. The Zone 3 resource will be added during Q2 2012. The total resource currently stands at 861Mt, and contains 512 Mlbs U3O8, 9.22 Mt TREO and 1.98 Mt Zn (at a 150ppm U3O8 cut-off grade). This provides an opportunity to potentially increase the Project mine life to in excess of 60 years.

To read the full ASX announcement go to: http://www.ggg.gl/docs/ASX-announcements/Kvanefjeld-Prefeasibility-Study-4-May-2012.pdf
ABOUT GREENLAND MINERALS AND ENERGY LTD.
Greenland Minerals and Energy Ltd (ASX - GGG) is an exploration and development company focused on developing high-quality mineral projects in Greenland. The Company's flagship project is the Kvanefjeld multi-element deposit (Rare Earth Elements, Uranium, Zinc), that is rapidly emerging as a premier specialty metals project. An interim report on pre-feasibility studies has demonstrated the potential for a large-scale multi-element mining operation. For further information on Greenland Minerals and Energy visit http://www.ggg.gl or contact:

Roderick Mcillree

Christian Olesen (DK)

Managing Director

Rostra Kommunikation

+61 8 9382 2322

+45 (0)3336 0429

Greenland Minerals and Energy Ltd will continue to advance the Kvanefjeld project in a manner that is in accord with both Greenlandic Government and local community expectations, and looks forward to being part of continued community discussions on the social and economic benefits associated with the development of the Kvanefjeld Project.

Free Uranium ASX: GGG

Sparty — Mon, 30 Apr 2012 08:47:02 GMT

By selling either their Uranium or REEs or Zinc GGG's uranium will be essentially produced for zero cost.

Monday, 30th April, 2012

Highlights Below:

Click to view full Q1 2012 Quarterly Report

Initial Zone 2 mineral resource estimate confirms a second major multi-element deposit within the project area:
- 242 Mt @ 304 ppm U3O8, 1.1% total rare earth oxide (TREO)
- High-grade upper lens of 119 Mt @ 400 ppm U3O8, 1.2% TREO offers potential to significantly increase project mine life, and improve grade of mine-scheduled ore
- Zone 2 features the same mineral mix as the giant Kvanefjeld deposit, located 6 km to the north
Project global resource base expanded to 861 Mt, containing 512 Mlbs U3O8, 340,000 t heavy REO, 750,000 t yttrium oxide, 4.4 Blbs zinc
- Zone 3 initial resource estimate anticipated in the coming weeks; set to further increase the global resource base
Atmospheric leaching of REE-U-rich mineral concentrates yields >90% extraction of heavy REEs and uranium
Enhanced process flowsheet completed, based on effective beneficiation followed by atmospheric sulphuric acid leach and solvent extraction recovery
Prefeasibility study on Kvanefjeld stage 1 development scenario set for imminent release

Through the following link you can access Q1 2012 Quarterly Report -->>
http://www.ggg.gl/docs/quarterly-reports/Q1_2012_Quarterly_Activity_Report.pdf

I hold GGG

Greenland Energy and Minerals (ASX: GGG) target price $1.80 - $6.36

Sparty — Thu, 19 Apr 2012 02:17:33 GMT

Greenland Minerals and Energy ( ASX: GGG ) has received a Buy recommendation from RM Research with a medium term target of A$1.80 to A$6.36 being applied.

Few people seem to recognize the value of ASX:GGG's Greenland and other deposits. As a long term holder I can say that it has been a roller coaster ride.... but the upside is huge. I have posted about GGG many times both here and on www.australian-shares.com.

Consequently it is very pleasing to see that respected brokers RM research have given GGG such a tick of approval.

Read the full RM report

Read the Proactive Investors article

"Given that a 861mt resource containing 9.2mt of TREO and 512mlb of uranium has so far been defined at Kvanefjeld, regional continuity of the lujavrite sequence suggests that the ultimate resource (albeit significant component of which will likely be exploited by underground operations) may approach 5bt containing more than 50mt of TREO and 3b lb uranium, or roughly a deposit that is 10 times the size of what is defined to date."