Greenland long life REE + Uranium confirmed PFS

[Sparty]

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.