Greenland Resources Announces Pit Constrained Mineral Resource Estimate on Its Malmbjerg Molybdenum Project

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TORONTO, Nov. 23, 2018 (GLOBE NEWSWIRE) — Greenland Resources Inc. (“Greenland Resources” or the “Company”) is pleased to announce that RPA Inc., of Toronto, Canada, has prepared an independent Mineral Resource estimate of 247.1 million tonnes grading 0.180% MoS2 in Measured and Indicated Resource categories at the Company’s 100% owned, Malmbjerg Molybdenum Project (the “Project”).

The Project is a Climax-type molybdenum mineral deposit located close to tidewater in central-east Greenland, with a historic 2008 Feasibility Study. A technical report providing the details of the 2018 resource estimate for the Project prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) will be filed under the Company’s profile on SEDAR.

Resource Estimate Highlights

  • Measured and Indicated Resources of 247.1 million tonnes at 0.180% MoS2, for 587 million pounds of contained molybdenum metal.
  • Inferred Resources of 12.1 million tonnes at 0.115% MoS2, for 18.4 million pounds of contained molybdenum metal.
  • Mineral Resources were constrained within a Lerchs – Grossman pit shell generated using a price of US$14.00/lb molybdenum.
  • RPA has considered appropriate practical mining parameters, operating efficiencies, costs and revenue assumptions to define material considered to have reasonable prospects for eventual economic extraction.

Table 1 shows the Mineral Resource Estimate for the Project and Table 2 shows the Measured and Indicated Resources at different cut-off grades.

Table 1. MINERAL RESOURCE ESTIMATE – NOVEMBER 19, 2018

Classification Tonnes (Million) Grade (% MoS2)
Measured 71.1 0.212
Indicated 176.0 0.167
Total Measured & Indicated 247.1 0.180
     
Inferred 12.1 0.115
     

Notes:

  1. CIM (2014) definitions were followed for Mineral Resources.
  2. Mineral Resources were estimated at cut-off grade of 0.08% MoS2.
  3. Mineral Resources were estimated using a long-term molybdenum price of US$14/lb Mo.
  4. Estimate is constrained by a Lerchs Grossmann shell.
  5. Average bulk densities used were 2.62 t/m3 for intrusive host rocks and 2.67 t/m3 for sedimentary rocks.
  6. Mining costs were US$3.30/t; G/A costs were US$3.00/t; process costs were US$8.00/t and molybdenum plant recovery of 86% was assumed. These parameters were derived from engineering studies carried out by Moose Mountain Technical Services (MMTS) in 2018.
  7. Numbers may not add due to rounding.

Table 2. MEASURED AND INDICATED RESOURCES AT DIFFERENT CUT-OFF GRADES – NOVEMBER 19, 2018

Cut-off Grade (%) Tonnes (Million) Grade (% MoS2)
0.15 156.2 0.218
0.13 181.4 0.207
0.12 194.8 0.201
0.11 208.5 0.196
0.10 221.8 0.190
0.09 234.9 0.185
0.08 247.1 0.180
0.07 259.1 0.175
     

Notes:

  1. CIM (2014) definitions were followed for Mineral Resources.
  2. Mineral Resources were estimated at cut-off grade of 0.08% MoS2.
  3. Mineral Resources were estimated using a long-term molybdenum price of US$14/lb Mo.
  4. Estimate is constrained by a Lerchs Grossmann shell.
  5. Average bulk densities used were 2.62 t/m3 for intrusive host rocks and 2.67 t/m3 for sedimentary rocks.
  6. Mining costs were US$3.30/t; G/A costs were US$3.00/t; process costs were US$8.00/t and molybdenum plant recovery of 86% was assumed. These parameters were derived from engineering studies carried out by Moose Mountain Technical Services (MMTS) in 2018.
  7. Numbers may not add due to rounding.

Resource Estimate Overview

The Malmbjerg Molybdenum Deposit Mineral Resource has been estimated in accordance with CIM (2014) Definition Standards, as incorporated in National Instrument 43-101, based on geological confidence, data quality and grade continuity.

RPA has interpolated molybdenum sulphide grades into a block model using Ordinary Kriging to provide block grade estimates constrained by 3D wireframes. Wireframe models used for constraining the estimate included a volume enclosing the drilled area, the sediment/intrusive contact, and trachyte dikes. The block size was 15m x 15m x 12m with no sub-blocking. Samples were composited to 10m downhole intervals and each composite was assigned a code according to the dominant rock type. High-grade composites were capped at 0.75% MoS2 in the intrusives and 0.40% MoS2 in the sediments. Estimation parameters were derived from geostatistical analysis with search ellipsoids at 1/3, 2/3, and full Variogram ranges.

With this resource estimate and new ideas brought in by our engineering consultants and management, the Company is producing an updated version of the Concept Study reported in its July 30, 2018 press release with the aim of incorporating a new mine plan, optimizing processing and reducing Capex. Results are expected be to released shortly.

Mineral Resources for the Malmbjerg project have been estimated by David W. Rennie, P.Eng., of RPA Inc., an “independent qualified person” as such term is defined in NI 43-101.

About Greenland Resources Inc.

Greenland Resources is a Canadian reporting issuer regulated by the Ontario Securities Commission, focused on the acquisition, exploration and development of mineral properties in Greenland. The flagship project is the Malmbjerg Molybdenum deposit, a world class Climax-type molybdenum deposit located in central-east Greenland. With offices in Toronto, the Company is led by a management team with an extensive track record in the mining industry and capital markets. For further details, please refer to our web site (www.greenlandresources.ca) as well as our Canadian regulatory filings on Greenland Resources’ profile at www.sedar.com. 

For further information please contact:

Dr. Ruben Shiffman
Jesper Kofoed
Gary Anstey
Corporate office
Telephone
Web
  Executive Chairman
President & CEO
Investor Relations / Business Development
Suite 612, 390 Bay St. Toronto, Ontario, Canada M5H 2A4
+1 647 273 9913
www.greenlandresources.ca
     

CAUTIONARY STATEMENT: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the Company’s objectives, goals or future plans, statements regarding the estimation of mineral resources, exploration results, potential mineralization, exploration and mine development plans, the availability of financing, the timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, failure to convert estimated mineral resources to reserves, the accuracy of mineral reserve and resource estimates and the assumptions on which the mineral reserve and resource estimates are based, capital and operating costs varying significantly from estimates including the costs of operations in remote mountainous environments, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

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