JOHANNESBURG (miningweekly.com) – ASX-listed Greenland Minerals and Energy (GMEL) on Monday reported that a its prefeasibility study at the Kvanefjeld project, in Greenland, had confirmed the project’s potential to become one of the world’s largest rare-earth mines.

The company stated that the report had given a clear indication that the Kvanefjeld project could be developed as a world-class, economically robust, large-scale mining operation that would produce a rare-earth concentrate and uranium oxide over a 20-year mine life.

Greenland noted that Kvanefjeld’s Joint Ore Reserve Committee (Jorc)-compliant resource estimate, containing 4,79-million tons of rare earth oxides (REO) and 0,12-million tons of uranium oxide, was recognised as the world’s largest REO resource by Jorc standards.

The prefeasibility study provided a net present value (NPV) of $2,18-billion and free cash flow of $8,9-billion over the life of the project using a processing rate of 10,8-million tons a year, a conventional openpit mining system, and a waste to ore strip ratio of 0,8:1.

The study also estimated that construction would start in 2013 with production commencing in 2015.

"Should the Kvanefjeld project be developed as outlined in the interim report it is also highly likely it will play a leading role in alleviating a worldwide shortfall of rare earths," said Greenland Minerals and Energy MD Roderick Mcillree.

He noted that based on the results of its prefeasibility study and associated interim report, GMEL had now taken the decision to accelerate further studies into mining operations at Kvanefjeld to enhance the project economics.

The 2010 work-programme would focus on social and environmental impact studies, beneficiation studies, improving rare earth recoveries and improving mine schedule. The company would also focus on converting inferred to indicated resources and defining new multi-element resources.

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