INTERCEPTS Fri 22/08/2014

PFS good news for Greenland’s uranium project

4th May 2012

PERTH, May 4 – A prefeasibility study for Greenland Minerals and Energy envisages a 2014 construction start on a $US1.53B opencut mine, mineral concentrator and refining plant at the Kvanefjeld uranium project in southern Greenland.

First production at 7.2Mtpa is due in 2016 with an initial mine life over 33 years based on 619Mt indicated mineral resources near surface.

Forecast annual production is 2.6Mlb uranium oxide (U3O8), 4200t heavy rare earth hydroxide (TREO), 10,400t mixed rare earth carbonate (TREO) and 26,200t light rare earth carbonate (TREO).

The project will also produce high‐grade zinc sulfide concentrate. Unit costs of production below $31/lb U3O8 and $8/kg TREO place Kvanefjeld in the bottom half of the uranium cost curve and one of the lowest cost REE producers worldwide.

Pre‐tax, ungeared IRR is 32% and cash payback period below four years based on $70/lb U3O8 and $41.60/kg TREO. Pre-tax NPV is $4,631M (10% discount rate).



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