Half year results from GreenRoc (GROC) highlight six months of substantial progress for the Greenland-focused mine developer, not least a threefold increase in the mineral resource estimate (MRE) for its Amitsoq graphite project.
The MRE now stands at 23.05m tonnes at an average grade of 20.41% of graphitic carbon, equating to graphite content of 4.71m tonnes. More importantly still, the graphite has been shown to be ideal for processing into high-purity spherical graphite which is used in the anode of electric vehicle (EV) batteries. Average graphite grades are 8.45%, according to S&P Global.
Further electrochemical testing of spheronised graphite is ongoing, but already the Amitsoq project has been given official support by the European Raw Materials Alliance under its critical metals regime. Amitsoq’s spheronised graphite has achieved higher than 99.95% purity using the cleaner alkaline purification method compared to the industry standard hydrofluoric acid, which requires less energy.
The company – named Greenland’s Prospector and Developer of the Year in March - ended the year with cash of £210k, having raised £0.88m over the year, and reported a reduced loss of £417k. A post-period end placing of £470k gross leaves it well funded to support further testing and work with potential offtake partners, with discussions already underway. There’s also potential for further expansion of the resource in two directions at the Kalaaq Mainland Deposit, which GreenRoc believes have similarly high grades.
GreenRoc's CEO, Stefan Bernstein, commented: "We have taken important steps forward at GreenRoc in the first half of 2023 with regards to the development of our flagship asset, the Amitsoq Graphite Deposit in southern Greenland. The declaration of a significantly upgraded Mineral Resource Estimate in January 2023 not only confirmed the high-grade nature of the Amitsoq graphite ore but increased it to more than 20% graphite, which marks out Amitsoq as a truly world-class project.”
Elsewhere in its portfolio, GreenRoc said that it is close to completing the test work for ilmenite content in drill core samples from the Thule Black Sands project in North Greenland, with results expected this autumn, and that it is studying geophysical data for the Melville Bay Iron Ore Project in the same region to assess its iron ore potential.
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Although there was little new news in this update, reduced losses confirm that the resource is being developed in a cost-effective manner. What’s more, the recent fundraise should accelerate Amitsoq's timeline to production.
Part of the funding will be used to complete Amitsoq's PEA, which will assess all key aspects of a future graphite mining operation, based on a projection of annual mining of 400,000t of ore for the production of c. 80,000t of graphite concentrate. The PEA is on track for release in September and should assist significantly in the next round of discussions with potential customers.
Progress with potential offtake partners is also encouraging, especially a recent request for graphite samples by one in order to conduct its own test work. GreenRoc is in the final stages of separating a large 700kg bulk sample of graphite ore with the assistance of UVR-FIA, that will be used for further test work and to provide material for analysis by more potential customers. The concentrate material is expected to be available in autumn 2023.
Funding also supports crucial work on the Environmental Impact Assessment (EIA) and Social Impact Assessment (SIA) are also on track for delivery in 2024. In August, primary field sampling for Amitsoq's EIA will complete, marking a significant milestone. Equally crucial is the submission of the SIA to the Ministry of Mineral Resources, initiating the negotiation process with the government of Greenland toward exploitation permitting. Coupled with the PEA coming in September, this gives investors much to look forward to before the end of the year