The Malmbjerg molybdenum deposit is a world class Climax-type molybdenum deposit located in east-central Greenland. The Project was last acquired by a Canadian public company in 2007 for $35 million and approximately $38 million was subsequently spent on development studies and permitting.
The Project benefits from a first Feasibility Study prepared in 2005 by AMEC (Amec Foster Wheeler) based on an underground mining scenario with a measured and indicated resource of 217 Mt grading 0.198% MoS2 at a 0.12% MoS2 cut-off (RPA 2005). In 2008, a second Feasibility Study was completed by Wardrop now Tetra Tech (RPA 2008), based on an open pit mining scenario with the following highlights:
- Measured and Indicated Resources of 286 Mt @ 0.175% MoS2 Effective cutoff 0.085% MoS2, 661M lbs contained molybdenum (RPA, 2008)
- Open pit average production of 18,724 tonnes MoS2 per year, (MoS2) equivalent to 24.7M lbs Mo which constitutes approximately 4.8% of global demand (2016) at a production rate of 30,000 tonnes per day.
- Conventional mill with flotation circuit processing
- Recovery forecast to be 86%
- Concentrate grade expected to be 54% Mo with very low impurity levels (0.5% Cu, 0.5% Zn)
- Estimated Mine Life: 15 – 20 years
- All Front-End Engineering and Design has been completed for plant, camp, port, powerplant and connecting