MALMBJERG
The Malmbjerg Molybdenum Project (Figure 1) is an open pit pure molybdenum project ("Project") located within Greenland Resources exclusive mineral exploration license MEL 2018/11 in east central Greenland; ~30 km from the coast, ~ 600 km NW of Iceland and ~ 20 Km from Mestersvig airport (Figure 2). The Project benefits from a NI 43-101 Definitive Feasibility Study completed by Tetra Tech in February 2022, and had a previous exploitation license granted in 2009.
Feasibility Project Highlights:- Base case after-tax IRR of 22.4%, NPV6% of US$1.17 billion using US$18 per pound of molybdenum
- Levered pre-tax IRR of 40.4%, after tax IRR of 33.8% and payback of 2.4 years using US$18 per pound of molybdenum
- Twenty-year open pit mine life with average annual production in years 1-10 of 32.8 million pounds per year of contained molybdenum metal at an average grade of 0.23% MoS2 and average annual LOM production of 24.1 million pounds with a cash cost of US$6.38/lb Mo
- Mineral Reserves 245 million tonnes at an average grade of 0.176% MoS2 containing 571 million pounds of molybdenum metal with very low impurity elements ideal for European high performance steel products
- Environmental mine design and process plant design focused on reduced CO2 emissions and water usage
- Potential to generate LOM corporate taxes of more than US$800 million to the Greenland Government
During 2020, the World Bank report "Minerals for Climate Action: The Mineral intensity of the Clean Energy Transition" named molybdenum as one of the six cross-cutting critical minerals needed in all future green technologies. The International Energy Agency also named molybdenum in 2021 as a critical mineral for the green energy transition. The Malmbjerg project has the potential to supply around 30% of Europe's molybdenum use with very clean molybdenum which is relevant, considering that Europe uses around 25% of global molybdenum supply and has no production of its own. The Project will produce an environmentally friendly molybdenite concentrate where the main processing component is salt water. Because the ore body contain very few deleterious elements, the processing will produce nearly no deleterious elements into the water, environment and tailings. The high quality of the Malmbjerg ore body, having low impurity content, makes it an ideal source of molybdenum for the ultra-strength high performance steel industry in Europe.
