Annual Report 2007
ABN 85 118 463 004
CORPORATE DIRECTORY
1
DIRECTORS
Dr. Hans Kristian (Hank) Schønwandt
Mr Roderick McIllree
Mr Simon Cato
Mr Jeremy Whybrow
Mr Malcolm Mason
Mr Simon Stafford-Michael
Mr Tony Ho
COMPANY SECRETARY
Mr Bruce Acutt
BUSINESS OFFICE
Ground Floor
33 Colin Street
West Perth, Western Australia, 6005
Telephone: +61 8 9226 1100
Facsimile: +61 8 9226 2299
WEBSITE
www.ggg.gl
SOLICITORS
Fairweather & Lemonis
Level 9
172 St Georges Terrace
Perth, Western Australia, 6000
GREENLAND SOLICITORS
Nuna Law
Qullilerfix 2, 6
Post Box 59
3900 Nuuk, Greenland
AUDITOR
Mack & Co
Level 2
35 Havelock Street
West Perth, Western Australia, 6005
SHARE REGISTRY
Advanced Share Registry Services
110 Stirling Highway
Nedlands, Western Australia, 6009
The formal accounts to June 2007 are attached to this report. As these accounts refer to
the period before the changes of activities they do not reflect the current financial position
of the company.
2
LETTER FROM THE CHAIRMAN
Introduction
Title issues
Greenland Minerals and Energy Limited is an exploration
company with a majority interest in an advanced multi
element exploration project in Greenland.
The Company called a comprehensive shareholder meeting
held on the 31 July 2007 to approve the acquisition of a
joint venture interest (now 61%) in our Kvanefjeld project
as well as a number of ancillary resolutions relating to
raising capital, changes to the board and issues of shares
and options to a number of parties including directors. All
resolutions were passed at the meeting.
The Company considers this project as being one of the
most exciting multi-element deposits in the world.
The Kvanefjeld project
The Kvanefjeld project, (“the project”) is located on the
south west tip of Greenland (Figure 1) and is one of the
largest undeveloped multi-element occurrence of Niobium-
Tantalum-Fluorine-Uranium and Rare Earth Oxides (REO) in
the world.
The project has been the subject of numerous published
scientific papers written by bodies that include Danish
and Greenlandic governmental agencies, and independent
scientific researchers since 1959 including the OECD
International Atomic Energy Agency (IAEA).
The project has been extensively explored in the past
including but not limited to more than 11,000 metres of
diamond drilling, bulk metallurgical testing, a one kilometer
exploratory adit, mapping, radiometrics and surface
sampling.
From June to October in 2007 the Company has carried out
its own program which resulted in another 10,000 metres
of diamond drilling as well as a major helicopter borne
radiometric program.
The exploration drilling carried out by ourselves this year
to date have only been tested for uranium, thorium and
potassium as these results are available immediately,
however core from samples are being transported and
prepared for testing for a suite of other minerals know to
be associated with the project.
The results to date are extremely promising, identifying
major mineralised zones of Uranium which is known to be
associated with other minerals and acts as a pathfinder
mineral in the deposit. A full description of the exploration
results follows in this report.
It is currently not possible to receive a mineral license for
the exploration or exploitation of uranium in Greenland.
Therefore, the license does not include uranium as a
commodity. Although uranium is not on the license we
are not prevented from exploring for uranium as part
of our multi element exploration program. Based on a
memorandum on Policy and Practice of the Bureau of
minerals and Petroleum, Greenland (“BMP”), concerning
exploration and exploitation of uranium and other
radioactive elements issued by Nuna Law, a Greenland
law firm with mining law expertise, and other information
obtained, the directors believe that uranium may be
exploited as a by-product subject to normal conditions
of any exploitation license and subject to approval by
the BMP. The Company has to apply to the BMP for such
an approval. The Company has not applied for such an
approval and BMP has not issued an approval. We stress
this is a possibility and not a legal right. This memorandum
is set out in full in the prospectus dated 26 July 2007.
The directors believe that the current primary ban on
uranium exploration may receive consideration by the
relevant authorities in the near future because many
governments are considering lifting such bans due to the
shift in sentiment towards nuclear energy in general.
Financial position
We currently have more than $10,000,000 on deposit after
meeting the costs of acquiring our initial 61% interest
and the 2007 exploration program. This is more than
sufficient for the 2008 program, however as foreshadowed
in the notice of meeting prepared for the 31st July 2007
shareholders meeting, the board will retain a flexible
approach to ensure we always have sufficient funds for our
activities.
Summary of 2007 season
The board is very pleased with the success of the 2007
exploration season.
In a very short space of time we finalised both an
exhaustive corporate program of acquisition, shareholder
approvals and capital raisings, while running, partly in
parallel a major exploration program in Greenland which
resulted in 43 holes most of which were in excess of
200 metres deep and some down to nearly 400 metres.
3
Figure One : Project Locality Map
Additionally we commissioned, calibrated and deployed an
ultra-modern spectral probe to analyse the holes we drilled
as well as 21 previously drilled holes.
international standard. Clearly our exploration program
could not have been completed on the scale and within the
5 month time frame without their support.
People
The 2008 season
As Chairman it falls to me to pay tribute to the immense
amount of work done by our employees and our board this
year. Three of our directors spent long periods overseeing
and completing the vital exploration we carried out this
year in Greenland, others had roles in the capital raisings
and in document preparation. We can underline the
contribution of our directors by the fact that we have only
one full time employee who is not a director.
The success of the exploration program also hinged on
the support of the people of Narsaq, who welcomed us to
their town, provided accommodation and many services.
Townspeople were also active in our operations.
Our service providers in Greenland provided drilling crews,
equipment, helicopter access and logistic support to an
We are looking forward to the 2008 season. Reviewing the
achievements of the 2007 season, which were attained
from a virtual standing start, we believe we have an
excellent base for a major exploration push next year. Our
goals will be to follow up our Kvanefjeld project resource
confirmation and expansion drilling with a considered
regional program.
Mr Hank Schønwandt
(Chairman)
4
CORPORATE
The Company has acquired its interest in the project by
acquiring 100% of the shares of Chahood Capital Limited
(“Chahood”) under a share sale deed and becoming a
party to a joint venture agreement with Chahood and
Westrip Holdings Limited (“Westrip”) under a deed of
assumption. Westrip’s wholly owned subsidiary, Rimbal Pty
Ltd (“Rimbal”) held an exploration license (EL2005/17)
covering an area including the project area. The joint
venture agreement establishes an unincorporated joint
venture to explore for and mine the multi-element
occurrences in an area of interest within EL2005/17.
Chahood will manage the joint venture.
This EL was split into EL2005/28 and EL 2005/29. The
new exploration license EL 2005/28 will be transferred
to a Greenland company that has been incorporated
(“Greenland Co”), which the joint venture parties will own
in accordance with their joint venture interests. Transfer of
the new exploration license in favour of Greenland Co has
been applied for and such a transfer will be subject to BMP
approval.
Set out below is a diagram detailing the corporate structure
after completion of the acquisition of Chahood, the
assumption of rights under the joint venture agreement
and the transfer of the new exploration license in favour of
Greenland Co.
Greenland Minerals
and Energy Limited
formerly The Gold
Company Limited)
100%
Chahood Capital
Limited
Joint Venture
Agreement
Westrip Holdings
Limited
Greenland Co.
License Interests
The key terms of the acquisition of Chahood and its interest
in the Joint Venture are:
•
Issue 35,000,000 shares to the shareholders of
Chahood to acquire 100% of Chahood and thereby
assume the rights under the joint venture.
• Staged payments (or reimbursement of Chahood
for the first A$1,000,000 payment) consisting of the
following:
o A$1,000,000 for 21% of the project
o Further staged payments equalling A$2,000,000
and the issue of 30,000,000 shares to Westrip for
the acquisition of a further 40% thereby taking the
stake in the project to 61%
o An additional payment of A$2,000,000 and
10,000,000 shares conditional upon either of:
-
The authorities approving an exploration license
for Uranium in favour of Greenland Co in the
area of interest; or
- An exploitation license being granted to the
Greenland holding Company conferring the
exclusive right to mine for uranium, whether
as a by-product or otherwise, in the area of
interest.
o Payment of A$10,000,000 worth of shares or cash
or a combination of cash and shares to increase its
holding to 90% of the project.
o Payment of A$50,000,000 to move to 100% of the
project.
By the joint venture agreement there are various exclusive
and reciprocal rights concerning minerals as detailed below.
To the extent permitted Westrip grants to Chahood an
exclusive right or license to explore for beryllium, lithium,
uranium or sodalite on any part of EL2005/29.
With effect from the transfer of the new exploration
license to Greenland Co, Westrip is granted a license,
on substantially the same terms as the license granted
by Westrip to Chahood above, to explore for zirconium,
tantalum, rare earths and niobium on any part of the new
exploration license.
5
Westrip and Chahood have a right of first refusal to
purchase certain minerals from the other prior to a sale
to a third party. Westrip has a first right of refusal to
purchase zirconium, tantalum, niobium and rare earths
from Chahood and Chahood has a first right of refusal to
purchasew beryllium, lithium, uranium and sodalite from
Westrip.
The joint venture agreement also provides that Westrip,
Chahood and Greenland Co must, prior to commencing
mining operations, enter into an off-take agreement
providing for the sale to and purchase by Westrip of
any rare earths mined within the area of interest and
otherwise in accordance with key principles set out in the
joint venture agreement, which include, Westrip paying to
Greenland Co the consideration it receives upon the on-sale
of the rare earths less a fee of 5% and less Westrip’s on-
sale costs. The 5% fee payable for the sale of rare earths to
Westrip will be reviewed after 3 years of production, which
will be the term of the off-take agreement. Westrip was
also entitled to a 5% royalty on the project.
The Company has also entered into a corporate advisory
agreement with Gravner Limited for corporate advice on
future capital raisings, acquisitions and company
promotion for a 3 year period with a retainer of $20,000
per month. The agreement only commences upon
completion of the acquisition of all the shares in Chahood.
Gravner will be entitled to up to 100 million options and
30 million shares to be issued when the share price of the
Company reaches agreed milestones, of which 75,000,000
options and 15,000,000 shares have been issued as at
the date of this report. Gravner also has the right to a 5%
success fee (based on the equity value of the transaction)
in the circumstances of a sale of the assets of the company
or a takeover.
Changes to the Board and management
After 23 August 2007 the board consists of:
• Mr Hank Schønwandt
(Chairman)
• Mr Roderick McIllree
(Managing Director)
• Mr Simon Cato
(Executive Director)
• Mr Jeremy Whybrow
(Exploration Director)
• Mr Malcolm Mason
(Technical Director)
• Mr. Tony Ho
(Non Executive Director)
• Mr Simon Stafford-Michael
(Non Executive Director)
6
Table Of Significant Events
Corporate Event
Exploration Event
Drilling
Geophysics
Other
Dec-06
Jan-07
to
Apr-07
May-07
Initial intention to
consider the acquisition
Due diligence and
contract preparation
Preparation of
geological report
Contract signature and
announcement of
acquisition intention
Re quotation of
the company
Exploration services
agreements signed
Collect historical
data
Aerial photography
and DTM acquired
Compile exploration
program
David Wilson
(specialist at spectral
logging) employed
Auslog commissioned to
supply Spectral tools
Initial recon trip
to Greenland
Old holes located,
new holes sited
Jun-07
Preparation, approval and issue
of the notice of meeting
Organisation of the 8,800,000
share issue at $1.00 per share
First rig arrives and
drilling commences
Jul-07
Preparation, approval and
issue of the prospectus
Second drill arrives
Down-hole spectral logger
arrives in Greenland and
logging begins
Shareholder approval
Aug-07
Settlement of the capital
raisings and the acquisitions
Cumulative 5,000
metres drilled
Aerial Geophysical
survey commences
Camp established, field
operations commence
Radiation safety
measurement badges
distributed
Requotation as Greenland
Minerals and Energy Limited
BMP agrees to allow
access to old core
Sep-07
Oct-07
Cumulative 10,000
metres drilled
Last samples
dispatched to Perth
H&S contracted to complete
resource estimation
Drilling ceases
42 holes drilled
Down-hole spectral
logging ends
EXPLORATION ACTIVITIES
7
Operations at Kvanefjeld - 2007 field season
This was to entail drilling:
Field operations commenced on 1 June 2007 with the first
drill rig arrived. Unpacking, construction and transporting
of the rig were completed and the first core recovered by
the 15 June. A second drill rig arrived several weeks later.
Drilling operations were completed on the 4 October and
all equipment dismantled, transported to Narsaq and stored
until the 2008 season.
• between (joining) the “Mine Area” and “Northern
Area” and
• Extending the area to the south (abutting both “Mine
Area” and “Northern Area”.
• Below (to 200m below surface) the shallow historical
‘Mine Area” drilling pattern.
In all 43 holes were completed for a total of 10,022m of
drilling. This is reputed to be the largest single season
programme of diamond drilling ever undertaken in
Greenland.
Previous drilling programmes in 1956, 1962 and 1977 had
delineated mineralisation in two areas termed the “Mine
Area” and the “Northern Area”. The “Mine Area” has been
drilled in an irregular pattern at approximately 50m spacing
to around 100m depth. The “Northern Area” was drilled
on a more regular pattern with holes nominally on a 160m
x 160m pattern. Almost all holes reached 200m below
surface.
Field reconnaissance in early June recovered all but one of
the 70 pre-2007 diamond drill-hole collars. Holes drilled
in 1958, all in the “Mine Area”, were uncased open and
generally found to be blocked near surface. Holes drilled
between 1962 and 1977 were secured with steel-casing
and steel caps bolted on. Almost all of these holes were
open and suitable for down-hole spectral radiometric
logging.
It was determined that data from these holes would be
available by access to the original core held in Riso in
Denmark and/or from radiometric spectral logging carried
out with a “state of art” new spectral logging system being
constructed by Auslog (domiciled in Brisbane).
The main objective for the 2007 programme was to collect
sufficient data to enable a Resource Estimate to JORC
standard to be carried out on the joined and expanded
“Mine Area” and “Northern Area”. This would allow
comparison to the resource estimates carried out pre-1981.
In addition drilling was to extend into untested areas in
order to delineate new areas of mineralisation and hence
add to the already significant resource base.
Discussions and investigation of historical data in
conjunction with Hellman & Schofield (Resource
consultants – based in Perth) indicated that a nominal
pattern of drill holes at 80m spacing on lines 160m apart
would allow a Resource Estimate with much of the resource
reporting to at least the Indicated category.
As drilling progressed it became obvious that mineralisation
was more extensive than originally appreciated. Many
of the holes were completed in mineralisation. It was
therefore determined that where possible drill holes
would continue to depth without jeopardising the original
drill plans. A nominal spacing of 160m x 160m of deeper
intersections would allow estimation of the deeper
mineralisation and inclusion in the Resource Estimate;
probably in the Inferred Category.
Mid-season a low level helicopter borne spectral
radiometric survey was undertaken. The survey, with a
line spacing of 100m over Kvanefjeld showed significant
anomalies extending to the south-west for at least 1,000m.
Clearly an important development it was decided that
drilling should extend into this area to allow inclusion of
this mineralisation into the Resource Base as well. With a
spacing of between 150m and 250m any mineralisation so
delineated would report to the Inferred Category.
To the credit of all personnel, consultants and service
providers all of these objectives (original and later
inclusions) were attained within a short field season where
weather proved more trying than in previous years.
A total of 32 holes completed drilling the “Mine Area”,
“Northern Area”, the area between them and the area
immediately abutting to the south. Three holes tested the
“Mine Area” deeps. Eight holes drilled the new “Campsite
Area” to the south-west.
The newly constructed Auslog Spectral logging system
arrived on-site in July after successful testing and
calibration in Adelaide test-pits. Radiometric logging
8
Figure Two : Project Geology
continued with success through to the 14 October when all
equipment was brought to the Narsaq office, checked and
stored ready for the 2008 season.
Apart from a few holes that were inaccessible, logging was
completed to full depth down all holes drilled in the 2008
season.
Perhaps even more significant was the successful logging
of many of the 1960 – 1977 drill holes. At 46mm these
were significantly smaller in diameter than the 56mm holes
of this year’s campaign. The specifically designed 33mm
probe proved an ideal tool with 21 holes being logged. The
results from these historical holes will allow comparison to
logging carried out by past operators and more importantly
inclusion of these holes into the resource estimate currently
underway.
Geological logging was completed for all drill core. All
logging was under the direction of one person to ensure
consistent interpretation. The understanding of the geology
was significantly advanced during the season ensuring that
interpretation between holes be accurate and consistent
resulting in a robust geological model; which would be
used in the resource estimation. This knowledge will prove
most valuable during the re-logging and sampling of the
historical drill core.
Routine colour photography was completed on all holes
drilled and are of sufficient quality as to allow re-
interpretation of any core where questions may later arise.
The bulk density of mineralisation (and to a lesser
extent country rock) needs to be accurately known in
three dimensions. Some sections of the Multi-element
mineralisation include significant quantities of villiaumite
(NaF, sodium fluoride). Since NaF readily dissolves in
water and is strongly corrosive sections of the core are not
amenable to measuring bulk density by the wet and dry
method. A dry method involving a micrometer screw gauge
and very careful measuring the length and diameter of the
core was devised and routinely employed. The method was
checked where both methods were possible and found to
return values to within a few percent of each other. Multi-
element mineralisation occurs in various types of Lujavrite
and mixed zones adjacent to country rock. Country rock
was essentially basic extrusive that varied from near pure
feldspar rock to standard basic rocks. As the percentage
of feldspar increased the bulk density decreased from 3.1
approaching 2.7.
9
Geographic location of data is of paramount importance.
Routinely locations were picked up by hand held GPS.
Once sites were permanent (such as drill hole collars) their
location was picked up by the companies RTK (real time
kinematic) DGPS. An accuracy of a few cm was attained;
ensuring quality control of the data used in Resource
Estimation and other requirements.
Results for the 2007 Season
Significant mineralisation has been drilled in all holes
(including historical holes) and no hole has tested the limits
of the mineralisation.
No hole has intersected a “base” to the mineralisation.
Multi-element mineralisation is open-ended beneath all of
the know mineralisation (ie beneath all of the holes drilled
to date).
The single longest mineralised intercept ever recorded
at Kvanefjeld was made this year in K099; which was
mineralised throughout its entire length. It finished in
mineralisation and carried an average of 534ppm U3O8esp
over 232.3m.
Higher grade zones are present as exemplified by K108;
which intersected 66.5m @ 843ppm U3O8esp.
The “Mine Area”, “Northern Area” and areas between
and to the south have now been drilled out to a nominal
spacing of 160m x 80m and U3O8esp values will be
available for the Resource Estimate at a similar spacing. The
grades and intercepts made by the 2007 drilling in these
areas are in line with historical results.
A major south-west extension to the mineralisation has
been discovered called the “Campsite Area”. Available
results from 4 of these holes showed they intersected
on average 97m of multi-element mineralisation and
intercepts of up to 20.9m averaging 560ppm U3O8esp.
Multi-element mineralisation has now been intersected
over an area 1,900m x 700m and to a depth of between
200-300m. The new areas of multi-element mineralisation
are similar in grade, widths and style. That is all
mineralisation intersected to date are contiguous and
part of one large mineralised body, this can be seen in the
attached long-section. The original resource estimate areas
of the “Mine Area” and “Northern Area” mineralisation has
almost been doubled by this years drilling.
10
Figure Three : Kvanefjeld Long Section
The Multi-element mineralisation is variable in distribution.
villiaumite (NaF) has not been recorded near surface.
Lithological logging has shown villiaumite rich and poor
zones; which can be interpreted from hole to hole. The ratio
of thorium to uranium varies considerably. Within the main
Lujavrite the ratio varies from 4:1 down to 1:1; while in the
contact zones near pure uranium zones, thorium zones and
mixed zones are present. Other minerals and elements of
interest are almost certainly shown distributions varying
to that of uranium and others. For this reason assaying for
other elements will become a major avenue of work in the
coming months.
The bulk density of the multi-element mineralisation in
Lujavrite varied from 2.7 to 2.8 and averaged 2.75; while
“mixed mineralisation was much more variable but still
averaged 2.75. Country rock proved exceptionally variable
posting values between 2.6 and 3.1; averaging around
2.85. Naujaite was consistent at about 2.4-2.5.
Airborne Radiometrics
Airborne radiometrics were completed on the Kvanefjeld
area; but due to inclement weather was not extended
to the southern part of the Project area. The Uranium
channels showed significant anomalies over the know
Kvanefjeld mineralisation and to the south of Lake Taseq.
At Kvanefjeld the area of the anomaly extended south and
westwards past the Campsite. Subsequent drilling proved
that significant mineralisation occurred beneath these
anomalous areas.
Extension of this survey and infill to 50m spacing are
considered warranted during the 2008 season.
Environmental Studies
Matters pertaining to the environment form an important
part of any mineral exploration or exploitation programme.
A knowledge of the “Environmental Baseline” is
necessary to define the situation before any changes
due to exploration, exploitation or for that matter and
third party effects (such as climate change). These studies
are studies of change with time and necessarily require
collection of baseline information over a number of years.
This year the company was able to obtain the services
of a consultant with an enviable record acceptable to
Company and Government alike. During a compressed
field season the consultant was able to collect sufficient
samples from surrounding fjords, streams and hills to form
a detailed database of samples. Many samples are stored
until later when they are tested and investigated to give
a total knowledge without incurring the costs of a full
investigation before it is certain that the operation may
proceed to exploitation.
11
Firstly the Company is pleased to see that the chemical
analysis of the uranium results matched, within expected
limits, the results obtained by down-hole spectral analysis.
Secondly it is clear that the resource is really a multi
element body. It is normal in many mineralised bodies for
only certain groups of elements to in higher concentrations
than trace amounts. For example copper-gold deposits or
lead-zinc-silver deposits are common assemblages.
Our deposit has a much larger number of elements
available in much higher than trace amounts than is normal
in other mineralised bodies.
The table on page 12 shows that there are number of
elements with elevated concentrations and that further
metallurgical investigations may show that some of these
will prove to be economic by-products or products in
their own right. In particular the sample from KO87 from
137m -138m carries 3.5% sodium fluoride, (which is water
soluble), and currently sells at +$900 US a tonne.
Villiaumite - is the mineral at Kvanefjeld composed of
sodium fluoride.
Early sample commentary.
While the vast majority of core samples for chemical
analysis are still to arrive in Perth the two pathfinder
samples that were sent for early assay have now been
analysed. The purpose was to assess the methods of
analysis that would be most appropriate for the main
sampling program.
The results were chosen as possibly representative of
expected lower grade material however the sample size of
only two means they are not necessarily representative.
Eudialite - a mineral composed of rare earths present
at Kvanefjeld.
12
Kvanefjeld Multi Element Deposit
Assay Results for Two Diamond Drill Core Samples - DDH K089 134 to 135m and 137 to 138m
Element
Be
NaF
(Sol)
Ga
Hf
Li
Mo
Nb
Rb
Sn
Ta
Th
U
Y
Zn
Zr
Units
ppm
ppm
ppm ppm ppm ppm
ppm ppm ppm
ppm
ppm ppm ppm ppm
ppm
K089
134-135m 39
121
107
50
743
41
318 768 332
11
325 337 935 2,467 3,807
K089
137-138m 37 34,506
99
63
659
43
424 748 304
22
407 293 899 2,211 4,086
Element
La
Ce
Pr
Nd
Sm
Eu
Gd
Tb
Dy
Ho
Er
Tm
Yb
Lu
Rare Earths
ppm
ppm ppm ppm ppm
ppm ppm ppm
ppm
ppm ppm ppm ppm
ppm
Units
K089
134-135m 2,735 3,736 334 908
99
10
81
14
105
23
70
11
73
10
K089
137-138m 2,795 3,945 358 1,018 119
12
95
15
109
23
67
11
65
9
13
Work to be Completed 2007 Season
Drilling has been completed for the year and field
operations have ceased in Greenland.
Hellman and Schofield Pty Ltd have been commissioned to
begin construction of a resource model for the Kvanefjeld
deposit. This process is expected to take several months
and several model iterations.
Initially the model will be constructed utilising down-
hole geophysical data (comprising uranium, thorium and
potassium) as they are the only results to hand. This will
form the basis of the model and will be built up and refined
as more data is to hand.
Samples taken in Narsaq at the time of drilling are in transit
for analysis in Perth and we expect these results by the
beginning of the New Year. The preliminary model will be
updated when these chemical assays are available, these
results will include other elements of interest and will
give an indication of the relative importance of the other
elements.
The BMP of Denmark has allowed access to historical core
stored by them at Riso, Denmark. Geological logging and
sampling for multi-element assaying will commence shortly.
This will be a stage operation with priority holes requested
first. Data from historical grade estimation will also be
sought.
The final resource model will be run once data from
historical cores has been received. These historical cores are
located in Copenhagen and are to be logged and sampled
in the last few months of Calendar 2007.
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Down-hole Geophysics Results
Preliminary Model
Core Assays - Narsaq
Second Model Run
Core Assays - Copenhagen
Final Model Run
Camp Mobilization
Drilling 08 Season
Aerial Geophysics
The 08 Field Season
The Company believes that a major drilling program will
occur at the Kvanefjeld Deposit during the next field
program likely to start in May. GGG envisages three
diamond drills will be required.
It is expected that the majority of this drilling will be used
on the Kvanefjeld deposit to expand and refine the known
Kvanefjeld resource. The remaining un-drilled portion of
the plateau will be drilled on at least 160 metres centres to
ensure the entire complex is tested. Further refining of the
resource to a reserve is likely to occur with the remaining
metres
The remaining will be used to explore high priority
targets. These targets are known to have outcropping
mineralisation.
As drilling gets underway an aerial geophysical survey will
be commissioned to refine targets developed this year and
expand the known survey limits. This is expected to direct
the final exploration drilling.
The Company under its license obligations will also
continue its environmental survey on the area during the
coming field season.
14
Figure Four: Exploration targets on aerial magnetic imaging showing the intrusion as a magnetic low.
Kvanefjeld Project - Drill holes 2007
15
N
446239.2
446147.7
446085.8
446025.6
445960.5
446009.9
445896.3
445806.2
445699
445987.6
445993.3
446415.5
446159.8
446049.5
445932.6
446015.2
446127
446333.6
446205.2
446076.3
446166.7
446296.1
446404.6
446480.5
445854.1
445777.5
445957.7
446073.6
445876.3
445753.3
445643
445392.9
445526
445650.6
445394.1
445534.1
446085
446149
446242.1
445300.1
445567.6
445438.2
E
6760552
6760280
6760310
6760351
6760382
6760195
6760273
6760159
6760230
6760040
6760540
6760427
6760415
6760504
6760581
6760695
6760612
6760661
6760741
6760818
6760939
6760858
6760781
6760894
6760463
6760339
6760233
6760143
6760126
6760197
6760265
6760090
6760005
6759918
6759835
6759747
6759981
6760098
6760219
6759679
6760179
6759630
RL
603.1439
620.1052
604.5544
593.7452
570.7261
603.2673
585.5926
603.7921
563.8499
600.5387
554.923
696.5191
600.0994
563.9482
558.3858
594.5503
582.5367
608.0732
620.227
643.82
651.6441
629.3503
622.6493
642.4625
565.8408
554.8811
609.3134
611.6298
613.9791
583.6292
558.9726
540.2612
555.9749
544.7038
557.9835
547.8143
610.2307
634.5304
660.9174
540.9695
540.7768
546.8784
Depth
236
275
272
221
246
281
217
305
302
293
207
398
214
287
248
275
263
272
200
257
230
233
134
275
270
278
218
200
200
240.25
290
242
203
200
236
173
254
224
212
203
200
20
Az
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Dip
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
-90
Hole No
K0073
K0074
K0075
K0076
K0077
K0078
K0079
K0080
K0081
K0082
K0083
K0084
K0088
K0089
K0090
K0091
K0092
K0094
K0095
K0096
K0098
K0099
K0100
K0103
K0105
K0106
K0107
K0108
K0109
K0110
K0111
K0112
K0113
K0114
K0116
K0117
K0118
K0119
K0120
K0122
K0123
K0124
16
Hole
No.
K073
K074
K075
Depth
(m)
236
275
272
K076
221
K077
K078
246
281
K080
305
K081
302
K082
293
Kvanefjeld Project - Summary Table drill intersections
From
(m)
2.50
84.30
0.94
46.54
97.25
9.05
108.15
157.94
221.35
56.80
73.60
84.30
92.10
118.60
212.90
39.50
53.00
37.34
50.95
84.55
112.55
124.94
195.94
100.40
122.20
139.10
162.40
189.40
280.30
296.90
1.45
27.14
85.25
121.75
12.55
61.54
101.05
146.55
159.25
178.35
274.54
To
(m)
21.50
103.10
21.76
76.85
150.36
102.85
138.06
162.86
273.15
68.30
78.30
89.10
101.10
134.70
220.30
48.80
164.20
42.66
80.66
96.66
115.45
162.86
232.06
107.00
131.90
152.20
181.20
196.30
290.70
302.80
14.45
77.76
116.66
171.83
56.16
64.06
142.65
153.15
173.06
181.65
290.26
Thickness
(m)
18.90
18.80
20.82
30.31
53.11
33.80
29.91
4.92
51.80
11.40
4.70
4.80
9.00
16.10
7.30
9.30
111.20
5.32
29.71
12.11
2.90
37.92
36.12
6.50
9.70
13.10
18.70
6.80
10.40
5.90
13.00
50.62
31.41
50.09
43.61
2.52
41.60
6.60
13.81
3.30
15.72
Av Grade
(ppm U3O8 esp)
366
435
364
372
504
529
433
394
305
415
461
439
371
368
275
400
454
533
529
426
440
397
363
394
373
430
396
392
275
262
603
382
350
192
593
545
402
287
319
354
290
Kvanefjeld Project - Summary Table drill intersections (continued)
17
Hole
No.
K084
K084
K088
Depth
(m)
398
398
214
K089
287
K090
248
K091
275
K092
263
K094
272
K096
257
From
(m)
163.40
226.90
164.41
228.00
57.00
81.30
125.40
181.60
1.30
16.80
33.80
53.50
131.40
210.60
117.30
126.90
198.40
-
68.10
114.20
124.90
192.60
233.40
1.20
38.50
135.10
187.10
0.50
51.00
57.30
68.80
77.20
95.10
179.40
227.40
3.60
98.80
124.70
173.40
219.40
253.10
To
(m)
165.60
254.10
166.51
255.01
64.40
87.00
128.10
196.80
10.70
19.60
50.20
119.50
178.30
241.40
123.70
129.50
207.40
6.90
101.80
120.00
129.00
215.70
239.10
27.90
127.90
179.70
213.20
31.50
53.80
64.40
72.50
81.70
131.40
222.20
271.40
84.40
121.90
170.20
180.80
226.70
256.60
Thickness
(m)
2.10
27.10
2.10
27.01
7.30
5.70
2.60
15.20
9.40
2.80
16.30
65.90
46.90
30.80
6.30
2.50
9.00
6.80
33.70
5.80
4.00
23.00
5.70
26.70
89.30
44.60
26.10
31.00
2.70
7.10
3.70
4.50
36.30
42.80
44.00
80.80
23.00
45.50
7.40
7.20
3.40
Av Grade
(ppm U3O8 esp)
336
266
348
279
456
352
457
352
412
290
549
441
330
202
230
229
187
367
291
203
219
199
240
418
411
272
221
461
621
404
243
389
482
289
270
370
219
241
221
229
236
18
Kvanefjeld Project - Summary Table drill intersections (continued)
Hole
No.
K098
Depth
(m)
230
K099
K103
233
275
K105
270
K106
278
K107
218
K108
200
K109
200
From
(m)
2.15
75.55
154.55
169.75
196.75
1.04
4.80
9.60
85.40
108.80
120.30
150.30
247.40
0.30
108.30
142.40
161.30
176.90
203.10
234.10
-
103.90
152.10
159.40
180.90
194.80
242.40
261.00
270.50
75.30
83.70
111.10
125.80
165.40
205.30
1.64
79.34
106.05
184.55
108.70
156.40
To
(m)
67.85
90.95
161.45
174.26
206.15
233.36
6.90
20.90
91.50
111.10
145.10
152.70
273.30
3.80
137.20
146.70
167.60
181.50
206.60
248.70
20.90
109.20
154.30
177.00
186.10
202.10
246.60
264.60
274.60
77.60
106.20
119.00
161.20
172.00
210.50
68.16
102.06
172.56
201.95
125.30
171.80
Thickness
(m)
65.70
15.40
6.90
4.51
9.40
232.32
2.10
11.20
6.00
2.30
24.70
2.40
25.90
3.50
28.90
4.20
6.30
4.50
3.50
14.60
20.90
5.20
2.10
17.60
5.10
7.30
4.20
3.60
4.10
2.30
22.50
7.90
35.30
6.50
5.20
66.52
22.72
66.51
17.40
16.60
15.40
Av Grade
(ppm U3O8 esp)
327
247
203
229
217
534
317
310
409
366
419
522
283
282
275
230
250
221
210
183
430
301
257
337
274
264
215
230
190
565
438
289
425
361
394
843
461
480
362
290
489
Kvanefjeld Project - Summary Table drill intersections (continued)
19
Hole
No.
K110
Depth
(m)
240
K111
290
K113
203
K114
200
K116
236
K119
224
K122
203
From
(m)
99.80
110.20
124.40
145.60
10.30
41.50
51.20
1.45
25.25
111.15
153.25
172.25
1.35
7.25
24.45
119.15
142.05
1.54
74.44
107.34
150.25
-
75.40
104.10
193.10
1.54
51.95
108.15
153.94
181.85
195.55
To
(m)
106.00
114.70
135.40
176.10
33.70
45.00
77.50
22.36
34.96
146.45
165.45
203.56
4.85
18.26
31.15
139.65
155.65
48.16
78.56
135.76
174.15
71.90
96.50
171.10
223.60
35.46
75.35
141.06
173.86
186.65
203.95
Thickness
(m)
Av Grade
(ppm U3O8 esp)
6.20
4.50
10.90
30.40
23.40
3.50
26.30
20.91
9.71
35.30
12.20
31.31
3.50
11.01
6.70
20.50
13.60
46.62
4.12
28.42
23.90
71.80
21.00
67.00
30.50
33.92
23.40
32.91
19.92
4.80
8.40
452
333
445
385
410
431
485
560
474
473
238
213
264
411
356
452
314
470
325
477
270
552
455
448
288
504
389
467
339
244
244
20
CORPORATE DIRECTORY
Estimation of Uranium and Thorium Grades
at Kvanefjeld
High definition spectral radiometric logging of drill holes to
determine the grade of naturally radioactive minerals (such
as uranium and thorium) are preferable to classic chemical
assaying of drill samples since the volume of the sample
measured radiometrically is approximately 50 times larger
than that measured by chemical assay. This means each
radiometric estimate is far more representative of a similar
length of core (or chips). These radiometric estimates are
repeatable to within a few percent.
Additionally radiometric estimates are taken at each 75mm
and are giving positions of boundaries accurate to a few cm
and changes over even these short distances.
The grade of uranium and thorium intersected in diamond
drill holes at Kvanefjeld was historically estimated by
measuring natural gamma radiation using:
• down-hole spectral logging
• laboratory scanning of core and
• laboratory scanning of crushed chips.
This field season Greenland Minerals and Energy logged
accessible historical holes and holes drilled this 2007 field
season with an Auslog spectral gamma tool; a sophisticated
new generation tool with much greater sensitivity and
accuracy compared to that used in historical logging.
The principles involved in all of these techniques are the
same and are presented as follows:
Mineralisation at Kvanefjeld contains significant quantities
of thorium, small amounts of potassium and uranium. All
three have isotopes that emit gamma radiation. Total count
gamma radiation counting devices will count thorium and
potassium radiation as well as any uranium radiation.
Therefore the uranium associated with the Kvanefjeld
mineralisation cannot be accurately estimated by measuring
the total gamma radiation. “Total Gamma Logging” is a
common method used to estimate uranium grade (“U3O8e”)
where the contribution from thorium and potassium is very
small. Calcrete and sandstone uranium deposits are usually
of this type.
The gamma radiation from potassium, uranium and thorium
is dominated by gamma rays emitted with specific energy
levels. These energy levels are sufficiently well separated
such that they can be measured independently of each
other. They are typically measured as narrow energy bands
that contain the specific energy levels. In addition there is
some scattering of higher energy gamma radiation. Thorium,
with the highest energy radiation causes scattering into
lower energy parts of the spectrum; mixing (masking) with
the uranium radiation. This scattered radiation must also
be taken into account and is calculated using suitable
calibration procedures. The calculated total radiation is then
stripped from the spectrum and this uranium radiation used
to calculate the amount of uranium present.
An example of where these types of measurement are
commonly used is in airborne radiometric surveys to
distinguish the contributions from potassium, uranium
and thorium. The measurements are termed spectral
gamma measurements because they separate the three
energy levels into their “spectral” energy bands. Similar
measurements can be performed on drill samples (called
Spectral Gamma Logging ) as described within this
announcement as noted as “U3O8esp”.
Uranium, over time, breaks down through a series of
elements (uranium decay chain), which are the products of
its nuclear decay (called “Daughter Products”). The gamma
radiation that is used to estimate the quantity of uranium
present is not directly from uranium itself. The gamma
radiation from the decay of uranium is dominated by that
of its Daughter Products – predominantly bismith 214.
ie Uranium exhibits relatively low radioactivity. Over time,
approximately 2.4 million years, the generation and decay
of Daughter Products reaches an equilibrium state where
the gamma radiation from the daughters is representative
of the concentration of uranium present. Hence an
estimation of the Daughter Products will give an accurate
estimate of the amount of uranium present.
If any of the Daughter Products in the chain are removed
then the process of decay will not be in equilibrium and
the amount of Daughter Product present will not relate
to the uranium present. This is termed Disequilibrium.
Disequilibrium can occur when a uranium deposit is in
process of being formed, weathered or moved. Groundwater
may dissolve either the Daughter Products, or uranium,
preferentially and separate them resulting in disequilibrium.
LETTER FROM THE CHAIRMAN
21
Young deposits, such as those in calcretes and sandstones,
often show some disequilibrium because they have been
formed or moved within the past 2.4 million years.
Mineralisation at Kvanefjeld has been formed within the
rock as it was emplaced and cooled. There has been no
weathering and there are few if any permeable shear/
fault zones where water may dissolve and move the
mineralisation. The age of the rocks containing the
mineralisation is approximately 1,000 million years. Thus
the uranium is in equilibrium with its daughter products
and disequilibrium is not expected to be an issue. This has
been confirmed by test-work undertaken at Riso in 1970-
80s where several hundred samples were assayed at their
nuclear facility and showed that there was no measurable
disequilibrium. The company will again confirm these
findings to ensure that the 2007 spectral gamma radiation
measurements accurately reflect true uranium and thorium
contents at Kvanefjeld.
The Auslog spectral gamma tool measures the total gamma
ray flux in the drill hole; readings are typically averaged
over 7.5 centimetre intervals and the reading and depth
recorded on a portable computer.
The radiation due to Thorium is then calculated and stripped
from the total radiation spectrum; that which remains being
entirely due to uranium. In order to calculate the grade of
uranium present the Auslog spectral logging tool was first
calibrated against know grade uranium. This was carried
out in Adelaide at the Department of Water, Land and
Biodiversity Conservation in calibration pits constructed
under the supervision of CSIRO.
The calibration factors so calculated in the Adelaide
calibration pits have been applied to the uranium spectral
gamma ray readings and converted to equivalent U3O8esp.
These factors also take into account differences in hole-size
and water content.
22
SHAREHOLDER DISTRIBUTION INFORMATION
CORPORATE DIRECTORY
SHAREHOLDERS WITH GREATER THAN 5% SHARES.
1
2
3
4
GCM Nominees Limited
Westrip Holdings Limited
Gravner Limited
Citicorp Nominees Pty Limited
DISTRIBUTION OF SHARES
SPREAD OF HOLDINGS
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 99999999999
TOTAL
NUMBER OF
HOLDERS
42
159
251
239
93
784
35,000,000
30,000,000
15,000,000
12,515,692
% OF TOTAL
ISSUE CAPITAL
0.019 %
0.305 %
1.485 %
5.910 %
92.278 %
NUMBER OF
UNITS
30,261
479,468
2,331,787
9,275,929
144,813,684
156,931,129
99.997 %
TOP 20 SHAREHOLDERS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
GCM Nominees Limited
35,000,000
Westrip Holdings Limited
30,000,000
Gravner Limited
15,000,000
Citicorp Nominees Pty Limited
12,515,692
National Nominees Limited
5,066,801
Mr Cameron John French
3,253,000
Falfaro Investments Ltd
3,000,000
South Asian Commodity Holding
2,731,004
Worldpower Pty Ltd
2,472,028
Mr Roderick Claude McIllree
2,375,095
NEFCO Nominees Pty Ltd
2,246,000
Rochford Limited
2,119,600
HSBC Custody Nominees (Australia) Limited
1,931,114
ANZ Nominees Limited
1,910,433
1,900,000
Nidd Valley Company Limited
Mr Garry William Thomas and Mrs Nancy-Lee Thomas
1,620,000
Thomas Family Super A/C>
Jeffrey Maxwell Jones
920,000
Mr Richard Homsany and Mrs Rosa Diana Marisa Homsany
850,000
750,000
Redmont Resources Pty Ltd
744,352
Mr Stephen Frederick Schmedje and Mrs Cornelia Petra Schmedje
17
18
19
20
TOTAL
126,405,119
LETTER FROM THE CHAIRMAN
23
DISTRIBUTION OF OPTIONS
SPREAD OF HOLDINGS
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 99999999999
TOTAL
NUMBER OF
HOLDERS
6
83
182
169
62
502
NUMBER OF
UNITS
4,966
347,498
1,708,910
6,795,262
112,012,835
% OF TOTAL
ISSUE CAPITAL
0.004 %
0.287 %
1.413 %
5.621 %
92.672 %
120,869,471
99.997 %
8
9
10
11
12
TOTAL UNITS
TOP 20 OPTION HOLDERS
75,000,000
Gravner Limited
1
5,660,000
Citicorp Nominees Pty Limited
2
4,469,400
NEFCO Nominees Pty Ltd
3
3,160,000
Worldpower Pty Ltd
4
2,410,350
Mr Cameron John French
5
1,805,295
South Asian Commodity Holding Limited
6
Mr Garry William Thomas and Mrs Nancy-Lee Thomas
1,620,000
7
1,325,000
Mr Roderick Claude McIllree
1,039,800
Rochford Limited
950,000
Nidd Valley Company Limited
Mr Jeffrey Maxwell Jones
920,000
850,000
Mr Richard Homsany and Mrs Rosa Diana Marisa Homsany
810,000
Mr Mario Claude Frichot
800,000
Mr Stephen Frederick Schmedje and Mrs Cornelia Petra Schmedje
739,963
ANZ Nominees Limited
710,100
Mr Jeremy Sean Whybrow
650,000
Redmont Resources Pty Ltd
550,100
Mr Simon Kenneth Cato
550,000
Bond Street Custodians Limited
Mr Roderick Claude McIllree and Mrs Barbara French
475,000
104,495,008
TOTAL
13
14
15
16
17
18
19
20
UNQUOTED OPTIONS
22,800,000 unvested unlisted directors options.
TENEMENT LIST
Queensland EPM 14588, EPM 15517
Greenland EL 2005/28, EL 2005/29
24
ABN 85 118 463 004 Office: Ground Floor 33 Colin Street West Perth Western Australia 6005
Postal: PO Box 1304 West Leederville WA 6901
Telephone: +61 8 92261100 Facsimile: +61 8 9226 2299 Website: www.ggg.gl