Graco
Annual Report 2007

Plain-text annual report

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. 7 0 - p e S 7 0 - t c O 7 0 - v o N 7 0 - c e D 8 0 - n a J 8 0 - b e F 8 0 - r a M 8 0 - r p A 8 0 - y a M 8 0 - n u J 8 0 - l u J 8 0 - g u A 8 0 - p e S 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

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