GreenRoc Mining (GROC ), a Greenland-focused critical metals explorer, announced it has awarded a contract to carry out the formal Preliminary Economic Assessment (PEA) for its flagship Amitsoq graphite project in southern Greenland to SLR Consulting Limited.
SLR will commence work on the PEA in May 2023 and expects to complete the assessment by September 2023. The completion of the PEA is a crucial step in the development of the Amitsoq project towards commercial production.
Separately, GreenRoc announced it has established a wholly owned Greenlandic subsidiary Greenland Graphite a/s to which two graphite mineral exploration licences (2013-06 and 2022-03) currently owned by GreenRoc's subsidiary Obsidian Mining Ltd will be transferred.
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A positive update from GreenRoc, detailing the appointment of UK-based SLR Consulting for Amitsoq's PEA. SLR is a long-established consultancy with a long history in mining and mineral processing, including in Greenland.
GreenRoc's flagship Amitsoq asset is one of the highest-grade graphite deposits in the world, with a resource estimate of 23.05 Mt at an average grade of 20.41% graphite, following January's 3x resource increase. Graphite is a key metal in the production of electric vehicle batteries.
The PEA is the first of a series of studies which will provide technical and cost assessments of the project. Upon completion, the PEA will provide an economic model to demonstrate the profitability of graphite mining at Amitsoq. A feasibility study is expected in 2024.
The establishment of Greenland Graphite is another important step in the development of Amitsoq. As well as satisfying Greenlandic mining regulations, the formation of the new subsidiary will enable GreenRoc to more easily access EU funding programmes in the field of critical raw materials.
Earlier this year GreenRoc confirmed that Amitsoq graphite could be purified to exceed the EV battery requirement of 99.95%. With global demand for graphite expected to soar, Amitsoq's vast deposit is set to play a key role in the transition to net zero.
As GreenRoc moves into the production phase for Amitsoq and enters discussions with potential customers and offtake partners, investors interested in the renewables, EV, battery, or mining sectors should GreenRoc and its majority holder Alba Mineral Resources.
Alba Mineral Resources owns 54% of GreenRoc Mining.