GreenRoc (GROC ), a Greenland-focused mining company, reported this morning interim results for the 6 months ended 31 May 2022 (1H 2022). The announcement focused on progress at GreenRoc's Amitsoq Graphite Project and Thule Black Sands (TBS) Project in Southern Greenland.
The company's most valuable asset is the Amitsoq Graphite Project, one of the highest-grade graphite projects in the world. In March 2022, a maiden JORC Resource was announced for Amitsoq of 8.3m tonnes at an average grade of 19.75% Cg. The exploration target for the Amitsoq Island deposit increased to 5-15 Mt at a grade range of 18-22% Cg, and for the Kalaaq deposit (adjacent to Amitsoq island) increased to 6-10 Mt at a grade range of 17-33% Cg.
GreenRoc reported that a drilling programme was currently underway at Amitsoq, targeting a significant increase in JORC Resource.
The company also gave a quick update on its Thule Black Sands (TBS) Ilmenite Project. Following a 2021 drill programme at TBS, a revised resource assessment regarding the current JORC Resource of 19Mt at 8.9% in-situ ilmenite, is expected in the coming weeks. Bathymetric surveying is also underway at TBS, to provide data for planning of port facilities.
GreenRoc had announced in April the appointment of two Denmark-based consulting firms to carry out an Environmental Impact Assessment (EIA) and a Social Impact Assessment (SIA) at Amitsoq and TBS, key prerequisites to obtaining exploration licenses for both projects. The company is now in the process of obtaining approval from Greenland's authorities to an EIA and a SIA.
GreenRoc also had a change in CEO recently. Stefan Bernstein was appointed CEO, effective 1 July 2022. Mr. Bernstein is a Danish geologist with over 30 years' experience in Greenland's mining sector, spanning both corporate and governmental advisory roles.
Mr. Bernstein commented on today's results:
"... GreenRoc was admitted to AIM just less than a year ago with the objective of becoming a key supplier of critical, high-demand, high-value minerals and I believe the Company has made great strides towards this goal. Amitsoq has not only been established as one of the highest-grade graphite deposits globally, but also a project with extensive resource potential, as indicated by the recently enlarged Exploration Targets. Based on the encouraging results to date, drilling is now underway to further upgrade and increase the current Maiden JORC Resource and we look forward to keeping the market updated with the results of this as they become available.
We are also looking forward to receiving, and sharing with the market, the long-awaited results from the 2021 drilling campaign at TBS, which are expected in the coming weeks. We are hopeful that these will lead to an upgraded mineral resource and provide the foundation for feasibility studies. In support of this, we have finalised a summer/autumn field work programme due to commence this quarter, with the objective of fast-tracking TBS to mine development status, a milestone we are also focussed on achieving at Amitsoq."
At the end of the reporting period, GreenRoc had a £1.8m cash position. Net cash outflow was £1.5m, mainly consisting of exploration expenditure of £0.8m, cash administration costs of £0.4m, and movement in working capital of £0.3m.
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Amitsoq is one of the highest-grade graphite deposits in the world. As more than half of the exploration target area for Amitsoq Island has been undrilled, GreenRoc’s programme is focused on unlocking this resource potential.
Last month, GreenRoc was granted a new exclusive Mineral Exploration Licence (MEL) by the government of Greenland, covering a potential southerly extension to the Kalaaq deposit (adjacent to Amitsoq island), as well as several known graphite showings that are separate from both the Amitsoq Island and Kalaaq deposits. Previously, GreenRoc had reported a significant upgrade to Kalaaq's exploration target, reiterated in today's announcement.
At Thule Black Sands, GreenRoc said it has finalised a field work programme, due to commence this quarter, with the objective of fast-tracking the project to mine development status. They are striving to achieve the same at Amitsoq.
GreenRoc’s technical work to date has confirmed that Amitsoq graphite can be upgraded to a more than 99.95% pure graphite product, which is the specification requirement for EV batteries. As a result, the company says it is well positioned to capitalise on the transition to Net Zero.
In a broader context, the demand for graphite is forecast to soar. UBS is estimating a natural graphite deficit of 3.7Mt by 2030, representing around 37% of the total global market. And according to Baker Steel, between 2020 and 2040, a 22-fold increase in graphite for energy technology demand is forecast, and a 10-fold increase across all applications, an increase second only to lithium.
Similarly, GreenRoc's Thule Black Sands Project is positioned to deliver good revenues from high-grade ilmenite deposits. Ilmenite prices have more than doubled in the last two years, driven in part by curtailed production from Rio Tinto's Richards Bay HMS mine, growing demand induced by world population growth, and a supply squeeze on ilmenite.
In addition to Amitsoq and Thule Black Sands, GreenRoc has two more projects. The Melville Bay Iron has an MRE of 67Mt at 31.4% iron and has been proven to be processable to a high-grade, 70% concentrate with low impurities. And the Inglefield Multi-Element Project so far shows promise to host host a range of mineralisation styles, including iron oxide-copper-gold.
GreenRoc has been very active in project development since its AIM listing in September of last year. The company has pursued the right investments and is well-funded and well-positioned for continued expansion.
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