RE: RNS8 Mar 2022 07:06
GreenRoc's CEO, Kirk Adams, commented:
"This Maiden JORC Resource launches GreenRoc into the global graphite resource space with one of the highest-grade graphite projects in the world. We now find ourselves in a highly enviable position at Amitsoq following this outstanding maiden result.
"A review of our peers in this sector reveals that deposits with compliant resources above 20% contained graphite grade are scarce. Most graphite projects have average grades in single digit percentages and, according to S&P Global, the average grade of graphite resources worldwide stands at just 8.45%. The implication of our very high average grade at the Amitsoq deposit should not be overlooked, since it reduces the cost of mining and mineral production on a per tonne of concentrate basis, as well as reducing the amount of waste per tonne of ore mined.
"We believe the consistency and true widths of the orebodies at the Amitsoq deposit bode well for future mining and processing operations. Furthermore, it has been shown from previous metallurgical testing that this material can be upgraded to a more than 99.95% pure spherical graphite product, which is the requirement for EV batteries. Global consumption of this type of high purity spherical graphite is forecast to be at least 3 times higher by 2030, and supply shortages are predicted in the near to medium term. The projected future need for high purity spherical graphite, driven by the explosive growth in EV sales, is growing very rapidly.
"Despite the fact that more than half of the Exploration Target area for Amitsoq Island remains undrilled, this Maiden Resource has already exceeded the total resource tonnages predicted in that Exploration Target, as well as surpassing the total contained graphite target for the area. GreenRoc is now in the process of planning and procuring drilling services to drill out the remaining extent of the Exploration Target area at the Amitsoq Island deposit this summer.
"We are confident that the resource on Amitsoq Island will increase in both tonnes and classification following this year's programme to the extent that we hope to have the resource basis to undertake a detailed feasibility study on the deposit. We are also mindful of the additional considerable upside potential still to come from the, as yet undrilled, Kalaaq Deposit to the south of Amitsoq.
"In summary, I believe that this Maiden Resource confirms Amitsoq as one of the leading graphite projects in the world, with both exceptional grades and significant tonnes, and with more to come from the 2022 drilling campaign."
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