Amendment to Greenlandic mining policy
The new amendment to the standard terms allows the Bureau of Minerals and Petroleum (BMP) to approve that comprehensive feasibility studies can be undertaken on mineral projects that include radioactive elements as exploitable minerals.
Greenland Minerals skyrockets on government moderation of exploration policy.
Be advised that, as UK and North American markets wake up and become aware of this major breakthrough via the inevitable press in those jurisdictions.
GGG will NOT be at this price for long.
Disclaimer: Speculative Buy Recommendation comes with much conviction.
Greenland Minerals and Energy (ASX.GGG) announced on Sept 13th, an amendment to Greenlandic mining policy which provides a clear pathway for the development of the Kvanefjeld multi-element project, subject to meeting normal environmental, social and financial requirements.
Importantly, final government approval is required to move into the mining phase, as this is not an overturning of the Zero Tolerance on uranium, but a moderation of it, and that at the moment uranium mining is still prohibited.
This is a pivotal moment in the lifecycle of this remarkable project, and a clear indication of the support of the Greenland Government.
Accordingly GGG shares have increased 75% in price to 63.5c, with options, GGGO 20c strike, Jun 2011 -- more than doubling to 42c.
However I strongly believe that given this announcement GGG shares are substantially undervalued.
The company has the world's largest known JORC Resource of Rare Earths at over 4.5 million tonnes (grade in excess of 1%) and the largest known resource outside of China. The global infatuation with rare earths continues, and as such the share prices of ASX listed companies Lynas, Arafura and Alkane have improved dramatically recently (please see attached article from The West Tuesday 7 Sept) .Strategically located between major markets Europe and North America and with major infrastructure benefits, this project will no doubt become the major focus of participants in the Rare Earth space, being investors, strategic partners, manufacturers and governments themselves. The recent surge in Rare Earth prices means the Kvanefjeld project has the capacity to generate profits well in excess of a $1billion per year* for capital costs near to $2 billion.
This announcement also gives the green light for the company to include revenues from the 280 million pound JORC uranium resource (approx 300ppm) and zinc in a bankable feasibility study to commence next year.
See: One Of Worlds Largest Rare Earth Mines http://www.ggg.gl/Investor/one-of-worlds-largest-rare-earth-mines.htm
There have been numerous press articles today, which speak glowingly about the company's prospects given this landmark decision.
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