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Newsletter no.21 - October 2001

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MINEX No. 21 - October 2001
Minex Online*

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A newsletter to the international mining industry with up-to-date geoscientific and legislatory information about Greenland.
MINEX is an acronym for Greenland Mineral Exploration Newsletter. The newsletter is published by GEUS in co-operation with Bureau of Minerals and Petroleum, Greenland Government.
MINEX is available free of charge.
To subscribe to MINEX, please fill out the form HERE.

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Headlines
Greenland mineral resources in focus Down Under
Greenland welcomes more exploration
Drilling confirms large kimberlitic dyke in West Greenland
Aeromag 2001 in West Greenland
Greenland Geochemical Atlas
Tantalum deposit in South Greenland re-investigated
Short Notice... Gold mine at Nalunaq still pending
MINEX layout restyled
Useful reading... 'Review of Greenland activities 2000'

Download MINEX no. 21, November 2001 - suitable for printing
MINEX21.pdf (1 378 kB, requires Acrobat Reader 4.0).

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Greenland mineral resources in focus Down Under

The Greenland mineral resources potential is well known to many experts from the mining industry. Various mining operations in Greenland have been in progress more or less continuously since the middle of the 19th century. Since The Black Angel Mine in Maarmorilik closed in 1990 there has been a temporary break in the exploitation, but this will hopefully change with the possible opening of a new goldmine in 2002. Exploration has been energetic during the last 10 years, with fluctuations following global trends as seen elsewhere. Many good prospects have certainly been discovered. The news and details related to this process have currently been demonstrated to the mining world through trade shows and mining conferences in North America and Europe.

The Bureau of Minerals and Petroleum (BMP) and the Geological Survey of Denmark and Greenland (GEUS) have decided to extend such promotional activities to the Australian mining and exploration community by joining the 'Mining 2001' conference in Melbourne during the first week of November 2001.

Recent discoveries and basic information on Greenland mineral resources will be on exhibit in a booth at the show. The well-established straightforward 'one-door' principle in the Greenland administration of the licensing process will also be explained.

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map

Geological map of Greenland also showing selected mineral occurrences

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Greenland welcomes more exploration
Several Australian junior companies are prospecting for minerals

'The most attractive country in the world to work in' says Australian geologist, used to operate in Greenland. Looking back over the last few years, it seems that a tradition for engagement of Australian exploration companies in Greenland has developed. Since the early 1990s a number of junior companies have been active and are holding mineral licences in Greenland, exploring the possibilities for finds of diamonds, titanium placers, base metals and a variety of rare metals. Operations are often carried out in joint ventures. "Greenland is a modern country with a progressive Home Rule government that views mineral exploration and mining as tools for economic development", it is stated recently in a JV-report involving Australian interests. In order to attract more Australians to participate in the mineral exploration the Greenland Premier, Mr. Jonathan Motzfeldt, can be remembered for the words: 'We invite companies from all over the world to explore the business opportunities which Greenland has to offer. Welcome to Greenland!'*

* The expression is part of the opening address in 'The Official Directory: This is Greenland 2000-2001' published jointly by the Government of Greenland and the Royal Danish Ministry of Foreign Affairs (see also MINEX 19) and obtainable through the web site www.greenland.dk

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Drilling confirms large kimberlitic dyke in West Greenland
Citation Resources Inc. with JV partners DiaMet and Cantex conducts new drilling

Citation Resources and its 'joint venture partners' in Greenland announced in a press release 27 September 2001 the successful conclusion to the 2001 exploration programme in West Greenland. As a result of drilling two intersections, Citation has delineated what it believes to be the largest known kimberlite dyke in the world. The samples are shipped to Canada to test for micro diamond content and quality in order to assess the economic potential of the discovery. The JV partners have committed a minimum of CAD 600 000 to the programme in what is obviously a major kimberlite province. The operation and analysis should be completed early in 2002.

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Aeromag 2001 in West Greenland - Extends the aeromagnetic coverage to the North

The field operation of a new government funded aeromagnetic survey in central West Greenland was successfully completed at the beginning of September this year. The survey was flown by Sander Geophysics Ltd. Ottawa on contract with the BMP and will add about 70 000 line km of high-resolution data to the Greenland airborne geophysics database (see MINEX 18 & 20). GEUS takes care of the project administration and will after the final data processing release the new digital data and maps on 1 March 2002, at which time data will be available for inspection and purchase at GEUS in Copenhagen and at BMP in Nuuk.

About a third of the survey is offshore where hydrocarbon interests are high. The onshore data cover the Palaeoproterozoic Karrat Group that hosts the now exhausted Black Angel lead-zinc deposit (see MINEX 20). The geophysical data will also be presented at the PDAC in Toronto, March 2002.
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map

Survey map of Aeromag projects (red frame) and AEM projects (blue frame). Red arrow shows 2001 area shown on right. Click on maps to enlarge.
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extract of map

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Greenland Geochemical Atlas
A useful exploration tool now accessible to prospectors

A newly published atlas of geochemical data in a grid format is ready for use to mineral resource assessment in a major part of West Greenland. The full data set used to produce the geochemical maps included in the atlas is available at cost from GEUS.

The geochemical atlas is based on compilations of chemical analyses of over 7000 stream sediment samples col-lected by GEUS from 1977 to 1998 during geochemical exploration surveys. Many of the surveys, and the production of the atlas, were financed by the BMP.

The atlas contains maps of
· 43 chemical elements
· volatile contents of stream sediment
· gamma radiation
· kimberlite indicator minerals recovered from stream sediment

For comparison, a geological map and an aeromagnetic total field anomaly map are also a part of the geochemical atlas. The atlas and supporting reports are available from GEUS.

CD-ROM and accompanying reports Nos. 2001/46 (CD-ROM/maps), 1999/41 and 2001/47 (calibration of data) can be ordered by e-mail to minex@geus.dk

Steenfelt, A.,2001: Geochemical atlas of Greenland - West and South Greenland. Danmarks og Grønlands Geologiske Undersøgelse Rapport 2001/46
(DKK 300, equivalent to c. USD 40)
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map

Example of map showing the Arsenic (As) distribution in West and South Greenland, suggested as a tool in finding new gold showings.

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Tantalum deposit in South Greenland re-investigated - Evaluation under way

Angus & Ross PLC, UK, a junior exploration company, has in Mining Journal, 22 April 2001 outlined a work programme starting in March in the niobium/tantalum deposit at Motzfeldt Lake. The programme includes test and delineation drilling to begin in June, and further geological evaluation and metallurgical test work.

map In a 26 September 2001 press release, it is reported that 'significant tantalum mineralisation has been intersected in Angus & Ross PLC's first diamond drill hole on the Motzfeldt tantalum project'. The core from the second diamond drill hole has been logged and sent to Lakefield Laboratories for assaying. Commenting of the results Dr. Robert Young, Managing Director of Angus & Ross stated that the Company is very pleased to report high tantalum pentoxide values in the first diamond drill hole and the boulders above the mineralised zone. A new drilling contractor, Major Mid West Drilling of Canada will continue the drilling programme until late October.

The Motzfeldt Centre includes at least a 50 million t resource distributed in several mineralised zones with 0.03%-0.1% Ta205 (max. up to 0.73%) together with a 130 million t resource of 0.4%-1.0% Nb205 (max. up to 12.5%). Both commodities are in the form of pyrochlore mineralisation (see also MINEX 19).

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Short Notice... Gold mine at Nalunaq still pending (Crew Development Corp.)

"Crew has now initiated the 2001 work programme, designed to complete a final feasibility study, conclude mine financing and prepare for mine construction. Key aspects of this programme will include completion of necessary environmental work, a resource expansion drilling programme and further underground test mining, designed to optimise the mining width and maximise mine profitability", it is stated in a 14 June 2001 press release from Crew under the head line: '2001 work program commenced, to enable production within 18 months'.

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MINEX layout restyled - Matching with other promotion material

The first issue of MINEX in a new design is in your hands! The well-known news stories and hints from the Greenland mineral resources playground have been brought in MINEX since 1992 and will continue uninterrupted but in a new format - and still free of charge. MINEX now also matches other promotion publications: in May 2001, a similar change was introduced for our 'sister'-newsletter GHEXIS, directed to the petroleum industries.

MINEX will from now on also appear at a redesigned and hopefully attractive web site, ready for downloading whenever convenient.
The web site www.geus.dk/minex/minex-dk.htm also gives access to back issues as well as basic information on exploration history and licensing.

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Useful reading... 'Review of Greenland activities 2000' just from the printing office

The annual Review of Greenland activities is a special bulletin. It contains articles on activities carried out in 2000 written in a style that enables other than professionals to get an all-round impression of geo-research in Greenland.

Geology of Greenland Survey Bulletin 189, 2001: Review of Greenland activities 2000,131 pp.- obtainable through the web site www.geus.dk

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BUREAU OF MINERALS AND PETROLEUM (BMP)
Government of Greenland, P.O. Box 930, DK-3900 Nuuk, Greenland
Tel.: +299 34 68 00, Fax.: +299 32 43 02, E-mail: bmp@gh.gl, Homepage: www.bmp.gl

GEOLOGICAL SURVEY OF DENMARK AND GREENLAND (GEUS)
Øster Voldgade 10, DK-1350 Copenhagen K, Denmark
Tel.: +45 38 14 20 00, Fax.: +45 38 14 20 50, E-mail: minex@geus.dk, Homepage: www.geus.dk

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MINEX is published by GEUS in co-operation with Bureau of Minerals and Petroleum, Greenland Government
MINEX Nr. 21 - Oktober 2001