Two WA companies are looking to develop projects in Greenland after the government lifted its decades-old ban on uranium exploration.
Two WA companies are looking to develop projects in Greenland after the government lifted its decades-old ban on uranium exploration.
Shares in Greenland-focused Ram Resources jumped 28.57 per cent, at 3.6 cents at the close of trade on the news.
Ram is assessing its Motzfeldt project, near the southwest tip of Greenland.
The government of Greenland had amended the standard terms for exploration licenses to include radioactive elements such as uranium and thorium.
However, this does not mean Ram has permission to mine radioactive materials.
"Ram will seek clarification from the Bureau of Mines and Petroleum in Greenland with regards to the changes to licence conditions and immediately seek approval for revised conditions to apply (to) the Motzfeldt licence," Ram said.
"It is noted that the government may grant approval for changed licence conditions on a case by case basis.
"If the government was to grant the abovementioned changes to the Motzfeldt licence, it will allow for an expansion of exploration activity and greater freedom in selecting target areas."
Mineralisation at the Motzfeldt project mainly hosts tantalum, niobium and rare earth elements, and uranium and thorium are present at above-background levels in some parts of the licence.
Greenland Minerals and Energy also welcomed the news saying it was looking to develop its Kvanefjeld project.
In a statement to the Australian Securities Exchange, Greenland Minerals and Energy said the company can now commit to commence definitive feasibility studies in 2011.
"Over the coming months, Greenland Minerals and Energy will conduct planning and preparation for environmental and social impact assessment, as well as preparation for ongoing technical studies," the statement said.
Greenland Minerals and Energy managing director Roderick McIllree, said the amendment to the regulations provides the Company with a clear path for the continued development of the Kvanefjeld multi-element project, and recognises the strategic importance of the project in the development of a mining industry in Greenland.
See company statement below:
Greenland focused resources company Ram Resources Limited (ASX: RMR) ("Ram" or "the Company") is pleased to announce that the Government of Greenland Naalakkersuisut) has issued a statement overnight that it will introduce an amendment to Greenland's Standard Terms for Exploration Licences in Greenland that will permit, at the Government's discretion, the exploration and evaluation of mineral projects that contain radioactive elements above background concentrations.
These amendments will allow for the inclusion of radioactive elements such as uranium and thorium as exploitable minerals. Mineralisation at the Motzfeldt Project hosts primarily Tantalum, Niobium and Rare Earth Elements ("REE"), however uranium and thorium are known to be present at above background levels within the mineralised zone at the Aries Prospect and elsewhere on the licence.
It is the Company's understanding that these changes do not give approval for the exploitation of radioactive minerals. The Government of Greenland has confirmed however that it will be continuing with its comprehensive review into the exploitation of radioactive minerals that was announced in June 2010.
Ram will seek clarification from the Bureau of Mines and Petroleum in Greenland with regards to the changes to licence conditions and immediately seek approval for revised conditions to apply the Motzfeldt Licence 2010/46. It is noted that the Government may grant approval for changed licence conditions on a case by case basis.
The Company views these changes to licensing conditions as an important and positive step in the debate over the mining of radioactive minerals in Greenland. If the Government was to grant the abovementioned changes to the Motzfeldt Licence 2010/46, it will allow for an expansion of exploration activity and greater freedom in selecting target areas.
For example, it is known from early radiometric surveys that significant anomalous thorium showings concurrent with REE are present at the Romney Prospect on 2010/46 (see map below), however due to the restrictions in place have not been followed up to date.
Further to the announcement of 1 June 2010, the Company is in the final stages of completing the acquisition of the Initial Interest (51% interest) of Greenland Resources Limited, which is the owner of the Motzfeldt Project. We expect this process to be completed shortly. A 2,000 metre drilling programme to infill high-grade areas and test the strike length of the Aries Prospect is also ready to commence, pending completion of the acquisition of the Initial Interest.
