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“Unlocking the mineral potential of southern Greenland”
1
Overview
• ASX-listed exploration and development company
• Focused on southern Greenland
• Acquired the Kvanefjeld multi-element deposit in mid-2007
• Implemented aggressive exploration and development drill
programs to build a world class multi-element resource
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Dr Hans Kristian Schønwandt - Executive Chairman• Former Deputy Minister of Mines for Greenland
Roderick McIllree - Managing Director• Geologist with 8 years capital markets exposure
Malcolm Mason - Technical Director• Geologist with 40 years experience.• Completed feasibility studies several of which are mines today
Simon Cato - Executive Director• 25 years working in Australian capital market• ex-listing manager of the Australian Securities Exchange in Perth Jeremy Whybrow - Exploration Director/Operations Manager• 12 years international exploration and mining experience
Simon Stafford-Michael - Non-Executive DirectorTony Ho - Independent Director
Board of Directors
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Why Greenland?
• Politically stable
• Self-governing Danish province, long standing democracy, OECD member
• Open to exploration and mining
• Looking to mineral and hydrocarbon resources as the future foundation for its economy
• Highly prospective
• Greenland records over 4 billion years of earth history, preserving many dynamic geological events conducive to ore-deposit formation
• Greenland Geological Survey produces high quality maps, large geochemical databases, mineral occurrence databases, and airborne geophysical surveys
• Numerous exploration and mining service providers in Greenland
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The Kvanefjeld Multi-Element Deposit
A Rare Earth Element (REE), Sodium Fluoride (NaF), Uranium Deposit (U)
Hosted within the Ilimaussaq intrusion – a rare alkaline intrusion
Situated 8km behind the coastal town of Narsaq, southern Greenland
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Project LocationStrategic location between North American and European markets
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Infrastructure Benefits
• The Kvanefjeld deposit is located behind the coastal town of Narsaq, southern Greenland
– Local deep water ports open year round
– Potential access to local hydroelectric power
– Close proximity to labour source
– Ability to utilise housing in Narsaq for accommodating personnel
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Town of Narsaq
Existing port facilities
Kvanefjeld ~8km by dirt road
International airport 15km
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The Kvanefjeld Multi-Element Deposit
Project Geography
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The Kvanefjeld Deposit
Operations
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Project Ownership
• Currently ownership of Kvanefjeld is structured through a Greenlandic incorporated subsidiary joint venture vehicle
• GGG owns 61%, increased to 90% with a 10M (AUD) payment, and to 100% through an additional 50M payment
• 2 Greenlandic and 2 Australian board members
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Kvanefjeld - Resources
Historic resource produced by Danish Atomic Energy Agency:
126Mt @ 400ppm U3O8
(50,700 Tonnes U3O8 or 112 Million pounds U3O8)Historical data verified by Nuclear Energy Agency OECD (2006 Red Book)
NEW inferred resource (JORC)
338MtIncludes: 988,000t of REO @ 1.09%
1.3Mt of NaF @ 1.69%.
104,000t of U3O8 @ 0.031% (229 million lb’s)
NaF and REO resources constrained by incomplete chemical assays
Kvanefjeld Multi-Element Deposit – Long Section
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1km adit increased certainty in the historical 50,700t U3O8 resource
20,000t mined from the adit
4500t taken for metallurgical test work
Pilot plant constructed in Copenhagen. Plant still in existence
Historical work conducted by Danish Authorities1956-1983
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Kvanefjeld Multi-Element Resource/Drilling Plan (end 07)
Historical Kvanefjeld resource,
Average depth of known mineralisation increased from 180-275m (50% increase)
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1.8k
m600m
Kvanefjeld Multi-Element DepositOre Shell
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Rare Earth Elements Group of specialty metals with
unique physical and chemical properties
Increasing demand in technology industries
China – main supplier, now reducing export quotas for strategic reasons
Consumers looking to stable suppliers outside China
Key demand drivers - Reduction of greenhouse gasses,
- More efficient use of energy,
- Increasingly electronic/digital world
Typically reported as cumulative REO grade, with value dependant on the proportion of individual REOs
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Rare Earth Elements - Uses
Magnets (21% of consumption) Neodymium, Dysprosium
REE make the worlds strongest permanent magnets Produce higher motor power and efficiency with reduced size and weight Increasing demand coming from hybrid car industry Used in hard-disk drives, mobile phones, iPods, laptops
Catalysts (19%) Lanthanum, Cerium
Autocatalysts (catalytic converters) – reduce vehicle emissions Cracking catalysts – increase the efficiency of oil refining Diesel additives – reduce particulate emissions
Batteries (18%) Lanthanum, Cerium, Neodymium, Praseodymium
Nickel-Metal Hydride (NMH) rechargeable batteries – REE make up about 25% of batteries weight
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Rare Earth ElementsCommon Applications
Hybrid Cars
Flat screen TVs and monitors
iPods(miniature hard drive devices)
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Rare Earth ElementsMarket Dimensions
World consumption of REO in 2008 ~ 135,000 t (~1.5-2B US$) 8-12% annual growth over last 10-15 years
China supplies 95% of world demand, and consumes 60% of production
However – Resources diminishing, Introduction of export quotas, production quotas, and export taxes
World demand outside China in 2008 – estimated to be ~70,000 tonnes
SHORT SUPPLY IS HERE!
*Hybrid car industry – consuming 10,000t REO pa. Looking to increase >3 fold over next few years – consuming >30,000t REO
alone
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Increasing demand through emerging technology industries is causing a steady increase in REO prices
Prices are forecast to continue rising for the foreseeable future
*Prices in US$/kg
Rare Earth ElementsPrice History
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Kvanefjeld Multi-Element Distribution
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Regional Exploration
Kvanefjeld resource
During 2007 Fugro was engaged to complete a regional radiometric survey highlighting several new anomalies for ground-based evaluation
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Regional Multi-Element Exploration Targets
7 new exploration targets
Identified by geological mapping and ground-based radiometric surveys
Geological similarities to Kvanefjeld – also hosted within the Ilimaussaq Intrusion
Priority targets to be drilled in 2008
Could add significant tonnage to the resource base
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REE Deposit Comparisons
Deposit Comparisons
Langer Heinrich 47,930t U3O8 @ 640 ppm (primary – U3O8)In production/ramp up
Rossing Mine 190,000t U3O8 @ 320 ppm (primary – U3O8)Supplies ~7% of world demand
Kvanefjeld 104,000t U3O8 @ 310 ppm (byproduct – U3O8) Growing Resource
Uranium Resources
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Deposit Comparisons
Uranium Resources
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Based on in-ground value at current metal prices, the Kvanefjeld REE-NaF-U deposit is equivalent to:
A copper-gold porphyry deposit of:
1.4 billion tonnes at @ 0.5% Cu, 0.5g/t Au
A lead-zinc sedimentary exhalative (SEDEX) deposit of:
130 million tonnes @ 20% Zn, 8% Pb
A nickel sulphide deposit of:
70 million tonnes @ 4% Ni, 0.5% Cu, and 2g/t
combined PGE
In-Ground Value Comparisons To Other Deposit Types
27
Detailed radiometric survey (Fugro).
10,022m of diamond drilling.
Largest single season exploration program ever in Greenland.
Granted access to 11,000m of core from the historical bankable feasibility study (1956-1985)
Confirmation of economic concentrations of REE, NaF and U, confirming mulit-element nature of the Kvanefjeld
Spent DKK24m in Greenland
2007 Field Season
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Drilling at Kvanefjeld
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Drillers camp on Kvanefjeld plateau
30
Drill crews relaxing after a long shift
31
2007 Major Developments
Dec 07: raised A$22 million at A$1.25/share. Key investors include: Major Scandinavian Bank from the Faeroe Islands Similar industry participants Oceanic Asset Management Ltd
Aug 07: raised A$9 million at A$1.00/share, largely with Danish state pension fund managers
Appointed process design metallurgist, Peter Bartsch (previously working on BHP Olympic Dam expansion)
Appointment of Amdel and SGS Laboratories to manage metallurgical testwork
32
2008 Developments
Appointed Consulting Mineralogist and commenced bench-scale metallurgical extraction testwork.
Appointed Rare Earth market advisor and Industrial Minerals marketing specialist
Resource upgrades for REO’s and NaF expected as assays from 2007 season are completed (significant growth expected)
Finalising environmental baseline studies during 2008
Scoping Study scheduled to start Q4 2008.
2008 drill program ahead of schedule (DKK35 million budget), new multi-element exploration targets identified
Ongoing dialogue with Greenlandic authorities
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Capital Structure
Ordinary Shares 193M
Listed Options Outstanding Ex 20c 142M
Directors Unlisted Options 22.8M
Share Price as at July, 2008 A$0.55
Market Cap (Basic) ~A$106M
Market Cap (Fully Diluted) ~A$197M
Fully diluted cash ~A$57M
One Year Share Price Shareholder Structure
Capital Structure
Top 20 shareholders own 82%
Top 20 option holders own 87%
Cash on hand (1_7_08) A$25M
Institutions hold ~17%
Insiders hold 14.5%
Directors Shares Options
Dr Hank Schønwandt 1,000,000 0
Roderick McIllree 3,102,295 8,712,000
Simon Cato 800,100 7,310,100
Jeremy Whybrow 710,000 7,150,000
Malcolm Mason 480,000 3,240,000
Simon Stafford Michael 1,000,000 0
Tony Ho 100,000 0
67M shares not tradable until 17/8/09
34
Summary
World class, JORC compliant multi-element resource;
338Mt orebody defined with scope to increase following 2008 drilling
Substantial increase in REO’s and NaF resources expected as backlog of assays are processed
Great project location - close to infrastructure in a stable OECD country
Positive initial metallurgical testing and work ongoing
Globally significant and strategic resource of REO, NaF and U, located between North American and European markets