To view the RNS with illustrative diagrams and maps, please use the following link:

http://www.rns-pdf.londonstockexchange.com/rns/5597O_1-2022-6-12.pdf

GreenRoc Mining Plc / EPIC: GROC / Market: AIM / Sector: Mining

13 June 2022

GreenRoc Mining plc

("GreenRoc" or the "Company")

Amitsoq Graphite Project Update

Significant Tonnage Upgrade to Kalaaq Exploration Target

GreenRoc Mining plc (AIM: GROC), a company focused on the development of critical mineral projects in Greenland, is pleased to announce a significant increase to its Exploration Target at the Kalaaq prospect, part of the Amitsoq Graphite Project in southern Greenland ("Amitsoq" or the "Project"), one of the highest-grade graphite deposits in the world.

Highlights

·      Following additional channel and field sampling along with field mapping as part of the 2021 field season, the Exploration Target for Kalaaq has now been updated.

·      The Exploration Target[1] has increased from a tonnage range of 4Mt-7Mt at a grade range of 23-29% Graphitic Carbon ('Cg') (as announced by Alba Mineral Resources plc on 7 May 2021) to a tonnage range of 6 Mt-10 Mt at a grade range of 17-33% Cg.

·      Results confirm significant resource potential of this as yet undrilled deposit, which is open along strike (predominantly to the south) and down dip.

·      Kalaaq is one of two key deposits identified at Amitsoq, the other being the Amitsoq Island Deposit, which has a combined Indicated and Inferred JORC Resource of 8.28 Mt at an average grade of 19.75% Cg, giving a total graphite content of 1.63 Mt, and an Exploration Target of 5-15 Mt at a grade range of 18-22% Cg.

·      Drilling is due to resume at Amitsoq Island later this month, targeting resource expansion to support a feasibility study, with Kalaaq to be drilled next year.

·      Graphite is a core component of EV batteries, which is driving demand and prices; the high quality and flake size of Amitsoq's product is ideal for the manufacture of battery grade spherical graphite required for the anode of lithium-ion batteries, thus well positioned to capitalise on the Net Zero transition.

·      Demand for graphite is forecast to soar 10-fold; UBS estimates a natural graphite deficit of 3.7Mt by 2030, representing circa 37% of the market. 

GreenRoc's Interim CEO, Lars Brünner, commented:

"The Amitsoq Project, comprising the Amitsoq Island and Kalaaq deposits, is one of the highest-grade graphite deposits globally.  Our focus is to continue building resource tonnage to a level that will support a detailed feasibility study, as part of our strategy to fast-forward this Project into commercial production.  This Kalaaq Exploration Target, coupled with the current maiden resource at Amitsoq Island of 8.28Mt at an average grade of 19.75% Cg, underpins the significant resource and, in turn, the enormous value potential of Amitsoq.  Additionally, we have designed a clear development strategy to ensure GreenRoc delivers on this.

"Recent corporate investment activity in Greenland's strategic minerals space tells us that the time is now to advance exploration at our flagship projects. We intend to drill Kalaaq in 2023 in order to convert a substantial portion of the Exploration Target there to a compliant resource.  Meanwhile, preparations for Phase 2 drilling at the Amitsoq Island deposit are well underway, and we expect to commence drilling this month as we target a higher-tonnage, higher-category resource which will support the development of a mine plan and feasibility studies.  We look forward to sharing further updates on our activities at Amitsoq in the weeks and months ahead." 

Figure 1. Amitsoq Graphite Project in southern Greenland, showing Amitsoq Island graphite deposit to the north (site of the former graphite mine) and Kalaaq deposit to the south

Details

Alba Mineral Resources plc, which previously owned the Amitsoq project before spinning out its entire Greenland portfolio to GreenRoc in September 2021, commissioned Dr John Arthur (CGeol FGS) to prepare an Exploration Target for the Kalaaq deposit in southern Greenland.  Dr Arthur is a Chartered Geologist and qualifies as a Competent Person/Qualified Person (as defined by CRIRSCO and the majority of National Reporting Organisations).  The Exploration Target subsequently announced on 7 May 2021 had a tonnage range of 4 Mt-7 Mt ) (assuming a density of 2.63t/m3)  and a grade range of 23-29% Graphitic Carbon ('Cg').

Following the conclusion of the 2021 field season at Kalaaq, Dr Arthur was commissioned by GreenRoc to update his Exploration Target.  Following a detailed assessment of all pertinent data sets, Dr Arthur has concluded that the volume and grade ranges for the Kalaaq Exploration Target are between 6 and 10 million tonnes (assuming a density of 2.63t/m3) with a grade range of between 17-33% Graphitic Carbon, for between 1 Mt and 3.3 Mt of contained graphite.

In accordance with the JORC Code (2012), the potential quantity and grade of the above Exploration Targets is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

The data used for the revised Exploration Target includes all surface channel sampling and field mapping carried out during the 2021 field season as well as information validated from previous surface mapping and investigations. 

The revised Exploration Target incorporates additional areas along strike to the south (inland) from the previous reported Exploration Target as well as the newly discovered bodies in the south-east and south-west.  Based on the apparent continuity seen from the extended field mapping, the Competent Person considers an appropriate range for the Exploration Target tonnage to be between 6-10Mt and the range of grade (at a cut-off of 0.0% Cg%) to be between 17-33%.

In addition to the sampling, geophysical (beep mat) surveys and detailed structural mapping carried out previously, the updated Exploration Target for Kalaaq draws on additional field work carried out in 2021, namely additional mapping carried out further inland to the south, south-east and south-west and an additional 11 sample sites, seven of which were targeted channel samples for detailed sampling of the exposed mineralisation.

Geological domain modelling was carried out to model the results of the field exploration data using the Seequent Leapfrog Geo® software.  Continuity appears to be justifiable along strike as evidenced from the exposure on surface and identifiable topographic and structural features from surface mapping and structural analysis.  A high degree of confidence in the geological continuity of the deposit structure is thus interpreted, at least in the vicinity of the sampling and mapping programmes.

Peer Group Comparison

The Amitsoq project is among the very highest-grade graphite projects in the world, with, to the Company's knowledge, only Talga's Vittangi project having higher average grades amongst all advanced (ie at least to Resource definition stage) projects globally.

If the revised Exploration Targets for each of the Amitsoq Island deposit and Kalaaq are successfully converted into defined Resources following the planned further drilling, this would maintain Amitsoq's position as one of the highest-grade projects globally with total Resource tonnage comparable to that of Vittangi (see Table 1). 

Table 1. Comparison between GreenRoc and Talga flagship graphite projects

Amitsoq Drilling Update

Further to our RNS of 6 June 2022, preparations on site for the phase 2 drilling programme at the Amitsoq Island deposit are well advanced, and drilling is expected to commence this month (see Figure 3 below).

Figure 3. Installation of base camp at Amitsoq in readiness for start of phase 2 drilling (June 2022).

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

Glossary

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the timing and granting of regulatory and other third party consents and approvals, uncertainties regarding the Company's or any third party's ability to execute and implement future plans, and the occurrence of unexpected events.  Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.

Competent Person Declaration

The information in this release that relates to Exploration Results and Mineral Resources has been reviewed by Dr John Arthur.  Dr Arthur is a Fellow of The Geological Society of London and a Chartered Geologist (FGS CGeol no. 1005744) and 28 years' experience in the minerals and mining industry.

Dr Arthur has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ''Australasian Code for Reporting of Exploration targets, Exploration Results, Mineral Resources and Ore Reserves'', also known as the JORC Code. The JORC code is a national reporting organisation that is aligned with CRIRSCO. Dr Arthur consents to the inclusion in the announcement of the matters based on his information in the form and context in which they appear.

**ENDS**

For further information, please contact:

About GreenRoc

GreenRoc Mining Plc is an AIM-quoted company, which is developing mining projects in Greenland in high-demand and high-value critical minerals.

Led by a group of highly experienced mining industry professionals, GreenRoc has a portfolio of 100% owned projects:

·   Amitsoq Graphite, one of the highest-grade graphite deposits in the world with a combined Indicated and Inferred JORC Resource of 8.28 million tonnes (Mt) at an average grade of 19.75% giving a total graphite content of 1.63 Mt.

·     Thule Black Sands Ilmenite ('TBS'), which has an initial Mineral Resource of 19Mt@ 43.6% Total Heavy Minerals with an in-situ ilmenite grade of 8.9%.

·   Melville Bay Iron, which has a Mineral Resource Estimate of 67Mt at 31.4% iron and has been proven to be processable to a high-grade, 70% concentrate with low impurities.

·    Inglefield Multi-Element, which has the potential to host a range of mineralisation styles, including iron oxide-copper-gold.