greenx metals limited

NEWS RELEASE   20 JANUARY 2022

New Copper Targets Identified at ARC

·    Latest analysis identifies new "walk-up" native copper and copper sulphide targets for the upcoming field program

·    New priority, walk-up, at-surface target identified along the Knuth Fault which is a Discovery Zone "lookalike" feature

·    Two additional exposures of native copper mineralisation identified from recently unearthed historical documentation at Neergaard Dal

·    Recent structural geology review reinforces evidence of a large-scale mineral system and regional fertility related to identified faults

·    Exploration targeting and efficiency of upcoming field programs greatly improved through enhanced geological understanding of ARC

GreenX Metals Limited (GreenX or the Company) is pleased to report the findings from ongoing geological analysis at the Arctic Rift Copper Project (ARC or ARC Project). The latest analysis identifies new "walk-up" native copper and copper sulphide targets for the upcoming field program.

GreenX in collaboration with its joint venture (JV) partner Greenfields Exploration Ltd (GEX) has advanced its understanding of ARC in northern Greenland. A recent structural geology report describes for the first-time structural features that are tied to the widespread copper sulphide and native copper mineralisation. In addition, an ongoing review of historical notes and data has identified a location containing two types of native copper mineralisation that further strengthens the ARC's analogy with the economically significant Keweenaw Peninsula in Michigan, USA, which contained a total pre-mined endowment of 16 Mt of copper.

This validates the JV's geological modelling on ARC and provides multiple new targets for sampling during the upcoming field season.

Mr Stoikovich, Chief Executive Officer of GreenX Metals said: "The latest supporting evidence for extensive and intense copper mineralisation in an entirely new province is very exciting. This true first-mover opportunity has tremendous potential for multiple major new copper discoveries."

Dr Bell, Project Leader said: "Our low-cost mineral system analysis program continues to gain momentum. The concepts for the new province are rapidly gaining supporting evidence and the precision of our targeting is increasing markedly. This greatly improves the efficiency of our upcoming field programs."

Structural Geology Review

A structural review of the currently available datasets of ARC's geology was recently conducted by specialist consultant Dr Mark Munro¹. It was confirmed that the known copper mineralisation, including the native copper and Discovery Zone copper sulphides, is associated with reverse faults. Reverse faults are considered to be an important structural control on mineralisation at ARC, with the recent study both extending the known reverse faults with associated mineralisation and identifying new reverse faults.

Dr Munro holds a PhD in Structural and Metamorphic Geology from James Cook University. As a three-year post-doctoral researcher at the University of Western Australia he studied the mineralisation, alteration, and structure of deposits. In addition to his considerable field and structural knowledge, he is a 3D modeler and has global experience with precious and base metal projects. Following a position as a mapper with the Geological Survey of Western Australia, Dr Munro has spent four years working as an applied structural geologist for industry. He engages in the structural logging of drill core, in addition to both surface and underground mapping, with view to understanding the multi-scale aspects of deposit generation.

Eigil Reverse Fault

Reverse faults are associated with the Discovery Zone copper sulphides, from which high-grade results have previously been reported (GreenX press release, dated 6^th October, 2021). This set of faulting is now known as Eigil. The Discovery Zone includes 4.5m grading 2.15% Cu and 35.5 g/t Ag (true width, Chip Line #7); and samples from the 3m long Trench #1 grading 5.28% Cu and 112 g/t Ag and 3.55% Cu and 263g/t Ag.  (GreenX press release, dated 6 October, 2021). This at-surface copper sulphide mineralisation is known to have a strike extent of more than 2 km trending beneath the shallow cover of the valley.

The review by Dr Mark Munro has identified the Eigil reverse fault, an extension of the Discovery Zone, that trends to the northwest into Independence Fjord. This demonstrates known mineralised structures intersecting the Zig-Zag flood basalts, and further strengthens the ARC's analogy with the prolific and economically significant Keweenaw Peninsula.  At this analogy in Michigan, the mineralised reverse faults are the fluid transport conduits for the strata bound native copper deposition in flood basalts, and copper sulphides in the overlying sediments. The Keweenaw Peninsula contained a pre-mining endowment of +7 Mt of copper contained in sulphides and 8.9 Mt of native copper. 

Knuth Fault

A second subparallel, northwest-trending reverse fault known as Knuth, is located 7 km to the southwest of Eigil. The Knuth Fault shows similar reverse motion and has never been sampled and represents an entirely new, easily tested zone that is highly prospective for copper mineralisation. Conceptually, Knuth has a similar strike extent to that of Discovery Zone, creating the potential for a new area of high-grade mineralisation.

Valley Fault

A third reverse fault is identified 15 km southwest of Knuth. The JV partners' extrapolation of this fault has it trending towards the Neergaard Dal native copper occurrence. At this occurrence in 1979, Government geologists found native copper clasts in scree below a cliff face with breccia-hosted and basalt-hosted copper mineralisation.

A new feature identified by Dr Munro is a fault that roughly trends north-south to NNE-SSW striking (defined by the Neergaard Valley) with indications of a west-side-up, east-side-down movement. The Valley Fault may also have a reverse movement given the compression from an ancient mountain building event to the east. Both native copper and copper sulphides are known to occur at the confluence of the Valley Fault and the younger orthogonal reverse faults².

These observations are important as they reduce the number of faults to be examined and provide targets that can quickly be evaluated in the field.  Consequently, the search space and hence exploration costs have been reduced, and timelines shortened.

Historical Data Secured - New Native Copper OccurRences Identified

The JV has secured digitised notebooks from the Government's reconnaissance field work that was performed in the area in 1979 and 1980. Valuable new information about sites of native copper was gained from translating these notebooks. Despite being very brief, the field work identified numerous examples of native copper in association with the basalt rocks in Neergaard Valley, the main north-south oriented feature of the Minik Anomaly (GreenX press release dated 6 October 2021).

What is particularly striking is that in the centre of this anomaly there is a historical description of native copper occurring in both breccias (fissures) and gas-cavities occurring near one another. At the Keweenaw Peninsula, native copper specimens weighing over 500 tonnes were mined from fissures and underpinned the original 'gold'-rush. However, it was the copper found in gas-cavities within the flood basalts that underpinned much of the 99-year mining history of the district. The historical description of fissure copper next to cavity-hosted copper within ARC adds strong support to the Keweenaw analogy as well as evidence of a vigorous (favourable), breccia inducing mineralisation event. The JV partners will investigate this site as a matter of priority during the 2022 field program.

Regional Developments

During early December 2021, Ironbark Zinc (ASX:IBG) announced that it secured a Preliminary Project Letter approval for a US$657m loan from the US Government's EXIM Bank for the development of Ironbark's Citronen lead-zinc project. The Citronen project is located approximately 150 km further north than ARC. The loan, if approved, will mean that the United States is financing most of the cost of developing the strategically important Citronen project. This project will include the construction of an airstrip and port at Citronen, which may provide infrastructure support for a future development at ARC.

Greenland has been increasingly recognised as one of the last great mineral frontiers, with interest from leading miners and commodities houses including Anglo American, Glencore, Trafigura, and IGO. More recently, major foreign governments have also stepped in to support and finance mineral development projects. The Australian Financial Review reported that Greenland 'has found itself in the middle of a geopolitical great game', with the funding for Citronen '[surfing] a wave of geopolitical project funding' in the Arctic region. The United States and the European Union are now all making concrete moves to finance mineral projects in Greenland.

ABOUT THE ARCTIC RIFT COPPER PROJECT

The Arctic Rift Copper Project is an exploration joint venture between GreenX and GEX.  GRX can earn 80% of ARC by spending A$10 M by October 2026. The ARC Project is targeting large scale copper in multiple settings across a 5,774 km² Special Exploration Licence in eastern North Greenland. The area has been historically underexplored yet is prospective for copper, forming part of the newly identified Kiffaanngissuseq metallogenic province.  This province is thought to be analogous to the Keweenaw Peninsula of Michigan, USA, which contained a pre-mining endowment of +7 Mt of copper contained in sulphides and 8.9 Mt of native copper.  Like Keweenaw, ARC is known to contain at surface, high-grade copper sulphides, 'fissure' native copper, and native copper contained in what were formerly gas bubbles and layers between lava flows.

-ENDS-

Competent Persons Statement

Information in this announcement that relates to Exploration Results is based on information compiled by Dr Jonathan Bell, a Competent Person who is a member of the Australian Institute of Geoscientists (AIG). Dr Bell is the Managing Director of Greenfields Exploration Limited and holds an indirect interest in performance rights in Prairie. Dr Bell 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 Results, Mineral Resources and Ore Reserves'. Dr Bell consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

To view this announcement in full, including all illustrations and figures, please refer to www.greenxmetals.com.

References

¹        Munro, Mark (2021). "Structural Review of the Arctic Rift Copper Project, Greenland", Munro Geoscience Pty Ltd

²        While available data highlights reverse components along a number of the Northwest-trending faults, key exposures suggest that some record extensional (normal) activation. This suggests a history of potential reactivation.