Previous Exploration

Previous Exploration

The prospectivity of the Motzfeldt area was first investigated by the Greenland Danish Geological Survey ("GEUS") in the early part of the 1980’s, who carried out a programme of regional reconnaissance that identified Ta-Nb mineralisation, hosted by the Motzfeldt Centre.

The reconnaissance programme was followed in 1987 by a more detailed programme, which included a helicopter-borne radiometric survey and follow-up chip sampling programme.  145 samples were taken across an area where the Motzfeldt Sø Formation is exposed in a cliff face and returned an average grade of 190 ppm. Ta₂0₅ and 2,348 ppm. Nb₂O₅, demonstrating the association between Ta/Nb mineralization and the widespread radiometric anomalies within the Motzfeldt Sø Formation.

Above core from 2001 Drilling

Five radiometric anomalies, occurring over a strike length of 7km, were shown to be associated with tantalum-rich pyrochlore mineralisation, hosted by hydrothermally altered syenite.

Of the five anomalies identified Anomaly 4 and 5 were thought to have the most promise;

Anomaly 4 (Airies Target)
A radiometric anomaly that was 200-300m wide, and extended for over 2 km, was identified and was supported by high metal contents in samples on the plateau area.

The GUES geological model suggested a mineralised zone more than 400m high, 300m wide and extending at least 1.5 km N-S.  They estimated 450 million tonnes of potentially mineralised rock containing an average of 110 ppm. Ta.

Aries Target – Location on top of Plateau

Anomaly 5 (Merino)

In 2001, the GEUS work was followed up by Angus & Ross Plc, who had acquired an exploration licence over the area in 2000.  Angus & Ross focused primarily on one of the five anomalies identified by the GEUS, the Aries target.

Figure 3 : Target Areas at the Motzfeldt Project

Most of the field work by Angus & Ross was carried out 2000-2.  Further sampling, mapping, reconnaissance and mineralogical studies were undertaken through 2002, 2005 and 2006, when work ceased.  A summary of this work is shown below:

• 88 samples collected from the boulder field on a 50m x 20m grid, returning an average grade of 123ppm Ta₂0₅.  Analysis of the grade distribution revealed a distinctive metal zoning with a north-south alignment
• A diamond drilling programme of 9 holes for 1,621 metres was completed over a 200 metre section of the 1,500 metre strike length of altered syenite identified at Aries
• A ground-based radiometric survey was also carried out and it identified anomalies along two main trends – NNW-SSE and NE-SW over a strike length of 1.5 km
• The preparation of an Engineering Scoping Study in 2001 for a mine and processing facility to be located at the Motzfeldt Project
• The Engineering Scoping Study was later (2002) reviewed by Behere Dolbear International to act as a “fatal flaw review”
• Mineralogical and petrology studies on samples from the drilling programme

Aries

Topographically, Aries overlies a plateau containing a large boulder field at an elevation of 1,500m above sea level, with the Motzfeldt Sø Formation striking N-S across the plateau.

Surface sampling and the drilling programme identified two main regimes in which enriched pyrochlore occurs – the Hanging Wall (HW) and the Footwall (FW) regimes.  These are separated by the Base Metal Zone (BMZ) which has elevated concentrations of zirconium, tin, lead and zinc.  It strikes N-S and dips ESE at 40°.

Pyrochlore enrichment in the FW zone associates with sub-horizontal bands of high Zr (>6,500 ppm.), high Th and slightly reduced U.  The high grade Zr bands have mean grades of 225ppm Ta₂O₅ and 3,000 ppm Nb₂O₅, with drill intersections of > 700ppm Ta₂O₅.

Pyrochlore enrichment in the HW contrasts to this, in that it has lower Zr content (< 6,500 ppm), lower Th and increased U.  Grades of up to 2,132 ppm Ta₂O₅ and 24,735 ppm. Nb₂O₅ have been encountered in the enriched zones.

Results from the 2001 drilling programme are shown in the table below:

Other Areas

At Merino, located to the north of Aries (see Figure 3) mapping and sampling were focused on areas identified as priority targets in the GEUS survey.  The four samples taken from this area returned assays ranging from 434 ppm. Ta₂0₅ to 939 ppm. Ta₂0₅.  This area clearly warrants further sampling and drill testing.  A number of high-grade results for REE were also taken from this area.

The Ram's Head target, which is located on the other side of the Motzfeldt Lake, has been subject to limited reconnaissance work and further mapping and sampling is required.

Engineering Scoping Study

In 2001, Angus & Ross prepared an Engineering Scoping Study which included some preliminary metallurgical testwork and early stage engineering work for a mine and process plant.  The initial metallurgical work, whist identifying that the recovery of minerals would be technically complex, concluded that with further work a viable process route would likely be found.

Respected international mineral consultants Behere Dolbear International  (“BDI”) carried out a review of the Engineering Scoping Report and they concluded that “based on its review of the Engineering Scoping Study, the project does not appear to have any fatal flaws and there is no reason not to continue exploration and expenditure to move it towards feasibility.”

Whilst it is advantageous that preliminary stage metallurgical test work and engineering has completed, the Company believes that this work will need to be repeated in greater detail in order for it to be fully representative of a positive outcome for the Motzfeldt Project.  Notwithstanding, as an early stage fatal flaw review, the positive conclusions by BDI have provided encouragement as to the strength of the Motzfeldt Project.