FinnAust Mining plc / EPIC: FAM / Market: AIM / Sector: Mining
FinnAust Mining plc (‘FinnAust’ or the ‘Company’)
FinnAust Mining plc, the AIM and FSE listed company with projects in Greenland & Finland, is pleased to announce that the Government of Greenland has amended the Standard Terms for Exploration Licences for Minerals (excluding hydrocarbons) in Greenland. Under a newly issued addendum, the expenditure obligations for exploration licences from year 6 to year 11 inclusive will be reduced to a zero expenditure requirement for 2017. This will result in cost savings to the Company as it looks to advance its newly acquired Avannaa licences in Greenland, now renamed Disko Exploration Limited (‘Disko’).
The decision by the Government of Greenland has been made following extensive industry consultation and direct dialogue with licence holders in Greenland, and is a clear demonstration of Greenland’s supportive approach to its emerging minerals industry. Following the recent acquisition of the Disko licences (see RNS dated 5 January 2017) FinnAust believes these new assets have significant resource potential and this more favourable licencing environment will support their on-going assessment. Historical work by major mining houses such as Conminco, Falconbridge and RTZ identified two large and very high-grade drill ready targets at the Disko licences. These targets are the magmatic massive sulphide Nickel, Copper and Platinum Group Elements at the Disko Project and the Kangerluarsuk Zinc, Lead and Silver Sed-Ex Project.
The Company also operates the Pituffik Titanium Project (‘Pittufik’) in Greenland where bulk sampling is scheduled to commence later this year. The new addendum does not apply to Pituffik, which is within the 0-5 year licence bracket.
FinnAust CEO Roderick McIllree said, “This type of consultative and cooperative approach between Government and licensee is another clear demonstration of Greenland’s commitment to, and support of, a growing minerals industry. Greenland is endowed with outstanding prospectivity, has established infrastructure and a strong rule of law. In a world where there are many examples of jurisdictions not supporting their mining industry, Greenland stands out as a country that’s open for business.”
For further information please visit www.finnaust.com or contact:
|Roderick McIllree||FinnAust Mining plc||+44 (0) 20 7907 9326|
|Graham Marshall||FinnAust Mining plc||+44 (0) 20 7907 9326|
|Ewan Leggat||SP Angel Corporate Finance LLP||+44 (0) 20 3470 0470|
|Laura Harrison||SP Angel Corporate Finance LLP||+44 (0) 20 3470 0470|
|Elisabeth Cowell||St Brides Partners Ltd||+44 (0) 20 7236 1177|
|Charlotte Page||St Brides Partners Ltd||+44 (0) 20 7236 1177|
The Company is currently focussed on advancing the Pituffik Project in Greenland, an area that has only recently revealed its mineral potential following changes in the climate. Pituffik, which FinnAust conditionally acquired in December 2015, has demonstrated the potential to be in the top percentile of projects worldwide in terms of heavy mineral grade.
Pituffik comprises three main target areas along an >80km coastline historically proven to contain large and high-grade accumulations of primary ilmenite occurring as placer deposits in the following environments:
- Raised beaches; containing ilmenite accumulations over widths of more than 1km, of unknown depths, along more than 20km of coastline;
- Active beaches; which refer to the area seaward of the frontal dunes, including the beach, tidal zones and surf zone – historically samples from this area have achieved 70% ilmenite by weight; and
- Drowned beaches; refers to the areas seaward of active beaches.
The Company’s strategy is focused on the production of a bulk sample “proof of concept” from the Pituffik Project in 2017 with the aim of ultimately generating cash flow to create a company capable of self-funding exploration on future acquisitions.
FinnAust has an interest in 60% of Bluejay Mining Limited the holder of the Pituffik exploration licence and has an option to acquire the remaining 40%.
FinnAust also holds a 100% interest in a portfolio of copper, zinc and nickel projects in Finland. This multi-commodity portfolio remains a strategic asset of importance and has been restructured to be cost-sustainable whilst determining the best plan for future development.