The lujavrite series within the Ilimaussaq\ Complex is at least 500 m thick and are generally fine-grained and laminated but there are locally some medium to coarse-grained pegmatoidal varieties. Black (arfvedsonite bearing) lujavrite is the rock type that hosts REE, uranium, and zinc multi-element mineralisation. Economic REE and uranium grades occur in the uppermost sections of the lujavrites, and are associated with distinct ore minerals. Mineralisation is predominantly orthomagmatic, with metal enrichment a function of differentiation of the lujavrite magma.

Steenstrupine is the most important host to both REEs and uranium in the lujavrite-hosted deposits. It is a complex sodic phospho silicate mineral. Mineralogical studies suggest that steenstrupine commonly contains between 0.2% and 1% U3 O8 , and greater than 15% total rare earth oxide. Steenstrupine is the dominant host to both uranium and REEs. The phosphorous in the mineral structure makes steenstrupine amenable to concentration by conventional flotation techniques.

The grain size of the steenstrupine commonly ranges from 75 µm to over 500 µm. Other minerals that are important hosts to REEs include the phosphate mineral vitusite and, to a lesser extent, britholite, lovozerite group minerals and rare monazite. Aside from steenstrupine, uranium is also hosted in zirconium silicate minerals of the lovozerite group. In these silicates a portion of the zirconium is substituted by several hundred ppm each of uranium, yttrium, REEs and tin. Zinc is hosted in the sulphide mineral sphalerite, which is the dominant sulphide, disseminated throughout the deposits.

Several substantial deposits of multi-element mineralisation (REEs, uranium, zinc) are hosted in the lujavrites of the northern Ilimaussaq Complex. A world-class multi-element resource has been established at Kvanefjeld, and substantial new satellite deposits have recently been confirmed at Sørensen and Zone 3. Geological evidence suggests that Sørensen and Zone 3 represent outcropping, or nearsurface expressions of a mineralised system that extends over several kilometres from Kvanefjeld, and is interconnected at depth. This is endorsed by exploratory drill holes that demonstrate that mineralisation is widespread outside the defined mineral resources.

Mining will be medium scale, open pit operation with a life of mine strip ratio of 1:1.

Mining operations will be open pit (open cast) using a standard drill/blast/truck/shovel operation. This has been selected as the lowest operating risk mining method, both in terms of cost and productivity.

For the purposes of mine scheduling SRK Consulting were engaged to perform equipment selection for an operating cost estimate. Equipment selection has determined that 3-6 x 100t mining trucks and one 200t excavator would be required for the project. As the pit gets deeper the haul distance increases, which will then require additional trucks. The haul distance is 1.5 km to the concentrator which will be made by the mine trucks.

Ore mined from the open pit is trucked to the concentrator at a rate of 3 million tonnes per year where beneficiation is performed. The ore is crushed and ground to a particle size of 80% passing 75 microns. Flotation is used as the beneficiation method to concentrate the value minerals. Flotation of the zinc mineral sphalerite from the rest of the ore produces the first product for the project. The zinc concentrate contains ~0.5% of the total ore mass and ~78% of the mined zinc.

The next flotation stage concentrates the rare earth phosphate minerals into 8% of the original ore mass. Approximately 80% of the rare earths are recovered into the Rare Earth Phosphate (REP) mineral concentrate.