Eclipse Metals receives further Greenland Government validation through Ivittuut licence extension

Eclipse Metals Ltd (ASX:EPM) has received further indication of the Greenland Government’s support for its Ivittuut Project through confirmation of a four-year extension to the mineral exploration licence.

The extension of MEL2007-45 to December 31, 2024, is also validated by the government through heavily-reduced minimum expenditure commitments for the first year of tenure.

This follows Greenland’s Minister for Mineral Resources Naaja Nathanielsen signing addendum No 6 to the licence document granted to Eclipse, providing the updated conditions.

Historic cryolite mine

Eclipse acquired the Ivittuut project in January 2021 and the project area hosts the historic Ivittuut cryolite mine and undeveloped mineral resources, including a large REE-bearing carbonatite deposit.

Between 1865 and 1985, the Ivittuut mine produced 3.8 million tonnes of high-grade cryolite, used in the aluminium industry, from the world’s largest known mineable resource of naturally occurring cryolite (Bondam, J. 1991).

Resources “very important”

Earlier this month, the Minister said mineral resources were “very important for the new government in order to diversify the Greenlandic economy to the benefit of all”.

She said: “Mining remains an industry that the new government intends to develop and prioritise in the future – both for international companies as well as local entrepreneurs.”

The government is very keen to see all types of mining projects progress, except uranium with the Minister stating: “The new coalition does not support the exploitation of uranium.”

Program of work

Eclipse has submitted a program of work for Ivittuut for 2021 and is expected to receive approval by early July.

The company’s executive chairman Carl Popal said: “Ivittuut is an industrial mineral and REE project with no uranium mineralisation.

“We are looking forward to working with the Ministry of Mines and Greenland’s Mineral Licence and Safety Authority to progress the development of the Ivittuut project.

“Ivittuut has more than 120 years of mining history, and the project has great commercial prospects.

“We look forward to exploring this potential and working with the new government to develop a new mine or mines in Southwest Greenland.”

Story by ProactiveInvestors

Source: http://www.proactiveinvestors.com/companies/news/950373/eclipse-metals-receives-further-greenland-government-validation-through-ivittuut-licence-extension-950373.html