Eclipse Metals (ASX: EPM) is officially the owner of the Ivittuut project for another four years after the Greenland Government approved the register and transfer of the exploration licence into the company’s name.
The Greenland Government has granted a four-year extension to the exploration licence to 31 December 2024, with the advantage of “heavily reduced” minimum expenditure commitments for the first year.
Eclipse has already submitted a proposed program of works for Ivittuut for 2021, with approval anticipated by early July.
Eclipse executed an agreement to acquire Ivittuut in January this year.
The project previously hosted the world’s largest known mineable resource of naturally occurring cryolite, with the mine operating between 1865 and 1985.
During operation, about 3.8 million tonnes of cryolite was generated for export and use as a fluxing agent to reduce energy consumption during aluminium production.
As well as cryolite, the project hosts fluorite, siderite, quartz, rare earth elements and base metals.
Eclipse is assessing near-term cash flow opportunities by extracting minerals from dumps and tailings.
Last month, Eclipse welcomed Greenland’s newly elected coalition government, which had publicly stated it is supportive of responsible mining.
Greenland’s Minister for Mineral Resources Naaja Nathanielsen has also said mineral resources are “very important” to the new government in order to diversify the country’s economy.
“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.”
At this stage the only mineral the government is not supportive of mining is uranium, with Eclipse pointing out the Ivittuut project does not host this mineral.
Eclipse executive chairman Carl Popal said the company was looking forward to working with the Greenland government to advance the 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,” Mr Popal added.