Letter of Invitation for the 81° North Open Door Licensing Procedure 2014

As authorised by the Government of Greenland and pursuant to Greenland Parliament Act no. 7 of 7 December 2009 on mineral resources and mineral resource activities, as amended by Greenland Parliament Act no. 26 of 18 December 2012, ("Mineral Resources Act"), the Ministry of Industry and Mineral Resources ("MIM") and the Mineral Licence and Safety Authority ("MLSA") hereby invite companies to apply for mineral exploration licences for the onshore areas north of 81 degrees north specified below and shown in Enclosure 1 to this Letter of Invitation for the 81° North Open Door Licensing Procedure 2014 ("Letter of Invitation").

The invitation to prepare applications for licences is open from 1 June 2014 and the areas are open for applications for licences from 1 July 2014 at 9:00 local time Nuuk, Greenland.

Geology and licensing in North Greenland

North Greenland has shown a great potential for zinc and lead occurrences. The favourable geology of North Greenland is related to the formation of the Franklinian Basin. The east-west striking basin comprises in the southern part a carbonate platform and towards north deeper deposited through sediments such as mudstones and shales. The carbonate platform has the Mississippi Valley Type (MVT) of zinc-lead +barium deposits, and the through sediments host the sedimentary exhalative deposits (SEDEX). MVT deposits are found in Washington Land and Navarana Fjord, and a SEDEX deposit representative is found in the well-known Citronen Fjord deposit.

To promote this great potential in the Franklinian Basin, North Greenland, the Government of Greenland has set up pre-defined licence areas that will be offered on special terms to encourage exploration of the zinc and lead in the region.

Environmental matters and concerns

Mineral exploration in the areas north of 81º will take place in some of the least known areas in Greenland, with regard to knowledge of plant and animal life, and at the same time, these areas are logistically difficult and costly to access.

In the planning of future activities associated with mineral exploration and exploitation there will be a need for better insight into the natural history of the region, that is flora and fauna. This is needed as basis for the preparation of EIA reports, and for the authorities' evaluation of these.

In this opening of the area, terms have been set for exploration activities that consider the lack of biological knowledge. Licensees shall investigate the environmental conditions in the licence area to identify special sensitive areas and simultaneously contribute to an increased mapping of the areas biodiversity.

Additional to the licence terms listed in the invitations letter, a guideline will be published, which describes these environmental initiatives. Collection of data can be done by the company's employees in accordance with instructions from DCE/GN, but it should also be possible for DCE/GN employees to use the company's logistical platform for specific environmental studies. In the latter case, it is expected that financing will be cost-neutral for the company.

 

Letter of Invitation for the 81° North Open Door Licensing Procedure 2014

Maps of all licence areas (licence blocks) available.

Delineating coordinates for the licence areas - Block 1-9

Delineating coordinates for the licence areas - Block 10-18

Rules for field work and reporting regarding mineral resources (excluding hydrocarbons) in Greenland.

The Standard Terms for Exploration Licences for Mineral Resources (Excluding Hydrocarbons) in Greenland of 16 November 1998, including the two amendments thereto of 10 September 2010 and 25 June 2013, in Danish ("Standard Terms"). These documents in Danish are the official documents.

"Application Procedures and Standard Terms for Mineral Exploration and Prospecting Licences in Greenland", 25 June 2013. This document is a collection of unofficial translations into English of the standard procedures and terms which apply to mineral exploration and prospecting licences in Greenland. Document 1 in this collection is titled "Application procedures and standard terms for exploration and prospecting licences for minerals in Greenland", 16 November 1998, (see pages 5-15 of the PDF document). Document 2 in this collection is titled "Standard Terms for Exploration Licences for Mineral Resources (Excluding Hydrocarbons) in Greenland", 25 June 2013, (see pages 17-37 of the PDF document).

Environmental Guideline for exploration activities in the area north of 81º N.

Data package with geological data for the area north of 81º N.