GreenX Metals Limited (ASX:GRX, LSE:GRX) (GreenX or the Company ) is pleased to present its Quarterly Activities Report for the period during and subsequent to 30 June 2022.
FIELD PROGRAM TO COMMENCE AT ARC PROJECT IN GREENLAND
Subsequent to the quarter, GreenX announced the receipt of all the permits for the proposed 2022 field program at the Arctic Rift Copper Project (ARC or ARC Project ), which will commence in the coming weeks. Five geological teams will be deployed in the field supported by All-Terrain-Vehicles. The field team and field equipment will be deployed by ship from Iceland and will access the ARC project via Independence Fjord (Figure 1).
Figure 1: Draped satellite imagery over digital terrain model. Orthogonal view is towards the north looking down Neergaard valley. New structural interpretations showing identified reverse faults and identified targets Discovery Zone, Neergaard Dal and the Knuth Fault.
Historical programs and latest analysis have identified a number "walk-up" native copper and copper sulphide targets that will be the priority for the upcoming field program including Discovery Zone, Neergaard Dal and the Knuth Fault (Figure 1). The field campaign is based on a program of sampling, mapping, portable core-drilling and geophysics including seismic, electro-magnetic and radiometrics. Portable XRF will be used in the field and the field team will have access to satellite internet for real time uploading of field results. The field program will be led in the field by Dr Jonathan Bell.
GreenX expects strong news flow over the upcoming quarters from the field program and results from ongoing analysis of historical data.
ARC is an exploration joint venture between GreenX and Greenfields Exploration Limited (GEX ). GreenX can earn 80% of ARC by spending A$10 million by October 2026. ARC is targeting large scale copper in multiple settings across a 5,774 km2 Special Exploration Licence in eastern North Greenland. The area has been historically underexplored yet is prospective for copper, forming part of the newly identified Kiffaanngissuseq metallogenic province.
GreenX and GEX consider the observed geological setting and features of ARC to be indicative of an extensive mineral system capable of hosting world-class copper deposits. The large scale of the mineral system, widespread copper anomalism, combined with dual mineralising events are analogous to the largest copper systems known worldwide. Accordingly, GreenX considers that ARC has the potential to be a globally significant metallogenic province.
Historical field programs identified widespread copper-silver occurrences at surface:
o 53.8% Cu and 2,480g/t Ag
7.9% Cu and 53 g/t Ag
o 20.7% Cu and 488g/t Ag
o 5.3% Cu and 112 g/t Ag
12.5% Cu and 385g/t Ag
o 5.0% Cu and 304 g/t Ag
9.0% Cu and 112 g/t Ag
4.0% Cu and 82 g/t Ag
Very high-grade copper mineralisation identified at ARC is associated with the Minik Anomaly (Figure 2), a coincident magnetic-electromagnetic-gravity feature in an area where there is a change in oxidation state and widespread native copper in stream sediments. These features are presented as the footprint of a large-scale hydrothermal system. The frequency and size of the native copper clasts, and the high grade of the copper-silver sulphides that are exposed at the surface, bode well for the prospectivity of copper deposits and will be a will be a key focus of the first field campaign.
Figure 2: ARC licence area showing historical geochemistry, the Minik Anomaly and identified faults
There are multiple targets and favourable geological settings considered to be prospective within the ARC project area, including the following.
As such, the extensive ARC mineral system is known to be prospective for basalt, fault, and sedimentary rock-hosted('sediment-hosted') mineralisation that despite the attractive grades, is virtually unexplored.
During the quarter, the Company completed the sales of land and buildings, previously held for sale, owned by the Company in Poland for the total receipt of A$1.9 million (before costs).
As at 30 June 2022, GreenX had A$6.1 million cash available plus A$8.3 million available to pursue its dispute against the Republic of Poland.
Subsequent to the quarter end, the Company reported that as part of the ongoing international arbitration claims (Claim ) against the Republic of Poland under both the Energy Charter Treaty (ECT ) and the Australia-Poland Bilateral Investment Treaty (BIT ) (together the Treaties ), GreenX had filed its Statement of Reply in the BIT arbitration.
This is the final material filing that GreenX will make for the BIT arbitration, with the next steps being for Poland to lodge their final filing (the Rejoinder) followed by a hearing to be conducted in front of the Tribunal.
Based upon revised external expert reports in response to Poland's Statement of Defence, GreenX is now seeking compensation in the amount of £737 million (equivalent to A$1.3 billion or PLN 4.0 billion).
The Company's international arbitration claims (Claim ) against the Republic of Poland is being prosecuted through an established and enforceable legal framework, with GreenX and Poland agreeing to apply the United Nations Commission on International Trade Law Rules (UNCITRAL ) rules to the proceedings.
Both the BIT and ECT claim Tribunals have been constituted, with both Claims being registered with the Permanent Court of Arbitration in the Hague. The BIT and ECT claim proceedings proceed at pace, with the Company now having filed a revised claim for damages against Poland with the Tribunal in the amount of £737 million (A$1.3 billion/PLN4.0 billion), which includes a revised assessment of the value of GreenX's lost profits and damages related to both the Jan Karski and Debiensko mines, and accrued interest related to any damages. The Claim for damages has been assessed by external quantum experts appointed by GreenX specifically for the purposes of the Claim.
In July 2020, the Company announced it had executed the LFA for US$12.3 million with Litigation Capital Management (LCM ). The facility is currently being drawn down to cover legal, tribunal and external expert costs as well as defined operating expenses associated with the Claim.
In September 2020, GreenX announced that it had formally commenced with the Claim by serving the Notices of Arbitration against the Republic of Poland. In June 2021, GreenX announced that it had formally lodged its Statement of Claim in the BIT arbitration, including the first assessed claim for compensation. The Company's Statement of Reply, the last material filing to be made by the Company for the BIT arbitration proceedings, has now been filed. The Statement of Reply addresses various points raised by the Republic of Poland in their Statement of Defence. The Statement of Reply also contains a re-evaluation of the claim for damages based on responses to Poland's Statement of Claim.
GreenX's dispute alleges that the Republic of Poland has breached its obligations under the applicable Treaties through its actions to block the development of the Company's Jan Karski and Debiensko mines in Poland which effectively deprives GreenX of the entire value of its investments in Poland.
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GreenX Metals Ltd. published this content on 27 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 July 2022 23:17:07 UTC.