Karrat REE

License 2010/05, 122km2

location mapAvannaa has discovered two rare earth element (REE) deposits in license 2010/05 in the Karrat Isfjord region of West Greenland. The primary deposit at the Niaqornakavsak (NIAQ) peninsula was discovered by Avannaa in 2007. The NIAQ discovery is new and the potential for REE mineralisation had not previously been recognised in the region. NIAQ is located directly on the coast in central West Greenland on the island of Qeqertarssuaq. It is 21 km from the village of Nugatsiaq, 90 km from the historic Black Angel mine at Marmorlik and 190 km from the town of Uummannaq. NIAQ enjoys easy access by boat.

karrat ree discovery #2 During 2009 Avannaa discovered a second mineralisation at Umiamako Nuna (UMIA) peninsula some 7 km east of NIAQ. NIAQ is considered the primary deposit and future work will be focussed on rapidly progressing this project, UMIA is regarded as providing additional upside to the main development at NIAQ.

karrat ree discovery #1 The mineralisation at both locations is hosted in Early Proterozoic metasediments and metavolcanics of the Karrat Group. The mineralisation is a lithologically distinct horizon of banded carbonates within an amphibolite unit. The REE is mainly hosted by bastnaesite, monazite, allanite and other REE silicates.

During the 2010 field season Avanna drilled 1320m in 8 holes at NIAQ and 420m in 2 holes at UMIA. The core was split and shipped to ALS Chemex in Sweden and Canada for analysis.NIAQ drill

The REE horizon at NIAQ is an east-west striking planar body, conformable to the regional foliation and dips south at an angle of 32 degrees. Strike length is 1.5 km and is open at both ends where it is limited by the coastline. Maximum elevation of the ore body is 56 m above sea level and the deepest drill penetration of the ore body was to 168 m below sea level. The shape of the body is approximately tabular and core data suggests it pinches and swells with a true thickness between 10.3 m and 32.5 m. The variation in thickness is structurally controlled (see cross section below). NIAQ cross section Within the area of drill intersections and surface exposure the body contains tens of million tons, with a substantial amount accessible to open pit mining. The drill intesections indicate that TREO+ Y typically varies between 0.8 wt% and 1.5 wt% with some layers giving up to 1.9 wt% and the average drill intersection being 1.03 wt%. The proportion of HREO+Y content varies from 5.3% to 30.2% with the average drill intersection being 12.4% (see table below). NIAQ core

The NIAQ bulk samples indicates an average TREO+Y of 1.36 wt% of which the average HREO+Y content is 13.06%, (see table below). The inital programme of metallurgical testing on the NIAQ bulk samples has been completed and analysis of the results has begun. NIAQ bulk

The UMIA body lies 7 km to the east of, and along strike from, the NIAQ site. Two holes (in total 420 m), 3 mini-bulk samples and 347 channel samples were collected here. Summary core results are presented below. It is not possible to estimate true thickness at present due to uncertainties in the shape of the layer. In addition to the cores the REE mineralisations were found in grab samples at various locations from sea level to an elevation of 1245mamsl. Further prospecting and mapping work is required to understand the extent of the UMIA deposit. The location has the potential to be mined by quarrying. UMIA core

The priority for current and future work is metallurgical analysis and flowsheet development using about 1 tonne of rock collected from a series of representative surface samples spanning the mineralized horizon at NIAQ. In parallel with this activity Avannaa is addressing commercialization of this project and has begun a preliminary open pit scoping study to engage in discussions with end users.

Rare earth elements are specialised commodities that are often used for high-technology applications in electronics, energy efficient lighting, hybrid cars, LCD screens and super-magnets. Most of the world’s rare earths are produced from one mine in China and there is a growing desire to see some diversity of supply.
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REE downloads

Objective Capital presentation March 2011

Karrat REE Summary April 2011

NIAQ drill intersection summary

NIAQ bulk sample summary