Malmbjerg Molybdenum Project

planned

The Malmbjerg project is an open pit operation focused on the development of a 100% owned Climax type primary molybdenum deposit located in central east Greenland. It features an environmentally friendly mine design with reduced water usage, low aquatic disturbance, and low footprint due to modularized infrastructure. The project includes magnesium as a byproduct and aims to incorporate magnesium and rare earth elements in the economics of the feasibility study. The project has an NI 43-101 Definitive Feasibility Study completed by Tetra Tech in 2022, with a capital expenditure of US$820 million, a levered after-tax IRR of 33.8%, and a payback period of 2.4 years, based on a US$18 per pound molybdenum price. Proven and Probable Reserves are 245 million tonnes at 0.176% MoS2, for 571 million pounds of contained molybdenum metal. The average annual production for years one to ten is 32.8 million pounds per year of contained molybdenum metal at an average grade of 0.23% MoS2, approximately 25% of EU total yearly consumption and 100% of EU defence needs. The project uses approximately 35,000 m3 per day of saline water with around 900 ppm of magnesium, and the company is working on extracting magnesium from the saline water using innovative technologies.