Annual Report 2005 Map of licences, 1 January 2006 Example of map of licences in . The map is updated every 14 days on the first and sixteenth of the month on the Bureau of Minerals and Petroleum website www.bmp.gl, The map can be printed from here. Foreword In the last couple of years, Greenland has been facing a very A/S.The area involved covers approx. 3,000 km2 and positive development in both the minerals and the petroleum is located in a offshore area about 250 km west of , sector. Interest by the minerals industry has increased as a re- West Greenland. sult of intensive marketing of the minerals potential in Green- land, and, further, by favourable developments in prices of oil, EnCana Corporation is also operating the licence off- minerals and metals. shore West Greenland.This licence was issued in connection with a licensing round in 2002, and includes an area approx. In the minerals sector, 2005 saw a marked increase in the 80 km northeast of the new licence area. number of licences: 15 new exploration licences and four pro- specting licences were issued.At the end of 2005, a total of EnCana Corporation has now completed extensive collection two exploitation licences had been granted, and 33 explora- of seismic data in both licence areas. Results of exploration tion licences covering an area of 12,986 km2, as well as 12 have been very positive, and there is every possibility that – in prospecting licences. a few years – we will see more exploration drilling offshore West Greenland. In the hydrocarbons sector, two exploration and exploitation licences had been issued for the offshore area west of Nuuk, 2005 has been characterised by a number of projects to ma- and eight onshore prospecting licences. ture the Disko- region for licensing of exploration and exploitation activities within the hydrocarbon sector be- At the end of 2005 almost 60 licences had therefore been is- fore the end of 2006.The projects focus on the hydrocarbon sued. potential of the area, including collection of new seismic data: assessment of environmental impacts from the oil activities, For minerals, the break-through achieved in diamond explora- and analysis of the economic conditions for exploration of oil tion deserves special attention.Activities have resulted in and gas.The projects have been performed in close dialogue more than 300 diamonds found south of in with the international oil industry. Results achieved in the 2004 and 2005. Exploration activities have also been conside- many surveys have been very encouraging, and much indicates rable, for instance for gold in Godthåbsfjord, at the zinc-lead the presence of an active petroleum system in this very large deposit at Maarmorilik, at ruby deposits in the Fiskenæsset offshore area, covering more than 90,000 km2. area, at the iron deposit at Isukasia, and at the molybdenum deposit at Malmbjerget on the Greenland east coast. The very positive results of oil exploration, and the opening of the two mines within a very short period indicates that we are A very important picture of the optimism displayed in the mi- facing new challenges and a new era, where exploitation of nerals sector is that total investments in exploration projects Greenland’s mineral resources will be a very important ele- increased threefold in the period 2002–2004, from DKK 20 ment in a sustainable economy in Greenland. mill. in 2002 to DKK 66.2 mill. in 2004.

Two years ago, in 2003, Greenland opened its first gold mine, the Nalunaq gold mine, and in 2005, Seqi Olivine A/S started Jørgen Wæver Johansen operations to exploit the olivine deposit at Fiskefjord in the Minister of Housing, municipality of .The company expects production to Infrastructure and Mi- amount to 2 mill. tonnes olivine per year. Deposits will be suf- neral Resources ficient for production for at least 25 years, and could generate a large number of jobs in Greenland.

On 20 January 2005, I signed a new exploration and exploita- tion licence for oil and gas: the Lady Franklin licence was gran- ted to the Canadian oil company EnCana Corporation and

1 Joint Committee Joint Committee on Mineral Resources in Greenland.

The Mineral Resources System for Greenland establishes a At the end of 2005, the Joint Committee consisted of the joint Danish-Greenlandic political responsibility for mineral following members: resource activities in Greenland.This means that Greenland and have joint authority to make decisions regar- Chair: Kim Andersen, MP (Denmark's Liberal Party) ding principal investments in mineral resource activities. Furthermore, the Danish government and the Greenland Greenlandic members Home Rule Government have agreed on the distribution of Kuupik Kleist (IA) profits from extraction of mineral resources. Ruth Heilmann (Siumut) The Joint Committee on Mineral Resources in Greenland Lars Emil Johansen (Siumut) has been set up as a political forum in which politicians Ellen Christoffersen (Attasut) from Greenland and Denmark can bring central issues re- Per Berthelsen (Democrats)) garding mineral resource activities up for debate.The Bu- reau of Minerals and Petroleum (BMP) under the Green- Danish members land Home Rule administrates the Mineral Resources Sy- Niels Sindal (Social Democratic Party) stem for Greenland and is the responsible authority for case Kaj Ikast (Conservative Party)) processing in connection with mineral resource activities. Aase D. Madsen (Danish People's Party) Martin Lidegård (Social Liberal Party of Denmark) The more detailed provisions pertaining to the Mineral Re- Svend Erik Hovmand (-Denmark’s Liberal Party) sources System for Greenland have been laid down in the Greenland Home Rule Act and in the Mineral Resources Act. The following officials from Greenland and Denmark took part in committee work as delegates: The Joint Committee on Mineral Resources in Greenland - also called the Joint Committee - consists of five politically Kaj Kleist, Executive Deputy Minister (Secretariat of the appointed members from the Greenland Parliament and Greenland Home Rule Government) the Danish Parliament. In addition, a Chair is appointed for Alfred Emil Rosing Jacobsen,Vice Minister (Department of periods of four years by the Queen of Denmark, following Environment and Nature) joint nomination by the Danish government and the Greenland Home rule Government.The tasks of the Joint Peter Lauritzen (Danish Prime Minister's Office) Committee are to monitor developments in mineral re- Thomas Egebo, Permanent Undersecretary of State sources activities and to submit its recommendations to (Danish Ministry of Transport and Energy) the Danish and Greenlandic governments on e.g. issues about the granting of licences for prospecting and for ex- During 2005, three meetings were held in the Joint Com- ploration. mittee.

Less complex cases, such as applications for new licenses and area expansions and transfers, are processed between meetings by the Joint Committee's Chair and Vice Chairs.

Core box and geologist’s hammer: From drilling activities on Storø 2005. Photo: GEUS. Nalunaq – the gold mine flag displayed over the mining town. Photo: BMP. Bureau of Minerals and Petroleum

Objectives and tasks of the Bureau authorities are attempting to sharpen private-enterprise in- of Minerals and Petroleum terest in exploration activities in Greenland.The BMP enga- The Bureau of Minerals and Petroleum (BMP) under the ges in concerted efforts to promote Greenland's mineral Greenland Home Rule is responsible for the management potential through participation in international trade shows of mineral resource activities in Greenland.The BMP aims and exhibitions and through direct promotion initiatives ai- at ensuring professional promotion of the mineral potential med at selected oil and mineral companies. Moreover, the in Greenland to the international mining industry. English website of the BMP is an important means of commu- nicating full and relevant information to the mining industry. One of the main tasks of the BMP is the day-to-day admini- stration of licences for prospecting, exploration, and exploi- Greenland aims at making mineral resources one of its pri- tation of mineral resources.The BMP is responsible for all mary industries. Developments within mineral resource case processing and is the only authority the industry ne- activities must therefore be in dialogue with the people of eds to contact in order to obtain licenses.This ensures effi- Greenland. As a consequence, the BMP is striving to pro- cient case processing for mineral resource activities. vide a clear and comprehensible framework for mineral re- The BMP is contributing to the financing and implementa- source activities via a number of information activities, in tion of a number of projects which can provide new know- order to encourage a successful working relationship be- ledge about Greenland's mineral potential. In this way, the tween the mining industry and the public. authorities are attempting to sharpen private-enterprise in- The BMP cooperates on the administration of mineral re- terest in exploration activities in Greenland.The BMP enga- source activities with e.g. the Geological Survey of Den- ges in concerted efforts to promote Greenland's mineral mark and Greenland (GEUS), the National Environmental potential through participation in international trade shows Research Institute (NERI), and the Danish Energy Authority and exhibitions and through direct promotion initiatives ai- (DEA).Also the state-owned oil company NUNAOIL A/S is med at selected oil and mineral companies. Moreover, the an important partner. English website of the BMP is an important means of commu- nicating full and relevant information to the mining industry.

Greenland aims at making mineral resources one of its pri- mary industries. Developments within mineral resource activities must therefore be in dialogue with the people of Greenland.As a consequence, the BMP is striving to pro- vide a clear and comprehensible framework for mineral re- source activities via a number of information activities, in order to encourage a successful working relationship be- tween the mining industry and the public.

The BMP is contributing to the financing and implementa- tion of a number of projects which can provide new know- ledge about Greenland's mineral potential. In this way, the

Guests are welcomed at geologists’ camp on Storø. Photo: GEUS.

BMP representative visiting geologists’ camp on Storø. Samples are checked in the microscope. Photo: GEUS. Hydrocarbons

Exploration strategy There is broad political agreement in Greenland to work area Is located approx. 80 km. south-west of the Atammik towards developing the hydrocarbon sector into an impor- licence. tant industry in Greenland. Development of the hydrocar- bon sector should take place in a manner which provides EnCana Corporation holds a share of the licence of 87.5 the greatest possible benefits for society in Greenland. per cent, and is operator at the site.The publicly owned company Nunaoil A/S share is 12.5 per cent. As a result of the high costs of exploration in Greenland, it is important that the oil industry is responsible for a large EnCana is one of the world’s biggest independent oil and part of the overall exploration activities.Therefore, an im- gas companies, with headquarters in Calgary, Canada. It is portant strategic goal is to encourage interest from the in- the biggest natural gas producer and gas storage operator dustry in investing in oil exploration in Greenland.Thus, it in North America. Ninety per cent of the company’s assets is important that the authorities publish clear objectives are in North America. EnCana is the biggest producer and and targets for how, when and on what terms they intend licence holder in western Canada, and is one of the main to offer exploration and exploitation licences in Greenland. actors in the development of Canada’s oil and gas potential offshore Canada’s east coast.Through its US subsidiaries, On this background, and within the framework of the poli- EnCana is also one of the biggest oil producers in the tically adopted exploration strategy, the BMP has imple- Rocky Mountain states. mented a number of action plans and time schedules, targe- ted towards the oil industry. One of the measures taken 60°W 50°W was the licencing rounds in 2002 and 2004 in the area off- 70°N 55° 70°N shore West Greenland. In continuation of this, the Green- land Home Rule Government and the Danish Government have adopted an action plan aiming at making the Disko-

Nuussuaq region and adjoining areas ready by the end of 69° GREENLAND69° 2006 for the issue of new licences to the oil industry.

Ilulisat

The EnCana Corporation exclusive 68° Exploration well 68° licence Since 2002, the Canadian oil company EnCana Corporation and Nunaoil A/S have operated the Atammik exploration and exploitation licence, approx. 200 km west of Nuuk. 67° 250 km 67° EnCana Corporation is the operator for the licence.Their 2005 reporting presented activities which were readily ap- proved by the authorities.

66° 66° New exploration and exploitation licence EnCana & NUNAOILs The Canadian oil company EnCana Corporation and Nuna- 65° licence granted in 2002 65° oil A/S were granted a new exploration and exploitation li- cence on 20 January 2005, covering hydrocarbons in Greenland.The licence was awarded on the basis of an ap- plication from EnCana in the licencing round 2004 covering 64° 64° areas offshore West Greenland. Nuuk EnCana & NUNAOILs The area involved covers 2,897 km2 in an offshore area ap- licence area granted in 2005 prox. 250 km west of Nuuk,West Greenland. Geologically, 63° 63° Licence area no. 1 the area includes part of the Lady Franklin Basin. 4,500 km from the 2004 Licensing Round of 2D seismic data have been collected in the area. Sea depths range from approx. 750 m in the northern part to 1,750 m in the southernmost part of the licence area. No 62°N 62°N 60°W 51° 50°W wells have previously been drilled in this area.The licence 59° 58° 57° 56° 55° 54° 53° 52° Map of offshore licences and oil exploration drill sites.

4 Marine area offshore Disko-Nuus- nection with the collection of 2,243 km seismic data in the suaq is being prepared for open area in 2002. public licencing procedures Over the past years considerable improvements have been Geological surveys in the area achieved in the data coverage of areas offshore Disko- In 2005, the BMP and GEUS took joint measures to con- Nuussuaq. tinue a number of projects aiming at strengthening docu- mentation of an overall petroleum system in the Disko- New geophysical data, including gravimetric and seismic Nuussuaq region.The projects include: data, indicate deep basins and large potential oil structures in the region.The discovery of the new very large structu- Survey of seabed samples in areas where seismic data res offshore the oil seeps in the Disko-Nuussuaq peninsula indicate that older and deeper layers may be exposed has increased industry's interest in exploration in the area. at the seabed. Positive results of this project will enable determination of the existence of deeper source rocks Therefore, in 2004, the Greenland Home Rule Government and reservoir rocks (i.e. the type of rock that may form and the Danish Governments decided to take measures to and store oil). mature the Disko-Nuussuaq area, with a view to reopening the area for applications for exploration and production li- The project is a follow-up on cruises offshore West cences in 2006. Greenland in 2003 and 2004 with the vessels R/V Pro- fessor Logachev and H/F Dana.The project is the first The BMP has therefore launched a number of projects, ai- to show evidence of source rocks offshore West ming at identifying the hydrocarbon potential in the area, Greenland. and at clarifying the environmental considerations to be made in this respect. A second project documents the source rocks and comprehensive petroleum systems in the Disko- Collection of seismic data Nuussuaq region. During the project analyses have In 2005, the BMP and Nunaoil A/S cooperated with the been made of natural oil seeps at Disko-Nuussuaq. seismic company TGS-Nopec to collect 3,222 km of Results obtained so far have been very promising, and seismic data in the offshore area west of Disko-Nuussuaq. they show evidence of one or more types of source rock in the marine area west of Disko-Nuussuaq. The new data will be used to further document the very large potential oil structures which were identified in con- A third project aims at documenting the presence of reservoir rocks.The project includes comparative ana- 71°N lyses of onshore deposits of sand and sand reservoirs in the exploration wells in the area offshore West N uu Greenland. ss u aq Establishment of a GIS model with data on geology, 70°N environment, ice conditions etc. Disko

69°N

68°N Hellefisk-1 Seismic data Disko West

67°N 100 km 63°W 61°W 59°W 57°W 55°W 53°W Gravity map of the Disko West area. Red lines show the location of the 3,135 km of seismic data acquired in 2005. Black lines illustrate data from 2003.

5 Environmental assessment in the Disko-Nuussuaq area The main purpose of the expedition at Traill Ø and Geo- The BMP and NERI are carrying out comprehensive envi- graphical Society Ø was to study the occurrence of a co- ronmental assessments, focusing on possible impacts of oil arse grained rock in a deep-marine channel system that activities on the environment in the Disko-Nuussuaq re- might be used as a reservoir, and to collect samples in or- gion.The projects include: der to date the reservoir unit.

Possible impacts on larvae of fish and shrimp The main task of the second expedition was to collect po- Measurements of natural background levels of hydro tential source rock sections in the Wollaston Forland–Kuhn carbons in the marine environment Ø region. Study of the importance of sea ice Populations of whale, birds and walrus In the summer of 2005, Statoil completed a field expedition Modelling of the consequences of an oil-spill incident in East Greenland, aiming at making comparative studies between the Norwegian shelf and Jameson Land in order to understand and map the source and distribution of re- Prospecting licences servoir rock. Several companies have carried out investigations of the oil and gas potential within the framework of prospecting In 2005, the Norwegian company Grønland Resources licences in 2005. Company carried out geological field work at Nuussuaq, in order to localise oil seeps and take samples of seeps for Cambridge Arctic Shelf Programme (CASP) carried further analyses. out two field expeditions in Northeast Greenland during the summer of 2005. Focus in one of the expeditions was the geology of the islands of Traill Ø and Geographical So- ciety Ø, while the other expedition focused on the geology Migration routes for whale, walrus and polar guillemot are moni- of the Wollaston Forland-Kuhn Ø region. tored by means of satellite transmitters, here on walrus. Photo: NERI.

Satellite tracker The Continental Shelf project In 2004, acting on behalf of the Realm, Denmark ratified the United Nations Convention on the Law of the Sea of 1982. From the time of ratification, Parties to the Conven- tion have a period of 10 years to present claims for exten- CASP field excusions ding the right to the seabed beyond 200 nautical miles.

The purpose of such claims for extension is primarily to Greenland Statoil field work Resources secure individual states the right to exploit living and non- Company living resources in the areas involved, and, thus, also hydro- carbon deposits.

In order to present such claims, surveys must be made of the geological structures under the seabed, especially to Acquisition of seismic data by determine the thickness of subsoil sediments. For Green- TGS-Nopec (Labrador Sea) land, three areas may be at stake, including the area around the North Pole. Map showing sites where companies carried out prospecting of the hydrocarbon potential in 2005.

Arctic Ocean 1 The data coverage of the Southwest Greenland offshore area (south of 63°N) is still fragmentary, and knowledge of the underground structure in the area is therefore only li- Svalbard mited.The seismic company TGS Nopec and the BMP and Nunaoil A/S, collected 730 km of seismic data in 2005 in the area. Greenland 2 As a result of the activities, a total of 2,235 km of seismic data has been collected in the period 2003 – 2005 in the area south of 63°N.The new data reveal the existence of very large sedimentary basins and structures, and the na- Jan Mayen ture and form of the observed basins and structures indi- cate that oil and gas may have been generated and stored at deeper levels.

Additional knowledge is required before the area as whole can be included in a licensing round or similar procedure. Atlantic In addition, the area is characterised by difficult operative 3 Ocean conditions related for instance to great sea depths, steep continental shelf and numerous icebergs.The operative conditions underline the need for collection of seismic data and other geophysical and geological data, which may re- duce the risks associated with exploration activities to a le- 1000 km vel that can be accepted by the industry. Map of the three areas (number in red circle) where the thickness of sediment and seabed structures are being surveyed in connection with the Continental Shelf Project.

7 Gold ingot no. 1, produced with gold from the Nalunaq Minerals gold mine. Photo: Crew. Exploitation licences Mining of olivine in Fiskefjord On 30 June 2005, a licence was granted for mining the in- dustrial mineral olivine in deposits at Seqinnersuusaq (Fi- skefjord) in the municipality of Maniitsoq.The licence was awarded to Seqi Olivine A/S.The company is wholly owned by Minelco A/S, which is a subsidiary of the Swedish state-owned mining company LKAB A/B. On 11 August 2005, work to set up the infrastructure required for quar- rying olivine was initiated.

The olivine deposits contain a minimum of 100 mill. tonnes first-class olivine, to be quarried in an open pit, as in ordi- nary stone quarrying.Annual production at Fiskefjord will The environment will be monitored, by continuously com- amount to almost 2 mill. tonnes. paring the results of a base-line study with similar studies of samples collected during production.The baseline study Before shipping, raw olivine is crushed and separated into a analyses samples of various animals and plants collected be- number of fractions and grades, depending on specific ap- fore production started. In addition to taking samples, local plications. From Fiskefjord, olivine is shipped as bulk by fishermen have been interviewed in order to better know cargo vessels with a cargo capacity of up to 50,000 tonnes. the way in which local residents use the area.Together, A 280 m wharf with conveyor belt will carry olivine to the these studies will provide a picture of the state of the envi- vessels.When running at full capacity, deliveries will be ship- ronment, before mining activities commence. ped every ten days. Olivine In 2005, basic infrastructure work was completed, with ac- Olivine is a silicate mineral that occurs naturally in large parts of the world. It commodation facilities for 40 people. In addition, work has consists of a mixture of the minerals forsterite and fayalite, which represent initiated to set up workshops, laboratory and the wharf fa- magnesium and iron-rich mineral members. Olivine has a high melting point and cilities. In the same period, 91,000 tonnes of olivine have a high density. It is used for steel production, as slag former, for sand blasting, been quarried, crushed and shipped. In the last half of 2005 and as foundry sand. there were about 40 workers. It is expected that a similar number of people will be required for production mining. The world market for olivine for slag formation is approx. 4 mill. tonnes per year, and the market for sand blasting and foundry sand is somewhat larger. The management of mining activities, the municipality, edu- cational institutions, and representatives from local busi- ness have agreed to meet every six months, in order to se- Gold production in Greenland cure local jobs and training, and to give businesses better Nalunaq Gold Mine A/S Nalunaq Gold Mine A/S com- opportunities to offer goods and services. menced production in 2004 and has been operational since

Wharf established at the Seqi olivine mine in 2005. Photo: BMP. then.The mine is located approx. 11 km from the coast, geological mapping and systematic channel sampling were and until now, the gold ore has been trucked to the coast carried out on the surface of the Main Zone and adjacent and shipped from there to the mill at Rio Narcea in Spain, mineralisations. Moreover, limited exploration has been where the ore was then broken up and processed into gold carried out in the other gold prospects on Storø, i.e. the bars. Aappalaartoq prospect, as well as at the 580 Summit be- tween Qingaaq and Aappalaartoq. During the period the mine has been in operation, exten- sive knowledge has been obtained about the gold deposit During this drilling programme, a total of 3,900 metres of and about the best method for mining the ore. Nalunaq is a cores from 24 holes have been obtained. 16 of these holes high-grade deposit of gold in quartz veins.The individual ve- were drilled in the Main Zone and eight were drilled with a ins are between 0.1–2.0 metres thick, averaging 0.7 metres. view to clarifying the structural relation between the Main The gold is found as small grains which vary in size from Zone and its adjacent mineralisations.The results are not microscopic to a few millimetres in diameter.The content expected until the end of February 2006. of 16–25 grams of gold per tonne means that there are very large volumes of ore to be mined, transported and processed.

Supplementary surveys have shown that the deposit is lar- ger than first assumed. Nalunaq Gold Mine A/S estimates that there are 438,000 tonnes of ore with a grade of 21 g/t, representing 296,000 ounces. Moreover, the company as- sesses that there is a possible reserve of 1,670,000 tonnes of ore, with a grade of 18 g/t, corresponding to 967,000 ounces of gold.

This means that the company can reasonably expect a con- tinued lifetime of the mine of 10-11 years if it can be ope- rated profitably. The temporary hut for the NunaMinerals drilling equipment on It is very costly to ship the ore to Spain. On the other Storø. Photo: GEUS. hand, it would also be costly to build a processing facility near the mine, especially since the investment must be re- In 2005, I/S’ licence in South Greenland was turned in approx. 10 years. However, Nalunaq Gold Mine investigated through field work at Lake 410 and Niaqor- A/S has assessed that the increasing transport costs neces- naarsuk. Five drillings were carried out at Lake 410 to fol- sitate local processing of the ore, if the known deposit is to low the gold anomalies found in 2003.A total of 1,310 dril- be exploited profitably.Therefore, the company has applied ling metres were carried out. In addition to the drillings, for approval of a processing facility to be built in the imme- samples were also collected along a rust zone, and these diate area of the mine. yielded 13.8; 4.8 and 0.48 grams of gold per tonne respec- tively.A rock sample found at the base of the locality gave a Local processing does, however, have consequences.The re- preliminary result of 9 grams of gold per tonne. sidual products from the processed gold ore must then be deposited in the local area and not, as it is now, in Spain. In 2003-2004 a small quartz vein was found in the Niaqor- The waste product will primarily be quartz that has been naarsuk valley with gold values of 1-2 grams per tonne, and broken up into a very fine-grained mass and subsequently at this locality, samples were collected from both known exposed to chemical impacts. and new quartz veins. However, results so far are modest. On the other side of the valley, samples were also collec- Therefore, the company must explain in its application to ted, and the best results gave 0.78 grams of gold per tonne. the authorities the possible environmental impacts to the environment of depositing the waste products. Diamond exploration In the spring and summer of 2005, Hudson Resources Before the company receives approval, and before it is Inc. carried out geological field work in the Sarfartoq area. known how long it will continue to operate, the authorities Moreover, two major geophysical surveys were carried out, need to decide how the waste product is to be deposited. showing a number of interesting anomalies that could indi- The Joint Committee will make the final decision in this re- cate deeper-lying kimberlite deposits. On this basis, the spect. company carried out a drilling programme for some of the anomalies during March-May 2005 in order to ascertain Exploration licences whether there were any kimberlite deposits.Three drillings were carried out at the Garnet Lake, three drillings at the Gold exploration Spider Lake, and 19 drillings in the area between these two In 2005, NunaMinerals A/S’ exploration licence for Storø lakes.A total of 1,450 metres were drilled. focused on the Qingaaq prospect. Core drilling operations,

9 The drillings at the Garnet Lake showed approx. nine kim- these centres, which are located in the lake, coincide with berlites per drilling.The kimberlites had an average gravity anomalies, and they are therefore high-priority dril- thickness of 0.78 metres.The drillings at Spider Lake ling sites.The reason for this is, amongst other things, that showed an average of 28 kimberlites per drilling with an some of the kimberlite deposits at the Ekati diamond depo- average thickness of 0.24 metres.Thus, there are conside- sit in Canada have shown a similar coincidence in anomalies. rable indications that the lake area is a local centre of kim- berlitic activity. Kimberlite was found in 21 of the 25 dril- Ruby exploration lings.A total of 556 kg sample material was sampled from In 2005, True North Gems, the operator of the explora- the drillings and from exposures for analysis in Canada. tion licence at the Fiskenæsset complex in West Greenland, carried out more than two months of field work at Fiske- The results show the existence of a 2–6-metre wide and næsset. Known deposits were studied, and a total of 18 approx. 900-metre long kimberlite dike, which is connected ruby deposits have now been localised. By means of a por- to the surface sample of kimberlite found in 2004 at Garnet table sawmill, the company took large samples of the ruby Lake.The kimberlite from 2004 contained 151 diamonds in ore. A total of 15 tonnes of sample material was collected a 108 kg sample, and nine of these were macrodiamonds. for laboratory studies in Canada.

At four other localities in the Sarfartoq area, important dia- The geological mapping shows that the deposits are spread mond finds were made during the summer; two of these over an area of 20 x 60 km, with thicknesses of 1–20 me- came from the area around the Garnet Lake.The largest dia- tres and lengths of 20–2,000 metres.The most intense ac- mond is 2.60 x 2.30 x 2.26 mm, which makes it the largest cumulations of ruby are typically seen in the most defor- diamond ever found in Greenland. South of Garnet Lake, a med areas.The layers of mineralisation are between 0.1–2 kimberlite sample of 158.7 kg contained 226 diamonds, 13 metres thick and 3–300 metres long.The size of gems va- of which were macrodiamonds. In a new area northeast of ries from microscopic stones to crystals weighing more this lake, a diamondiferous kimberlite was found; it gave 46 than 1 gram. diamonds from a 110 kg sample. Ruby Thus, a total of 423 diamonds have been found in the Sar- Ruby is the name of a red variety of the mineral corundum (Al2O3). Corundum in other colours are called sapphire, with the colour mentioned first; e.g. blue, col- fartoq area. ourless, pink, etc. Rubies are gemstones with a hardness of 9, i.e. the second- hardest mineral in nature after the diamond. Rubies are some of the most cove- ted gemstones in the world with prices often exceeding those of diamonds.

Rubies from the Fiskenæsset complex have been known since the 1960s.At this site, ruby often appears together with pink sapphire, and these are both coveted gemstones.

Diamonds found by Hudson Resources during exploration near Kangerlussuaq in 2005.The biggest diamond is about. 2.5 mm. Photo: Hudson Resources.

In spring 2005, Metalex Ventures Ltd. carried out field work in the licence area at Umiviit. 16 drillings were carried out across the Smile Lake and samples were taken, amongst other things to understand the ice's direction of move- ment. In the drillings, the company found several kimber lites, but they are deemed too thin to extract.The company also carried out an electromagnetic, a magnetic and a gra- vity survey of the lake area to study variations that could be due to kimberlite. 17 sediment samples were taken close to the place where the company had previously found diamond indicator minerals in two samples, and several Ruby of approx. 40 grams extracted from the ore by True North kimberlite rock samples were collected. Gems during work in the licence area at the Fiskenæsset com- plex in 2005. Photo:True North Gems. The initial results from the sampling around the lake shore are negative, and according to the company, they seem to Molybdenum indicate that the diamond source is in the lake. Similarly, the During May-September 2005, International Molyb- initial results from the drillings show that the kimberlites denum Plc. carried out extensive field work at the Malm- from those drillings are not the source of the notable dia- bjerg in East Greenland. mond indicator minerals. The interpretation of the geophysical survey has shown 14 The company made a topographical mapping in the form of magnetic centres with diameters of 50–250 metres.Two of an aerial laser scanning of the area. Based on the data collec-

10 ted, a detailed contour map with 1-m curves will be con- structed.This mapping is part of the company's investiga- tions with a view to future mining. Before the flight, a detai- led GPS mapping was done to determine fix points.

The company did a total of 53 drillings of which 31 were core drilling operations, one was a surface drilling and 21 were geotechnical drilling operations.All drill cores were geologically logged for rock type, structures, alteration and mineral content, and 1/4 of the drill cores were cut out and sent to Canada for analysis. Drill cores from investigations of molybdenum deposits at Malm- bjerg are assessed at the end of the season in 2005. Photo: GEUS. The 31 core drilling operations had a total length of 4,898 metres, and were carried out to study the grade of the de- posit.The purpose of the 477 metres surface drilling was to sit in Voisey’s Bay in Canada. On the basis of these results, a test for new ore deposits.The 21 geotechnical drillings had drilling programme was conducted in the summer of 2005 a total length of 899 metres. 16 of the drillings (490 metres) to test the geophysical anomalies. were carried out at proposed construction, port and tail- ings sites.The remaining five drilling operations were car- Five drillings of 100–200 meter’s length were carried out, ried out at previous drilling localities. revealing only small amounts of sulphides.As the largest magnetic anomalies were situated under the lakes in the The company took 32 representative bulk samples weighing area, the company planned a supplementary geophysical approx. 50–150 kg per sample; eight of these samples were survey on the lakes to take place in February 2006. If the taken relatively close to the surface to get a picture of the results are positive, the company will commence a supple- effect of oxidation of the molybdenum deposit. Moreover, mentary drilling programme in the winter of 2006. 248 samples were collected for laboratory analysis. Gem Fields International's 1998 surveys resulted in the The company has reported that the initial results from the discovery of nickel-copper-gold-PGE mineralisations at the drilling operations indicate an ore extent very similar to southern coast of Ammassalik island in East Greenland.The that of similar operations during the 1960s, and that less mineralisation stretches 90 meters in one direction, and than four per cent of the molybdenum deposit is affected over this distance width varies between 1 and 8 meters. 2 by oxidation. It is the outermost 10–20 metres of the sur- The total area covered by the mineralisation is 440 km . face that are affected by oxidation.The distribution of mo- lybdenum in the deposit is very homogenous. Based on recent data from a helicopter-borne magnetic and electromagnetic geophysical survey and samples from field Following results of this summer’s field activities, calculated borings, Gem Fields in a joint venture with Inco Ltd. car- resources increased by 50 per cent, from about 286,000 ried out further geophysical survey and drillings in the area in the summer of 2005.The purpose was to examine the tonnes to about 431,000 tonnes of MoS2 (molybdenite). According to preliminary calculations, the production rate nickel potential.The geophysical surveys confirmed the oc- could reach about 15,000 tonnes of molybdenum-rich rock currence of graphite and sulphide-rich rocks in the area. per day over a period of 15-20 years.The profitability of the project has yet to be analysed in a feasibility study, which Eight drillings were conducted covering three localities and the company plans to deliver in 2006-2007. a total of 1,587 meters.At two of the localities, at the bays of Unngutok and Qoqortoq, mineralisations were found, Molybdenum however with limited distribution.At the bay of Unngutok Molybdenum is an alloy metal which is most widespread in nature as the mine- locality contents of up to 1.5 per cent nickel were registered. ral molybdenite; molybdenum in compound as a disulphide (MoS2).This mineral is very soft with a hardness of only 1-1.5.This means it has a grey-black streak PF&U Mineral Development and Inco Ltd. prospec- and is suitable for use as a lubricant. Molybdenum alloy is also used with iron to make very durable steel products. ted for copper, nickel, gold and platinum at Kitak in East Greenland in 2005.The work continued activities in 2004, Molybdenite deposits are widespread throughout Greenland, but the deposit at which were carried out in a joint venture with NunaMine- the Malmbjerg in East Greenland is important because it is one of the world’s rals A/S. Field work in 2005 comprised a minor geophysi- largest deposits. Recent years’ multiple increase in the price of molybdenum has created renewed interest in Greenland’s deposits. cal survey as well as a helicopter-borne survey during which rust zones in the terrain were mapped. Rust zones indicate the presence of metal-containing sulphides. Nickel and copper The geological surveys were to measure the conductivity of During May-June 2005, MDA Investment Pty Ltd. car- the earth’s strata.The surveys were conducted over two lo- ried out field work at Ivittuut.The helicopter-borne mag- calities where a previous air-borne survey had shown large- netic and electromagnetic survey carried out during the scale electromagnetic fluctuations.The subsequent geolo- summer of 2004 identified an area with large-scale magne- gical survey revealed that the fluctuations are due to con- tic variations.These could be evidence of the presence of tents of graphite in the bedrock. extensive sulphide bodies rich in nickel, similar to the depo-

11 Promotion -at home and abroad

Local activities Å 2005 showed a general increase in public interest in fin- tax from the BMP,the of Greenland Industrial Fund ding rocks and having them identified.This was reflected in added DKK 25,000 free of tax to the 1st prize and DKK the number of rock samples submitted to the national pro- 15,000 to each of the 2nd prizes, contributing a total of gramme for mineral hunt, Ujarassiorit.The national mine- DKK 55,000. rals club, Ujaqqeritooqatigiit, in also reports an in- creasing number of members. The samples submitted in the hunt cover areas from in the north to Prince Christian Sund in the In order to disseminate knowledge about rocks and diffe- south, and the Ammassalik and Illoqqortoormiut areas in rent types of mineralisation, the minerals club conducts an the east. Of the 1204 samples submitted, 282 were sent to annual prospector course, where participants learn about chemical analysis.Analysis results are an important basis for prospecting methods and minerals.The club also hosts an the decisions of the judges. annual rock trade show. 2005 saw the hosting of the 9th rock trade show in Sisimiut on 5 to 6 November. Both stone artists and soapstone carvers participated, and the BMP supported branches of this work. For example, the

BMP financed the publication of a popular handbook on Overwiew Locations of analyzed samples prospecting for amateurs, prepared by the minerals club. Ujarassiorit 2005 The handbook is distributed as a gift to participants in the Ujarassiorit programme.

As a special effort, the BMP supported the publication of 4. Price The winning rock sam- the comprehensive work on Greenland geological develop- 2. Price locations ple from Ujarassiorit 4. P r ment, which was published by GEUS in the autumn of 2005. ice 2005, displayed on The work is the first comprehensive popular-science des- 4. Price 4. Price map of the place 4. Price 4. P r cription in Danish of the basis for understanding what has ice where it was found in taken place in Greenland’s geology since the dawn of time. 3. Price South Greenland. 3. Price 1. Price Photo: BMP. Ujarassiorit – the hunt for minerals Ujarassiorit 2005, the popular national mineral hunt for One 1st prize of DKK 55,000 free of tax amateur geologists in Greenland, resulted in the submission Paulus Benjaminsen from Aappilattoq in the municipality of 1204 rock samples, the third largest number of samples of Nanortalik was awarded the 1st prize for a rock sample ever.As always, the samples submitted contributed new in- with very high zinc, copper and sliver contents. formation about possible mineralisations in Greenland. Re- sults for 2005 show e.g. that there are still iron formations Two 2nd prizes of DKK 25,000 free of tax to be found, although these are fairly easy to find and there- Meerannguaq Steenholdt from was awar- fore ought to have been found by now. Samples from e.g. ded 2nd prize for a sample containing a significant content and Ammassalik suggest that these areas could be of lithium and copper. Karl P.Lundblad from Kangaatsiaq potential environments for iron deposits. Results for 2005 was awarded 2nd prize for a sample with large contents of also support the notion of a zinc and copper potential in copper, bismuth and silver. South Greenland.There was new information about the copper content in the Kangaatsiaq area and information Three 3rd prizes of DKK 6,000 free of tax that data on gold in the Nuuk area can be found outside Siverth Amondsen and Johan Rosing were awarded the known deposits on Storø, and in Isua and Ivisaartoq. 3rd prize for new information on iron mineralisations in the Paamiut area. The award committee consisting of geologists from the Mikael Johnsen II was awarded 3rd prize for a sample BMP,GEUS and Greenland Resources A/S chose the fol- with molybdenum from Qeqertarsuatasiaat. lowing mineral hunters as winners of the 2005 mineral Josef Petersen from was awarded a 3rd prize for hunt. In addition to the prize sum of DKK 80,000 free of a sample with copper and gold from the Bredefjord area.

12 Visitors at the BMP stand at the trade show PDAC at Toronto, Canada, March 2005. Photo: GEUS.

Participation in mineral resources Six consolation prizes of DKK 2,000 free of tax trade shows, conferences and direct John S. Utuaq from was awarded a consolation marketing prize for a sample with raised contents of nickel and cop- per from Kulusuk. Mikael S. Christensen from In 2005, the BMP took part in a number of promotion was awarded an encouragement prize for a sample of mas- events and conferences, including: sive magnetite and ilmenite. Hans Raage from Nuuk was awarded a consolation prize for a sample with raised con- British Columbia and Yukon Chamber of Mines, tent of gold from the Nuuk fjord. Jokum Lange from Cordilleran Roundup,Vancouver, Canada. was awarded a consolation prize for a sample 24-27 January. with large content of copper from Qeqertaq. Tobiasine S. Pape from Tasiilaq was awarded a consolation prize for Prospectors and Developers Association of Canada a sample of banded iron formation. Augo P.Lynge from (PDAC), International Convention and Trade Show, was awarded an encouragement prize for a Toronto, Canada. sample with raised contents of wolfram and copper. 6-9 March.

International marketing of mineral American Association of Petroleum Geologists resources (AAPG) International Conference and Exhibition, In the international mineral resources market of today, Calgary, Canada. geological data and surveys that testify to the commercial 19-22 June. potential of mineral resources deposits are essential, to succeed in attracting the mineral resources industry to a As in previous years, the BMP participated in fairs with a given frontier area, for example Greenland. collective stand together with GEUS and Nunaoil A/S.

For many years, regional geological activities such as survey- Promotion visits to selected oil companies in Europe and ing have typically been public tasks. Specific projects could North America were carried out in February, March, Octo- quickly be assessed as promising on the basis of regional ber, November and December. data and surveys, and oil and mining companies could move directly to conducting more detailed and cost-de- The BMP in cooperation with GEUS publishes the newslet- manding surveys, depending on the objective of their mi- ters MINEX and GHEXIS, targeted at the minerals and oil neral exploration.This division of responsibilities in the mi- industries.There are links on GEUS' website (www.geus.dk) neral resources sector has intensified gradually over the to the two newsletters. past years, and expectations and demand for more diver- sified efforts by the public authorities have therefore in- Since 2002, "Geology & Ore" and "Fact Sheets" have been creased.This means the public sector will sometimes have important publication series in efforts to promote Green- to take a more proactive approach and carry out wider land's mineral resources potential. 2005 saw the publication geological and geophysical surveys, aiming at maturing pro- of another issue of "Geology & Ore" dealing with "’The jects.The BMP conducts several of such relevant activities Blyklippen lead-zinc mine at Mesters Vig,East Greenland". in collaboration with private partners. Similarly, "Fact Sheets" published three issues presenting an international web-based mineral resources map, the Malm- Publicly conducted activities like these enhance the op- bjerg deposit of molybdenum, and the mineral resources portunity to market Greenland's mineral resources poten- potential of East Greenland's Palaeogene intrusions. tial, through participating in international trade shows and exhibitions, publishing newsletters to industry, making pub- lications available in international journals, using the Inter- net for promotion, and carrying out direct marketing ef- forts at selected international companies.

13 Selected publications

During 2003-2004, the Bureau of Minerals and Petroleum published a num- P.Japsen, P.F.Green & J.A. Chalmers 2005: Separation of Palaeogene ber of publications with its co-operation partners. Other publications of rele- and Neogene uplift on Nuussuaq,West Greenland, Journal of vance for the raw materials area in Greenland are available via the websites the Geological Society, London,162; 299-314. for the Bureau of Minerals and Petroleum and the Geological Survey of Den- mark and Greenland. Reports from the series ’Danmarks og Grønlands Geo- S.M. Jensen, K. Secher,T.M.Rasmussen & F.Schjøth 2004: Diamond ex- logiske Undersøgelse Rapport’, are abbreviated ’GEUS Rapport’. ploration data from West Greenland: 2004 update and revi- sion. GEUS Rapport 2004/117, 90 pp. + DVD. Annual reports Råstofdirektoratet, 2005: Annual Report for Mineral Resources S.M. Jensen, K. Secher & T.M.Rasmussen 2004: Diamond content of Activities in Greenland 2004, Bureau of Minerals and Petroleum, three kimberlitic occurrences in southern West Greenland. June 2005.16 pp. Diamond identification results, field description and magnetic profiling. GEUS Rapport 2004/19, 41 pp. Råstofdirektoratet 2005: Samfundsmæssige aspekter af efter- forskning og udnyttelse af olie og gas i Grønland, Grønlands J.B. Jørgensen & T.C.R. Pulvertaft 2004: Gossans, iron-formation and Hjemmestyre, FM 2005/32, 73 pp. associated supra-crustal rocks in the southern part of the area, central West Greenland. GEUS Rapport MINERALSTRATEGI 2004: Mål og planer for mineralefterforsk- 2004/18, 36 pp. ningen i Grønland, Råstofdirektoratet, 68 pp. B.M. Nielsen 2004: Crustal architecture and spatial distribution PricewaterhouseCoopers 2004: Comparison of royalty and taxes of mineral occurrences in the Precambrian shield of central etc. related to Mineral Resources (Gold), 145 pp. West Greenland based on an ananlysis of geophysical and geo- logical data. (Thesis for Ph.D. degree from the University of Copen- PricewaterhouseCoopers 2005: Oil & Gas Fiscal Regimes Survey. hagen). GEUS Rapport 2004/26, 63 pp. + appendices.

GEUS 2005: Annual Report 2004, GEUS – Danmarks og Grønlands B.M. Nielsen & T.M.Rasmussen 2004: Mineral resources of the Pre- Geologiske Undersøgelse, 16 pp. cambrian shield of central West Greenland (66° to 70°15´N). Part 3. Implications of potential field data for the tectonic Geology and exploration framework. GEUS Rapport 2004/2, 165 pp. + CD-rom. J.M. Bonow 2004: Palaeosurfaces and palaeovalleys on North Atlantic previously glaciated passive margins,Thesis in Geo- T.F.D. Nielsen & S. Bernstein 2004: Maturation of areas in the Ter- graphy 30, Stockholms Universitet, 17 pp. tiary of East Greenland for PGE-Ni-Cu exploration. GEUS Rap- port 2004/6, 59 pp. + CD-rom. P.R.Dawes 2004: Explanatory notes to the Geological map of Greenland, 1:500 000, Humboldt Gletscher, Sheet 6. Geological H.K.Olsen 2004: Kortlægning af fedtstensforekomster i Grøn- Survey of Denmark and Greenland Map Series 1, 48 pp. + map. land. Greenland Resources A/S, 65 pp.

GEUS 2004: The Palaeogene and Neogene offshore southern S. Planke, H.E.F.Amundsen, R. Myklebust & J.C. Olsen (eds) 2004: West Greenland. Marine and Petroleum Geology 20,9. 935–1088. Geophysical Atlas of the West Greenland Basins integrated seismic, gravity and magnetic interpretation.VBPR,TGS-NOPEC K.Q. Hansen and E.Buch & U.Gregersen 2004: Weather, sea and ice & GEUS.2. edition. Oslo, Norge. conditions offshore West Greenland – Focusing on new license areas 2004. Rapport fra Danmarks Meterologiske Institut & Råstof- T.Rasmussen and H.K. Olsen 2005: Prospecting for dimension direktoratet, 42 pp. stones in Greenland, GEUS Bulletin 7, 73–76.

N. Henriksen 2005: Grønlands geologiske udvikling, F.Schjøth & A. Steenfelt (red.) 2004: Mineral resources of the Pre- GEUS, 270 pp. cambrian shield of central West Greenland (66° to 70°15´N). Part 1. Compilation of geoscience data. GEUS Rapport 2004/16, A.K. Higgins & F.Kalsbeek (eds) 2004: East Greenland Caledonides: 45 pp. + DVD. stratigraphy, structure and geochronology. Geological Survey of Denmark and Greenland Bulletin 6, 93 pp. K. Secher 2004: Det hvide guld og det ægte guld – minedrift og råstoffer i Grønlands 20. århundrede, GEUS, 64 pp. J.A. Hollis, J.A.M. van Gool,A. Steenfelt & A.A. Garde 2004: Green- stone belts in central Godthåbsfjord,West Greenland. Prelimi- K. Secher 2004: Nekrolog: Svend Valdemar Sølver, nary results from field work in 2004. 2004/110, 110 pp. + DVD. Geologisk Tidsskrift 2004/2, 38–40.

J.A. Hollis, J.A.M. van Gool,A. Steenfelt and A.A. Garde 2005: Green- L. Stemmerik & S. Stouge (eds) 2004: The Jurassic of North-East stone belts in the central Godthåbsfjord region, southern Greenland. Geological Survey of Denmark and Greenland Bulletin 5, West Greenland, GEUS Bulletin 7, 65–68. 112 pp.

14 H. Stendal, B.M. Nielsen, K. Secher & A. Steenfelt 2004: Mineral re- B .Ljungdahl 2005: Mineral-guide: Prospektering for amatører, sources of the Precambrian shield of central West Greenland Grønlands Stenklub, 78 pp. (66° to 70°15´N). Part 2. Mineral occurrences. 2004/20, 212 pp. T.F.D .Nielsen 2005: The mineral potential of the Palaeogene H. Stendal and A.A. Garde 2005: Precambrian mineralising events intrusions, East Greenland. Fact Sheet No 9, 2 pp. in central West Greenland (66°-70°15'N). GEUS Bulletin 7, 61–64. S.A.S. Pedersen & G.K. Pedersen 2005: Det geologiske kort over Grønland. Geografisk Orientering 4/2005, 176–189. M. Sønderholm & A. K. Higgins (red.) 2004: Review of Survey activi- ties 2004. GEUS Bulletin 4, 100 pp. K. Secher 2004: The Taartoq gold field, South West Greenland. Fact Sheet No 8, 2 pp. M. Sønderholm & A. K. Higgins (red.) 2005: Review of Survey activi- ties 2004. GEUS Bulletin 7, 80 pp. K. Secher 2004: Greenland’s prospective nickel resources. Fact Sheet No 9, 2 pp. B.Thomassen & J.D. Krebs 2004: Mineral exploration of selected targets in the Qaanaaq region, North-West Greenland: follow- K. Secher 2005: Mineralske råstoffer I Grønland. up on Qaanaaq 2001. GEUS Rapport 2004/42, 38 pp. GeoViden 1, 14 pp.

L.Thorning, L.[A.] Christensen, F.Schjøth & H. Stendal 2004: Green- K. Secher 2005: Nalunaq – guldminedrift I Grønland. land Mineral Occurrence Map. Status report for the develop- Geografisk Orientering 4/2005, 162–168. ment of a proto type for the Internet, January 2004. GEUS Rap- port 2004/28, 52 pp. K. Secher & S.M. Jensen 2004: Diamond exploration in Greenland. Geology & Ore 4, 12 pp. L.Thorning, L.A. Christensen, B.M. Nielsen, F.Schjøth and H. Stendal 2005: On-line presentation of mineral occurrences in Green- B.Thomassen 2005: The Blyklippen lead-zinc mine at Mesters land, GEUS Bulletin 7, 57–60. Vig, East Greenland. Geology & Ore 5, 12 pp.

T.Tukiainen & J.D. Krebs 2004: Mineral resources of the Precam- B.Thomassen 2005: The Malmbjerg porphyry molybdenum brian shield of central West Greenland (66° to 70°15´N). Part deposit, East Greenland. Fact Sheet No 11, 2 pp. 4. Mapping of kimberlitic rocks in West Greenland using air- borne hyperspectral data. L.Thorning 2005: Greenland mineral occurrence map on-line. GEUS Rapport 2004/45, 31pp. + appendices + DVD. Fact Sheet No 10, 2 pp.

T.Tukiainen and L.Thorning 2005: Detection of kimberlitic rocks Ujarak 2004-2005: Medlemsblad for Grønlands Stenklub. in West Greenland using airborne hyperspectral data: the Hy- Nr. 3–6. perGreen 2002 project, GEUS Bulletin 7, 69–72. GEUS 2003: Catalogue of Greenland publications and data. Minex News 2004-2005: Newsletter to the mining industry. Dan- Update December 2003, 71 pp. marks og Grønlands Geologiske Undersøgelse / Råstofdirektoratet, Nr. 27–28

Ghexis Newsletter 2003-2004: Newsletter to the petroleum indu- stry. Danmarks og Grønlands Geologiske Undersøgelse/Råstof- direktoratet Geologist during field work at the gold deposit on Storø in 2005. Photo: GEUS. Leaflets and data sheets P.W.U.Appel 2004: Gold in the Nuuk region of West Greenland. Fact Sheet No 6, 2 pp.

S.M. Jensen & K. Secher 2004: Diamond exploration in Greenland. Fact Sheet No 7, 2 pp.

B. Ljungdahl 2004: Mineral-guide: Ivittuut kryolitbrud, Grønlands Stenklub, 48 pp.

B. Ljungdahl 2005: Mineral-guide: Grønlandske smykkesten, Grønlands Stenklub, 82 pp.

15 Statistics in the mineral resources area The number of applications for minerals exploration licences in It should however be noted that some exploration activities Greenland increased markedly during 2005.The continued rise have been of a considerable scale.The largest project in 2004 in the price of gold and industrial minerals has been of special concerned exploration for gold and PGE in Skærgaard, and the significance to this increase. Similarly, diamond exploration exploration for gold on the island of Storø was also a large pro- enjoys continued positive attention, and there is increased inte- ject.The financial statement for 2005 was not completed at the rest in known deposits, e.g. the deposit of zinc-lead in Maarmo- deadline for this report. rilik and the Citronen Fjord, and the deposits of iron in Isua and molybdenum on the east coast. Another indication of the increase in activity is the number of meters drilled.This figure doubled in the period 2003-2004. In A total of 15 new exploration licenses and four new prospec- this period, the Skærgaard project contributed especially to the ting licences were granted in 2005.This adds up to 33 explora- amount of the drilling. tion licenses covering an overall area of 12,986 Km2 at the end of 2005. During the same period, 12 prospecting surveys were There were 10 drilling programmes in 2005 and a total of granted. 25,246 meters were drilled.The number of meters drilled al- most quadrupled in the period 2004-2005.Also in this period, Reflecting the optimism of the sector, overall exploration invest- individual large projects contributed to the bulk of the drilling, ments in Greenland have tripled in the period 2002 to 2004, for example the Malmbjerg project, where a total of 6,306 me- from DKK 20 million to DKK 66.2 million. ters were drilled.The largest project was the gold exploration project at Nalunaq where 10,000 meters were drilled.

Mineral resources exploration in Greenland in the period 2000-2005

2000 2001 2002 2003 2004 2005

Number of prospecting projects 1566111212

Number of exploration licences 24 19 17 19 23 33

Number of exploitation licences 000112

Number of km2 covered by exploration licences 11.289 10.264 5.956 5.714 8.560 12,986

Exploration commitments (DKK mill.) 27,6 40,5 25,8 23,7 30,7 47,7

Exploration expenses incurred (DKK mill.) 103,4 111,8 20,8 44,9 66,2 *

Number of meters drilled in total 0 4.071 112 3.195 6.862 25.146

*The deadline for submission of accounts for 2005 is 1 April 2006.

Annual Report on Mineral Resources in Grønland 2005 © Bureau of Minerals and Petroleum, June 2006.

Published by the Bureau of Minerals and Petroleum, the Joint Committee on Mineral Resources in Greenland.

P.O. box 930, DK-3900 Nuuk, Greenland Tel:(+299) 346800. Fax: +299 324302 www.bmp.gl, [email protected]

Publication and coordination: The Bureau of Minerals and Petroleum in collaboration with GEUS. Text and editing:K. Secher, GEUS Graphics and layout:Annabeth Andersen, GEUS

This publication is published in Greenlandic, Danish and English. ISSN: 1399-2058

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ISSN 1399-2058