Greenland Mines Ltd (GRML) released an independent Initial Assessment on Tuesday for its Sarfartoq Nd-Pr Rare Earth Element Project in southwest Greenland, projecting a pre-tax net present value of up to $2.05 billion and an internal rate of return of 118.6% under a high-case scenario.
The study, prepared under U.S. Securities and Exchange Commission Regulation S-K 1300 standards by Agricola Mining Consultants Pty Ltd, marks the first combined open-pit and underground resource estimate for the carbonatite-hosted deposit. Excluding Inferred resources, the project carries a pre-tax NPV of $1.49 billion with a 92.7% IRR.
The project envisions a nine-year mine life processing 12.2 million tons at a delivered head grade of 1.32% total rare earth oxides, with throughput of 1.4 million tons annually. The high-case valuation assumes basket prices 15% above base-case assumptions, operating costs 15% below, and capital costs 20% below, while holding physicals, mine schedule, and metallurgical recovery constant.
Resource Base and Metallurgy
The hybrid mine plan draws on Indicated Mineral Resources of 6.9 million tons at 1.60% TREO and Inferred resources of 5.3 million tons at 0.96% TREO. Neodymium and praseodymium account for approximately 84% of the in-concentrate basket value.
Metallurgical testing conducted by SGS Canada at its Lakefield facility in 2026 confirmed flotation concentrates of approximately 8.25% TREO at a design recovery of 63.6%. The expanded drill database now includes 94 core holes totaling 23,094 meters from the project’s 161-hole, roughly 35,800-meter database, including previously undisclosed 2023 infill drilling.
MetricHigh Case (Indicated + Inferred)Indicated OnlyPre-tax NPV (8% real discount rate)$2.05 billion$1.49 billionInternal rate of return118.6%92.7%Mine life9 years9 yearsThroughput1.4 Mt per annum1.4 Mt per annumHead grade1.32% TREO1.32% TREO
Note: High-case assumptions include basket price 15% above base case, operating costs 15% below base case, and capital costs 20% below base case.
Western Supply Chain Significance
At 2025 consumption levels, Sarfartoq’s planned annual neodymium-praseodymium oxide production would represent approximately 34% of all NdPr oxide refined outside China for each of the project’s nine scheduled operating years.
Neo Performance Materials Inc. (NEO) will become a strategic shareholder of Greenland Mines, securing non-binding offtake rights on up to 60% of future concentrate production. The material is slated for processing at Neo’s Silmet facility in Estonia, which the companies describe as the only rare earth separation plant and magnet facility operating at commercial scale in the European Union.
Dr. Bo Møller Stensgaard, president of Greenland Mines, said the assessment “shows the extraordinary scale of value embedded in just a small portion of Sarfartoq.”
“Neodymium and praseodymium are the two elements every high-performance magnet on earth depends on, and the West currently has almost nowhere to source them outside of China,” he said. “Sarfartoq changes that equation.”
District-Scale Exploration Upside
The ST1 deposit occupies well under one percent of the company’s 191-square-kilometer Mineral Exploration License MEL 2020-32. Five other known rare earth occurrences — ST40, ST19, ST24, ST31, and ST43 — lie along a 32-kilometer outer ring structure surrounding the Sarfartoq carbonatite complex and remain largely untested.
The company noted that ST40, located approximately 4 kilometers from ST1 on the same ring structure, shows historical sampling indicating it may be more neodymium-enriched than ST1 itself.
“We see this as the foundation of a major new Western rare earth district, and we’re putting boots on the ground again this September to begin proving that out,” Stensgaard added.
Technical teams plan to deploy high-resolution, low-level drone-based magnetic surveys in September 2026 to evaluate district-scale exploration targets across the license area. Environmental baseline studies led by WSP Denmark continue ahead of licensing, with a second year of investigations planned for September 2026 as a regulatory prerequisite for an exploitation license.
The company expects to conduct targeted infill drilling to upgrade Inferred resources, pilot-scale metallurgical test work, and mine engineering planning as it advances toward a Pre-Feasibility Study.
The technical report summary was authored by Tetra Tech Canada Inc. and GeoSim Services Inc., with the Initial Assessment reviewed and approved by Malcolm Castle of Agricola Mining Consultants. The Mineral Resource Estimate was prepared by Ronald G. Simpson of GeoSim Services and Hassan Ghaffari of Tetra Tech Canada, each acting as independent Qualified Persons under S-K 1300.
The project sits approximately 60 kilometers southwest of Kangerlussuaq and its international civilian and military airport in West Greenland.