Junior Major Precious Metals had been granted a new mineral exploration licence in March which increased the size of Skaergaard to 877sq.km.
Major Precious Metals has outlined an updated resource for its Skaergaard project in Greenland, which it describes as one of the largest known palladium deposits outside South Africa and Russia. Skaergaard’s resources now comprise an indicated 81.6 million tonnes at 2.1g/t palladium-equivalent for 5.5 million ounces Pd-eq; and an inferred 217.3Mt at 2.05g/t for 14.4Moz Pd-eq.
The company said updated mineralisation modelling, more detailed examination of the deposit and today’s higher metal prices had resulted in “significant positive increases” to the tonnages and contained metal, at higher overall grades relative to the 2013 estimate. The 2013 resource had used a US$1,400/oz gold price and $560/oz for palladium, compared with the $1,800/oz and $1,725/oz assumed respectively this month.
Major Precious Metals said it was planning up to 15,000m of infill drilling this year and a preliminary economic assessment. The company, formerly Eastern Zinc, completed its acquisition of Skaergaard from Platina Resources in November.
Meanwhile Greenland faces a battle to win back investor confidence following the election win earlier this month by anti-uranium mining party Inuit Ataqatigiit, which has formed a coalition government. The company announced it had entered a shareholder rights plan with National Securities Administrators Ltd, to ensure shareholders were treated fairly “in the event of a take-over bid”. It said this was not adopted in response to “any actual or threatened” proposal.