Eclipse Metals Ltd (ASX:EPM) is encouraged by the possibility of an early restart of the Ivigtût cryolite mine within its 100%-owned multi-commodity project in southwest Greenland after identifying potentially valuable polymetallic mineralisation in waste rock from the historic mine.
Five bulk samples collected by trenching of the mineralised waste dumps contained visible sulphide minerals that could be processed to create concentrates containing silver, zinc, gallium, copper, lead and gold.
The mineral exploration company has initiated metallurgical test-work to evaluate the potential for producing a saleable mineral concentrate on site.
Low initial capital
Significantly, this work points to the concentrate being readily shipped with minimal additional infrastructure, resulting in early cash flow from the project.
The mineralised waste was produced during the extraction of 3.8 million tonnes of high-grade cryolite from the 60-metre deep Ivigtût open pit mine over a period of 120 years.
These materials were discarded by a previous mine operator who was only interested in cryolite.
The mine was closed in 1987.
Waste dump specimen visually estimated to consist of 60% cryolite and quartz; 20% sphalerite; 10% galena; 5% chalcopyrite and 5% siderite.
A lot of waste
Eclipse is considering undertaking a ground penetrating radar (GPR) survey to determine the overall volume of mineralised waste material at Ivigtût.
However, basic calculations estimate that three million tonnes of run-of-mine waste was deposited in the dumps as well as for landfill purposes during the more than a century of mining.
This was done by calculating the size of the open pit and access tunnels and subtracting the cryolite that had been exported.
No comprehensive commercial assessments have been done for other critical metals.
Mineralised waste dumps and trenches.
A position of advantage
"We're excited by the potential of the Ivigtût cryolite mine's mineralised waste dump,” Eclipse executive chairman Carl Popal said.
“Our recent findings point to valuable polymetallic material that can be quickly leveraged.
“Our ongoing efforts include rigorous metallurgical test-work aimed at identifying the most effective processes to produce market-ready concentrates.
“The convenience of readily processable minerals, along with the advantage of existing infrastructure, positions us for an early restart, underpinned by a low initial capital investment.”