Greenland Resources expands exploration footprint at Malmbjerg moly project

Greenland Resources (TSX: MOLY) has secured exclusive rights to an approximate 1,147 km² land package surrounding the company’s existing exploitation license for molybdenum and magnesium in the Semersooq region.

In a statement Wednesday, the Canadian junior explorer said the special licence granted by the Greenland government now gives the company a “dominant mineral licence position” on island’s east coast.

Last year, Greenland Resources inked a long-term offtake agreement with Finland’s Outokumpu, the largest producer of stainless steel in Europe, for the supply of molybdenum oxide produced at its flagship Malmbjerg project.

Once built, the open-pit mine is expected to produce 32.8 million lb. of molybdenum metal annually, which equals roughly a quarter of the EU’s yearly consumption, over its first 10 years, a 2022 feasibility study showed. The total mine life is projected at 20 years.

The molybdenum market is experiencing strong growth, driven by its critical role in high-performance steel alloys, infrastructure and the energy transition. Global demand is expected to rise from roughly 398,000 tonnes in 2024 to 500,000 tonnes a year by 2034, according to Research and Markets.

Based on previous reports published by the Geological Survey of Denmark and Greenland, the geochemistry data from rock samples available in the new license area show multiple locations with highly anomalous molybdenum values that could potentially add to its Malmbjerg project, the company said.

An exploration program including hyperspectral surveys for the new concessions will be established, it added.

By market close in Toronto, Greenland Resources’ stock was up nearly 3%, for a C$235 million ($171 million) market capitalization.