American firms exploring Greenland properties

The mineral potential of Greenland will be investigated this year by two American mining companies under the terms of their respective agreements with a Greenlandic-Danish company, Nunaoil A/S.

Atlas (NYSE) secured rights to an area of interest covering about 30,000 sq. km of ice-free land in southern Greenland. The agreement gives the company exclusive access to Nunaoil’s geological information within the area of interest (with certain exceptions) for up to three years. All exploration expenses will be shared equally. The agreement also provides for joint development of any economic reserves.

The Danish Ministry of Energy granted Atlas an exclusive exploration licence on a separate 703-sq.-km area in southwestern Greenland. After reviewing previous geological and geochemical work, Atlas believes this land package has the potential to host “world-class” gold deposits.

As a first step in its pursuit of mineral projects outside the U.S., Atlas plans to begin field work on the concession this month. At the same time, work will be aimed at identifying other areas of interest for exclusive exploration licences in Greenland.

Meanwhile, a unit of Cyprus Minerals (NYSE) is mobilizing equipment so that field work and drilling can start in late June on its newly acquired concessions on the Danish-owned island.

The company recently signed three joint-venture agreements with Nunaoil to explore for, and possibly develop, gold deposits on concessions covering 762 sq. km in southernmost Greenland. Cyprus can earn 62.5% in this venture. A priority target will be the Nalunaq concession where significant amounts of gold associated with a quartz vein have been identified. Last fall, Nunaoil geologists reportedly collected a series of channel samples across a vein exposure 2,600 ft. long and averaging two feet wide. The average grade of the samples was 1.4 oz. gold per ton, with “substantial coarse gold” observed in the veins. Based on geochemical surveys, potential was identified for additional high-grade veins in the area of the main prospects and in other areas covered by the joint venture.