Energy Transition Minerals Ltd. (GDLNF)

[mtcotc]

Blue Ocean recommends a speculative Buy Blue Ocean Equities, the Sydney-based boutique financial services group, has updated research on Greenland Minerals and Energy Ltd (GMEL, ASX:GGG) following the recent signing of a Memorandum of Understanding with China's NFC.

Blue Ocean recommends a speculative buy;

"GGG's Kvanefjeld is one of the biggest deposits of rare earths and uranium in the world. This fact, along with its strategic location in Greenland and potentially low operating costs, means the resource is likely to reach production. NFC could be the ideal development partner for GGG, as it has the financial and technical heft required to push the project forward."



The research note provides the most up-to-date coverage of GMEL's current position and recent developments. Research analyst Dr Trent Allen outlines the significance of GMEL's alignment with NFC; a world-leader in rare earth separation technology with large capacity expansion planned and approved. This development followed the repeal of a long-standing zero-tolerance uranium policy in Greenland in late-2013 that has cleared the path for GMEL's Kvanefjeld Project to soon enter the permitting stage.

The integration of low-cost production of critical rare earth concentrates from Kvanefjeld with NFC's rare earth separation expertise and capacity to create a strong new rare earth supply chain is a compelling proposition. As outlined by Dr Allen, NFC is a group that can bring many benefits to the Kvanefjeld project, and could represent an ideal development partner.

Blue Ocean notes that the Kvanefjeld Project appears financially robust under conservative valuation conditions, with most of the Project's value coming from middle and heavy rare earths (the critical rare earth mix). The impressive operating cost estimates present a highly competitive margin compared to other large-scale rare earth projects. This is reflective of the Project's multiple revenue streams, and the favourable metallurgy.


http://www.ggg.gl/docs/blue-ocean-equities/BOE-GGG-040414.pdf?utm_source=Blue+Ocean+Equity&utm_campaign=blue+equities+eblast&utm_medium=email