TECHNICAL REPORTS

JAN-MATTS TAILINGS DAM GRÄNGESBERG SCOPING STUDY NOVEMBER 2021

On behalf of Grängesberg Exploration Holding AB (GRANGEX), GeoVista AB has compiled this independent statement and report on the results of a scoping study, aimed at the recovery of apatite and magnetite from waste, previously deposited in Jan-Matt’s waste storage facility in Grängesberg, Sweden.

Read the full report

The scoping study published on November 29, 2021 shows that large amounts of apatite and magnetite can be recovered with a payback period of planned investments of less than 2 years

A scoping study is carried out to show how much potential a project has. The study carried out by the mining consultancy GeoVista AB focuses on the so-called JanMatts dam, which contains beneficiation sand from the former iron ore extraction in the closed Grängesberg mine.

In addition to the previously known content of the phosphorus-bearing mineral apatite, the study has also shown that the enrichment sand in the JanMatts dam contains a high content of magnetite that can be extracted profitably.

”The study shows good results both financially and for the possibility of realizing GRANGEX’s goal of a fossil-free production of EU critical minerals. Although the lifespan is relatively short for this first project, we assess that there are good opportunities in the immediate area to extend the production period. In addition, the possibilities of extracting additional rare earth (REE) minerals as by-products from the JanMatts dam also remain to be investigated. says Christer Lindqvist, CEO of Grängesberg Exploration Holding AB (GRANGEX).

The study has been designed in line with GRANGEX’s objective that the production in Grängesberg should be the first fossil-free producer of high-quality phosphorus mineral, – apatite – for, among other things, the fertilizer industry and the food industry.

GeoVista AB was the study leader and has submitted the complete report to the Company.

The main points of the report:

  • The content of the Jan-Matt dam in Grängesberg is estimated at 2.79 million tons (JORC-2012) with 5.44% P2O5 (2.37% phosphorus) and 10.11% iron

  • Process yield apatite 10.9%, magnetite 5.8%

  • Planned total production: -Apatite 304,000 tons with 16.3% phosphorus –

  • Magnetite 162,000 tons with 70% iron

  • Total revenue for the project is estimated at SEK 638 million

  • Total operating cash flow (EBITDA) is estimated at SEK 318 million

  • Production time is estimated at approximately 5 years

  • Investment costs for the start of production (CAPEX) are estimated at SEK 120 million

  • The production cost, free loaded Kristinehamn, is estimated at SEK 675/ton

  • Pay-back time is estimated at 21 months MSEK

  • NPV (8%) SEK 170 million Projected rate of return (IRR) estimated at ~80%

  • The study is based on the exchange rate SEK 8:50/USD

Further development potential that the study points to are:

  • The allanite content, allanite is a carrier of rare earth elements

  • Additional sand reservoirs in the vicinity of the JanMatts dam have the potential to extend the production life of apatite and other valuable minerals. 

The work has been carried out by Mining Engineer Thomas Lindholm, GeoVista AB, in accordance with JORC-2012 Thomas Lindholm is a Fellow of the Australasian Institute of Mining and Metallurgy (Fellow AusIMM) and is a Competent Person as defined by JORC on the basis of his education , experience and through their membership of a recognized professional organization.