True North Gems has completed a pre-feasibility study (PFS) for the Aappaluttoq ruby and pink sapphire project in south-west Greenland.
According to the PFS, the project will require an initial capital investment of $37.4m including a contingency of $4.4m.
The open pit mine project has total probable reserves of 161,600t of ore grading 350g/t of clean corundum, with a life span of nine years.
The firm will process 1,100t of ore in the year of construction, increasing to an average of 22,000tpa within three years.
The study demonstrated that positive economic returns from the project are possible and the study justifies securing the required permits for construction and operation.
The firm is in the process of filing its application for an exploitation permit with the Government of Greenland.