Seqi Olivine Deposit

Crew 100%
South-West Greenland

In January 2003, Crew acquired 100% of the mineral rights to the Seqi olivine deposit, located 90 km North of Greenland's capital city Nuuk, West Greenland, in early 2003. Seqi is a large, homogenous olivine deposit made up of 97% olivine. The high purity and favourable chemical composition contribute to a clear commercial potential for this deposit.  Furthermore, the deposit is located only 600 m from tidewater in a protected fjord, which provides all-year access. The location and relatively simple nature of the operation allows for a short lead-time to production. Initial assessments indicate that a production rate between one and two million tonnes per year is viable. 

The Seqi olivine occurrence is fully exposed and has been subject to limited drilling and surface sampling. Open pitable, inferred resources, derived from drilling to about 50 m depth, are estimated at 46 million tonnes. Gravimetric studies have indicated a resource potential in excess of 100 million tonnes.

Olivine is an anhydrous magnesium-iron silicate, which is used extensively in iron-pellet production and with beneficial properties such as a high melting point, high density, heat capacity and hardness making olivine products suitable for a number of industrial applications.

In July 2003, an agreement was signed with Minelco AB, a subsidiary of leading iron ore producer LKAB of Sweden, to develop a Bankable Feasibilty Study (BFS) for Crew's Seqi olivine project in Greenland. Crew will be responsible for the management of further drilling and for the BFS, whereas Minelco will cover all costs. Furthermore, as a part of the agreement Minelco has (subject to the completion of a BFS) an option to buy 51% of the Seqi project by carrying all capital expenditures related to the development of a mining operation as defined by the BFS. The Seqi project will be organized in a separate Greenlandic company owned 51% by Minelco AB and 49% by Crew and where Crew will be the preferred operator.

Crew has mobilized a drill rigfor further resource drilling at the Seqi olivine deposit and the development of a project BFS.