Greenland Mines Ltd (Nasdaq: GRML) has released an independent Initial Assessment on its Sarfartoq neodymium-praseodymium rare earth project in southwest Greenland, valuing the project at up to $2.05 billion pre-tax with an internal rate of return of 118.6% under a high case scenario.

The high case combines a basket price 15% above the base-case assumption, operating costs 15% below the base case, and capital costs 20% below the base case. Under a base-case scenario that excludes inferred mineral resources, the project is valued at up to $1.49 billion with an IRR of 92.7%. Both figures use an 8% real discount rate. No mineral reserves have been estimated, and mineral resources do not have demonstrated economic viability.

The assessment, prepared by Agricola Mining Consultants under SEC Regulation S-K Subpart 1300 with an effective date of July 31, 2026, covers only the ST1 deposit within the broader 191-square-kilometer Sarfartoq exploration license. The mine plan outlines a nine-year operation processing 12.2 million tons at 1.4 million tons per annum.

The project holds indicated mineral resources of 6.9 million tons at 1.60% total rare earth oxide and inferred resources of 5.3 million tons at 0.96% TREO. Metallurgical test work by SGS Canada confirmed flotation concentrates of approximately 8.25% TREO at a recovery rate of 63.6%.

Neo Performance Materials Inc. (TSX: NEO) is set to become a strategic shareholder of Greenland Mines and has non-binding offtake rights on up to 60% of future Sarfartoq concentrate production for processing at its Silmet facility in Estonia.

According to the press release, planned annual NdPr oxide production from ST1 would represent approximately 34% of all NdPr oxide refined outside China at 2025 consumption levels.

Greenland Mines said it plans to conduct infill drilling, pilot-scale metallurgical test work, and continued environmental studies as it advances the project toward a pre-feasibility study.