From food security to defence, project milestone ensures independence of supply chain at time of geo-political uncertainty

LONDON, Sept. 9, 2024 /PRNewswire/ -- A mining project qualified to be fast tracked by the Norwegian Government is now set to secure critical and strategic minerals, (essential for food security, semiconductors, batteries for EVs, green technologies and defense), having achieved a major milestone which proves the project's viability.

With growth in demand but a reliance on a limited number of producers, such as China and Russia, the creation of a new integrated value chain for critical raw materials in Europe has become a strategic imperative.

Norge Mining, the Anglo-Norwegian mineral exploration company with world-class resources of Critical Raw Materials in southwest Norway is pleased to have the business case for its Eigersund Project independently confirmed, paving the way for guaranteed supply to industries in Europe and beyond for decades to come.

The "Pre-Feasibility Study" ("PFS") for the Eigersund Project, an environmentally and socially sustainable greenfield mining project, has been successfully completed for the first of the three zones, which represents only 5% of the entire exploration area, proving the business case of extraction of phosphate, titanium, vanadium and ferro magnetite.

John Vergopoulos, Chief Executive Officer of Norge Mining, said:

"Today's news is a major step forward for ensuring the safe supply of critical minerals, without which many of the industries on which we rely so heavily, in particular our food supply and green technologies, would be severely compromised. At a time of real uncertainty, the need for self reliance in the supply chain of critical materials has never been starker. The confirmation of Norge Mining's business case is a significant step towards delivering a vertically integrated, European supply source of EU Critical and Strategic Raw Materials. This has been achieved without compromising our commitment to the highest standards of environmental and social sustainability which are guiding the development of our business."

The PFS gives the one zone of the Eigersund Project a net present value ("NPV") of US$2.01 billion and states that this is expected to increase as the project progresses and optimisations are identified. Supply of CRMs and strategic minerals from this first zone is set for the first 23 years of extraction with an expected yearly output of 20 Mtpa to begin with.

The Eigersund Project is located at the Company's Storeknuten exploration area, which totals 26km² and now has a JORC Mineral Resource statement totalling 3.2 billion tonnes, represents just 5% of the Company's 520 km² of exploration licences in southwest Norway. The Eigersund Project represents the first stage of the Company's planned mining operations.

The capital cost of the Eigersund Project is estimated in the PFS at US$2.31 billion, which includes the capex associated with the open-pit mine, tailings, beneficiation and infrastructure development. Opportunities to reduce the capital cost will be assessed as the project progresses.

Extraction rights for the Eigersund Project were awarded by the Norwegian government in June this year along with extraction rights for all of the Company's other exploration licence areas marking the largest ever awarded area of over 26km² in Norwegian history.

The Company is committed to achieving the highest standards of sustainability at the Eigersund Project and has established a research and development company in Norway, NM R&D, which is investigating alternative uses for the mine's tailings, potentially finding commercial applications in construction, agriculture and other industries. In addition to reducing the need for tailings deposits, such applications would further enhance the Eigersund Project's economics.

Following completion of the PFS, a bridging study is being conducted to assess project optimisation and opportunities such as tailings utilisation. Once this bridging study is complete, a Definitive Feasibilty Study ("DFS") will commence.

The PFS was compiled jointly by the Company's engineering and mining consultants, Hatch, Norconsult and SRK. It is based on the most recent JORC compliant resource statement for Storeknuten which was announced on 25 June 2024.

At the same time as working on the PFS, the Company and its consultants have been progressing the potential for including downstream activities in the Eigersund Project, particularly relating to the production of white phosphorus, phosphoric acid, titanium metal and vanadium. This work is progressing well and is expected to be concluded in parallel with the DFS.

The Company has founded a business in Germany, NM Deutschland GmbH, to evaluate and develop downstream opportunities in phosphorus. This significant opportunity recognises that phosphorus-based industries require high standards of sustainability in upstream and downstream processes to ensure the ESG credentials of their own products. They are also reliant on secure supply chains.

Contacts: +44 (0) 20 7466 5000 / norgemining@buchanan.uk.com

Norge Mining
John Vergopoulos, CEO

Burson Buchanan
Mark Court / George Pope

About Norge Mining

Norge Mining is an Anglo-Norwegian natural resources company focused on mineral exploration in Norway.

The Company's JORC resource estimates from the Bjerkreim Exploration Project in southwest Norway have confirmed world-class deposits of the EU Critical Raw Materials phosphate, vanadium and titanium, materials with key roles in the clean energy transition, security of food supply and other areas. The provenance of these materials is also of significant strategic importance for net carbon zero and ESG commitments, a key requirement for which is supply chain transparency.

Norge Mining, which owns 61 exploration licences totalling more than 520 square kilometres in Norway, including extraction rights, is conducting a programme of exploration work, building on earlier studies by the Geological Survey of Norway (NGU).

Founded in November 2018, the Company is headquartered in the UK and has a 100%-owned Norwegian subsidiary, Norge Mineraler AS. The Company's ambition is to become a substantial, sustainable and strategically important exploration and mining business in Europe.

For further information, please visit www.norgemining.com

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