The Greenvale Project is located 260 kilometres west of Townsville in North Queensland. Exploration by Glengarry discovered a small uranium resource at the Oasis prospect and a small copper-molybdenum resource at the Maitland prospect. Scoping studies indicated that both deposits could be potentially upgraded to reserves that could economically exploited by mining and trucking to a third party milling facility.
Glengarry has been active in the Greenvale area since 1999 and expended more than $5 million on exploration. A review of available data indicated that there was little potential remaining within the Greenvale Project for the discovery of a mineral deposit that would support stand alone processing facilities.
As the resources defined by Glengarry were considered to have value to other parties active in the region, the Company elected to seek to divest the Greenvale Project. The divestment process was successful and will provide significant funds for Glengarry to continue its search for major mineral deposit. In addition, Glengarry retains two separate royalties on the Greenvale Project which give the Company exposure to any future exploration success.
Glengarry sold the uranium rights at Greenvale to TSX listed Mega Uranium in early 2007 for approximately $5 million and a 1% royalty. Mega owns significant uranium resources in northern Queensland including the Ben Lomond and Maureen deposits and, importantly, has extensive expertise in uranium exploration. It should be noted that uranium mining is currently banned in Queensland and will require a change of state government policy before it is allowed.
In June 2008, Glengarry agreed to sell the remaining mineral rights for the Greenvale Project to Kagara Ltd for $6.5 million and $5 per tonne royalty on any ore processed in excess of one million tonnes. Kagara is currently mining the Balcooma base metal deposits and is the only company with processing facilities that could treat the Maitland copper deposit in the region. The sale was completed on 18th September 2008.