NMR has acquired several mining tenements in Greenland focusing upon the extraction of strategic, high-grade niobium and tantalum deposits. The Company's tenement at Sarfartoq contains a unique deposit of niobium and tantalum in economic grades that are rare and unusually high in comparison to any other such deposits throughout the world.

The company plans to mine, crush and grind ore on site, using standard equipment. Thereafter, the ore will be transported via a slurry pipeline system to the nearby Sondre Stromfjord, which is the shipping route to Kanger Iussuaq. It will then be filtered and loaded on to a barge.

The market for Niobium is dramatically expanding. For example, Vishay Sprague, a major American electronic component manufacturer, has recently developed new niobium-based capacitors to replace tantalum- and aluminium-based capacitors in a wide variety of electronic equipment.

Capacitors are passive devices used to convert/store power in personal computers, mobile phones and other portable electronic systems. NEC, Epcos, AVX and other international groups are also developing and producing niobium-based capacitors.

NMR has contacted a number of potential buyers in Europe, the US, China and Japan, all of whom expressed interest in playing a commercial role in the sale of the company's product.

The tantalum market is a lot smaller than the niobium market in terms of tonnage with total yearly production for 2000 was 4.8 million pounds based on tantalum content. The market differs from that of niobium in that the bulk of the operations produce concentrates by physical means, which are then downstream processed by refiners to form high purity oxide, metal, etc. This contrasts with niobium miners who generally produce end products of mainly standard grade ferro-niobium.