Rare Earth Minerals (REM) has been granted approval for mineral exploration in Greenland by the country's government, continuing a recent flow of good news for the miner.

Greenland's Bureau of Minerals and Petroleum approved the 38 square kilometre mineral licence following an application made by Rare Earth in February.

The company has high hopes for the licence as it is adjacent to the Kvanefjeld deposit, which has total inferred and indicated resources of 956 million tonnes at 1.08% rare earth oxide, 273 parts per million (ppm) of the U308 uranium oxide compound and 2,351 ppm of zinc.

The deposit is located within a licence held by Australia-listed Greenland Minerals and Energy, 500 metres to the north-east of Rare Earth's new licence, and is currently undergoing a definitive feasibility study.

"We see this whole regional play as becoming more interesting as Greenland Minerals and Energy get closer to completing their feasibility study," commented Rare Earth chairman David Lenigas.

Rare Earth has had a number of positive updates in recent weeks, including news last Thursday that it had increased its stake in two lithium projects in northern Mexico to 30%.

However, these have largely caused the share price to peak and then drop back, rather than prompting a sustained rise. On Tuesday the shares rose by 15% in early trading, but dropped back to hover around a 5% gain later in the morning.