REG - GreenX Metals Ltd - Option Over Potentially Large-Scale Gold Prospect
10/07/2023 07:00
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RNS Number : 4746F GreenX Metals Limited 10 July 2023
GREENX METALS LIMITED
NEWS RELEASE 10 JULY 2023
GREENX ACQUIRES OPTION OVER POTENTIALLY LARGE-SCALE, SHALLOW BULK TONNAGE GOLD
PROSPECT
GreenX Metals Limited (GreenX or the Company) is pleased to announce that it
has entered into an Option Agreement (Agreement) with Greenfields Exploration
Limited (GEX) to acquire up to 100% of the Eleonore North gold project
(Eleonore North or the Project) in eastern Greenland.
· Eleonore North has the potential to host a "reduced intrusion-related
gold system" (RIRGS), analogous to large bulk-tonnage deposit types found in
Canada including Donlin Creek, Fort Knox and Dublin Gulch.
· Gold mineralisation documented at the high-priority Noa Pluton
prospect within Eleonore North.
o Geophysical "bullseye" anomaly 6 km wide co-incident with elevated gold
mineralisation from historical geochemical sampling.
o Anomalous gold mineralisation associated with quartz veining exposed at
surface over a length of up to 15 km.
o Historical sampling includes 4 m chip sample grading 1.93 g/t Au and 1.9%
Sb (refer to Appendix 1).
· Eleonore North has potential to host large scale, shallow, bulk
tonnage gold deposits. The Project remains underexplored, with the existence
of a possible RIRGS being a relatively new geological interpretation based on
the historical data. Initial field work consists of a seismic survey to
determine the depth from surface to the Noa Pluton to aid in drill targeting.
· Eleonore North license area contains other gold targets as well as
copper, antimony and tungsten prospects. At Holmesø there is copper and
antimony mineralisation outcropping at surface. Historical mapping and
sampling in the 1970s at Holmesø show a prospective horizon between 15 m and
20 m thick, with per cent level grades for both metals.
· Option to earn 100% of the Project vests upon GreenX spending
A$600,000 on exploration on the Project within 12 months and can be exercised
in return for a 1.5% Net Smelter Royalty plus A$250,000 payable in cash and
A$250,000 payable in either cash or GreenX shares at GreenX's election.
· Transaction provides GreenX with gold exposure in Greenland and
complements GreenX's existing exploration prospect in Greenland, the Arctic
Rift Copper project (ARC). There are significant synergies with regards to
personnel, logistics and equipment in having multiple exploration projects in
Greenland. Field works for the 2023 have already commenced at Eleonore North,
with follow-on exploration field activities for the ARC project currently
being planned.
· Greenland is a mining friendly jurisdiction with strong Government
support for expanding its mining industry, simple laws and regulations, and a
competitive fiscal regime.
Mr Stoikovich, Chief Executive Officer of GreenX said: "The Eleonore North
project diversifies GreenX with an exposure to gold and the bulk-tonnage
target fits with the Company's strategy of pursuing globally significant
discoveries. Its location allows us to unlock significant operational
synergies in future field seasons with our ARC copper project in northern
Greenland in conjunction with our JV partner and project manager Greenfields
Exploration. We believe the mineral potential of Greenland is enormous, and we
are progressively working on unlocking this potential."
Classification: 2.2 Inside Information
ELEONORE NORTH SUMMARY
The Eleonore North Project comprises of two Exploration Licences covering an
area of 1,221 km(2) in an arid part of north-eastern Greenland, approximately
1,000 km south of the Company's ARC project.
The Project comprises two licences, located on Ymer Island in the south and
the Strindberg Land peninsula in the north. The 300 m deep fjords in this area
are around 6 km wide, sailed annually by large container ships, and aircraft
frequent the area. The Company identifies no significant environmental,
archaeological, or social challenges in the area.
Analogous to Canadian Bulk Tonnage Gold Deposits
Eleonore North has all the hallmarks of a "reduced intrusion-related gold
system" (RIRGS). This type of bulk-tonnage deposit is found in Canada,
including the ~45 Moz Au Donlin Creek, 13 Moz Au Fort Knox, and 6.4 Moz Dublin
Gulch).
RIRGS deposits are often associated with tin-tungsten provinces. The gold
may express in various environments ranging from within an intrusion, a skarn,
an overlying alteration halo ('hornfels'), and distal veins.
The most advanced prospect within the Project is the Noa Pluton, where
extensive gold mineralisation is well documented and coincident with a
geophysical anomaly. The Noa Pluton is obvious in magnetic data and is at the
centre of a multi-element 'bullseye', which is consistent with the deposit
type. While gold is the primary motivator, the mineral system includes
standalone deposits of the critical metals antimony and tungsten. This
project is more advanced than the Company's existing portfolio.
GEOLOGY
Eleonore North covers a sedimentary basin(1) that is intruded by granite and
intermediate plutons of multiple ages (refer to Appendix 2). The plutons of
interest intruded shortly after a mountain-building event(2), releasing the
compressive forces allowing deeply sourced, gold-bearing fluids to rise to the
surface(3). There is strong evidence for the occurrence of a RIRGS process.
The first clue to the potential presence of a gold deposit is the presence of
tungsten and antimony-tungsten deposits. These deposits often form a circular
and predictable zone around gold anomalism. This metal zonation is consistent
with RIRGS, as these deposits are often found in established tin or tungsten
provinces. At Eleonore North, tungsten deposits are located up to 20 km away,
which gives an indication to the intensity of the mineralising event.
Noa Pluton
A circular magnetic feature is at the centre of the regional geochemical
zonation.
This geophysical signature is interpreted to be the alteration halo/hornfels
of a pluton (the Noa Pluton). The geophysical anomaly has a diameter of 6 km
and is likely to closely approximate the hornfels. Based on the magnetic
data, the top of the intrusion is interpreted to be around 200 m to 300 m
below the surface. The gold mineralisation may extend from surface into the
intrusion, giving a substantial vertical target area to the 28 km(2) aerial
extent.
Geochemical anomalism is coincident with a circular geophysical anomaly. A
gold vein is exposed at the surface, and the associated anomalism has a strike
extent of at least 10 km and possibly up to 15 km. As there is little in the
way of a weathering profile, the anomalism is thought to represent in situ
mineralisation.
This Noa Valley vein varies in width from 5 to 25m and is associated with
economically attractive levels of antimony(4). Based on limited sampling
undertaken in 1983 and 1992, the best results are:
· 40 m chip line with a length weighed average of 0.78 g/t Au and
0.01% Sb, including 15m with a grade of 1.62 g/t Au and 0.02% Sb (Chip Profile
15);
· 35 m chip line with a grade of 0.39 g/t Au and 0.01% Sb, within which
there is 15m grading 0.71 g/t Au and 0.27% Sb;
· 4 m chip sample grading 1.93 g/t Au and 1.9% Sb (profile CP-D);
and
· 14 m long chip sample grading 7.2% Sb and 0.53 g/t Au (Profile
CP-C) refer to Appendix 1 and 2).
At least one other vein is in the valley floor, and others are likely. While
these veins are interesting, they represent evidence towards targeting a much
larger prospect, the Noa Pluton.
As the exposed mineralisation has an arsenic-antimony-gold affinity and there
are lead-zinc veins in the area, the Company interprets that the exposed
mineralisation is just above the inner hornfels(5) zone. The position in the
outer hornfels means the gold content is likely to increase towards the Noa
Pluton.
HOLMESØ
Some 50 km to the north-northwest of Noa Pluton is a strong geochemical
anomaly at a location known as Holmesø. At this prospect, significant
antimony-and copper outcrops at the surface. Historical mapping and sampling
in the 1970s at Holmesø show a prospective horizon between 15 m and 20 m
thick, with per cent level grades(6) for both metals.
The well-exposed mineralisation at Holmesø shares similarities with an
anomaly on the north side of Noa Valley, some 5 km from the Noa Pluton.
Consequently, Holmesø is interpreted as being caused by a second
RIRGS-intrusion, whereby the antimony incorporates the sedimentary(7) copper
found in the region. While the grades and thickness of the Holmesø
mineralisation are attractive and the prospect is drill ready (refer to
Appendix 1 and 2), the Company aims to prioritise locating the source RIRGS
pluton.
Path forward
The primary target in Eleonore North is the Noa Pluton, followed by the
Holmesø prospect and its source intrusion. The Noa Veins provide a
near-term drill target, however, the Company plans to determine the depth of
the intrusion with greater precision using a passive seismic survey. This
information will validate the magnetic interpretation, provide more certainty
for a future drilling program, and help identify the size of the intrusion
within the well-defined hornfels.
SUMMARY OF TERMS
GreenX will acquire a 100% interest in the Eleonore North project through the
Option Agreement. Key terms of the Agreement are as follows:
· The option to acquire the Project vests once GreenX has spent
A$600,000 on an agreed work exploration program for the Project within 12
months;
· Once the option has vested, GreenX can secure the Project on or
before 30 June 2024 in return for:
o a 1.5% Net Smelter Royalty (NSR); plus
o a payment of A$250,000 in cash; plus
o a further payment of A$250,000 in cash or shares (with a floor price of
A$0.30) in GreenX, at the Company's election.
GEX will act as the project manager until 30 June 2024, with the option, under
certain circumstances, to act as the project manager thereafter.
The Agreement provides GreenX with a low-cost entry point into gold
exploration in Greenland, given the synergies of established team,
infrastructure and equipment in Greenland for the ARC project. Eleonore
North remains underexplored, and the existence of a possible Intrusion Related
Gold system is a relatively new geological interpretation based on the
historic data.
Greenland is a mining friendly jurisdiction with strong Government support for
expanding its mining industry, simple laws and regulations, and a competitive
fiscal regime. The country is increasingly recognised as one of the last great
mineral resource frontiers having recently attracted interest from Anglo
American, Glencore, Trafigura, as well as KoBold Metals which is exploring for
materials critical for the electric vehicle and renewable energy revolutions.
--ENDS-
Competent Persons Statement
Information in this announcement that relates to Exploration Results is based
on information compiled by Dr Jonathan Bell, a Competent Person who is a
member of the Australian Institute of Geoscientists (AIG). Dr Bell is the
Executive Director (Technical) of Greenfields Exploration Limited and holds an
indirect interest in shares and performance rights in GreenX that are
unaffected by Eleonore North. Dr Bell has sufficient experience that is
relevant to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken, to qualify as a Competent
Person as defined in the 2012 Edition of the 'Australasian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves'. Dr Bell consents
to the inclusion in this announcement of the matters based on his information
in the form and context in which it appears.
To view this announcement in full, including all illustrations and figures,
please refer to
https://wcsecure.weblink.com.au/clients/greenxmetals/headline.aspx?headlineid=61157660
(https://wcsecure.weblink.com.au/clients/greenxmetals/headline.aspx?headlineid=61157660)
.
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
Sources:
(1) Primarily the sediments of Neoproterozoic-age Eleonore Bay Supergroup.
(2) The mountain building event is the Caledonian Orogeny, and the tungsten
mineralisation associated with the Noa Pluton has an age of ~373 Ma. The
Company's ARC project within the Kiffaanngissuseq Metallogenic Belt contains a
copper sulphide mineralisation even that is also related to the waning
Caledonian Orogeny and has an age of 385 Ma.
(3) The deep-seated source of magmas is evidenced by the presence of
lamprophyres close the known mineral occurrences in Eleonore North. The
correlation between gold deposits and lamprophyres is well established
elsewhere on Earth.
(4) Antimony and tungsten are on the critical metals lists of the European
Union, United Kingdom, and United State of America.
(5) A hornfels is a sedimentary rock that is metamorphosed by contact with a
pluton.
(6) A 100 kg bulk sample yielded grades of 1.07% Sb and 1.35% Cu. A drillhole
that penetrated the top 1.4 m of the target horizon, before breaking down,
yielded a grade of 0.67% Sb and 1.33% Cu (refer to Appendix 1).
(7) Strindbergland contains extensive diagenetic chalcocite bands that have
several strike kilometres of extent.
Appendix 1
NOA PROSPECT
Type Northing Easting Length (m) Au Maximum Au (g/t) Sb Maximum
(Sample ID) (g/t) (%) Sb (%)
Chip Profile 15 73.29321 -25.04009 40 0.78 1.80 0.01 0.03
(104,436-104,443)
Subset of chip Profile 15 73.29321 -25.04009 15 1.62 1.80 0.02 0.03
(104,440-104,442)
Chip Profile 2 73.29147 -25.00803 35 0.39 1.01 0.01 0.05
(104,610-104,616)
Subset of Chip Profile 2 73.29169 -25.00415 15 0.71 1.01 0.27 0.53
(104,610-104,612)
Chip Profile 1 73.29158 -25.00411 45 0.24 0.51 0.25 10.4
(104,601-104,609)
Subset of Chip Profile 1 73.29134 -25.00408 15 0.33 0.51 0.01 0.01
(104,607-104,609)
Chip Profile 18 73.29385 -25.04448 25 0.57 2.01 0.16 0.61
(104,639-104,643)
Subset of Chip Profile 18 73.29379 -25.0445 5 2.01 N/A 0.01 0.01
(104,642)
Chip Profile 73.2913 -25.00699 14 0.53 N/A 7.23 N/A
(CP-C)
Chip Profile 16 73.29336 -25.04158 30 0.22 0.3 0.00 0.00
(104,444-104,449)
Subset of Chip Profile 16 73.29336 -25.04158 15 0.35 0.60 0.00 0.00
(104,446-104,448)
Chip Profile 3 73.29138 -25.00908 23 0.29 0.50 0.29 1.34
(104,401-104,405)
Chip Profile 17 73.29368 -25.04273 15 0.31 0.71 0.01 0.01
(104,644-104,646)
Chip Profile 25 73.29086 -24.94675 15 0.34 0.39 1.13 2.11
(104,708-104,710)
Chip Profile 73.2913 -25.00933 14 0.22 N/A 2.00 N/A
(CP-B)
Chip Profile 73.29129 -25.01012 10 0.31 N/A 0.01 N/A
(CP-A)
Chip Profile 35 73.30168 -25.06504 21 0.21 0.29 1.84 6.65
(104,471-104,474)
Chip Profile 19 73.29275 -25.0635 30 0.17 0.39 0.00 0.00
(104,451-104,456)
Subset of Chip Profile 19 (104,454) 73.29268 -25.06352 5 0.39 N/A 0.00 N/A
Chip Profile 73.29129 -25.00854 4 1.93 N/A 0.9 N/A
(CP-D)
Chip Profile 37 73.29968 -25.06443 2 0.20 0.59 0.08 0.24
(104,718-104,720)
Subset of Chip Profile 37 73.29968 -25.06443 ~0.67 0.59 N/A 0.24 N/A
(104,719)
Grab sample 73.29896 -25.06436 N/A 0.97 N/A 0.02 N/A
(104,475)
Grab sample 73.29128 -25.00923 N/A 3.6 N/A 1.60 N/A
(G7-3)
Grab sample 73.29703 -25.03214 N/A 2 N/A 0.02 N/A
(G10-1)
Grab sample 73.29703 -25.03214 N/A 1.1 N/A 0.11 N/A
(G10-3)
Grab sample 73.29703 -25.03214 N/A 0.91 N/A 19.00 N/A
(G10-2)
Grab sample 73.29128 -25.00923 N/A 0.71 N/A 31.00 N/A
(G7-4)
HOLMESØ PROSPECT
Type Northing Easting Cu Sb Ag Zn
(Sample ID) (%) (%) (g/t) (%)
Bulk sample 73.77164 -24.83429 0.97 0.88 36 0.05
(6162/1+2)
Bulk sample 73.77164 -24.83429 1.98 1.48 2 0.24
(6162/5)
Bulk sample 73.77164 -24.83429 1.09 0.85 14 0.12
(6162/6)
Drill core 73.77231 -24.83292 1.3 0.7 28 0.1
(N/A)
Appendix 2
JORC Table 1, section 2: Reporting of Exploration Results
Criteria Eleonore North Project
Mineral tenement and land tenure status The Eleonore North Project is a result of a scientific and systematic
reduction of Greenfields 'Frontier' Project. Eleonore North comprises two
Exploration Licences (MEL2023-39 and MEL 2018-19). The combined spatial area
of licences is 1,220.81 km(2). The boundaries of Eleonore North Project are
defined by the points:
MEL2023-39 (two polygons: 1,189.77 km(2))
73.98333 °N 25.30000 °W 73.41667 °N 25.31667 °W
73.98333 °N 25.13333 °W 73.41667 °N 25.03333 °W
73.95000 °N 25.13333 °W 73.43333 °N 25.03333 °W
73.95000 °N 25.01667 °W 73.43333 °N 24.60000 °W
73.91667 °N 25.01667 °W 73.23333 °N 24.60000 °W
73.91667 °N 24.86667 °W 73.23333 °N 25.60000 °W
73.88333 °N 24.86667 °W 73.26667 °N 25.60000 °W
73.88333 °N 24.51667 °W 73.26667 °N 25.53333 °W
73.86667 °N 24.51667 °W 73.30000 °N 25.53333 °W
73.86667 °N 24.48333 °W 73.30000 °N 25.45000 °W
73.85000 °N 24.48333 °W 73.31667 °N 25.45000 °W
73.85000 °N 24.43333 °W 73.31667 °N 25.31667 °W
73.70000 °N 24.43333 °W
73.70000 °N 24.48333 °W
73.68333 °N 24.48333 °W
73.68333 °N 25.01667 °W
73.70000 °N 25.01667 °W
73.70000 °N 25.05000 °W
73.71667 °N 25.05000 °W
73.71667 °N 25.08333 °W
73.73333 °N 25.08333 °W
73.73333 °N 25.21667 °W
73.75000 °N 25.21667 °W
73.75000 °N 25.26667 °W
73.76667 °N 25.26667 °W
73.76667 °N 25.33333 °W
73.78333 °N 25.33333 °W
73.78333 °N 25.38333 °W
73.80000 °N 25.38333 °W
73.80000 °N 25.48333 °W
73.91667 °N 25.48333 °W
73.91667 °N 25.25000 °W
73.95000 °N 25.25000 °W
73.95000 °N 25.30000 °W
MEL 2018-19 (two polygons: 31.04 km(2))
73.16667 °N 25.11667 °W 73.23333 °N 25.05000 °W
73.16667 °N 25.01667 °W 73.23333 °N 24.76667 °W
73.15000 °N 25.01667 °W 73.21667 °N 24.76667 °W
73.15000 °N 25.05000 °W 73.21667 °N 25.01667 °W
73.13333 °N 25.05000 °W 73.20000 °N 25.01667 °W
73.13333 °N 25.15000 °W 73.20000 °N 25.05000 °W
73.15000 °N 25.15000 °W
73.15000 °N 25.11667 °W
73.41667 °N 25.31667 °W
73.41667 °N 25.03333 °W
73.43333 °N 25.03333 °W
73.43333 °N 24.60000 °W
73.23333 °N 24.60000 °W
73.23333 °N 25.60000 °W
73.26667 °N 25.60000 °W
73.26667 °N 25.53333 °W
73.30000 °N 25.53333 °W
73.30000 °N 25.45000 °W
73.31667 °N 25.45000 °W
73.31667 °N 25.31667 °W
MEL 2018-19 (two polygons: 31.04 km(2))
73.16667 °N 25.11667 °W
73.16667 °N 25.01667 °W
73.15000 °N 25.01667 °W
73.15000 °N 25.05000 °W
73.13333 °N 25.05000 °W
73.13333 °N 25.15000 °W
73.15000 °N 25.15000 °W
73.15000 °N 25.11667 °W
73.23333 °N 25.05000 °W
73.23333 °N 24.76667 °W
73.21667 °N 24.76667 °W
73.21667 °N 25.01667 °W
73.20000 °N 25.01667 °W
73.20000 °N 25.05000 °W
The minimum expenditure obligation for a MEL-S is DKK500/km2 indexed to Danish
CPI as of January 1992. The Company estimates the expenditure requirement in
the base case will be approximately AUD650,000 per annum if the current
licence shape is retained, and aerial reductions are possible to reduce this
obligation. The licences are currently in significant credit due to previous
expenditure. Expenditure above the minimum regulatory requirement is carried
forward for a maximum of three years. Eleonore North is in good standing and
Greenfields owns 100% of the licence.
There are no third-party royalties or other rights relating to Eleonore North.
Exploration done by other parties 1953 - lead, copper and zinc bearing veins were discovered in Noa Valley as
part of a regional mapping program by Nordisk Mineselskab A/G ('Nordisk').
1974 - 1976: Nordisk mapped the Holmesø copper-antimony prospect in
Brogetdal, Strindbergland. Geophysical surveying was performed. The
outcropping mineralisation was blasted a 100kg bulk sample was retrieved, of
which 35kg was sent for analysis. Finally, an attempt was made to drill the
mineralisation, and only the top 1.4m of a targeted 17m mineralised horizon
was sampled before the rig broke down. Nordisk concluded that the Holmesø
mineralisation is epigenetic.
1981 - 1983: Nordisk discovered the two small, high-grade tungsten and
antimony-tungsten deposits on Ymer Island. These are respectively known as
South Margeries Dal and North Margeries Dal. These deposits were drilled
Historical Estimates were made. Economic studies were performed but
concluded that more mineralised material was needed. The drilled
mineralisation is open at depth and along strike. The historical work on the
tungsten and antimony is not material to the understanding of the project's
gold potential.
1984 - 1986: As part of Nordisk's search for more tungsten mineralisation, a
large gold bearing vein was discovered in the southern cliff face of Noa
Valley. The mineralisation in the scree was sampled. Geochemical sampling
was also performed which identified a 10 to 15 km long multielement anomaly
dominated by arsenic and antimony, which have a positive correlation with
gold. Nordisk had a strategic shift towards petroleum exploration after this
point in time.
1992: With the demise of Nordisk in 1991, the Greenland state owned
enterprise, NunaOil A/S in collaboration with Australia's Pasminco Ltd did
additional sampling of the Noa gold veins. The program was successful in
finding additional veins in the valley floor and extending the known
mineralisation. However, the corporate mandate was for 'high grade gold'
which it was unsuccessful in locating. This result is unsurprising to GEX
given that the veins are above the hornfels and correspondingly yield
high-grade antimony and low-gold content. Greenfields expects the gold
content to increase, and antimony to decrease at depth towards the causative
pluton.
2009: NunaMinerals A/S, a public-private spinout from NunaOil A/S, conducted a
heliborne magnetic survey over Margeries Valley and Noa Valley. The purpose
of this survey was to directly detect tungsten, and antimony deposits.
Neither of the known deposits were detectable using this method, however a
distinct circular magnetic feature was identified in Noa Valley. This
magnetic feature was interpreted to be a granitic/intermediate intrusion.
During this time, samples from the South Margeries Dal deposit were sent for
metallurgical analysis, which determined that the material was potentially
suited to direct-shipping-ore, and amendable to basic beneficiation methods.
2011: Avannaa Resources Ltd ('Avannaa') conducted a basin-wide helicopter
supported reconnaissance program. This included visits to the Holmesø
mineralisation. Avannaa concluded that the Holmesø mineralisation was
epigenetic and likely related to the mineralisation observed on Ymer Island.
2018-2019: Independence Group Ltd (subsequently rebranded as IGO Ltd ('IGO')
through a joint-venture agreement with GEX, conducted three field programs
that were focussed on the sedimentary-hosted copper deposit model. During
this time, IGO managed all geological aspects of the program while GEX managed
the logistics in 2018 and 2019. IGO visited Noa Valley in 2018 and 2019 but
focussed on the north slope away from Noa Pluton, and on areas typified by
magnetic highs rather than the lows which define Noa Pluton's circular
magnetic signature. Despite this, quartzite mineralisation reminiscent of
Holmesø was identified but no mineralogy is recorded in the documentation.
While in the field with IGO in 2019, GEX alerted IGO to the presence of
antimony and gold in the south side of the valley, but no commensurate
sampling was performed. During the IGO earn-in period, GEX relocated the
historical drillhole collars at North and South Margeries Dal
tungsten/antimony deposits.
The Holmesø prospect was visited by IGO in 2018, 2019 and 2022. IGO's
Holmesø sampling did not replicate Nordisk's high-grade blast/bulk sample, or
the drill results. The reason for the discrepancy is not clear to GEX,
however GEX representatives did inspect the site in 2019 and attest to it
being well mineralised. It is possible that due to the hardness of the
quartzite host, rockchip sampling is unreliable. Regional sampling
identified diagenetic copper, as well as remobilised epigentic copper that
expresses as course blebs of chalcocite within porous, bed-cutting, vuggy
conduits.
2022: IGO conducted a structural and geochemical sampling program in
Strindbergland (no activity on Ymer Island). This program correctly
concluded that the 'sediment-hosted copper deposit model' is not a suitable
analogy. IGO returned to GEX the licences that were in good standing, with
the indebted licences being relinquished by IGO. The remaining licences
became the 'Eleonore North' project, which is a subset of the original
'Frontier' project area.
Geology Eleonore North licences, for the most part, covers Neoproterozoic-aged
sediments belonging to the Eleonore Bay Supergroup. These sediments trend
from clastics up to carbonates. The lithology of the sediments is not a
primary consideration in the targeting of reduced intrusion related golds
systems. These sediments are intruded by granites and intermediate
intrusives that are somewhat shallowly sourced due the Caledonian Orogenic
event. However, geochronology of the South Margeries Dal tungsten indicates
that post-orogenic fluid flow occurred. Post-orogenic granitic intrusions
are consistent with RIRGS mineralisation, as the decompression allows for the
fluidisation of gold in the mantle while providing conduits to surface.
Elsewhere, such post-orogenic emplacement is associated with deeply sourced
lamprophyres, like those mapped in Noa Valley and Brogetdal. GEX identifies
for the first time, that ~373 Ma post-orogenic mineralisation event is related
to the 385 Ma Kiffaanngissuseq hydrothermal event some 1000 km to the north.
In the north at Kiffaanngissuseq the post-orogenic event was characterised
by an east-west fluid flow. In the south in the Frontier region that hosts
Elenore North, the post orogenic event was dominated by magmatic intrusions
and little hydrothermal activity. Separating the two areas is the poorly
understood, high-metamorphic grade Eclogite Province where peak metamorphism
is of similar age to the Frontier and Kiffaanngissuseq processes.
An interactive Government portal that contains the geology, and supporting
reports can be accessed via: http://www.greenmin.gl/home.seam
(http://www.greenmin.gl/home.seam) . A detailed review of the regional
geology is presented in GEX's report titled 'FRONTIER PROJECT Technical
Assessment. this report is available from DOI: 10.13140/RG.2.2.11673.24165.
Drill hole information Drilling programs have previously been conducted at the South Margeries Dal,
North Margeries Dal, and Holmesø prospects.
Between 1981 and 1983 the North, and South Margeries Dal tungsten-antimony
deposits on Ymer Island were subject to drilling activity. The first year
involved thirteen shallow diamond holes totalling 96 m (excluding three holes
that failed to penetrate the cover, and the second year eighteen holes for
1986.4 m. Of these, fourteen holes were at South Margeries Dal, and eleven
at North Margeries Dal. Over the course of 2018 and 2019 GEX established the
collar location of most of these drillholes. These drillholes are not the
primary focus of the Eleonore North project and are not presented in detail in
this Table. However, GEX intends to produce a full Technical Assessment
Report on Eleonore North which will contain such detail.
In 1974, Nordisk attempted a solitary 21.1 m long diamond drill-hole at the
Holmesø prospect in the northern reaches of the Eleonore North licence.
However, the drill-rig broke down at 21m after penetrating only 1.4 m into a
targeted 17m thick mineralised zone, and the hole was never completed or
revisited. Assays of the core returned grades of 1.33% Cu, 0.67% Sb, 0.06%
Zn, 0.003% Pb and 28 g/t Ag.
Data aggregation methods GEX has relied upon historical public domain information. The aggregation of
data underlying this information is uncertain. These data are not relied
upon and are not material in terms of the Project's status and present
understanding.
Relationship between mineralisation width and intercept lengths. The tungsten/antimony mineralisation was drilled from pads from which multiple
holes were 'fanned'. These drillholes all intersect the mineralisation in
perpendicular to sub-perpendicular angles. No down dip drilling was
performed. At Holmesø, the single drillhole was drilled approximately
perpendicular to the mineralised horizon. The rock chip lines in Noa Dal are
likely to be orthogonal to the veining, although it is not presently known to
what extent The sub-perpendicular rockhip sampling is not considered
material to the potential of the Noa Intrusion.
Diagrams All relevant maps are presented in the main body of this document.
Balanced reporting GEX has sourced and reasonably presented all the results that relate to the
gold, antimony, and tungsten mineralisation in Eleonore North. It has not
presented IGO's sediment-hosted copper work as it was largely focussed in
other areas of interest, for a different purpose that has little bearing on
the economic potential of Eleonore North. The inclusion of this work would
reduce this document's concision and clarity, and therefore effectiveness.
Other substantive exploration data Aside from Nordisk and NunaOil's work outlined above, there has been no
significant work on the gold potential of the region or licence area.
Further work In Noa Valley, the target pluton is well constrained by magnetic and
geochemical data. The depth to the pluton is thought to be around 200m to
300m below surface based on the geophysical response. Confirmation and
higher precision of the pluton's depth is warranted ahead of a subsequent
drilling program. GEX recommends drilling down dip of the known
mineralisation where the antimony dominant phase is expected to become gold
dominant.
At Holmesø drillholes are recommended to confirm the thickness and grade of
the outcropping mineralisation. A passive seismic survey is also recommended
along the length of Brogetdal to determine the location of the proposed
intrusion that produced the Holmesø occurrence.
At the South and North Margeries Dal prospects, a higher resolution digital
terrain model should be obtained prior to generating Exploration Targets based
on the historical drilling.
73.41667 °N 25.31667 °W
73.41667 °N 25.03333 °W
73.43333 °N 25.03333 °W
73.43333 °N 24.60000 °W
73.23333 °N 24.60000 °W
73.23333 °N 25.60000 °W
73.26667 °N 25.60000 °W
73.26667 °N 25.53333 °W
73.30000 °N 25.53333 °W
73.30000 °N 25.45000 °W
73.31667 °N 25.45000 °W
73.31667 °N 25.31667 °W
MEL 2018-19 (two polygons: 31.04 km(2))
73.16667 °N 25.11667 °W
73.16667 °N 25.01667 °W
73.15000 °N 25.01667 °W
73.15000 °N 25.05000 °W
73.13333 °N 25.05000 °W
73.13333 °N 25.15000 °W
73.15000 °N 25.15000 °W
73.15000 °N 25.11667 °W
73.23333 °N 25.05000 °W
73.23333 °N 24.76667 °W
73.21667 °N 24.76667 °W
73.21667 °N 25.01667 °W
73.20000 °N 25.01667 °W
73.20000 °N 25.05000 °W
The minimum expenditure obligation for a MEL-S is DKK500/km2 indexed to Danish
CPI as of January 1992. The Company estimates the expenditure requirement in
the base case will be approximately AUD650,000 per annum if the current
licence shape is retained, and aerial reductions are possible to reduce this
obligation. The licences are currently in significant credit due to previous
expenditure. Expenditure above the minimum regulatory requirement is carried
forward for a maximum of three years. Eleonore North is in good standing and
Greenfields owns 100% of the licence.
There are no third-party royalties or other rights relating to Eleonore North.
Exploration done by other parties
1953 - lead, copper and zinc bearing veins were discovered in Noa Valley as
part of a regional mapping program by Nordisk Mineselskab A/G ('Nordisk').
1974 - 1976: Nordisk mapped the Holmesø copper-antimony prospect in
Brogetdal, Strindbergland. Geophysical surveying was performed. The
outcropping mineralisation was blasted a 100kg bulk sample was retrieved, of
which 35kg was sent for analysis. Finally, an attempt was made to drill the
mineralisation, and only the top 1.4m of a targeted 17m mineralised horizon
was sampled before the rig broke down. Nordisk concluded that the Holmesø
mineralisation is epigenetic.
1981 - 1983: Nordisk discovered the two small, high-grade tungsten and
antimony-tungsten deposits on Ymer Island. These are respectively known as
South Margeries Dal and North Margeries Dal. These deposits were drilled
Historical Estimates were made. Economic studies were performed but
concluded that more mineralised material was needed. The drilled
mineralisation is open at depth and along strike. The historical work on the
tungsten and antimony is not material to the understanding of the project's
gold potential.
1984 - 1986: As part of Nordisk's search for more tungsten mineralisation, a
large gold bearing vein was discovered in the southern cliff face of Noa
Valley. The mineralisation in the scree was sampled. Geochemical sampling
was also performed which identified a 10 to 15 km long multielement anomaly
dominated by arsenic and antimony, which have a positive correlation with
gold. Nordisk had a strategic shift towards petroleum exploration after this
point in time.
1992: With the demise of Nordisk in 1991, the Greenland state owned
enterprise, NunaOil A/S in collaboration with Australia's Pasminco Ltd did
additional sampling of the Noa gold veins. The program was successful in
finding additional veins in the valley floor and extending the known
mineralisation. However, the corporate mandate was for 'high grade gold'
which it was unsuccessful in locating. This result is unsurprising to GEX
given that the veins are above the hornfels and correspondingly yield
high-grade antimony and low-gold content. Greenfields expects the gold
content to increase, and antimony to decrease at depth towards the causative
pluton.
2009: NunaMinerals A/S, a public-private spinout from NunaOil A/S, conducted a
heliborne magnetic survey over Margeries Valley and Noa Valley. The purpose
of this survey was to directly detect tungsten, and antimony deposits.
Neither of the known deposits were detectable using this method, however a
distinct circular magnetic feature was identified in Noa Valley. This
magnetic feature was interpreted to be a granitic/intermediate intrusion.
During this time, samples from the South Margeries Dal deposit were sent for
metallurgical analysis, which determined that the material was potentially
suited to direct-shipping-ore, and amendable to basic beneficiation methods.
2011: Avannaa Resources Ltd ('Avannaa') conducted a basin-wide helicopter
supported reconnaissance program. This included visits to the Holmesø
mineralisation. Avannaa concluded that the Holmesø mineralisation was
epigenetic and likely related to the mineralisation observed on Ymer Island.
2018-2019: Independence Group Ltd (subsequently rebranded as IGO Ltd ('IGO')
through a joint-venture agreement with GEX, conducted three field programs
that were focussed on the sedimentary-hosted copper deposit model. During
this time, IGO managed all geological aspects of the program while GEX managed
the logistics in 2018 and 2019. IGO visited Noa Valley in 2018 and 2019 but
focussed on the north slope away from Noa Pluton, and on areas typified by
magnetic highs rather than the lows which define Noa Pluton's circular
magnetic signature. Despite this, quartzite mineralisation reminiscent of
Holmesø was identified but no mineralogy is recorded in the documentation.
While in the field with IGO in 2019, GEX alerted IGO to the presence of
antimony and gold in the south side of the valley, but no commensurate
sampling was performed. During the IGO earn-in period, GEX relocated the
historical drillhole collars at North and South Margeries Dal
tungsten/antimony deposits.
The Holmesø prospect was visited by IGO in 2018, 2019 and 2022. IGO's
Holmesø sampling did not replicate Nordisk's high-grade blast/bulk sample, or
the drill results. The reason for the discrepancy is not clear to GEX,
however GEX representatives did inspect the site in 2019 and attest to it
being well mineralised. It is possible that due to the hardness of the
quartzite host, rockchip sampling is unreliable. Regional sampling
identified diagenetic copper, as well as remobilised epigentic copper that
expresses as course blebs of chalcocite within porous, bed-cutting, vuggy
conduits.
2022: IGO conducted a structural and geochemical sampling program in
Strindbergland (no activity on Ymer Island). This program correctly
concluded that the 'sediment-hosted copper deposit model' is not a suitable
analogy. IGO returned to GEX the licences that were in good standing, with
the indebted licences being relinquished by IGO. The remaining licences
became the 'Eleonore North' project, which is a subset of the original
'Frontier' project area.
Geology
Eleonore North licences, for the most part, covers Neoproterozoic-aged
sediments belonging to the Eleonore Bay Supergroup. These sediments trend
from clastics up to carbonates. The lithology of the sediments is not a
primary consideration in the targeting of reduced intrusion related golds
systems. These sediments are intruded by granites and intermediate
intrusives that are somewhat shallowly sourced due the Caledonian Orogenic
event. However, geochronology of the South Margeries Dal tungsten indicates
that post-orogenic fluid flow occurred. Post-orogenic granitic intrusions
are consistent with RIRGS mineralisation, as the decompression allows for the
fluidisation of gold in the mantle while providing conduits to surface.
Elsewhere, such post-orogenic emplacement is associated with deeply sourced
lamprophyres, like those mapped in Noa Valley and Brogetdal. GEX identifies
for the first time, that ~373 Ma post-orogenic mineralisation event is related
to the 385 Ma Kiffaanngissuseq hydrothermal event some 1000 km to the north.
In the north at Kiffaanngissuseq the post-orogenic event was characterised
by an east-west fluid flow. In the south in the Frontier region that hosts
Elenore North, the post orogenic event was dominated by magmatic intrusions
and little hydrothermal activity. Separating the two areas is the poorly
understood, high-metamorphic grade Eclogite Province where peak metamorphism
is of similar age to the Frontier and Kiffaanngissuseq processes.
An interactive Government portal that contains the geology, and supporting
reports can be accessed via: http://www.greenmin.gl/home.seam
(http://www.greenmin.gl/home.seam) . A detailed review of the regional
geology is presented in GEX's report titled 'FRONTIER PROJECT Technical
Assessment. this report is available from DOI: 10.13140/RG.2.2.11673.24165.
Drill hole information
Drilling programs have previously been conducted at the South Margeries Dal,
North Margeries Dal, and Holmesø prospects.
Between 1981 and 1983 the North, and South Margeries Dal tungsten-antimony
deposits on Ymer Island were subject to drilling activity. The first year
involved thirteen shallow diamond holes totalling 96 m (excluding three holes
that failed to penetrate the cover, and the second year eighteen holes for
1986.4 m. Of these, fourteen holes were at South Margeries Dal, and eleven
at North Margeries Dal. Over the course of 2018 and 2019 GEX established the
collar location of most of these drillholes. These drillholes are not the
primary focus of the Eleonore North project and are not presented in detail in
this Table. However, GEX intends to produce a full Technical Assessment
Report on Eleonore North which will contain such detail.
In 1974, Nordisk attempted a solitary 21.1 m long diamond drill-hole at the
Holmesø prospect in the northern reaches of the Eleonore North licence.
However, the drill-rig broke down at 21m after penetrating only 1.4 m into a
targeted 17m thick mineralised zone, and the hole was never completed or
revisited. Assays of the core returned grades of 1.33% Cu, 0.67% Sb, 0.06%
Zn, 0.003% Pb and 28 g/t Ag.
Data aggregation methods
GEX has relied upon historical public domain information. The aggregation of
data underlying this information is uncertain. These data are not relied
upon and are not material in terms of the Project's status and present
understanding.
Relationship between mineralisation width and intercept lengths.
The tungsten/antimony mineralisation was drilled from pads from which multiple
holes were 'fanned'. These drillholes all intersect the mineralisation in
perpendicular to sub-perpendicular angles. No down dip drilling was
performed. At Holmesø, the single drillhole was drilled approximately
perpendicular to the mineralised horizon. The rock chip lines in Noa Dal are
likely to be orthogonal to the veining, although it is not presently known to
what extent The sub-perpendicular rockhip sampling is not considered
material to the potential of the Noa Intrusion.
Diagrams
All relevant maps are presented in the main body of this document.
Balanced reporting
GEX has sourced and reasonably presented all the results that relate to the
gold, antimony, and tungsten mineralisation in Eleonore North. It has not
presented IGO's sediment-hosted copper work as it was largely focussed in
other areas of interest, for a different purpose that has little bearing on
the economic potential of Eleonore North. The inclusion of this work would
reduce this document's concision and clarity, and therefore effectiveness.
Other substantive exploration data
Aside from Nordisk and NunaOil's work outlined above, there has been no
significant work on the gold potential of the region or licence area.
Further work
In Noa Valley, the target pluton is well constrained by magnetic and
geochemical data. The depth to the pluton is thought to be around 200m to
300m below surface based on the geophysical response. Confirmation and
higher precision of the pluton's depth is warranted ahead of a subsequent
drilling program. GEX recommends drilling down dip of the known
mineralisation where the antimony dominant phase is expected to become gold
dominant.
At Holmesø drillholes are recommended to confirm the thickness and grade of
the outcropping mineralisation. A passive seismic survey is also recommended
along the length of Brogetdal to determine the location of the proposed
intrusion that produced the Holmesø occurrence.
At the South and North Margeries Dal prospects, a higher resolution digital
terrain model should be obtained prior to generating Exploration Targets based
on the historical drilling.
JORC Table 1, section 1: Sampling Techniques and Data
Criteria Eleonore North Project
Sampling techniques Nordisk undertook drilling, rock sampling, and stream sediment sampling.
Pasminco undertook rock sampling, and stream sediment sampling.
Avannaa collected rock samples.
IGO collected rock samples and portable XRF readings.
Drill techniques Nordisk used diamond drilling methods. At Holmesø, an Atlas Copco 75 D was
used to drill a 46 mm collar that yielded a core of 37-38 mm diameter;
followed by a 36 mm bit that produced 28 mm core. At North and South
Margeries Dal the core diameter is 35.3 mm.
Drill sample recovery Core recovery was close to 100% for all drillholes.
Logging All core was lithologically logged in a qualitative manner. Only summary
logs are currently available to GEX, and it is unknown if the original logs
are available.
Sub-sampling techniques and sample preparation It is unknown the sampling regimen was for the Holmesø core.
Half-core sampling was performed on the samples from South Margeries Dal and
North Margeries Dal. Beyond this, it is unknown to GEX what sample
preparation was performed.
Quality of assay data and laboratory tests All drill samples are historical in nature and do not comply with modern QAQC
protocols. However, GEX has reviewed numerous Nordisk programs and found
them to be highly professional and reliable. Avannaa and IGO used reputable
laboratories with suitable QAQC controls. It is unknown to GEX what Pasminco
did, however being a large mining company, GEX makes a reasonable assumption
that Pasminco used acceptable practices for that time.
Verification of sampling and assaying No verification sampling has been performed.
GEX relocated and verified the drillhole collars at North and South Margeries
Dal.
Location of data points The data locations and topographic control are based on information the
Government publicly discloses. GEX relocated and verified the drillhole
collars at North and South Margeries Dal. These holes were historically set
out on a local grid, for which some survey reference points still exist.
Avannaa records the position at 73.77231°N, 24.83292°W.
Present day grids are based on the WGS84 Datum.
Data spacing and distribution At South Margeries Dal, fourteen holes were drilled fin fans from four pads.
At North Margeries Dal, eleven holes were drilled from three pads. All other
sampling within the licences is erratically spaced.
Orientation of data in relation to geological structure The Holmesø drillhole was drilled close to perpendicular to the lithological
hosted mineralisation. The South and North Margeries Dal mineralisation was
drilled at variable orthogonal orientations, and sub-perpendicular angles.
Sample security IGO practiced good chain of custody with oversight from senior personnel. GEX
is satisfied and can vouch for the professionalism of the IGO practices. The
practices of Avannaa, Pasminco and Nordisk are unknown to GEX, but not
considered material for the present potential of Eleonore North.
Audits or reviews GEX is unaware if any audits or reviews were performed but has no concerns
about their absence.
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