REG - Amaroq Minerals Ltd - Significant Nickel-Copper Discovery at Stendalen

Amaroq MineralsAnnouncement

29/02/2024 07:15

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RNS Number : 8764E  Amaroq Minerals Ltd  29 February 2024

("Amaroq" or the "Corporation")

 

Significant New Nickel-Copper Discovery at Stendalen

***Discovery of significant new strategic metal project 60km from Nalunaq***

**Drill results confirm the presence of high tenor mineralisation, typical of
a high grade Nickel-Copper deposits**

 

TORONTO, ONTARIO - January 29, 2024 - Amaroq Minerals Ltd. (AIM, TSXV, NASDAQ
Iceland: AMRQ), an independent mine development corporation with a substantial
land package of gold and strategic mineral assets across in Southern
Greenland, is pleased to announce a significant new Ni-Cu discovery at its
Stendalen Project.

Overview

•              Over 140m of disseminated magmatic sulphides
containing nickel, copper & cobalt intersected in the first scout
drillhole at Stendalen.

•              Sulphides so far intersected are lower grade and
disseminated in style and Amaroq will use these results to target the more
concentrated massive sulphides expected to be within the deposit.

•              Geophysical results provide evidence of the
location of the feeder zone to the deposit and will be the focus for the 2024
drilling programme.

•              The critical aspects of these results, such as
sulphide tenors, textures, scale and minerology, are considered similar to
globally important nickel - copper deposits.

•              Calculation of the tenor of the sulphides, based
upon the assays received, implies that, due to relative metal content,
Stendalen holds the ability to host grades similar to analogous deposits,
therefore if intersected, massive sulphide could hold grades of up to 3-5%
nickel equivalent.

•              Metals are hosted solely in sulphides, therefore
Amaroq anticipates strong future metal recoveries

•              The 2023 drillhole was the first hole into a
body that is roughly 6km in diameter; it is therefore possible that Stendalen
hosts multiple large orebodies

•              This mineral discovery further illustrates the
opportunities across South Greenland

•              The Company believes these results justify
further exploration and plans a significant upscale in activities with at
least three drill rigs and a dedicated ground geophysical team planned for
2024

References to the accompanying presentation on the Stendalen results on the
website by clicking the link below:
https://www.amaroqminerals.com/investors/presentations/
(https://www.amaroqminerals.com/investors/presentations/)

Eldur Olafsson, CEO of Amaroq, commented:

"A new mineral discovery such as that seen at Stendalen is the culmination of
many years of hard work by the Amaroq geological team, and is testament to our
belief that South Greenland holds exceptional opportunities to host world
class deposits. The discovery of strategic metals such as copper and nickel,
critical for the energy transition, in a region with such a strong
geopolitical position, cannot be overstated. These initial results give us the
confidence to deploy a larger proportion of the Company's Gardaq JV fully
funded 3 year exploration programme to this project during 2024 and beyond."

 

James Gilbertson, VP Exploration of Amaroq, commented:

"Our geological team made a number of breakthrough predictions following our
detailed geological modelling of South Greenland and I'm exceptionally
grateful to the Boards of both Amaroq and our JV partners in having the
confidence to allow us to test our hypothesis. This scout programme exceeded
all of our expectations. Although the current intersection is disseminated
lower grade, the features of the rocks indicate that the magma was dynamic,
these Taxite textures are fundamental characteristic of the world's largest
high grade nickel-copper deposits, including Talnakh (Noril'sk), Sudbury and
Voisey's Bay. Further, the sulphide tenors recorded suggest high grades within
the system which are the key objectives for our 2024 exploration.

This is the start of the road for Stendalen, with further geophysics and
drilling campaigns to come. The success of this programme greatly increases
the potential for discovering further strategic metal deposits across other
identified targets in Amaroq's portfolio and proves, without doubt, the
mineral potential of South Greenland."

Discussion on Results

2023 Programme and Exploration Results

Geophysics

In early 2023, an airborne MobileMT (Mobile MagnetoTellurics) survey was flown
by Expert Geophysics Limited over a 10x17km area at 200m line spacing,
targeting conductive Ni-Cu sulphide mineralisation at or below the surface.
This survey method measures electrical resistivity of the rocks to a depth of
approximately 2,000m. Sulphide minerals are typically highly conductive, and
if present in sufficient quantities or near surface then they may be directly
detectable using this method. The method can also detect changes in rock type,
for example the contact of the Stendalen gabbro intrusion with the
metasedimentary basement is visible in the survey data. This allows the
geometry of the gabbro intrusion to be modelled, and potential favourable
sites for Ni-Cu sulphide mineralisation identified.

Core Drilling

Following the positive initial results from the geophysics, a single 1061m
diamond drillhole, STE2301, was drilled in the late summer of 2023, targeting
a conductive anomaly. The hole intersected the layered gabbro series from
surface down to a depth of 694m, where it continued through the
metasedimentary basement until the end of hole at 1061m (495m below sea
level).

From surface to 540m, the gabbro is finely layered, with varying grain size
and mineralogy. Much of this layered sequence is weakly mineralised with
disseminated pyrrhotite and stringers of pyrrhotite and chalcopyrite.

From 540m to 694m the layering becomes poorly defined. The gabbro here is
termed 'taxitic' (variable grain size and textures in the same rock mass) and
is mineralised with magmatic nickel-copper sulphides of various textures.
Taxite host-rock textures are features of the world's largest nickel deposits,
including Talnakh (Noril'sk), Sudbury and Voisey's Bay. Taxites are thought to
form due to fluid interactions where different magmas mix. The current
interpretation is that this texture relates to the margins of the magma
chamber and zones of possible magma recharge. Taxites indicate that the magma
chamber was dynamic. Mixing and mingling of magmas in the chamber and
incorporation of wall-rock can further help concentrate Ni-Cu-Co in sulphide
melt to form a larger deposit.

This taxitic layer is situated at roughly sea level with potential future
access via a shallow surface portal.

The entire sequence is cut by younger granitic pegmatite dykes, which can
reach up to tens of metres in thickness.

Based on interpretation of the airborne MagnetoTellurics ("MT") survey data,
geological mapping and core drilling, a preliminary geological model
illustrating the potential scale of the mineralisation at Stendalen has been
developed. Sulphide mineralisation in this model is expected to be situated at
the base of the layered series - sulphide melt is dense so naturally sinks and
accumulates at the base of magma chamber. Mineralisation may be laterally
extensive along the basal contact of the intrusion, with greater accumulations
of sulphide within and around the feeder zone.

Interpreted cross sections across Stendalen.

 

 

Diverse range of magmatic sulphide textures from the mineralised taxitic
gabbro from 540 to 694m downhole. NQ core diameter is 47.6mm (1 7/8″).

Pyrrhotite is normally weakly magnetic but at Stendalen it is non-magnetic.
This has implications for exploration; non-magnetic conductors should not be
ruled out as sulphide targets. Much of the pyrrhotite at Voisey's Bay is also
non-magnetic.

2023 Scout Drillhole Location

 Hole ID  Easting  Northing  Elevation (m)  Total Depth (m)  Dip  Azimuth
 STE2301  571691   6715248   520            1061.01          74   016

WGS84 / UTM zone 23N

Key Intersections from 2023 Scout Drilling Results

 Hole ID       From    To     Interval (m)(1)  Ni ppm  Cu ppm  Co ppm  NiEq%(2)
 STE2301       541     663    122              419     619     56      0.08
   and incl.   595.47  607.4  11.93            1149    1826    127     0.23
   and incl.   615.27  620    4.73             1196    1567    90      0.22
   and incl.   628     640    12               753     921     107     0.14

(1) Interval is core length, true widths have not been calculated at this time

(2) Nickel equivalent is calculated based on US$7.25/lb Ni, US$3.8/lb Cu and
US$13/lb Co with no adjustments for recoveries and penalties.

 

Hole STE2301 did not encounter significant grades of Platinum Group Elements
(PGE) but the potential of higher and lower parts of the intrusion has not yet
been tested and the system remains prospective.

Sulphide tenor

Grade is calculated from the product of sulphide tenor and the proportion of
sulphides in the rock. So far scout drilling has only intersected lower grade
disseminated sulphides (with sulphur grades of up to 5.5% S).  However, their
existence confirms that the intrusion has reach 'sulphur saturation' and there
is good potential for the presence of massive sulphides within the system.
Massive sulphides have a sulphur grade of ~35% S. Taking the assay results
from this initial drillhole, it is possible to calculate the likely grades of
massive sulphide, were they intersected. When conducting this calculation for
Stendalen,  it is seen that the metal concentration or 'sulphide tenors' are
high, and the project therefore holds the ability to host material between
3-5% nickel equivalent.

In evaluating nickel-copper sulphide mineralisation, its tenor, is of critical
importance. At this early stage of exploration, while assessing the initial
discovery hole, sulphide tenor is more important than interval grade.
Mineralisation observed at Stendalen consists primarily of the sulphide
minerals pyrrhotite, chalcopyrite and pentlandite. Ni and Co are
preferentially found in pyrrhotite and pentlandite and Cu in chalcopyrite.
These metal-bearing sulphide minerals have a very similar sulphur content,
which makes it possible to derive the average sulphide tenor from whole-rock
sulphur content. To ensure that this calculation is robust, only samples with
sufficiently high sulphur grades have been used.

Interestingly, the copper content of these sulphides is moderately high at a
ratio of about 1.5 copper to nickel.

2024 exploration plans

Geophysics

The intersected sulphide zone is not clearly visible in the 2023 airborne MT
survey data, and further data processing is planned. Two further programmes
are planned for 2024, ground MT and downhole electromagnetics geophysical
surveys. Data from all geophysical surveys will then be combined and used to
reprocess and reinterpret the deposit models. This should greatly enhance the
Company's ability to discriminate sulphide accumulations and will guide all
further drilling. The ground MT survey will be performed early in the 2024
season, giving time for drillhole locations to be optimised.

Geological mapping

Detailed geological and structural mapping of the Stendalen complex will also
be used to refine the geological model and understanding of the mineralisation
process.

Drilling

Several deep drillholes are planned within the discovery valley zone, up to a
maximum depth of 1500m. Up to three drill rigs will be mobilised in 2024.
Holes will target the base of the layered series and the modelled gabbro
feeder zone which is thought to have good potential for greater accumulations
of Ni-Cu sulphides. All holes will be surveyed with downhole EM geophysics,
which will greatly enhance the 3D geophysical model at depth.

Background

The Stendalen gabbro intrusion was identified during regional mapping by the
Geological Survey of Denmark and Greenland (GEUS) in 1992. Reconnaissance work
by GEUS and Softrock Minerals Ltd. in 1996 located mineralised boulders on a
glacier on the west side of the intrusion, grading up to 0.5% Ni, 0.8% Cu and
0.1% Co. A 6,000 m long and up to 200 m thick contact 'rust zone' was reported
on the West, North and East flanks of the Stendalen Gabbro, just above the
contact with the metasedimentary basement, and was assumed to be the source of
the Ni-Cu sulphide mineralisation, however this was not followed up. The
licence was visited by NunaMinerals in 2010, which focussed on a Ti-V
mineralised layer within the intrusion but did not consider the intrusion
prospective for Ni-Cu sulphide mineralisation.

Amaroq acquired the project in 2021, considering Stendalen highly prospective
for Ni-Cu sulphide mineralisation following the Company's Mineral System
Modelling of the region, and carried out first exploration in 2023.

Location of the Stendalen Discovery in South Greenland

Geology

Stendalen is a layered mafic intrusion hosted in sulphide and graphite bearing
metasediments (migmatites) and located in South Greenland at the junction of
Nørrearm and Lindenow fjords, approximately 60km north-east of Amaroq's
Nalunaq gold mine. From Amaroq's Mineral System modelling, Stendalen sits on
the eastern end of the Gardar-Voisey's Bay fault zone, providing potential
spatial relationship to both the rare earth deposits of the Gardar and Vale's
Ni-Cu operation at Voisey's Bay.

The intrusion itself comprises an upper homogeneous gabbro separated from a
lower layered gabbro series by a 5-10m thick magnetite-ilmenite rich layer,
which has previously been targeted for its Ti-V potential and has returned
grades of up to 10.5% TiO(2) and 0.57% V. The layered gabbro series can be
classified as a hornblende gabbro, where layering is defined by varying
abundances of the minerals hornblende and plagioclase. This layering has been
gently folded and steepens towards the edge of the intrusion resulting in a
bowl-like shape.

Deformation of the intrusion has taken place after it was formed which has
likely remobilised sulphide mineralisation. The effect of this, and the
potential for further concentration of grades resulting from this is yet to be
tested.

The intrusion has not been dated, but is likely to be late Ketilidian in age
based on cross cutting granite dykes and its deformation history. Amaroq
considers Stendalen to be a member of the regional "appinite suite" of hydrous
mafic and ultramafic intrusions in South Greenland, all of which are held
under licence by Amaroq. Several examples of the appinite suite are known to
be mineralised with Platinum Group Elements and Ni-Cu sulphides.

Deposit Model

Intrusion-related magmatic sulphide nickel-copper deposits contain
economically significant concentrations of nickel and copper, often
accompanied by other valuable metals such as cobalt, platinum, palladium, and
gold.

These deposits are closely tied to the intrusion of mafic and ultramafic
magmas from the Earth's mantle into the crust. This magma, enriched with
metals like nickel and copper, cools and solidifies, forming intrusive igneous
rocks.

As the magma is emplaced into the crust it can assimilate and dissolve
sulphide and graphite rich 'country rock'.  This can cause the magma to reach
'sulphur saturation' by adding sulphur and changing the magma chemistry.

Sulphide saturation is a critical concept in the formation of magmatic
sulphide deposits. It refers to the condition where the magma cannot dissolve
any more sulphur, leading to separation of an immiscible sulphide melt. This
sulphide melt scavenges 'sulphur loving' metals (Ni-Cu-Co-PGE) from the
surrounding silicate melt. Sulphide melt is dense and tends to sink to the
base of the magma chamber, where it cools and crystallises. Pyrrhotite,
pentlandite and chalcopyrite are the most common sulphide minerals in these
deposits.

The degree and timing of sulphide saturation is important for concentration of
nickel and copper in the deposit; deposits with high sulphide saturation are
more likely to host massive sulphide ores, which are rich in nickel and
copper.

Subsequent hydrothermal activity can also play a role in enriching these
deposits. Hot fluids circulating through the rocks can remobilise metals,
leading to the formation of secondary mineralisation zones.

Sampling and QAQC Disclosure

Drill core was cut in half using a diamond blade core saw. Cut lines were
consistently drawn along the core layering axis and the right-hand side of the
core was sampled. All drill core samples were placed into thick polymer bags
with a sample ticket. All samples were prepared at ALS Geochemistry's
containerised preparation laboratory on-site at Nalunaq, before being packaged
and sent to an accredited laboratory, ALS Geochemistry, Loughrea, Ireland, for
analysis.

Sample preparation scheme PREP-31BY was used on all samples. This involves
crushing to 70% under 2 mm, rotary split off 1 kg, and pulverizing the split
to better than 85% passing 75 microns. 100 g pulps were prepared and sent to
ALS Loughrea for analysis. Master pulps and coarse reject material is retained
in storage at Nalunaq.

All samples were assayed with a 60-element Four-Acid Digestion ICP-MS method
(ME-MS61r) and with a portable-XRF method (pXRF-34) for Si, Ti and Zr. In
addition, all samples were analysed for Pt, Pd and Au by 50 g fire assay with
method PGM-MS24 which has a detection limit of 0.0005 ppm Pt, 0.001 ppm Pd
and 0.001 ppm Au.

Amaroq's QA/QC program consists of the systematic insertion of certified
reference materials of known gold content, blanks, and quarter core field
duplicates at a rate of 1 in 20 or 5% per QA/QC type in order to detect gold
contamination between samples prepared at Nalunaq. Future drilling programmes
at Stendalen will include Ni-Cu-PGE specific certified reference materials. In
addition, ALS insert blanks and standards into the analytical process. The
average sample mass was 2.10 kg.

No QAQC issues were noted with the results reported herein.

 

Enquiries:

 

 

Amaroq Minerals Ltd.

Eldur Olafsson, Executive Director and CEO

eo@amaroqminerals.com

 

Eddie Wyvill, Corporate Development

+44 (0)7713 126727

ew@amaroqminerals.com

 

Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)

 

Callum Stewart

Varun Talwar

Simon Mensley

Ashton Clanfield

+44 (0) 20 7710 7600

 

Panmure Gordon (UK) Limited (Joint Broker)

Hugh Rich

Dougie Mcleod

+44 (0) 20 7886 2500

 

Camarco (Financial PR)

Billy Clegg

Elfie Kent

Charlie Dingwall

+44 (0) 20 3757 4980

 

For Corporation updates:

Follow @Amaroq_Minerals on X (Formerly known as Twitter)

Follow Amaroq Minerals Ltd. on LinkedIn

 

Further Information:

 

About Amaroq Minerals

Amaroq Minerals' principal business objectives are the identification,
acquisition, exploration, and development of gold and strategic metal
properties in Greenland. The Corporation's principal asset is a 100% interest
in the Nalunaq Project, an advanced exploration stage property with an
exploitation license including the previously operating Nalunaq gold mine. The
Corporation has a portfolio of gold and strategic metal assets in Southern
Greenland covering the two known gold belts in the region. Amaroq Minerals is
incorporated under the Canada Business Corporations Act and wholly owns
Nalunaq A/S, incorporated under the Greenland Public Companies Act.

 

Forward-Looking Information

This press release contains forward-looking information within the meaning of
applicable securities legislation, which reflects the Corporation's current
expectations regarding future events and the future growth of the
Corporation's business. In this press release there is forward-looking
information based on a number of assumptions and subject to a number of risks
and uncertainties, many of which are beyond the Corporation's control, that
could cause actual results and events to differ materially from those that are
disclosed in or implied by such forward-looking information. Such risks and
uncertainties include but are not limited to the factors discussed under "Risk
Factors" in the Final Prospectus available under the Corporation's profile on
SEDAR at www.sedar.com. Any forward-looking information included in this press
release is based only on information currently available to the Corporation
and speaks only as of the date on which it is made. Except as required by
applicable securities laws, the Corporation assumes no obligation to update or
revise any forward-looking information to reflect new circumstances or events.
No securities regulatory authority has either approved or disapproved of the
contents of this press release. Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.

 

Inside Information

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No. 596/2014 on Market Abuse ("UK MAR"), as
it forms part of UK domestic law by virtue of the European Union (Withdrawal)
Act 2018, and Regulation (EU) No. 596/2014 on Market Abuse ("EU MAR").

 

Qualified Person Statement

The technical information presented in this press release has been approved by
James Gilbertson CGeol, VP Exploration for Amaroq Minerals and a Chartered
Geologist with the Geological Society of London, and as such a Qualified
Person as defined by NI 43-101.

 

Glossary

 Ni    Nickel
 Cu    Copper
 Co    Cobalt
 PGE   Platinum Group Elements
 NiEq  Nickel equivalent
 MT    Magnetotellurics
 EM    Electromagnetics
 DHEM  Downhole Electromagnetics
 UTM   Universal Transverse Mercator

 

 

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