REG - Amaroq Minerals Ltd - NALUNAQ 2022 EXPLORATION RESULTS

Amaroq MineralsAnnouncement

07/12/2022 07:00

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RNS Number : 8344I  Amaroq Minerals Ltd  07 December 2022

("Amaroq" or the "Corporation")

 

Nalunaq 2022 Exploration Results

 

Amaroq expands Valley Block and records highest ever drill grade of 116g/t Au
over 0.6m during the 2022 exploration programme

 

TORONTO, ONTARIO - December 07, 2022 - Amaroq Minerals Ltd. (AIM, TSXV, NASDAQ
First North: AMRQ), an independent mine development corporation with a
substantial land package of gold and strategic mineral assets covering an area
of 7,866.85 km(2) in Southern Greenland, provides the results of its 2022
exploration programme at Nalunaq.

Highlights

·   Completion of 46 diamond core drillholes, on time and on budget, at
Nalunaq. The holes infilled and extended the Valley Block, hitting the Main
Vein in 42 holes, a success rate of 92% confirming the targeting ability of
the Corporation's geological model

·    Main Vein intersections grading up to 116 g/t Au over 0.62m, the
highest grade intersection drilled by the Corporation

·   Surface channel samples taken near existing underground infrastructure
in the Mountain Block confirm thick, high-grade intersections of up to
98.6 g/t Au

·     Results indicate Valley Block has the potential to be as large as
the Target Block which produced ~250 koz gold historically

·    Results illustrate that the Mountain Block may provide the lowest
cost access to mineralisation through subsequent mine development

·    Significant progress made in defining and sampling a series of
hanging wall veins both in the Valley and Mountain Blocks with grades received
of up to 10.8 g/t Au in these newly identified veins

·     The main component of the 2023 exploration programme will be a large
bulk sample, as a key step towards a maiden Mineral Reserve estimate. This
programme has the potential to clearly demonstrate the revenue potential of
the resource and be the first step toward full production

 

Eldur Olafsson, CEO of Amaroq, commented:

"Expanding the footprint of the Valley Block up to twice the size, with even
higher grades sampled (116g/t Au) makes for exciting times at Amaroq Minerals.
The 2022 Nalunaq exploration results, the most successful drilling campaign to
date, build further on our understanding of the Valley Block. The results also
provide additional evidence for the mining potential in Mountain Block.
Significantly, the Corporation has two potential near term production areas
ahead of commencing the 2023 Bulk Sample."

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

 

2022 Drilling Results

The 2022 programme consisted of 9,119 m of diamond core drilling across 46
drillholes. The objectives of the drill programme were to infill the existing
resource and test an up-dip extension of the Valley Block ore-shoot. Of these
drillholes, 42 or 92% intersected the Main Vein, a testament to the improved
exploration efficiency from the Corporation's robust geological modelling of
the last 24 months. Three of the remaining five drillholes, did not reach the
depth of the Main Vein due to poor ground conditions and Amaroq will review if
these will be redrilled during the 2023 exploration programme.

Figure 1. Nalunaq project map with 2022 drillhole locations

 

The drill programme was designed using the Corporation's new structural model,
the 'Dolerite Dyke Model' which was validated through the 2021 exploration
results. Highlights of this programme include:

·    The intersection of 9 visible gold intervals confirming the existence
of extensive free gold

·   Hole AEX2237 intersected 0.62 m @ 116 g/t Au, the highest grade
drill intersect by Amaroq at Nalunaq, located on the extension to the Valley
Block

·    Hole AEX2209 which intersected 0.56 m at 26.2 g/t Au

Figure 2. AEX2237 Main Vein intersection, 203.43 to 204.05 m grading 116 g/t
Au

These results further confirm the existence of this high-grade zone and
provided further data on the geometry of the Valley Block. Importantly the
drill results extend the high-grade core of Valley Block ore-shoot up-dip
around 300 m, making this recently discovered and previously unrecognised,
high grade plunge a similar scale to the Target Block, the most productive
part of the mine having produced around 250 koz historically.

Figure 3. Extension to Valley Block illustrated by the 2022 drilling results

 

In addition to the Main Vein intersections at the Valley Block, an additional
mineralised vein structure was encountered in the hanging wall. This hanging
wall vein, termed the JLP Vein, is more consistent than previously identified
veins stratigraphically above the Main Vein and graded up to 50 cm at
3.85 g/t Au. The extent and potential of this vein series will be assessed
further during 2023.

Further development during the 2022 season saw Amaroq invested in an optical
televiewer, essentially a drill hole camera and survey device that allows the
catchment of significantly more structural data.

Main Vein Intersections from the 2022 Drilling Programme

 * True thickness calculated using Main Vein intersection angles recorded
during geological logging and from 3D modelling in Leapfrog Geo software.

2022 Drilling Locations

*Holes did not reach Main Vein target depth due to drilling conditions

†Main Vein stoped out by granite dyke

Projection WGS 84 UTM zone 23N

2022 Surface Channel Sampling

In 1999 an extensive channel sampling campaign was undertaken on the
outcropping Main Vein to improve confidence in grade continuity ahead of
underground development. This sampling programme expanded on those undertaken
in previous years by significantly increasing the sampling density. Samples
were taken at 1 m intervals along the vein, beginning at an elevation of
470 m and continuing to 775 m, beyond which the vein became buried in scree
and only sporadic sampling was possible.

In 2022, following the results of the Mineral Resource Estimate, which
highlighted the significant potential for resource expansion in the Mountain
Block area, Amaroq recognised the potential to increase the sampling density
above 775 m elevation by exposing a new section of Main Vein between 820 and
830 m elevation. Ten metres of Main Vein was exposed and sampled using a
diamond-blade rock saw. Channels were cut to represent the true thickness of
mineralisation.

These channel samples returned very high-grade gold, up to 1.05 m @
98.6 g/t Au, confirming grade continuity in this part of Mountain Block.
Grades are similar to those of samples collected in 1992 from 830-840 m
elevation, which range from 44.8 to 235.3 g/t Au over true vein thicknesses
of approximately 1 m.

The opportunity remains to expose and sample the Main Vein between 775 and
820 m elevation.

The highest level developed underground in Mountain Block was the
720 m level, with a single exploration raise extended to 760 m
level. These results therefore provide confidence that the mineralisation
mined at the top of the Mountain Block extends at similar grades with thick
intersections at least 100m vertically, providing yet further evidence of the
near-term potential of this area of Nalunaq.

Figure 4. Surface channel sampling on the Main Vein exposed within the
Mountain Block

2022 Surface Channel Sampling Results

2022 Surface Channel Sample Locations

Drone Photogrammetry

A new 3D model has been generated from drone images taken of the north face of
Nalunaq mountain. The model is up to centimetre level resolution and was used
to improve the accuracy of the Main Vein wireframe where it crops out on the
north face (the Mountain Block area).

As with the drill results from the Valley Block, surface exploration at the
Mountain Block identified at least two additional quartz veins in the hanging
wall on the north face at approximately 35 and 75 metres above the Main Vein.
A grab sample of the lower of these two hanging wall veins returned a grade of
10.8 g/t Au.

Amaroq intend to test the continuity and grade of these veins during the 2023
drilling programme, along with additional sampling of historic drill cores.

Figure 5. 3D imagery of the Main Vein and newly identified hanging wall veins
exposed within the Mountain Block.

 

Nalunaq Structure

The Main Vein at Nalunaq is a laterally extensive shallowly dipping
gold-bearing quartz vein with an average thickness of 70 cm in thickness. The
vein hosts variable high gold grades of up to 5,240 g/t, with the
mineralisation separated into high grade zones of up to 5,240 g/t and
low-grade zones, both of which are controlled by the intersection of
structures which Amaroq has defined in its Dolerite Dyke geological model.

This vein was mined between 2004 and 2013 and produced c.360,000 ounces of
gold1. Amaroq is exploring for an Exploration Target of up to 2.0 Moz gold
across the Main Vein and veins in the footwall and hanging wall as announced
on September 16, 2020. Following a Mineral Resource Estimate update announced
September 6th, 2022, the project hosts a CIM compliant Inferred Mineral
Resource of 355.0 kt @ 28.0 g/t Au, with 320 koz gold.

The mine area is separated into five coherent zones termed the Mountain,
Target, South, Valley and Welcome Blocks that constitute the highest grade
areas of the Main Vein. Three of these blocks have experienced some historical
mining with the Corporation concentrating its efforts in expanding resources
up and down dip of these areas as well as developing previously unrecognised
Blocks.

The 2022 exploration programme involved further core drilling, underground
assessments, surface channel sampling and drone photogrammetry concentrated on
the Valley and Mountain Blocks.

((1) NI 43-101 Report dated June 2020; (2) See press release dated September
16, 2020; (3) See press release dated November 25, 2020;  (#) Apparent
widths)

 

2023 Exploration Programme Objectives

Following a successful 2022 field season, Amaroq is planning the next
development phase at Nalunaq. The Corporation intends to proceed with the
extraction of a large bulk sample within one of the resource areas with the
aim to upgrade the Mineral Resource, a further step towards a maiden Mineral
Reserve estimate. The bulk sample will demonstrate the revenue generation
potential of the resource and be the first step toward full production.
 Ahead of the bulk sample, Amaroq will conduct trade off studies to decide
whether to source the material from the Valley or Mountain Blocks. The
Corporation is in negotiation with various mining and construction contractors
for this work.

Amaroq will also conduct a programme of surface drilling into the Mountain
Block to further extend the Inferred Resources in this extremely high-grade
zone of the project. Drilling may also be used to target generate in the newly
defined Welcome Block area.

Figure 6. Outline of Proposed 2023 Exploration and Development Programme

 

Containerised Preparation Laboratory

All 3,166 samples generated from Nalunaq, and the other Amaroq prospects, were
submitted to ALS Geochemistry via the newly installed Containerised
Preparation Laboratory (CPL). This facility was successfully commissioned in
Q3 2022 and has allowed for a more robust sample preparation, transport and
assay solution with more timely provision of assay results.

 

Sampling and QAQC Disclosure

Drill core was cut in half using a diamond blade core saw. Cut lines were
consistently drawn along the core foliation 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. Samples were then analysed by 50 g
fire assay with method Au-AA26 which has a detection limit of 0.01 ppm Au.
Samples containing visible gold and samples considered to be the Main Vein
were assayed with screen-metallics fire assay technique Au-SCR24 which has a
detection limit of 0.05 ppm Au. This involves screening 1 kg of pulverised
sample to 106 microns followed by a gravimetric assay of the entire plus
fraction and a duplicate 50 g AAS assay of the minus fraction.

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 addition, ALS insert
blanks and standards into the analytical process. The average sample mass was
2.08 kg.

All Mineral Resource Estimates presented in this press release have been
estimated in accordance with the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) Definition Standards on Mineral Resources and Mineral
Reserves, National Instrument 43-101.

 

Enquiries:

Amaroq Minerals Ltd.

Eldur Olafsson, Executive Director and CEO

+354 665 2003

eo@amaroqminerals.com

 

Eddie Wyvill, Investor Relations

+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)

John Prior

Hugh Rich

Dougie Mcleod

+44 (0) 20 7886 2500

 

SI Capital Limited (Joint Broker)

Nick Emerson

+44 (0) 1483 413500

 

 

Camarco (Financial PR)

Billy Clegg

Elfie Kent

Charlie Dingwall

+44 (0) 20 3757 4980

 

For Corporation updates:

Follow @Amaroq_Minerals on 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
covering 7,866.85km(2), the largest mineral portfolio 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 Mineral Resource Estimate was prepared by Dr Lucy Roberts, MAusIMM(CP),
Principal Consultant (Resource Geology), SRK Consulting (UK) Limited., an
independent Qualified Person in accordance with the requirements of National
Instrument 43-101 ("NI 43-101"). Dr Roberts has approved the disclosure
herein.

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

 Au   Gold
 g/t  Grams per metric tonne
 koz  Thousand troy ounces
 Moz  Million troy ounces
 kt   Thousand metric tonnes
 Mt   Million metric tonnes
 oz   Troy ounces
 UTM  Universal Transverse Mercator

 

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