REG - Amaroq Minerals Ltd - Updated Nalunaq Mineral Resource Estimate

Amaroq MineralsAnnouncement

06/09/2022 07:16

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RNS Number : 3525Y  Amaroq Minerals Ltd  06 September 2022

 

("Amaroq" or the "Corporation")

Updated Nalunaq Mineral Resource Estimate Results in a 50% increase in Average
Grade and 30% Increase in Contained Gold.

 

TORONTO, ONTARIO - September 06, 2022 - Amaroq Minerals Ltd. (AIM, TSXV: AMRQ
- formerly AEX Gold), an independent mine development company with a
substantial land package of gold and strategic mineral assets covering an area
of 7,866.85 km(2) in Southern Greenland, announces an updated Mineral
Resource Estimate (MRE) for its flagship Nalunaq Gold project, prepared by SRK
Consulting (UK) Limited (SRK). This update, termed MRE3, is reported in
accordance with the Canadian Institute of Mining, Metallurgy and Petroleum
(CIM) Definition Standards on Mineral Resources and Mineral Reserves (May
2014) as required by NI 43-101 ("the CIM Definition Standards").

The update incorporates the drilling results from the 2020 and 2021 field
seasons and benefits from the increased geological understanding and
historical reconciliation that the Company has developed based on this, which
has been further refined to reflect information collected so far during the
2022 drilling programme. The updated MRE is summarised in Table 1 below.

References to figures and tables relate to the PDF format version of the
announcement on the website by clicking the link below:

https://www.amaroqminerals.com/investors/regulatory-news-alerts/#tsx-news
(https://www.amaroqminerals.com/investors/regulatory-news-alerts/#tsx-news) .

 

Highlights

·    Total Inferred Mineral Resource of 355.0Kt @ 28.0g/t Au for 320Koz
gold, reported according to CIM Definition Standards by SRK.

·    This constitutes a 30% increase in contained gold compared to the
previous estimate reported in June 2020 and a 50% increase in average grade.

·    The Nalunaq project now sits within the top 2% in terms of global
reported gold resource grades.

·    Due to the high grade nature of the Nalunaq deposit, it is relatively
insensitive to cut-off grade and remains robust at a range of gold prices.

 

Eldur Olafsson, CEO of Amaroq, commented:

"An independently assessed increase in both grade and contained gold following
two dedicated field seasons of drilling is excellent news for Nalunaq. This
update provides the project with a key stepping stone toward the next chapter
of its development. Nalunaq now sits in the 98th percentile in terms of
reported gold resource grades globally, making it one of the highest grade
gold mines in the world.

Our new Dolerite Dyke geological model has enabled us to define continuous
high grade zones within the Main Vein, which will make mining more efficient
and profitable as lower grade tonnage can be discounted to focus on these
higher grade areas.  This model continues to be instrumental in guiding the
drilling of the higher grade zones now and in the year ahead as we aim to
progressively increase the resources at Nalunaq to provide increased scale and
optionality ahead of recommissioning this high grade gold operation."

 

Table 1: Mineral Resource Statement for Nalunaq gold deposit, Greenland, as of
3(rd) September 2022

 Mineral Resource      Gross                                             Net attributable                                  Operator
                       Tonnes (t)  Grade (g/t Au)  Contained Metal (Oz)  Tonnes (t)  Grade (g/t Au)  Contained Metal (Oz)
 In-Mine Inferred      140,000     31.0            140,000               140,000     31.0            140,000               Amaroq Minerals
 Extension  Inferred   215,000     26.0            180,000               215,000     26.0            180,000               Amaroq Minerals
 TOTAL                 355,000     28.0            320,000               355,000     28.0            320,000               Amaroq Minerals

 

Mineral Resource Statement Notes

•     Mineral Resources are reported in accordance with the CIM
Definition Standards.

•     Mineral Resources have an effective date of 3 September 2022, and
have been depleted to reflect the current understanding of the mining
completed up to the date of production ceasing in 2013;

•     Mineral Resources are reported as in-situ and undiluted. The
Mineral Resources are reported above a cut-off grade of 5.0 g/t, generated
using a gold price of 1,800 USD/ozAu. Given these parameters, SRK considers
there to be reasonable prospects for eventual economic extraction, and as
such, fulfil the requirements for reporting a Mineral Resource;

•     The In-Mine Mineral Resource is accessible from existing
underground development while the Extension Mineral Resource requires
development to be put in place for it to be accessed;

•     Mineral Resources are not Ore Reserves and have not demonstrated
economic viability, nor have any mining modifying factors been applied;

•     The Competent Person for the declaration of Mineral Resources is
Dr Lucy Roberts, MAusIMM(CP), of SRK Consulting. The Mineral Resource
estimates and accompanying Statements were produced and reviewed by a team of
consultants from SRK.

•     SRK notes that a site visit to Nalunaq was conducted by the QP in
September 2021;

•     Tonnages are reported in metric units, with metal grades in
grammes per tonne (g/t). Tonnages and grades are rounded. Rounding, as
required by reporting guidelines, may result in apparent summation differences
between tonnes, grade and contained metal content. Where these occur, SRK does
not consider these to be material.

 

MRE3 Estimation Methodology

MRE3 was produced by SRK and supersedes MRE2 dated 19 June 2020, which was
produced by SRK Exploration Services Ltd. MRE3 has been reported in accordance
to CIM Definition Standards and incorporates several updates to the project
most notably the inclusion of data obtained from 61 new core drillholes
totalling 13,065m completed during the 2020 and 2021 seasons centred on the
newly defined Valley Block and benefits from significant improvements in
geological understanding gained through the incorporation of the Dolerite Dyke
Model.

The Company believes that this, along with detailed reconciliation and
geostatistical studies performed by SRK, has resulted in an updated estimation
methodology that better reflects the nature of the orebody and produces a more
robust and defendable estimate with respect to past production records.

Other updates to MRE2 include:

·    A change from a 1.2m minimum mining width to the reporting of an
undiluted model which contributes to the change in grade;

·    Improvement in the estimates of past mining tonnages through the use
of more robust underground surveys;

·    The use of a two tier approach to cap the influence of high and
ultra-high grade values in the interpolation process in which the former were
given distance restrictions and the latter were both capped as well as being
given distance restrictions; and

·    A change in rock density from 3.00 to 2.96 t/m(3) to reflect new
measurements.

MRE3 Cut-off Grade

MRE3 has been reported using a cut-off grade of 5.0 g/t Au which was
determined by SRK based on assumptions regarding the likely mining and
processing methods, estimates of operating costs and a gold price of
USD1,800/oz which is based on a long term gold price +30% in order to capture
mineralisation that has Reasonable Prospects for Eventual Economic Extraction
(RPEEE). The high grade nature of the project, however, means it is relatively
insensitive to cut-off grade and operating costs as illustrated in Table 2 and
3 below.

Table 2: Mineral Resource Sensitivity to Cut-off Grade

 Cut-off Grade  Effective Gold price  Change in Gold Content
 (g/t Au)       (USD/oz)              (%)
 6.0            1,500                 -1.1%
 5.5            1,650                 -0.5%
 5.0            1,800
 4.5            1,900                 0.8%
 4.0            2,000                 1.6%

 

Table 3: Mineral Resource Sensitivity to Operating Costs

 Change in Operating Costs  Effective Cut-off Grade  Change in Gold Content
 (g/t Au)                   (g/t Au)                 (%)
 +15%                       6.0                      -1.1%
 +10%                       5.4                      -0.5%
 +5%                        5.2                      -0.3%
 0                          5.0                      0%
 -5%                        4.7                      0.4%
 -10%                       4.4                      0.8%
 -15%                       4.2                      1.2%

 

 

 

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.

Use of a Standard

The resource information included within this announcement is reported in
accordance with the Canadian Institute of Mining, Metallurgy and Petroleum
(CIM) Definition Standards on Mineral Resources and Mineral Reserves (May
2014) as required by CIM Definition Standards.

 

Analyst presentation

There will be a video conference call for analysts at 14:00 (BST) today (06
September 2022) hosted by CEO Eldur Olafsson and Vice President Exploration
James Gilbertson.

Please contact amaroq@camarco.co.uk (mailto:amaroq@camarco.co.uk) to register
your attendance.

 

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

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

Charlie Stephenson

+44 (0) 1483 413500

 

 

Camarco (Financial PR)

Billy Clegg

Elfie Kent

Charlie Dingwall

+44 (0) 20 3757 4980

For Company updates:

Follow @Amaroq_minerals on Twitter

Follow Amaroq Minerals Inc. 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 Company'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 Company's current
expectations regarding future events and the future growth of the Company'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 Company'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 Company'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 Company and speaks
only as of the date on which it is made. Except as required by applicable
securities laws, the Company 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.

 

Glossary

 Au        gold
 g         grams
 g/t       grams per tonne
 km        kilometers
 Koz       thousand ounces
 m         meters
 MRE2      Mineral Resource Estimate 2020
 MRE3      Mineral Resource Estimate 2022
 oz        ounces
 t         tonnes
 t/m(3)    tonne per cubic meter
 USD/ozAu  US Dollar per ounce of gold

 

 

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").

 

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