REG - Amaroq Minerals Ltd - Vagar Licence Exploration Results

Amaroq MineralsAnnouncement

07/02/2023 07:00

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RNS Number : 1380P  Amaroq Minerals Ltd  07 February 2023

("Amaroq" or the "Corporation" or the "Company")

 

Vagar Licence Exploration Results

Amaroq commences targeted exploration across significant Intrusion-Related
Gold prospect

 

TORONTO, ONTARIO - February 7, 2023 - Amaroq Minerals Ltd. (AIM, TSXV, NASDAQ
First North: AMRQ), 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, provides the results of its 2022
exploration programme at the Vagar licence.

Highlights

·    Anomalous gold was intersected in all completed drillholes, with key
results summarised in the table below

·    Drill results are indicative of a Intrusion Related Gold
mineralisation system associated with a large tonnage target, centred on a
gold anomalous zone of significant scale ~14km(2), equivalent to x175 the area
of Wembley stadium

·    A high frequency of sulphide-bearing quartz veins at depths of
>320m indicate a mineralising system with significant depth potential

·    Surface sampling results at East Ridge (approximately 2km to the
South West) including visible gold observed in quartz veining

·    Confirmed presence of Orogenic gold mineralisation with some
geological similarities with the Nalunaq deposit, enabling the team to
leverage off previous experience

 

Eldur Olafsson, CEO of Amaroq, commented:

"We are just starting our journey to explore this opportunity. Current drill
intersections suggest that a large tonnage Intrusion Related Gold system is in
play, with significant depth potential bolstered by high grade vein hosted
gold. Meanwhile, surface sampling at the East Ridge continues to illustrate
the true scale of the deposit.

The results are a positive step towards realising the potential of Vagar
Ridge, a target with a broad-spanning surface footprint, which we believe
holds significant resource. We plan to deploy the same exploration strategy of
carefully targeted scout drilling and geological modelling that we have
successfully implemented at our cornerstone Nalunaq project, which will
improve confidence ahead of more intensive resource drilling. Further, we see
some opportunities for geological synergies between the deposits, which means
our geological team will be one step closer to unlocking this key exploration
asset."

 

Amaroq's accompanying presentation on the Vagar Ridge results can be accessed
on the website by clicking the link below:
https://www.amaroqminerals.com/investors/presentations/
(https://www.amaroqminerals.com/investors/presentations/) .

 

Results Overview

The 2022 exploration programme, focused on drilling a small portion of the
Vagar Ridge target and confirming the scale of the wider area at East Ridge.
Activities included the following:

·    Initial Scout Drilling - A total of 1,445m drilled from 4 drill-pads
within a constrained area at the northern extent of Vagar Ridge. These were
designed to identify the style and attitude of vein and granite hosted
(Femøren-type) gold mineralisation ahead of more systematic exploration.
Despite unseasonally bad weather conditions, 60% of the scout drilling
programme was completed, with a large area of key Femøren-type targets
remaining and scheduled for the next phase of scout drilling.

 

·    Surface Sampling - 76 samples and geological data were acquired in
the field over a previously untested region of East Ridge, and in the vicinity
of Vagar Ridge. The aim of this work was to determine the scale and
prospectivity of target areas identified during the 2021 campaign.

 

·    Geological Mapping - Data was collected by Amaroq Minerals geologists
from across the Vagar Ridge and East Ridge areas, including structural
measurements, to further develop understanding of lithologies and controlling
structures across the target zones.

 

·    Camp Construction - to facilitate this programme, a small remote
service camp was constructed to support the drilling and other activities.
Following these results, the Company is now considering plans towards
establishing a permanent satellite camp to Nalunaq.

 

 

Figure 1. Illustrating scale of the Vagar Ridge target, looking
South-southeast

 

While the centre of the mineralisation may not have been intersected in this
first scout drilling campaign, elevated gold concentrations were intersected,
including 0.5m at 3.07 g/t Au and 1m at 1.27 g/t Au. These results also
coincided with elevated grades of other signature elements such as tungsten
and bismuth.

Results confirm mobility and emplacement of gold in hitherto untested areas
perpendicular to the orientation of known SW-NE trending veins which remain
open along strike. This work has expanded the footprint of known gold
mineralisation at depth and enhanced Amaroq's understanding of the controls
which will inform planned work during the 2023 campaign. This includes the
importance of competency differences at lithological boundaries, including
cross cutting pre-mineralisation dykes, as favourable fluid pathways.

These geological controls are reminiscent to those known to control the high
grade mineralisation at Nalunaq, and as such similar exploration theories and
techniques may now be deployed at Vagar Ridge.

 

2022 Scout Drilling Locations

 Hole ID     Easting  Northing  Elevation (m)  Total Depth (m)  Dip  Azimuth
 VAGAR2201   498857   6715236   705            400.8            50   310
 VAGAR2202   498623   6714835   746            304.5            50   310
 VAGAR2203   497967   6715489   603            522.0            50   130
 VAGAR2204*  497896   6716019   659            217.4            50   150

*final target depth not reached

Anomalous Intersections from the 2022 Scout Drilling Results

 Hole ID    From    To      Interval (m)  Au (g/t)  Including / Notes
 VAGAR2201  16.67   17.17   0.5           0.84      Granite-dolerite contact zone
 VAGAR2201  124.87  126.87  2             0.85      0.5 m @ 3.07 g/t Au / Xenolithic granite
 VAGAR2201  308.34  309.34  1             1.27      0.93 m @ 2.86 g/t Au/ Xenolithic granite
 VAGAR2202  32.3    33.3    1             0.17      sulphide bearing silicified granite
 VAGAR2203  326.32  327.32  1             0.29      0.5 m @ 0.47 g/t Au / Sulphide bearing quartz vein
 VAGAR2203  475.87  477.8   1.93          1.58      Finely veined albitised granite
 VAGAR2203  485.64  486.64  1             0.48      - Finely veined albitised granite

 

Drilling revealed faults, shears, and extensive intervals of granite-hosted
xenoliths which act as zones for enhanced fluid movement, and distinctive
alteration patterns, potassic feldspar, actinolite, albite, epidote and silica
being the most frequent. Sulphide minerals observed included pyrite and
pyrrhotite.

Gold was encountered in surface sampling , at both Vagar Ridge and East Ridge.
These include samples grading up to 2.22 g/t Au at East Ridge and 0.24 g/t Au
at Vagar Ridge in a sample of altered granodiorite - Femøren-type.

The Company believes that the Vagar Ridge project warrants a carefully focused
exploratory programme in order to understand the mineralisation within a
robust geological model before a more systematic and intensive drilling
programme is deployed. It is worth noting that a target of this scale will
require significant drilling before its full potential can be understood and
robustly quantified.

 

Figure 2. Locations of 2022 drillholes and surface exploration in relation to
previous exploration results

 

 

Geological Background

The Vagar licence is situated 25km to the north of the Nalunaq project and
Amaroq Minerals' exploration camp and centre of operations.

Historical exploration of the Vagar Ridge target provided initial indications
of both Orogenic and Intrusion Related Gold mineralisation with up to 2,533g/t
gold in auriferous quartz veins and up to 14.4g/t gold in the host
granodiorite. Orogenic mineralisation, similar in style to that seen at
Nalunaq, was historically drilled by Nuna Minerals A/S. Amaroq Minerals
conducted follow up exploration to ascertain the controls and scale of
mineralisation, not only in the two identified vein hosted bodies at Vagar
Ridge, but also in the granodiorite host and elsewhere across the licence.

Informative airborne geophysics and spectral imaging, along with desktop
studies including mineral system modelling carried out during 2021, enhanced
the understanding of the geological context at Vagar. This included expanded
knowledge of potentially significant structural and deformation controls, and
confirmed 6 priority targets for exploration activities: Vagar Ridge
(including East Ridge), John's Lake, Bismuth Valley, Qoorormiut Valley, Tom's
Vein and Ivittuut.

Amaroq's Mineral System Modelling highlighted the importance of the Vagar area
to the controlling geodynamics of the Nanortalik Gold Belt of Southern
Greenland. The licence is located on the controlling boundary of an important
sedimentary basin within an interpreted subduction-arc system that transects
Greenland and into Eastern Canada. It is also an important intersection point
of a number of key deep structures (translithospheric faults) that acted as
the plumbing for gold mineralisation of the region. Sedimentary basins within
a subduction-arc system can be significant sites of Orogenic or IRG gold
mineralisation as they are often locations of structural reactivation during
collisional tectonics.

 

Sampling and QAQC Disclosure

 

All rock samples were placed into thick Hubco fabric bags with a sample
ticket. Drill core was cut in half using a diamond blade core saw. Cut lines
were drawn along the core foliation axis or perpendicular to vein contacts 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 rock and drill core
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 Au-AA24 which has a detection limit of 0.005
ppm Au. In addition, all samples were assayed with a 34-element Four-Acid
Digestion ICP-MS technique (ME-ICP61) and with a pXRF technique (pXRF-34) for
Si, Ti and Zr.

The QA/QC program of Amaroq Minerals consists of the systematic insertion of
certified standards of known gold content, quarter-core field duplicates, and
blanks at a rate of 1 in 20 or 5% per QA/QC type. In addition, ALS insert
blanks and standards into the analytical process.

 

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 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.

 

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

 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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