Amaroq Minerals Ltd (TSX-V:AMRQ, AIM:AMRQ) told investors it is planning an even more aggressive program this year following a successful 2022 during which it completed its most active exploration program to date.
Announcing results for the year to December 31, 2022, Amaroq CEO Eldur Olafsson commented: "2022 was a transformational year for Amaroq in terms of the repositioning of our business. We continue to carry out impactful surface sampling and geophysical studies, uncovering additional significant targets. Following our recent financing announcement, we now have the funding in place to bring Nalunaq onstream, and I look forward to providing updates as we progress with our development plans."
READ: Amaroq Minerals puts US$49.5mln debt package in place to fund development at Nalunaq
FY 2022 highlights include:
- Rebrand from AEX Gold to Amaroq Minerals to reflect the incorporation of strategic minerals portfolio and focus on Greenland;
- Completion of £30 million capital fundraising (circa C$46.4 million) in London and Iceland to accelerate the development of the company's precious metals portfolio;
- Established joint venture with strategic investor ACAM for the exploration and development of Amaroq's strategic mineral assets and receipt of initial £18 million funding (circa C$28.5 million), expected to close in April 2023;
- Listing of Icelandic Depository Receipts on the Nasdaq First North Growth Market in Iceland;
- Updated Nalunaq Mineral Resource Estimate (MRE), prepared by SRK Consulting (UK) Limited and announced on September 6, 2022, and reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards on Mineral Resources and Mineral Reserves (May 2014), resulting in an Inferred Mineral Resource of 355,000 tonnes at 28 grams per tonne (g/t) gold (Au) for 320,000 ounces gold, and confirming the project within the top 2% of global deposits in terms of grade globally. Doubling the size of the footprint of the Valley Block following 2022 Nalunaq exploration results; and
- Completion of the most active exploration programme to date, with drilling across three projects, mineralisation expansion and discovery of new copper/gold/molybdenum mineralisation targets, in addition to completion of two new geophysical surveys in preparation for the 2023 exploration season.
Following the end of the reporting period, the company said it signed non-binding term sheets signed for a US$49.5 million senior secured financing package to bring forward production at Nalunaq, with completion expected in the coming months.
Preparation for the 2023 field season is already highly advanced with an additional drill rig in transit as well as other consumables in readiness for the programme to commence in early May. Contracts and quotes are in place for camp upgrades, fuel storage, on-site assaying laboratory, and all equipment and facilities required for trial mining and processing, it added.
Amaroq also noted that it strengthened its team with senior hires including Nalunaq project director Axel Schultz, a professional engineer with over 30 years experience in the mining industry, including surface and underground equipment, construction, installations, EPC, financial and project management (EPCM).
Full-year 2023 outlook
Gold projects
- Nalunaq: Further project development to commence in May 2023 with resource drilling along strike from the initial mining face. Site and mine preparation activities will commence shortly ahead of commencing new trial mining operations within the Mountain Block from 2024;
- Vagar Ridge: Additional data collection and further geological mapping and sampling aimed at constructing a robust geological and mineralisation model to inform future exploration. Ground preparation and drill readiness preparations will occur in 2023 ahead of the 2024 season; and
- Nanoq: Following 2022 geophysical work, the results of which are expected to be published in 2Q, surface exploration will be conducted to evaluate additional structural targets as well as site preparation ahead of initial drilling in 2024.
Strategic minerals
- Sava copper belt:
- Expansion of drilling and geological mapping programmes across observed mineralisation at Sava to two drill rigs guided by external Iron-Oxide Copper Gold (IOCG) experts;
- Incorporation of North Sava licence and additional targets in 2023 programme; and
- Detailed airborne geophysical survey across Kobberminebugt licence area.
- Stendalen: Conducting of detailed magnetotellurics (MT) geophysical survey across the extension of layered intrusion, ahead of a deep stratigraphic drillhole to intersect the known Titanium and Vanadium mineralisation as well as potential Nickel sulphide mineralisation;
- Saqqaa Dyke: Concentrated drilling campaign to be conducted from the valley floor to intersect the platinum group element hosting ultramafic dyke along strike from outcropping mineralisation; and
- Paatusoq: Planned reconnaissance exploration programme across Paatusoq and previously identified targets to define areas of potential economic Rare Earth and Niobium mineralisation.
Operational priorities
- Amaroq said it plans to conduct prefeasibility studies on renewable energy potential to determine the feasibility of using hydropower to supply Nalunaq and the nearby South Greenland community;
- The company said continues to work with ABD Solutions on the potential integration of autonomous vehicles at Nalunaq, with proposals for the design and offsite construction of an operations centre and associated infrastructure expected in the next twelve months; and
- It plans to work with a Group Purchasing Organisation supply chain management partner to develop a strategic execution model for operating effectively in remote and logistically challenging conditions.
"We remain committed to being a responsible operator in Greenland, and a partner to our local community. We are now establishing the potential to build up hydropower infrastructure near our sites, both to power our operations and to provide renewable energy to our local community for the future.”
Amaroq Minerals' principal business objectives are the identification, acquisition, exploration, and development of gold and strategic metal properties in Greenland. Its 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 company has a portfolio of gold and strategic metal assets covering 7,866.85 square kilometres, the largest mineral portfolio in Southern Greenland covering the two known gold belts in the region.
Contact the author at stephen.gunnion@proactiveinvestors.com