AEX Gold Inc (LON:AEXG) (CVE:AEX) told investors it continues to advance its flagship Nalunaq gold project in South Greenland, with exploration and mine development work going according to plan.
The company has selected a contractor for the underground development part of the exploration program and the pair are currently finalizing the contract ahead of mobilizing in the second half of this year, it said.
READ: AEX Gold expands exploration licence at Anoritooq project, Greenland
Meanwhile, processing items for mining such as crushing and grinding circuits were awarded in December and early January, while the rest of the equipment will be procured during the first half of this year, including the gold room equipment, power generators and pumping systems.
"Many of the project's long-lead items have been awarded and the procurement plan is being followed as anticipated," said Eldur Olafsson, CEO of AEX, in a statement. "By locking down the key long-lead items, supported by our engineering efforts, we have been able to continue de-risking the project's schedule."
In terms of exploration work, all surface support equipment required to support the program, such as the 100 tonnes rough-terrain crane, fuel and water trucks, tractors and trailers, have now been procured, the company added.
AEX's wholly-owned Nalunaq property is an advanced exploration stage property with an exploitation license including the previously operating Nalunaq gold mine.
The official resource estimate currently stands at 250,000 ounces of gold grading 18.5 grams per tonne, but the firm believes there could be as much as two million ounces of gold in the ground.
The company's timeline towards development puts the construction of the processing plant as starting in the third quarter of 2021 and first gold in the fourth quarter of this year or the first quarter of 2022.
AEX boasts a portfolio of gold assets covering 3,870 square kilometres, the largest portfolio of gold assets in Southern Greenland.
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