AEX Gold Inc (LON:AEXG) (CVE:AEX) said critical contracts to advance the 2021 exploration and limited infrastructure early works programme at its Nalunaq gold mine in South Greenland have been signed and work is expected to start in early June.
A tender process for an internal third-party engineering study is also well under way with most interested parties having access to the Nalunaq project data room, it said. The study, expected to be completed this year, will advance the process plant cost and supporting infrastructure cost.
The draft Social Impact Assessment and Environmental Impact Assessment reports for Nalunaq are in the process of being reviewed by the authorities.
The project update was included within the gold exploration company’s first-quarter results.
It ended the quarter to end March with a cash balance of C$55.0mln, with no debt, and total working capital of C$54.3mln.
"With strong liquidity and improved access to Greenland we are looking forward to the commencement of the exploration program this year while also setting ourselves up for the revised development plan for Nalunaq,” said chief executive Eldur Olafsson.
AEX’s net losses widened to C$3.29mln, from C$0.97 in the year-earlier quarter, on higher exploration costs. It has no revenue.
Nalunaq is an advanced exploration stage property with an exploitation license that includes the previously operating Nalunaq underground gold mine.