Amaroq Minerals Ltd (TSX-V:AMRQ, AIM:AMRQ) has reported third-quarter 2022 financials and its exploration and development objectives for 2023, highlighting significant progress across its portfolio in Greenland where work plans were completed on schedule and within budget in Q3.
"Amaroq is now the most active private investor in Greenland, and we continue to make excellent strategic progress in the region. We are now focused on advancing our cornerstone Nalunaq project to the next phase of development, with an initial bulk sample expected in 2023. We also continue to progress exploration work at our key growth targets and remain on schedule with our plans, with geophysical surveys and additional drilling completed throughout the period," Eldur Olafsson, CEO of Amaroq, said in the results statement.
"We have developed an exciting programme to accelerate growth across our portfolio, and I look forward to providing an update on our progress," he added.
READ: Amaroq Minerals says results of 2022 Sava project exploration suggest a potentially large iron oxide, copper gold mineral system
The company also hailed the publication of an updated Nalunaq Mineral Resource Estimate (MRE) with reported Total Inferred Mineral Resource of 355,000 tonnes at 28.0 grams per ton (g/t) gold (Au) for 320,000 ounces Au, and confirming the project as falling within the top 2% of deposits in terms of grade globally.
Other highlights during the third quarter included:
- The start of the planning stages of a bulk sampling project at Nalunaq to assess the optimal path forward for mine development, and working towards first cashflow generation.
- Additional drilling completed across two further projects at Sava and at Vagar Ridge, with results expected in 4Q and follow-up exploration and drilling planned for 2023.
- Geophysical surveys completed at Nanoq and North Sava, with the results currently being processed with further ground exploration conducted in the Eagle's Nest and Kobberminbugt areas.
- C$11m allocated to exploration and development of the corporation's significant Greenlandic assets in the nine months ended September 30, 2022.
The company also said it made further progress after the end of the third quarter, including the promising discovery of copper, molybdenum and gold at the Sava licence during the 2022 exploration.
Other post-period highlights include:
- Completion of £30 million Capital Fundraising (circa C$46.4 million) in London and Iceland to accelerate development of the company's precious metals portfolio.
- Signing of final documentation in relation to the ACAM joint venture for the exploration and development of Amaroq's strategic mineral assets and receipt of initial £18m funding (circa C$28.5 million) is expected to close in Q1 2023, subject to limited regulatory conditions being satisfied.
- Listing of Icelandic Depository Receipts on the Nasdaq First North Growth Market in Iceland with the first day of trading being November 1, 2022.
On its objectives for precious metals in 2023, the company said it will focus on progressing Nalunaq to the next phase of development, underpinning the development of the wider portfolio.
- Nalunaq: the extraction of an initial bulk sample to elevate the Inferred Mineral Resources to the Indicated category, provide mining access to the orebody and demonstrate revenue generation potential. Drilling programme to take place, targeting an extension to the Inferred Resources in the Mountain Block and to generate further targets in the Welcome Block.
- Vagar Ridge: Following limited drilling during 2022 due to weather conditions, Amaroq will finalize the scout drilling programme to improve the understanding of the geology and mineralisation of the discovery.
- Nanoq: Scout drilling programme to take place following geophysical results, targeting surface exposures to improve understanding of the geology and structure.
- Regional: Gold target generation programme will continue across the Vagar licence and the greater area.
The company's strategic minerals objectives for 2023 include the accelerated exploration of strategic minerals assets in line with the ACAM joint venture agreement.
- Sava / North Sava: Further scout drilling on 3-plus targets as well as infill drilling at Target South and Target West. Systematic surface sampling to expand Target North and define further iron oxide, copper, gold (IOCG) prospectivity.
- Stendalen: Airborne geophysical survey and a first strategraphic drill hole through the prospective geological units.
- Paatasoq: Ground-based targeting to take place across Gardar age intrusion targeting Rare Earth mineralisation
- Kobberminebugt: Airborne geophysical survey to assess the location, size and depth of the skarn style mineralisation.
In 2023, the company said its operational priorities include assessing the suitability of the Nalunaq site for vehicle automation. Amaroq will continue discussions with ABD Solutions to determine the next steps.
The development programme will require significant equipment and the company will be evaluating procurement options in 2023 to ensure availability of equipment and services, the company said, adding that it is in dialogue with the Greenlandic government and a team of experts to assess potential for green energy production in Greenland. The company's priority focus is to establish how green energy can be sourced to supply Amaroq's sites and how the company can cooperate with the government to help facilitate the development of green energy within Greenland.
Amaroq's 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. It 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 jon.hopkins@proactiveinvestors.com