Amaroq Minerals, listed on the London AIM, TSX in Canada, and NASDAQ in Iceland, completed a fundraising round, exceeding their initial target. They conducted roadshows in Iceland and London, attracting significant interest, particularly from Danish institutions due to the company’s assets in Greenland.
- Amaroq Minerals is the largest license holder in South Greenland, owning most of the ground in that region. Their business focuses on three geological trends in South Greenland: the gold belt, strategic minerals belt, and rare earth deposits.
- The gold belt includes the Nalac mine, a past-producing mine, and other gold discoveries. They have advanced exploration programs at Vagar and Nanog.
- The strategic minerals belt, funded by an £18 million joint venture, includes the Garder region known for its rare earth deposits. This geological trend extends from North Canada through Southern Greenland to Northern Scandinavia.
- Amaroq has been operating in Greenland for eight years, developing operational capabilities to execute projects in challenging terrains. Last year, they drilled 11 holes over five targets across three licenses.
- The recent capital raised will be used for three main purposes: to progress the Nalac mine into trial mining, stockpile gold from various blocks within the mine, and continue exploration success.
- The Nalac mine, which closed in 2014, had produced over 360,000 ounces of gold at a high grade. Amaroq believes there is more gold in the mountain and has extensively drilled the area to understand the gold distribution in the ore body.
- The company is preparing to restart mining at Nalac, with the first blast planned soon. They have hired a German mining contractor, Tyson Shak Bal, to clean up and prepare the mine.
Nalac Mine Development:
- Amaroq has identified a vein in the mountain block and plans to open up two mining fronts, each expected to produce 100-150 tons of ore per day.
- Over the next six months, they will stockpile the ore, and a processing plant, funded by debt, is being built to handle about 300 tons per day.
- They plan to add a flotation system next year to increase gold recovery from the high 70s to mid-90s percent.
- Funds are also allocated for a dry stack tailings facility, emphasizing environmental stewardship.
- The goal is to bring the mine and processing plant to full capacity, accelerating the program initially planned for three years due to confidence in the ore body.
High-Grade Gold Reserves:
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- The Nalac mine has indicated reserves of 320,000 ounces of gold at 28 grams per ton, though some dilution is expected during mining.
- The mine, one of the highest-grade gold mines globally, previously produced gold at 16 grams per ton.
- Amaroq anticipates mining at a similar or better grade, potentially generating significant cash flow with low all-in sustaining costs.
Exploration Programs:
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- At Nanok, a 20-meter wide vein with high gold grades has been identified, with plans to start drilling this year or the next.
- Vagar, another area with promising results, will undergo further exploration.
- In their strategic metals portfolio, they plan to continue exploring the SAA copper belt, where they’ve identified a large porphyry system with significant copper lengths in drill holes.
- The Stend Daran asset showed promising surface outcrops of nickel, copper, and cobalt.
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Stend Daran Asset:
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- Amaroq Minerals discovered an outcrop of nickel, copper, and cobalt at the Stend Daran asset, which they believe is geologically similar to the Voisey’s Bay nickel-copper mine in Labrador.
- They drilled a 1,000-meter hole in this area and are awaiting lab results, which they expect to receive in the next few weeks. This could be a significant milestone for the company.
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Joint Venture and Exploration Plans:
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- The joint venture, funded for three years, may receive additional investment due to the promising results at SAA and the potential discoveries at Stend Daran.
- Amaroq Minerals aims to accelerate their exploration program and potentially invest more in the joint venture.
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Company’s Progress and Strategy:
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- The company is operating on multiple fronts, with the potential realized from earlier discussions.
- Bringing the Nalac gold mine into production will provide the necessary capital for ongoing exploration programs, aiming to discover world-class deposits in South Greenland.
- The exploration season in Greenland is short, but with new capital, they are hiring new geologists and have conducted extensive geophysical surveys.
- The company holds a vast land package in South Greenland, nearly 4,000 square miles, and is making progress in understanding and exploring this area.
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Operational Efficiency and Community Engagement:
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- Amaroq Minerals is improving its operational efficiency each year, particularly with the ability to explore and drill underground at the Nalac mine, which is more cost-effective and can be done year-round.
- The company recently conducted public consultations in Greenland regarding their Environmental Impact Assessment (EIA) and Social Impact Assessment (SIA), receiving positive feedback and support from local communities.
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Edward Wyvill concludes the interview by expressing satisfaction with the company’s progress and the positive reception from local communities in Greenland.
