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AEX Gold Inc
Symbol AEX
Shares Issued 177,098,737
Close 2022-05-30 C$ 0.67
Market Cap C$ 118,656,154
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AEX Gold spends $1.01-million on exploration in Q1 2022

2022-05-30 09:56 ET - News Release

Mr. Eldur Olafsson reports

AEX GOLD - 2022 OBJECTIVES AND FIRST QUARTER FINANCIAL RESULTS

AEX Gold Inc. has outlined its 2022 objectives and Q1 financial results.

AEX Gold's strategy remains to bring the Nalunaq gold project back into production and use that base as a platform to discover and develop other world-class gold and strategic mineral assets both directly and through partnerships to be found in the underexplored OECD (Organization for Economic Cop-operation and Development) jurisdiction that is Greenland.

2022 activity highlights:

  • Nalunaq: Core drilling from up to four rigs within and extension to the Valley block aimed at increasing resources and confidence and to prepare the ground for potential new infrastructure development and bulk sample.
  • Vagar Ridge: New core drilling program using two rigs aimed at quantifying the scale of the discovery as well as the depth potential.
  • Vagar licence: Further geological mapping and sampling across five new targets identified by the 2021 exploration program.
  • Nanoq: Subject to the 2021 exploration results, expected to be released imminently, the company's intent is to prepare for airborne geophysical survey across the target and along a 20-kilometre-long structural corridor linking the discovery to the Jokum's shear gold/copper occurrence.
  • Sava and North Sava: Maiden scout core drilling program to test IOCG (iron ore, copper, gold) mineralization style identified within three target areas identified in 2021 as well as an extended airborne geophysical survey and geochemical sampling program across North Sava.
  • Stendalen: Airborne geophysical surveys and geological reconnaissance on recorded nickel/copper sulphide mineralization to define best drilling locations for a 2023 core drilling program.
  • Regional: Further geological reconnaissance and sampling across Eagle's Nest gold target and Kobbermineburgt copper targets as well as sampling across Paatusoq rare earth target in preparation for more detailed exploration in 2023.
  • Operational readiness: One of AEX's key regional differentiators, its all-weather exploration camp, remains open with geological and drill personnel inbound to commence 2022 field season; contracts being finalized with ALS Geochemistry for the installation of an on-site sample preparation laboratory; and most key contracts in place with service providers and equipment, including four drill rigs, helicopters and boat charters, and geological supplies.
  • Cash balance of $23.8-million at March 31, 2022.

Eldur Olafsson, chief executive officer of AEX Gold, commented:

"After a very positive year of drilling and exploration in 2021 where, amongst other things, we confirmed a new high-grade resource block at Nalunaq and a much larger scale to the Vagar Ridge discovery than we had imagined, we plan to build on this success in 2022 with an active drilling and geological program across our ever-growing portfolio to test the size and prospectivity. We expect this program to evolve as the season goes forward as we are still expecting results from our Nanoq licence, which are due imminently, from regional assets and results from our Norrearm graphite samples, expected in H2.

"We have also made great strides within our strategic mineral and rare earths business, where Greenland is fast becoming the last frontier for Western developed nations to secure these valuable minerals which will play such an important role in the energy transition. In recognition of this potential, the company has announced its intention to change its name from AEX Gold to Amaroq Minerals post the AGM on June 16, 2022."

Precious metals 2022 exploration work program

Nalunaq:

  • The 2022 exploration program intends to provide further resource development through both infill and strike extension drilling across the Valley block, informed by the dolerite dike model. To facilitate this program, the company will develop up to two new drill access roads from the existing mountain surface infrastructure.
  • The program will also include the underground assessment of extensions to the Target and Mountain blocks, including the footwall vein, in order to further refine the company's geological model and resource growth target areas.
  • Subject to drill results, the 2022 exploration program will provide AEX with the optionality of investigating additional underground infrastructure and an underground bulk sample in 2023 with an option for toll treatment off site subject to discussions with the government of Greenland. This would be used as a development step to increase resource confidence and derisk the resource ahead of possible mine construction in 2024/2025, subject to permitting and financing.
  • The company has started discussion with mine contractors in order to mitigate delays, as the lead time is on average 12 months in the industry today.
  • The company is in the process of updating its environmental impact assessment (EIA) and social impact assessment (SIA), which as previously announced it expects to complete over the course of the next year.

Vagar Ridge:

  • The 2021 exploration results have significantly increased the Vagar Ridge footprint, confirming its potential to be a multimillion-ounce prospect, adding to AEX's substantial portfolio of prospective gold assets.
  • AEX believes that Vagar Ridge may host up to four orogenic gold veins with new rock chip samples giving up to 86.7 grams per tonne gold.
  • 2022 activity: AEX intends to mobilize two helicopter-supported drill rigs to conduct the first core drilling on the discovery since 2013. This program will aim to test the scale of the discovery and prepare it for more resource-focused drilling. It will also aim to develop more evidence of intrusion-related gold mineralization style across the target.

Vagar licence targets:

  • The 2021 Vagar licence exploration program included hyperspectral imaging, reconnaissance sampling and a 385-square-kilometre high-resolution airborne magnetic survey, interpreted by SRK Consulting.
  • These results have defined a significant deformation zone that extends for more than 50 km across the Vagar licence and into AEX's neighbouring licences, highlighting five further high-priority targets similar to Vagar Ridge.
  • 2022 activity: These five targets will be further investigated and sampled this year with a view to providing potential further drill targets in the next few years, depending upon results.

Nanoq gold:

  • 2022 activity: Subject to the 2021 Nanoq exploration results which are currently being analyzed and are expected to be released imminently, the company intends to prepare for an airborne geophysical survey across the Nanoq discovery and across an interpreted structural corridor linking it to the Jokum's shear target 20 km to the south.

Eagle's Nest (Anoritooq licence):

  • 2022 activity: Subject to the assessment of the 2021 exploration results in the area which are still being analyzed, the company intends to continue its early-stage geological reconnaissance mapping and sampling aimed at making further orogenic gold discoveries north of Nalunaq.

Strategic mineral targets 2022 exploration work program

General:

  • Significant 3,527.75-square-kilometre mineral licence area has been acquired from Orano, taking AEX's total land package in South Greenland to 7,615.85 square km and substantially increasing the company's exposure to base and strategic minerals.
  • The acquisition means the company will become the largest licence holder in South Greenland, and the third largest in Greenland, after Anglo American and Greenfields Exploration.
  • AEX's continuing mineral system modelling highlights the potential of Southern Greenland to host significant strategic metal deposits. These new licences sit within a interpreted Laurasian mineral belt connecting Eastern Canada through Greenland to Scandinavia that hosts world-class mineral deposits such as Voisey's Bay (Canada), Gardar province (Greenland) and the Kiruna IOCG belt (Scandinavia). Work programs at Sava have illustrated IOCG-style signatures across three target areas.

Sava and North Sava:

  • 2021 work programs at Sava have identified an IOCG (iron oxide, copper gold) and porphyry copper belt situated in close proximity to the international airport at Narsarsaq. North Sava has provided historical grab samples up to 382 g/t gold (Au), 3.4 per cent copper (Cu), 3.7 per cent zinc (Zn), 100 g/t silver (Ag), 19 per cent niobium (Nb), 2.2 per cent zirconium (Zr).
  • 2022 activity: At Sava, a maiden scout core drilling program will test the mineralization and alteration assemblage at the three targets developed during the course of 2021. These targets will also be further extended by additional geochemical sampling across the licence area. At North Sava, the company will build upon the interpretations of Orano and conduct a remote sensing program and airborne geophysical survey that will provide coverage across both licences and it is hoped that this will indicate further high-priority targets for 2023.

The Stendalen iron-vanadium-titanium layered intrusive:

  • Previously explored by GEUS (Geological Survey of Denmark and Greenland), Softrock Mineral and NunaMineral A/S. This intrusive is eight km in diameter and hosts a magnetic layer up to 20 metres thick which has provided historical samples yielding between 1 and 10.5 per cent titanium dioxide (TiO2) (average of 4.8 per cent) and 226 to 5,753 parts per million vanadium (V) (average 2,335 ppm).
  • Stendalen also host the potential for nickel, copper and platinum group element (PGE) mineralization with grab samples proving grades of 0.8 per cent copper, 0.5 per cent nickel and 0.1 per cent cobalt.
  • 2022 activity: The company intends to conduct an airborne geophysical (ZTEM) survey over the intrusion in order to understand its scale, structure and potential for deep sulphide mineralization signatures. This will be coupled with a ground assessment of the reported Ni/Cu sulphide mineralization in the contact areas of the intrusion. Finally, the company will assess drill locations and site logistics ahead of a core drilling program in 2023 subject to results.

Kobberminebugt:

  • 2022 activity: The company intends to conduct further geological reconnaissance mapping and sampling in and around the former-producing Josva copper mine in order to understand the style of mineralization and extent potential. Further occurrences will also be explored further along the granite/sediment contact zone.

The Paatusoq rare earth element, niobium, tantalum, zirconium project:

  • This syenite complex is 20 km in diameter covering an area of approximately 240 square km within an unexplored section of the Gardar province.
  • 2022 activity: This new critical metals target within the licences acquired from Orano shall be visited during the 2022 field program to conduct additional geochemical sampling to test the styles of mineralization and its relationship to the wider Gardar province that also hosts the Kvanefjeld and Tanbreez rare earth projects.

In addition to these named programs, the company intends to assess numerous other gold targets within the Nanortalik gold belt and several identified graphite targets similar to that already being explored by AEX at Norrearm and GreenRoc at the Amitsoq project.

AEX infrastructure support:

  • The new all-weather 50-person camp remains open and the first field crew is already on site preparing for the 2022 field season.
  • The company has a drilling contract in place with two rigs already on site with a further two rigs inbound.
  • The company is also finalizing contracts with ALS Geochemistry to install a containerized preparation laboratory (CPL) at Nalunaq to service the company's requirements through 2022 and beyond. This laboratory will allow the company to provide more regular samples for full chemical assay and provide shorter assaying lead times that are significantly stretched globally.

AEX Gold financial results:

  • The corporation had a cash balance of $23.8-million at March 31, 2022 ($27.3-million at Dec. 31, 2021), with no debt, and total working capital of $22.6-million ($25.2-million at Dec. 31, 2021).
  • Exploration and evaluation expenses during the period were $1-million (Q1 2021: $1.2-million), predominantly on the Nalunaq property.
  • General and administrative expenses during the period were $3-million (Q1 2021: $1.6-million), with the increase as a result of share-based compensation granted to its officers, employees and consultants.

Selected financial information

The selected financial data in the attached table are extracted from the financial statements for the three months ended March 31, 2022.

About AEX Gold Inc.

AEX's principal business objectives are the identification, acquisition, exploration and development of gold properties in Greenland. The company's principal asset is a 100-per-cent interest in the Nalunaq project, an advanced exploration-stage property with an exploitation licence, including the previously operating Nalunaq gold mine. The company has a portfolio of gold assets covering 7,615.85 square kilometres, the largest portfolio of gold assets in Southern Greenland covering the two known gold belts in the region. AEX is incorporated under the Canada Business Corporations Act and wholly owns Nalunaq A/S, incorporated under the Greenland Public Companies Act.

Qualified person statement

The technical information presented in this press release has been approved by James Gilbertson, CGeol, vice-president, exploration, for AEX Gold and a chartered geologist with the Geological Society of London, and as such a qualified person as defined by National Instrument 43-101.

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