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Amaroq Minerals Ltd
Symbol AMRQ
Shares Issued 177,358,737
Close 2022-08-25 C$ 0.60
Market Cap C$ 106,415,242
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Amaroq spends $5.43M on exploration in Q2 2022

2022-08-25 11:09 ET - News Release

Mr. Eldur Olafsson reports

AMAROQ MINERALS - Q2 FINANCIAL RESULTS AND OPERATIONAL UPDATE

Amaroq Minerals Ltd. has provided an update on its Q2 financials and operational activities in the first half of 2022.

H1 2022 highlights

Precious metals targets:

  • Nalunaq: Construction of mountain access roads required to facilitate the 2022 core drilling program completed ahead of schedule and under budget;
  • Nalunaq: Drilling ahead of schedule with 7,300 metres of core drilling out of a scheduled 9,100 m completed across the Valley block with geological logging and sampling now under way. Two thousand twenty-two drilling focused on providing further resource confidence with a view to increasing the mineral resource estimate (MRE) in due course;
  • Nalunaq: Preliminary economic assessment (PEA) commenced to assess bulk sample and eventual mine reopening optionality;
  • Vagar Ridge: Exploration aimed at understanding the styles and geological controls on mineralization continues, with 65 per cent of planned core drilling now complete despite unseasonal weather during the period, targeting both orogenic gold and intrusion-related gold mineralization;
  • Vagar licence: Further geological mapping and sampling across new targets identified by the 2021 exploration program scheduled for later in the season;
  • Nanoq: Contractors are mobilizing to conduct an airborne geophysical survey across the target, and along an interpreted 20-kilometre structural corridor linking the discovery to the Jokum's shear gold/copper occurrence. This area is now held by Amaroq under the newly acquired Siku licence securing access to multiple potential orogenic gold targets.

Strategic mineral targets:

  • Sava: A 320 m maiden scout core drilling program to test iron oxide, copper, gold (IOCG) mineralization has targeted two areas and samples are due to be dispatched to ALS Geochemistry imminently.
  • North Sava: Contractors are mobilizing to conduct an airborne geophysical survey across North Sava to extend geological understanding from Sava into the former Orano licence.
  • Stendalen: Amaroq is in negotiations to conduct an MT (magnetotelluric) geophysical survey across this iron-vanadium-titanium layered intrusive with additional nickel and copper potential.
  • Regional: Further geological reconnaissance and sampling across the Eagle's Nest gold target, Kobbermineburgt copper targets and the Paatusoq rare earth target are scheduled for later in the 2022 season.

Operational update:

  • Further investment in operational infrastructure and equipment upgrades. With the 50-person all-weather camp in place at Nalunaq and a satellite field camp in situ at Vagar Ridge, the company is now able to function more efficiently and to shorter operational lead times. The ALS on-site containerized preparation laboratory (CPL) has been installed and commissioned with the first samples being dispatched.
  • Operational efficiency across all aspects of the company's Greenland assets significantly increased through key longer-term contracts with carefully selected service providers.

Corporate update

Significant 3,527.75 square km mineral licence area has been acquired from Orano, substantially increasing the company's exposure to base and strategic minerals. When coupled with the newly awarded 251 square km Siku licence, takes Amaroq's total land package in South Greenland to 7,866.85 square km.

  • Establishment of non-binding joint venture agreement with Acam LP for the exploration and development of Amaroq's strategic mineral assets for a combined contribution of 36.7 million pounds sterling with initial equity financing of 18 million pounds sterling following completion;
  • Cash balance of $19.5 at June 30, 2022;
  • Approval of special resolution to change the name of the company to Amaroq Minerals Ltd.

Eldur Olafsson, chief executive officer of Amaroq Minerals, commented:

"I am pleased to present an update on our activities for Q2 2022. Our field season for 2022 is well under way and we are making solid progress with our drilling programs at Nalunaq, Vagar Ridge and Sava. We expect to share the results from this program with the market in late Q3 to Q4.

"We are progressing with our strategic mineral exploration program in Southern Greenland with the support of our partners. We remain focused on accelerating Greenland's contribution to the energy transition as a frontier jurisdiction at a time when access to these critical minerals for Western governments and companies is limited by Chinese and Russian control of supply.

"We continue to invest in our highly qualified senior management team, as well as selecting strong and reliable partners for contract appointments. In addition, we are now benefiting from considerably upgraded corporate governance systems and a strengthened board, which continues to guide the strategic vision of our business."

Precious metals 2022 exploration program

Nalunaq:

  • The 2022 exploration program is targeting further resource development through both infill and strike extension drilling across the Valley block, informed by the dolerite dike model developed and tested in 2021.
  • Two new mountain access roads to facilitate the extension drilling have been completed ahead of schedule and under budget (totalling $740,000) and now are being utilized by two core drill rigs.
  • To date approximately 7,300 m of core (2,600 m infill and 4,700 m extension) drilling has been completed and geological logging and sampling are now under way. A further 1,800 m of core drilling is scheduled for 2022.
  • ALS has completed the construction and commissioned an on-site containerized preparation laboratory (CPL) at Nalunaq to oversee the preparation of all samples ahead of shipment to Ireland for chemical assaying.
  • Amaroq geological teams have re-entered the historic mine to assess the extension opportunities within the Mountain block and have identified further surface outcrops of the Main vein, which they intend to channel sample during this season to further define this extension area.
  • Amaroq has continued to work with SRK to adapt the MRE procedures to account for the dolerite dike model and the 2020 and 2021 drilling results with the aim of providing a further update to the contained resources later in 2022.
  • A PEA for the project to assess bulk sample and eventual mine reopening optionality has been commenced.
  • Subject to results from the 2022 exploration program, Amaroq will continue to assess additional underground infrastructure and underground bulk sample options for 2023, which may include off-site toll treatment, 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 potential mine construction in 2024/2025.
  • The corporation remains in discussion with mine development contractors in order to mitigate program delays, as the industry average lead time today is 12 months.
  • 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:

  • Following the exploration conducted in 2021, which significantly increased the Vagar Ridge footprint, Amaroq has commenced an approximately 2,000 m core drilling program across the target to further understand its scale and geological controls on mineralization as a necessary step toward defining potential resources.
  • At the time of reporting, approximately 1,300 m has been drilled across four drill holes with geological logging and sampling in progress.
  • Geological reconnaissance and mapping are also under way over the area, and Amaroq aims to supplement the drilling with a chip channel sampling program across the southern low-grade granite-hosted areas of Vagar Ridge.
  • Unseasonable low cloud and sea fog in the last month have hampered helicopter availability, a supply and health and safety requirement for drilling in this remote location. This has slowed drilling and delayed completion of the program. Amaroq is looking to reduce the impact of this by deploying a remote tented camp on site.
  • Amaroq is utilizing its experience and strong regional understanding of South Greenland to progress with drilling and gain a fuller understanding of the targets, and intends to update the market on developments in due course.

Vagar licence targets:

  • Due to the unseasonable weather, Amaroq has not yet commenced the planned regional investigation of the target areas developed following the interpretation of the 2021 geophysical program, which defined a significant deformation zone that extends for more than 50 km across the Vagar licence and into Amaroq's neighbouring licences. This is currently scheduled for later in September.

Nanoq gold:

  • Amaroq's geophysical contractor New Resolution Geophysics (NRG) began mobilizing helicopter and equipment to Southern Greenland on Aug. 22 and plans to commence an approximately 4,500 line km magnetic, radiometric and gravity survey over the Nanoq target and the area connecting this target to Jokum's shear in the Nanortalik gold belt.
  • This area (located within the corporation's newly awarded 251 square km Siku mineral licence) hosts an interpreted 20 km long regional structure that could host multiple orogenic gold targets.

Eagle's Nest:

  • Following an 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.
  • This fieldwork is provisionally scheduled for mid-September.

Strategic mineral targets 2022 exploration work program

General:

  • Significant 3,527.75 square km mineral licence area has been acquired from Orano, which, with the newly awarded Siku licences, takes Amaroq's total land package in South Greenland to 7,866.85 square km and substantially increases 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.
  • Amaroq's continuing mineral system modelling highlights the potential of Southern Greenland to host significant strategic metal deposits. These new licences sit within an 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:

  • Following the successful 2021 season, which identified three initial priority targets across the Sava IOCG and porphyry copper licence, Amaroq has completed a 320 m scout core drilling program over two drill holes on Target West and Target South.
  • These samples have subsequently been prepared in the ALS CPL at Nalunaq and are awaiting dispatch to Ireland for chemical assaying.
  • A further sample has been sent to Durham University for geological age dating to assess if the observed mineralization is related to the Gardar intrusion suite that hosts the significant deposits at Kavanefjeld and Tanbreez.
  • The Amaroq geological team has also conducted further surface exploration and sampling aimed at expanding the current targets and defining further targets for future investigation.
  • Building upon previous Orano geological interpretations, Amaroq intends to conduct a similar geophysical survey to that completed over Sava across the newly acquired North Sava licence. This approximately 5,000 line km program will be conducted by NRG following completion of the Nanoq survey.
  • Multiple zones of veining and brecciation have been discovered containing copper-iron sulphide mineralization, including chalcopyrite and bornite mapped at surface at Sava, giving further evidence of IOCG occurrence.

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 m 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 hosts potential for nickel (Ni), copper (Cu) and platinum group element (PGE) mineralization with grab samples proving grades of 0.8 per cent Cu, 0.5 per cent Ni and 0.1 per cent cobalt (Co).
  • The company is in negotiations to conduct an airborne geophysical (MT) survey over the intrusion in order to understand its scale, structure and potential for deep sulphide mineralization signatures. This survey 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.

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.
  • Amaroq plans to visit this new critical metals target within the licences acquired from Orano during a regional exploration program in September. The aim of this will be 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.

Amaroq Minerals infrastructure support:

  • Amaroq has successfully continued the use of its all-weather 50-person camp as well as operating a small satellite tented camp at Vagar Ridge to facilitate drilling there.
  • Since June, Amaroq has been operating with four drill rigs across three sites and the company is now assessing rig requirements for 2023.
  • The company has also finalized contracts with ALS Geochemistry to install the containerized preparation laboratory (CPL) at Nalunaq, which has been fully installed and commissioned.
  • Amaroq is experiencing material increases in its operational efficiency during the 2022 season as a result of partnering with key, carefully selected contractors across its Greenland business. This has resulted in program objectives being meet ahead of schedule, increased drilling rates, greater logistical flexibility and aims to result in quicker return on sample results through the second half of 2022.

Amaroq Minerals financial results:

  • The corporation had a cash balance of $19.5-million at June 30, 2022 ($23.8-million at March 31, 2022), with no debt, and total working capital of $16.8-million ($22.6-million at March 31, 2022).
  • Exploration and evaluation expenses during the period were $5.4-million (Q2 2021: $3.2-million), predominantly on the Nalunaq property.
  • General and administrative expenses during the period were $5.1-million (Q2 2021: $4-million).

About Amaroq Minerals Ltd.

Amaroq Minerals' 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-per-cent interest in the Nalunaq project, an advanced exploration-stage property with an exploitation licence including the previously operating Nalunaq gold mine. The corporation has a portfolio of gold and strategic metal assets covering 7,615.85 square km, the largest mineral portfolio in Southern Greenland covering the two known gold belts in the region. Amaroq Minerals 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 Amaroq Minerals 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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