TIDMAEXG
RNS Number : 7065C
AEX Gold Inc
21 October 2020
("AEX" or the "Corporation")
AEX 2020 Early Drilling Results at Nalunaq Confirm Continuity of
Main Vein Structure at Depth
TORONTO, ONTARIO - October 21, 2020 - AEX Gold Inc. (AIM: AEXG;
TSXV: AEX), an independent gold company with a portfolio of gold
licences in Greenland, announces an update to its 2020 exploration
drilling campaign at its Nalunaq property in South Greenland.
References to figures relates to the version visible in PDF
format which can be found on the website:
https://www.aexgold.com/investors/regulatory-news-alerts/#tsx-news
Objective of drilling program
-- To confirm the company's understanding of an area to the
south west of the deposit that is thought to be a parallel
structure now known as "Valley Block".
-- This area previously demonstrated good continuity of the Main
Vein through extensive drilling between 2017-2020 and returned
high-grade intersections.
-- The 2020 infill drilling program was designed to understand
the thickness and continuity of the Main Vein in the Valley
Block.
Drilling result highlights
-- Infill drilling at Nalunaq successfully intercepted the Main
Vein with true thicknesses of up to 1.36 meters and visible gold,
among the thickest intersections ever drilled at Nalunaq.
-- Eleven holes were completed for a total of 2,191 metres, with
nine reaching target depth and the Main Vein identified in 6 holes.
Initial results include 4.2 g/t over 1.5 meters and 6.6 g/t over
1.35 meters with visible gold (full results are available in table
2 below). Previous drilling of the same area included 0.25 meters @
120.4 g/t, 0.67 meters @ 46.10 g/t, 0.50 meters @ 19.75 g/t and
0.44 meters @ 16.6 g/t.
-- These combined results support the interpretation that this
is a high-grade domain similar to the South Block (see AEX's Vrify
model, available on the Company's website).
-- The thickness and continuity of the vein also suggests that
Valley Block has a similar footprint to other historically mined
blocks at Nalunaq, further strengthening our confidence in the
development of Valley Block in 2021.
-- Valley Block is open in all directions and is readily
accessible from existing South Block workings, the lowest part of
the mine.
Eldur Olafsson, CEO of AEX, commented:
"The results of the drilling activities continue to illustrate
the significant potential for expanding the resource base at
Nalunaq, which remains open at depth. The 'nugget' nature of the
Nalunaq deposit and the high variability of grade that comes with
these kinds of deposits means that this drilling campaign was about
further defining the structure at the mine and we are delighted
with the preliminary results of this program. The infill drilling
in the vicinity of the historical mining area of South Block
substantiates the previous high-grade results of drilling
activities in the area and is indicative of the potential for
Valley Block. The vein structure that was hit is thicker than the
historical averages in the best known mine blocks at Nalunaq, which
supports our plan to undertake an underground development program
in this zone and significantly helps in de-risking that strategy
ahead of site mobilization next year."
Nalunaq
Drilling in 2020 was designed to improve confidence in the
Valley Block ahead of planned exploration underground development
in this area in late 2021 / early 2022. This zone lies
approximately 100 meters to the south of the South Block (Figure 1)
and has now been drilled to 30 meters or closer drill spacing over
an area of approximately 200 meters by 250 meters. Valley Block
remains open along strike to the south west and is open at depth
and up-dip.
Figure 1 Preliminary outline of the "Valley Block". 2020
drillhole profiles in red.
Table 1: Diluted grades of all historical drill holes within the
Valley Block grading >1 g/t Au
Hole ID From To (m) Interval Au (g/t) Au (g/t), diluted
(m) (m) to 1.5 m true thickness
AEX1804 175.33 176.0 0.67 46.0 20.6
------- ------- --------- --------- -------------------------
NQ111 155.15 155.40 0.25 120.4 20.1
------- ------- --------- --------- -------------------------
AEX1710 147.10 147.60 0.50 19.75 6.6
------- ------- --------- --------- -------------------------
NQ113 167.00 167.44 0.44 16.6 4.9
------- ------- --------- --------- -------------------------
NQ133 161.00 161.20 0.2 10.7 1.4
------- ------- --------- --------- -------------------------
NQ131 212.04 212.32 0.28 6.9 1.3
------- ------- --------- --------- -------------------------
NQ-89 182.80 183.15 0.35 4.7 1.1
------- ------- --------- --------- -------------------------
NQ-36 189.27 190.73 1.46 1.1 1.1
------- ------- --------- --------- -------------------------
The Qualified Person has not verified the data disclosed in
Table 1, through sampling, analytical, nor test data. The
information was obtained from drilling reports sourced from the
previous operators. The Qualified Person has not completed
sufficient work to verify the historical drilling results in Table
1. The information provides an indication of the exploration
potential of the Valley Block but may not be representative of
expected results
Drilling at Nalunaq is primarily used to determine the presence
of the Main Vein structure, with drilling generally under calling
grades when compared to historical production due to the strong
nugget effect observed at Nalunaq (see section below). Fundamental
sampling error can also be high at Nalunaq with coarse gold often
present in the unsampled half of drill core, which remains in the
core box.
The first batch of assay results from the 2020 field season are
shown in Table 2, with the location of the drillholes shown in
Table 3.
2020 Drilling Assay Results
Table 2 Summary of significant Main Vein intersections from the
initial sample batch sent from the four 2020 drill holes assayed to
date. Intervals provided as true widths. A cut-off of 0.05 g/t Au
has been used to report Main Vein intersections.
Hole ID From To (m) Interval True Width Au (g/t) Main Vein Description
(m) (m) (m) (True Width)
AEX1909 No significant intercept
----------------------------------------------------------------------------------
AEX2001 No significant intercept
----------------------------------------------------------------------------------
3 cm quartz vein in
1 m zone of moderate
AEX2002 173.30 174.80 1.50 1.36 4.2 calc-silicate alteration
------- ------- --------- ----------- --------- -----------------------------
1.2 m quartz vein
with abundant diopside
inclusions and fine-grained
visible gold at the
AEX2003 161.90 163.25 1.35 1.30 6.6 footwall contact
------- ------- --------- ----------- --------- -----------------------------
Table 3 Summary of 2020 drill holes (Projection WGS 84 UTM zone
23N). The upper part of hole AEX1909 was drilled in 2019.
Hole ID X Y Z Core Diameter Dip Azimuth Total Depth
(m)
AEX1909 509426 6691201 236 NQ 85 315 287.50
------- -------- ---- -------------- ---- -------- ------------
AEX2001 509426 6691201 236 NQ 55 315 215.70
------- -------- ---- -------------- ---- -------- ------------
AEX2002 509113 6690844 307 NQ 80 315 231.00
------- -------- ---- -------------- ---- -------- ------------
AEX2003 509113 6690844 307 NQ 70 315 219.00
------- -------- ---- -------------- ---- -------- ------------
AEX2004 509113 6690844 307 NQ 60 315 200.80
------- -------- ---- -------------- ---- -------- ------------
AEX2005 509127 6690868 306 NQ 80 315 148.50
------- -------- ---- -------------- ---- -------- ------------
AEX2006 509133 6690904 304 NQ 85 315 216.00
------- -------- ---- -------------- ---- -------- ------------
AEX2007 509133 6690904 304 NQ 70 315 213.00
------- -------- ---- -------------- ---- -------- ------------
AEX2008 509127 6690868 306 NQ 62 315 175.30
------- -------- ---- -------------- ---- -------- ------------
AEX2009 509127 6690868 306 NQ 85 315 321.00
------- -------- ---- -------------- ---- -------- ------------
AEX2010 509499 6691504 240 NQ 80 315 100.50
------- -------- ---- -------------- ---- -------- ------------
A note on drilling at Nalunaq and the nugget effect - "Drill for
structure, drift for grade."
The high variability of gold grades in high-nugget deposits such
as Nalunaq means accurate estimation of grade from drilling data
alone is challenging. Historic operators of Nalunaq defined mineral
resources based predominantly on underground channel sampling from
development drives, and drilling was used as a guide to confirm the
presence of Main Vein. A comparison of all past surface drilling in
mined areas with block model grades (estimated from underground
channel samples which reconcile with production) suggests that
surface drilling typically under-calls gold grade (Figure 3). This
phenomenon is not unique to Nalunaq, and AEX emphasises that whilst
drilling is useful for identifying the mineralised structure, it is
not a reliable indicator of grade. With this in mind, the 2020
drilling program has been successful, locating the Main Vein
structure in six holes. Ultimately, underground exploration
development will be required in order to estimate grade and mineral
resources above the inferred category.
Figure 3 Main vein intercepts in historical drilling were
compared to the nearest block in the official 2017 SRK block model
(both datasets diluted to 1.5 meters mining width). Grades are
plotted on the above scatter plot. Points highlighted in the red
box represent historical drilling intervals that underreported the
production grades. Dashed lines show 5 g/t Au cut-off, which the
historical mining cut-off grade. Note log scale.
Selective sampling of historic cores may have missed the Main
Vein structure where there is subtle gold-bearing alteration and no
well-developed quartz vein. To ensure all potential mineralisation
is captured, the entire length of the drill hole was half-core
sampled in 2020. Samples were also assayed for 33 trace elements by
ICP-AES with four-acid digestion to better understand the
geochemistry of mineralised intersections. This dataset will
support a future study investigating geochemical indicators for
potential high-grade domains. Holes AEX1703 and AEX1707 from the
2017 drilling campaign were also re-examined and sampled over their
entire lengths, although assays are pending.
Sampling and QAQC Disclosure
Drill core was cut in half using a diamond blade core saw. Where
a bottom of hole orientation line was present, the cut line was
marked approximately 5 degrees off axis, and the right-hand side of
the core was sampled. Drill core samples were placed into calico or
thick polymer bags with a sample ticket, weighed, and assigned a
sample ID. Each sample was sealed with a security tag, which
assigns a unique security ID to the sample. Samples were
transported from site to an accredited laboratory for analysis;
priority samples were sent to SGS Burnaby, BC, Canada and all
remaining samples were sent to SGS Sudbury, ON, Canada.
Sample preparation scheme PRP94 was used on all samples, with
the addition of a rotary split. This involves crushing to 75%
passing 2 mm, rotary split off 1 kg, and pulverizing the split to
better than 85% passing 75 microns. Samples were then analysed by
50g fire assay with AAS finish, technique GE_FAA50V5 which has a
detection limit of 0.005 ppm Au. Samples containing visible gold
and samples considered to be the Main Vein were assayed with
screen-metallics fire assay technique GO FAS50M which has a
detection limit of 0.01 ppm Au. This involves screening 1 kg of
pulverised sample to 106 um followed by 50 g fire assay of the
entire plus fraction and duplicate analysis of the minus fraction.
In addition, all samples were assayed with a Four-Acid Digestion /
33 element ICP-AES package, technique GE_ICP40Q12.
The QA/QC program of AEX consists of the systematic insertion of
certified standards of known gold content, and blanks, at a rate of
1 in 20 or 5% per QAQC type. In addition, SGS insert blanks and
standards into the analytical process. The average sample mass was
2.83 kg.
Qualified Person Statement
The scientific and technical information presented in this press
release has been approved by James Purchase, P.Geo. (OGQ 2082),
Director of Geology and Resources of G Mining Services Inc. and
independent to AEX Gold Inc. for purposes of National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI
43-101"). Mr. Purchase is a member of the L'Ordre des Géologues du
Québec, and a "qualified person" for purposes of NI 43-101. The
Qualified Person has not completed sufficient work to verify the
historic drilling results outlined in Table 1.
Enquiries:
AEX Gold Inc.
George Fowlie, Director and CFO 1-416-587-9801
gf@aexgold.com
Eldur Olafsson, Director and CEO +354-665-2003
eo@aexgold.com
Stifel Nicolaus Europe Limited (Nominated +44 (0) 20 7710
Adviser and Broker) 7600
Callum Stewart
Simon Mensley
Ashton Clanfield
+44 (0) 20 3757
Camarco (Financial PR) 4980
Gordon Poole
Nick Hennis
Emily Hall
Further Information:
About AEX
AEX's principal business objectives are the identification,
acquisition, exploration and development of gold properties in
Greenland. The Corporation'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. The Corporation has a portfolio of gold assets covering
3,356km(2) , 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.
Forward-Looking Information
This press release contains forward-looking information within
the meaning of applicable securities legislation, which reflects
the Corporation's current expectations regarding future events and
the future growth of the Corporation's business. In this press
release there is forward-looking information based on a number of
assumptions and subject to a number of risks and uncertainties,
many of which are beyond the Corporation's control, that could
cause actual results and events to differ materially from those
that are disclosed in or implied by such forward-looking
information. Such risks and uncertainties include, but are not
limited to the factors discussed under "Risk Factors" in the Final
Prospectus available under the Corporation's profile on SEDAR at
www.sedar.com. Any forward-looking information included in this
press release is based only on information currently available to
the Corporation and speaks only as of the date on which it is made.
Except as required by applicable securities laws, the Corporation
assumes no obligation to update or revise any forward-looking
information to reflect new circumstances or events. No securities
regulatory authority has either approved or disapproved of the
contents of this press release. Neither TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Inside Information
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No. 596/2014, and is
disclosed in accordance with the Corporation's obligations under
Article 17 of those Regulations. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Glossary
Au Gold
g grams
g/t Grams per tonne
kg Kilograms
um Micrometer
mm Millimetre
oz. Ounces
ppm Parts per million
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