TIDMAEXG
RNS Number : 8459D
AEX Gold Inc
02 November 2020
("AEX" or the "Corporation")
AEX Provides Development Progress on its Nalunaq Project in
Greenland
TORONTO, ONTARIO - November 2, 2020 - AEX Gold Inc. (AIM: AEXG;
TSXV: AEX), an independent gold company with a portfolio of gold
licences in Greenland, announces an operational update for the
development of the Nalunaq property in South Greenland.
The Corporation continues to make good progress at the fully
funded Nalunaq Project, with significant work having been completed
on key work streams since the successful AIM Listing and
fundraising in July 2020. The project remains on track, with
workstreams progressing in line with management expectations.
Highlights
-- Significant progress in the contracting of key infrastructure
and long lead items, with camp and ancillary system providers now
contracted and the bidding processes for underground development
and processing equipment are well progressed;
-- Conversations are ongoing with a number of potential working
capital or vendor financing providers. AEX is in receipt of a
number of attractive proposals and is in a number of further
discussions, and will consider all options available before moving
forward.
-- Terms of Reference for Nalunaq's Environmental Impact
Assessment ("EIA") and Social Impact Assessment ("SIA") have been
accepted by the Greenlandic authorities and will shortly commence
public consultation. The final EIA, SIA and closure plan, as well
as a further public consultation, will commence in the first half
of 2021;
-- Continued progress in the assessment of flotation as an
alternative to leaching for second stage processing. Flotation
offers an attractive option with overall gold recovery rates of 91%
to 97%, and offering the potential for significant cost savings,
shorter time to implementation, and limited environmental risks.
Discussions with global smelters provide confidence in the
marketability of the gold concentrate produced by flotation and the
Corporation is now undergoing an advanced costing exercise;
Processing
Further to the announcement on 13 July 2020, the Corporation
continues to progress its assessment of flotation as a second stage
processing method at Nalunaq, and believes it may offer an
attractive alternative to cyanide leaching. Test results have
demonstrated overall gold recovery between 91% and 97% from gravity
and flotation, significantly above the expected recovery from first
stage processing alone (crushing, grinding, and gravity recovery)
and comparable to that achieved historically through leaching.
The Corporation has had preliminary discussions with a number of
global smelters, and as a result is confident that there is strong
market demand for the flotation gold concentrate that would be
produced from the tailings of the first stage gravity recovery
process at Nalunaq.
In addition, flotation has the potential to provide significant
cost advantages when compared to leaching, with lower upfront
capital and ongoing operating costs potentially allowing second
stage processing and higher gold recoveries to be achieved earlier
than would be achieved with leaching due to the lower complexity of
flotation. The Corporation is currently undertaking advanced
costing for the flotation circuit and is seeking firm bids for
process equipment. Several considerations such as implementation
time, increased gold recovery from the gravity-alone base case, and
environmental considerations will determine the selection of the
processing route.
The Corporation is also looking to implement a second testwork
program in the second half of 2021 to further test the
effectiveness of ore sorting for processing Nalunaq's gold bearing
material, which has the potential to complement the phase one and
two processing methods. This further testing will be conducted once
underground development at Nalunaq has commenced and a truly
representative sample of mined materials can be used for
testing.
Project Development and Contracting
AEX has successfully contracted parties for the delivery of key
infrastructure, including the new camp at Nalunaq and its
accompanying ancillary systems, including potable water, sewage
facilities and the main fuel storage area. The detailed engineering
of the camp facilities, as well as that of the processing plant,
the tailings facility and the underground mining development, is
also well progressed.
The Corporation has received proposals from underground
development contractors and is currently undertaking a technical
and commercial evaluation of the bids. The Corporation expects to
appoint the underground development contractor in early 2021.
Requests for proposals on long lead processing equipment have
been issued, including for the crushing, milling, gravity and
flotation systems with bids expected by the end of November 2020
and final contracts to be entered into in early 2021. The
Corporation also plans to issue the tender documents for tailings
dewatering and filtering circuits early in November with bids
expected by mid-December.
Permitting
Collaboration with the local authorities regarding all aspects
of project permitting has continued to be very positive, with the
Terms of Reference of the EIA and SIA having been reviewed and
accepted by the Greenlandic authorities. The public consultation on
these documents will be initiated shortly, with submission of the
full EIA, SIA, and closure plan expected in the first half of 2021.
AEX continues to work with the authorities to meet all of the
regulatory requirements for project implementation and
permitting.
Financing
Following the successful AIM Listing in July 2020, AEX is fully
funded for the development of the Nalunaq Project. As stated at the
time of the fundraise, the Corporation is also in discussion with
various parties regarding non-equity funding in the form of a
modest working capital facility or vendor financing of certain
equipment. Management has received a number of offers with
attractive terms for both working capital and vendor financing
facilities, and is in active discussions with a number of parties
in relation to this. With the Corporation fully funded for the
development of Nalunaq, Management is taking the time to assess all
funding options before moving forward in order to deliver an
optimal solution for the company and its shareholders.
Eldur Olafsson, CEO of AEX, commented:
"I am pleased to report on the significant progress that we have
made as a team over the past few months since the AIM listing. The
commitments we have made already to the project around the camp
facilities and the front-end engineering are crucial steps in
securing the project timeline.
"On the process engineering front, our team and third-party
experts are progressing well and are currently out for firm quotes
on long lead process equipment, which will ultimately allow us to
commit to the supply of key process components and continue
optimizing the project's schedule. Additionally, we have been able
to add value to the project by demonstrating that a flotation
circuit at Nalunaq is likely to be a very attractive and a
cost-effective solution to produce a highly marketable gold grade
concentrate, providing the Corporation with gold recovery in the
range of 91% - 97%.
"We continue to work diligently as a team on all of the project
workstreams as we look to bring Nalunaq into production and we look
forward to providing further updates to the market in due
course."
AEX cautions that this production decision has been taken before
the estimation of Mineral Reserves and is not based on a
feasibility study of these Mineral Reserves demonstrating economic
and technical viability resulting in significantly higher risk of
economic and technical failure.
Qualified Person and QA/QC
The scientific and technical information presented in this press
release has been approved by Dr. Jarrett Quinn, P.Eng. (OIQ
5018119), Principal Metallurgist at Jarrett Quinn Consultant Inc.,
and independent to AEX Gold Inc. for purposes of National
Instrument 43-101 - Standards of Disclosure for Mineral Projects
("NI 43-101"). Mr. Quinn is a member of L'Ordre des Ingénieurs du
Qu é bec and is a "qualified person" for purposes of NI 43-101.
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
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.
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