TIDMAEXG
RNS Number : 2699W
AEX Gold Inc
21 December 2021
("AEX" or the "Company")
End of year update
TORONTO, ONTARIO - December 21 2021 - AEX Gold Inc. (AIM: AEXG;
TSXV: AEX), an independent gold company with a portfolio of
exploration licences in Greenland, is pleased to provide
shareholders with an end of year update.
Eldur Olafsson, CEO of AEX, commented:
"There is a lot of interest globally in the strategic potential
for Greenland's mineral resources, with AEX holding the largest
land package in Southern Greenland.
"We are very excited about the results from our drilling
campaign on the Valley Block, where the early signs continue to be
very encouraging. We are gaining a better understanding of the size
and potential of the Nalunaq project ahead of underground
development. Our commissioning of the Halyard 3rd party engineering
study, in conjunction with the drilling results from the programme
this year, will allow us to progress Nalunaq towards being
pre-feasibility level study stage, providing an optimal plan for
the Nalunaq project, thus increasing future funding
optionality.
"At the same time we are progressing our understanding of the
strategic mineral potential of our unrivalled acreage in Greenland,
which we believe will offer the Company significant value and play
a major role in supporting carbon neutrality globally.
"Given the interest in Greenland, the encouraging early signs
from the drilling and the clarity from Halyard, in addition to
being well capitalised for our near to medium term activities, the
board considers there to be a rich pool of funding options
available to extract the greatest value from the company's asset
base."
Highlights
Nalunaq Drilling:
-- Completed the 2021 Nalunaq core drilling programme, designed
to increase gold resource and therefore funding optionality. Early
results validate our expectations with:
o 51 drillholes completed, predominantly on Valley Block. Early
analysis already confirmed 29 Main Vein intersections, with
additional 10 possible intersections - this is an increase in
success rates from historical drilling campaigns supporting AEX's
Dolerite dyke structural model, providing a clear explanation for
the location of high-grade gold features within the deposit;
o Potential resource increase at Valley Block now significantly
de-risked, supporting further planned Nalunaq drilling in 2022;
and
o Full 2021 drilling programme assay results expected to be
announced starting in early Q1 2022.
Nalunaq Engineering Study:
-- Halyard Inc. ("Halyard") 3(rd) party engineering study,
focussed on the main components of the Nalunaq Development cost
completed. Halyard commissioned to quantify the cost overrun
announced in February:
o Study concluded advanced engineering to Feasibility Study
level based on the NI43-101 requirements;
o Approximately C$150m to $200m has been invested in the Nalunaq
Project by previous owners. The total additional cost for the plant
and surface infrastructure has been estimated by Halyard at
approximately GBP58 million (C$111.8 million), of which GBP7
million (C$12.2 million) invested could be re-used in the
future;
o Halyard's estimates reflect the impact of: (i) sector-wide
cost inflation resulting from increased global mining activity and
COVID-19; and, (ii) changes in buildings and surface infrastructure
estimates;
o Existing cash reserves circa GBP21m (C$37.9m) as was reported
on 24(th) November 2021 in third quarter results. The available
liquidity will be used to define and expand the Nalunaq Valley
Block resource given the positive early indications from the 2021
drilling campaign. Funding sources for the remaining project capex
will be continually assessed and the market updated
accordingly.
o Development costs already incurred include the temporary camp,
which has been installed and is functioning as an all-weather
exploration camp, around 60% of the process plant equipment, which
has been delivered and is in storage, along with the surface mobile
equipment; and
o A revised mine plan will be driven by drilling results in the
Valley Block, which potentially offers the Company better vein
continuity and a more optimized mine plan with the potential for a
new portal mitigating the bulkhead issue completely.
-- Final report on the condition of the bulkhead is pending.
This will detail the cost of any remediation required ahead of
safely re-entering the historical mine:
-- AEX does not anticipate a significant cost for this work and
expects the time required for any potential remediation work to be
in the region of c.6-12 months.
Draft Social Impact Assessment (SIA) is largely in its final
form.
Regional exploration:
-- Successfully completed geological sampling, structural
mapping and geophysical survey on eight projects within our wider
portfolio targeting gold and energy transition minerals including
PGM, copper, REMs and graphite.
-- Initial portfolio exploration results expected to start early
in Q1 2022 and will guide our future exploration strategy.
Nalunaq 2021 Drill Season Completed
On the 9 December 2021, AEX successfully completed its 2021 core
drilling programme at Nalunaq. Drilling at Nalunaq continued right
through to December despite the onset of winter, thanks to the
all-weather 50-person camp and logistics put in place by AEX over
the last seven months. The objective of this drilling campaign has
been to increase the resource at Nalunaq and, as a result, increase
the funding optionality available to the project.
In total the Company has drilled 51 drillholes using four drill
rigs. Drilling has predominantly targeted infilling the newly
defined Valley Block. Valley Block is considered to be a lateral
extension of the mineralization historically mined by Crew Gold
Corporation and Angel Mining Plc, and this year's drilling is
expected to provide further confidence in the identification of
this new mining block. It is the Company's intention that this new
resource area will become the focus of the initial mining on the
asset and will provide feed to the process plant while further
exploration and development in other areas of the historical mine
and extensions of the deposit is progressed.
Drilling also targeted the down-dip extension of the South Block
and the identification of a possible additional target to the south
of Valley Block.
Drilling this year has so far delivered 29 confirmed Main Vein
intersections plus a further 10 possible intersections, providing
strong support for the Corporations geological models and
interpretations. The remaining 12 holes are currently being
evaluated to improve understanding of the geological and structural
control to the Main Vein. While sample results are awaited (all
these drillholes are either with or in transit to ALS Geochemistry
in Ireland for assaying), there are early indications that the
drilling corroborates the new Dolerite dyke model which aims to
explain the geological controls on the high grades zones of the
deposit. This growth in geological understanding will allow the
Company to further refine targets and guide future resource
drilling.
The full assay results of the drilling programme are expected to
be announced in Q1 2022.
Halyard Study
Halyard has completed its 3(rd) party engineering study,
focussed on the Nalunaq Development cost that includes the process
plant, mobile equipment, surface infrastructure, permanent camp and
associated logistics and engineering. The study concluded the
advanced engineering of the overall project is now to Feasibility
Study level based on the Canadian Standards of Disclosure for
Mineral Project NI43-101 requirements.
It was confirmed during the detailed engineering review that the
process design philosophy met the necessary criteria for processing
the Nalunaq ore body. Consequently, this part of the process has
been left unchanged and comprises of crushing, grinding,
classification, gravity recovery, flotation, concentrate and
tailings dewatering.
The opportunity was taken during the course of the study to
optimize the strategy for implementing the Nalunaq development
project; consequently almost all components will be prefabricated
prior to being sent to the site;
The total revised cost for plant and surface infrastructure has
been estimated by Halyard at GBP58 million (C$111.8 million) of
which GBP7 million (C$12.2 million) has already been spent. This
does not include mining costs.
On the AIM listing the Nalunaq surface and underground
exploration cost was estimated at GBP4.1 million. In addition,
there were mining development costs associated with the ramp-up
which will be further defined in due course. With the discovery of
the Valley Block and further clarity around the resources from the
Dolerite dyke model our aim is to minimise upfront development cost
and maximise efficiency in our mining plan.
A revised mine plan, required due to the access restrictions
imposed by the bulkhead, were not addressed in this study as the
encouraging drill results obtained from the Valley Block may result
in better vein continuity and a more optimized mine plan. The
revised mine plan may require a new portal into the Valley Block
that will mitigate the risk associated with the bulkhead
completely.
The 2021 drilling campaign is expected to result in a further
expansion of the Valley Block and improved confidence in the
increased size and classification of the resource.
We believe that the Valley Block can be developed via a new
portal to increase the size and definition of the Nalunaq Mineral
Resource.
Social and Environmental Impact Assessments
The draft Social Impact Assessment ("SIA") is largely in its
final form. The Company continues to have constructive dialogue
with the Government and its advisors over finalising the draft
Environmental Impact Assessment ("EIA").
The Public Consultation programme, which is undertaken
simultaneously for both the SIA and EIA, will commence once the EIA
is in final form and we are able to submit the draft documents to
the Government for their prior approval; we will provide a further
update in due course.
Regional Exploration
AEX successfully completed geological sampling, structural
mapping and geophysical surveys on eight other projects within the
wider AEX portfolio during the field season, including:
1. Vagar Ridge (Au) - 385 km(2) airborne geophysics, surface
hyperspectral imagery and drill targeting and preparation work for
2022 field activities;
2. Tartoq (Au) - 84 km(2) detailed airborne geophysics;
3. Nanoq (Au, Cu) - detailed structural mapping and sampling as well as drill targeting;
4. Sava (Fe, Cu, Au, Zn, REE) - geological mapping, surface
sampling, ionic geochemistry and 446 km(2) airborne geophysics;
5. Saqqaa (PGMs) - ground geophysics and additional surface sampling;
6. Nørrearm (Graphite) - metallurgical sampling;
7. Eagle's Nest (Au) - geological reconnaissance sampling;
8. Jokum's Shear (Cu) - geological reconnaissance sampling
AEX will report the results of these programmes in Q1 2022, with
targeted commodities such as gold, PGM, copper, rare earths and
graphite, being strategically important and essential in the global
energy transition.
Incorporating the 2021 results, AEX aims to high grade at least
four drill-ready targets for the forward exploration programme in
the coming exploration seasons.
Enquiries:
AEX Gold Inc.
Eldur Olafsson, Director and CEO
+354 665 2003
eo@aexgold.com
Eddie Wyvill, Investor Relations
+44 (0) 7713 126727
ew@aexgold.com
Stifel Nicolaus Europe Limited (Nominated Adviser and
Broker)
Callum Stewart
Simon Mensley
Ashton Clanfield
+44 (0) 20 7710 7600
Panmure Gordon (UK) Limited (Joint Broker)
John Prior
Hugh Rich
Dougie Mcleod
+44 (0) 20 7886 2500
Camarco (Financial PR)
Billy Clegg
Emily Hall
Lily Pettifar
+44 (0) 20 3757 4980
For Company updates:
Follow @AexGold on Twitter
Follow AEX Gold Inc. on LinkedIn
Further Information:
About AEX
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% interest in the
Nalunaq Project, an advanced exploration stage property with an
exploitation license including the previously operating Nalunaq
gold mine. The Company has a portfolio of gold assets covering
4,090km(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 Company's current expectations regarding future events and the
future growth of the Company'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 Company'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 Company'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 Company and speaks
only as of the date on which it is made. Except as required by
applicable securities laws, the Company 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
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No. 596/2014 on
Market Abuse ("UK MAR"), as it forms part of UK domestic law by
virtue of the European Union (Withdrawal) Act 2018, and Regulation
(EU) No. 596/2014 on Market Abuse ("EU MAR").
Qualified Person Statement
The technical information presented in this press release has
been approved by James Gilbertson CGeol, VP Exploration for AEX
Gold and a Chartered Geologist with the Geological Society of
London, and as such a Qualified Person as defined by NI 43-101
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