AEX Gold (AEX) has a large land position in Greenland where it is exploring for gold. Its extensive licence holding includes an exploitation licence that hosts the previously operating high-grade underground Nalunaq Gold Mine. AEX is in-fill drilling to expand the resource with the aim of re-starting gold production. The company’s second field season is underway, with a resource update planned for the end of the year. AEX is also evaluating the potential of the underexplored district to host another Nalunaq-style deposit. AEX completed a C$1m placement in October.
AEX holds a 100% interest in the Nalunaq, Vagar and Tartoq licences in Greenland. The company’s primary focus is the advanced-stage Nalunaq property, which includes the Nalunaq Mine. Nalunaq was previously operated by Crew Development Corp between 2004 and 2009, and by Angel Mining between 2011 and 2013, producing 367koz of gold in total. Production peaked at 71koz in 2007. The deposit is exceptionally high grade, with the average historical head-grade of 15g/t Au, as evidenced by Crew shipping ore directly to Newfoundland and Spain for processing. The deposit has an existing NI 43-101 resource of 263koz at 18.7g/t Au, which AEX plans to expand and upgrade during Q418.
Greenland has highly prospective geology, with vast potential but the country is remote. AEX’s plan to re-start gold production will be assisted by the significant infrastructure on site including an access road from port to mine and an exploration camp. The existing underground processing plant remains in place and, although not currently operational, it could be either rehabilitated or provide the footprint for a new plant. AEX believes there are significant opportunities to materially improve on the mining operation that was run under the previous operator’s tenure.
AEX’s maiden field season in 2017 successfully provided key information to confirm the continuity and structure of the main gold-hosting vein at Nalunaq including a down-dip extension in the South Block. Previous operators undertook minimal exploration, yet AEX has determined that the Main Vein (MV) pinches and swells and can be identified at numerous locations within the Mountain at both depth and high up in the mountain. The 2018 programme has been completed and included almost 4000m of infill drilling. Subject to drilling results and the planned resource update (Q4), AEX plans to commence a PEA in late 2018.
AEX’s overarching strategy is to develop a potentially cash-generating asset at Nalunaq to fund exploration of the wider district. Historical data and recent work by AEX indicate that other licences it holds are prospective for the discovery of further Nalunaq-style, high-grade gold deposits. AEX has an exploration target of between 80koz and 1.2Moz in the Nalunaq area alone.