Amaroq Minerals Reports Strong Q3 2024, Nearing First Gold Production at Nalunaq
ReykjavÃk, 14 November 2024 (GLOBE NEWSWIRE) â Amaroq Minerals Ltd. (AIM, TSXV, NASDAQ Iceland: AMRQ), an independent mine development company with a significant landholding of gold and strategic mineral assets in Southern Greenland, has released its financial results for Q3 2024. All monetary amounts are expressed in Canadian dollars unless otherwise stated.
Key Highlights
Nalunaq Mine Development: Amaroq has made significant progress at the Nalunaq gold mine, with the installation of key processing plant components and the commencement of ore stockpiling. First gold production is anticipated this quarter.
Exploration Progress: The company's exploration programmes across its gold and strategic minerals portfolio have yielded promising results, with drilling completed at Nalunaq, Nanoq, Sava, Stendalen, and Josva.
Strong Financial Position: Amaroq boasts a group liquidity of $26.0 million, with working capital of $37.9 million for the gold business and $8.3 million for the Strategic Minerals business.
Debt Refinancing: The company has secured a substantial increase and extension of its debt facilities through a US$35 million revolving credit facility agreement with Landsbankinn.
Convertible Note Conversion: In October, Amaroq converted outstanding US$22.4 million convertible notes into new common shares, simplifying its capital structure and enhancing financial flexibility.
CEO Eldur Olafsson commented:
"We are on the brink of achieving first gold at Nalunaq, a crucial milestone that will initiate initial cash flow before ramping up to commercial production. During the third quarter, we made substantial strides at Nalunaq. The installation of key processing plant components was successful, and development within the mine, particularly in the Mountain Block, allowed for the first ore to be stockpiled for initial gold production. Our exploration programme at Nalunaq has furthered our understanding of the high-grade deposit, with a drilling campaign targeting the Target Block expansion and the 75 Vein. We expect to release results from this campaign and the initial Mountain Block ore drives soon. We are confident these results, coupled with the last two years' drilling data, will facilitate an updated Mineral Resource Estimate (MRE4) for Nalunaq early next year."
Operational Highlights
Permitting: Amaroq is working collaboratively with stakeholders to finalise the Impact Benefit Agreement (IBA), aiming for completion by year-end.
Contracting & Procurement: All essential contract packages for Nalunaq have been secured and delivered to site.
Engineering: Detail design and engineering of the processing plant are almost complete, with all packages issued and manufactured.
Construction: Construction at Nalunaq is nearing completion, with the plant pad earthworks and civil works finished, and the plant building structural steel and cladding almost complete. Key infrastructure like crushing circuit installations, underground workshop, and grinding circuit are nearing completion.
Mining: Amaroq is focused on optimising mine development in the Mountain Block, with ongoing ramp development, ore drive construction, and the commissioning of mining safety infrastructure. The company is also working to improve mining fleet availability and is reviewing the addition of further mining equipment to enhance operations.
Exploration: Amaroq has completed its 2024 exploration programme, including over 8,600 metres of core drilling across its gold and strategic metals portfolio. Results are expected in the coming months.
Nalunaq Project Key Performance Indicators (KPIs)
| Metric | Q2 2024 | Q3 2024 | Change |
|---|---|---|---|
| Total hours worked | 103,680 hours | 129,516 hours | +25% |
| Daily average of people working on site | 96 people | 107 people | +12% |
| Ratio of Greenlandic personnel | 51% | 43% | -8% |
Outlook
Nalunaq remains on track to deliver first gold in Q4 2024.
Exploration results from gold, copper, and nickel projects are expected to be released in intervals during Q4 2024 and Q1 2025.
An updated measured resource statement for the Nalunaq gold mine is scheduled for publication in Q1 2025.
Conference Call Details
Amaroq will host a conference call for analysts and investors on 15 November at 08:30 GMT BST, featuring a management presentation and Q&A session.
About Amaroq Minerals
Amaroq Minerals is committed to identifying, acquiring, exploring, and developing gold and strategic metal properties in South Greenland. Its primary asset is the 100% owned Nalunaq Gold mine, scheduled for production in late 2024. The company also holds a diverse portfolio of gold and strategic metal assets in Southern Greenland, including advanced exploration projects at Stendalen and the Sava Copper Belt, targeting copper, nickel, rare earths, and other minerals. Amaroq is incorporated under the Business Corporations Act (Ontario) and wholly owns Nalunaq A/S, incorporated under the Greenland Public Companies Act.
Disclaimer:
Neither TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
