Q3 2023 Financial Results

TORONTO, ONTARIO, Nov. 14, 2023 (GLOBE NEWSWIRE) -- (“Amaroq” or the “Corporation” or the “Company”)

Q3 2023 Financial Results

Successful commencement of mine rehabilitation activities at Nalunaq

TORONTO, ONTARIO – 14 November 2023 - Amaroq Minerals Ltd. (AIM, TSXV, NASDAQ Iceland: AMRQ), an independent mine development company with a substantial land package of gold and strategic mineral assets in Southern Greenland, is pleased to present its Q3 2023 Financial Results.

Q3 2023 Corporate Highlights

• Amaroq group liquidity of $115 million (cash (gold and strategic minerals businesses), convert, loan and overrun facility).
• Gold business working capital of $59 million as of September 30, 2023 ($41 million as at June 30, 2023).
• The Strategic minerals business has available liquidity of $22.5 million ($29.3 million as at June 30, 2023).
• Closing of US$50.9 million senior secured debt funding package, enabling the staged transition production at the Nalunaq gold project.
• Amaroq successfully completed the transfer of its Icelandic listing from Nasdaq First North Growth Market to the Nasdaq Main Market in September 2023
• Completion of most successful drilling program at Nalunaq to date, underpinning potential for faster resource growth in Nalunaq.
• Significant expansion of mineral license holding in South Greenland following the award of two additional mineral exploration licences.
  
  
  
  

Q3 2023 Operational Highlights

• Contracting: At the end of Q3 2023, contracting for the processing plant, infrastructure, and construction, as well as underground mine rehabilitation and mining, was 75% complete.
• Engineering: Processing plant engineering was 63% complete at the end of Q3 2023, accounting for some additional scope and optimisation procedures within the core engineering workstreams.
• Construction: Process Plant pad construction neared completion. The Nalunaq camp expansion and upgrade was well underway with the assembly of an additional 30-person, winterized accommodation block completed. Components for the processing plant are arriving to site on schedule.
• Mining: Procurement of all required equipment and machinery for mine rehabilitation was completed. Mine rehabilitation works commenced in October 2023.
• Nalunaq Exploration: The 1,735m resource drilling programme at the Mountain Block extension was completed. This included the highest ever grade of a Main Vein intercept at 182g/t Au over 0.69m. Drilling confirmed the existence of the parallel ‘75 Vein’ in the hanging wall, with grades of up to 256g/t Au over 0.5m.
• Strategic Minerals: Amaroq completed the scout drilling programme across two targets at the Sava Copper Belt and commenced the Stendalen stratigraphic drilling.

Nalunaq Project KPIs

• 33, 684 total hours worked during Q3 2023.
• Daily average of 32 people working on site at Nalunaq over the period.
• Zero Lost Time Injuries in year-to-date 2023.
• Committed to ensuring local representation among the workforce, with the ratio of Greenlandic personnel at Nalunaq standing at 59% in year-to-date 2023.
• A further update on progress at Nalunaq will be provided later in 2023.
  
  
  
  

Q4 2023 Outlook

• Permitting: The public consultation for the Environmental Impact Assessment (EIA) and Social Impact Assessment (SIA) for Nalunaq is expected to take place in Q4 2023.
• Contracting: Key contracting processes are expected to be 100% completed following signing of the EPCM contract by the end of Q4 2023.
• Engineering: Overall engineering for the processing plant is expected to be 85% complete by the end of Q4 2023.
• Construction: Targeting 50% overall completion by the end of Q4 2023, with construction of the processing plant’s main building to commence in Q4 2023.
• Mine Rehabilitation: Rehabilitation of the Nalunaq Mine access portals expected to be complete at the 300 level and 450 level, alongside rehabilitation of the access ramp for 720 level in Q4 2023.
• Support Infrastructure: Expansion and upgrade of the 50-person Nalunaq base camp to 88-person expected to be completed by the end of 2023.
• Nalunaq Exploration: Further results from two additional sampled intersections at the 75 Vein expected in Q4 2023.
• Strategic Minerals: Results from the Sava drilling programme and initial results from the Stendalen stratigraphic drilling are expected in Q4 2023 or Q1 2024.

Eldur Olafsson, CEO of Amaroq, commented:

“We continue to make solid progress with our development workplan to bring Nalunaq into production successfully and sustainably. Post period, and following the finalization of two key services contracts, we commenced mine rehabilitation activities at the project, and I look forward to providing a fuller update on Nalunaq later this year.

We remain focused on exploration across our strategic minerals targets, and during the quarter we completed a scout drilling programme across two key targets across the Sava Copper Belt and commenced a stratigraphic drilling programme at the Stendalen nickel-copper target, with results expected in Q4.”

Update on Q3 2023 Operational Workplan

Nalunaq Development Workplan

• Nalunaq
  • Following the successful mobilisation of equipment and personnel, mine rehabilitation works are set to commence at Nalunaq in Q4 2023, including the installation of all required mining services within the Mountain Block, ahead of initial mining commencing next year.
  • Following the finalisation of key contracts and procurement of all major long lead items for the processing plant, the Company plans to commence the construction of the Processing Plant main building in Q4 2023.
  • The expansion and upgrade of the Nalunaq all-weather camp is expected to be completed by the end of 2023.
  • The Company intends to provide a further update on the Nalunaq Project Development programme later in 2023.
    
    
    
    

Gold Exploration Projects

• Nalunaq
  • Results from the completed Mountain Block drilling recorded the Company's highest grade Main Vein intercept ever reported at 182g/t Au over 0.69m during a programme to explore the up-dip extension of the Mountain Block.
  • New discovery of several Hanging Wall Veins intersected, including 256g/t Au over 0.5m in the 75m Vein, showing similar thickness to Main Vein, providing potential for further minable bodies beyond the Main Vein.
  • Amaroq further expects results from two additional sampled intersections at the 75 Vein, which are currently being processed by the laboratory.
  • Further underground exploration is scheduled for Q4 2023 aimed at opening up a new high grade mining extension from the Target Block, which is located next to the Mountain Block.
    
    
    
    
• Nanoq
  
  
  
  
  • ALS Goldspot conducted a full review of the 2022 geophysical survey results to further define existing and new gold targets, with further surface exploration and site preparation for initial drilling to take place in 2024.

• Vagar Ridge
  • Amaroq continues to progress the construction of a robust geological and mineralisation model to inform future exploration, including additional data collection and review and further geological mapping and sampling.

Strategic Minerals Projects (Amaroq 51%)

• Sava Copper Belt (Sava/North Sava)
  • Scout drilling across the two key targets in Sava, one assessing a copper-molybdenum porphyry style and the other a copper-gold epithermal style target, continued through the period and where completed with all core transported to Nalunaq for logging and sampling. Results expected during Q4 2023.
  • The Company additionally plans to conduct a Gravity geophysical survey over the Sava licence area to ensure full coverage of the prospective copper belt.
    
    
    
    
• Stendalen
  
  
  
  
  • Following the review and identification of a number of geophysical targets, a stratigraphic drilling programme commenced at Stendalen during the quarter aimed at intersecting both potential Platinum Group Metals and nickel-copper sulphide mineralisation at depth.
  • In order to realise this hole, a remote camp operation has been set up on the bay leading to Stendalen. Drilling of this hole is expected to be completed during Q4.
    
    
    
    
• Kobberminebugt
  
  
  
  
  • Following the completion of a high-resolution MT survey over the entire licence, results are expected in Q4 2023.

• Paatasoq
  • Following the reconnaissance exploration conducted over licence area to assess REE and critical metal potential with the assistance of the University of St Andrews, full results and interpretations are expected in Q4 2023.

Amaroq Financial Results

The following selected financial data is extracted from the Financial Statements for the three months ended September 30, 2023.

Financial Results

Financial Position

Ends

Enquiries:  

Amaroq Minerals Ltd.  

Eldur Olafsson, Executive Director and CEO  

  

  

 Eddie Wyvill, Corporate Development

+44 (0)7713 126727  

  

  

Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)  

Callum Stewart  

Varun Talwar  

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  

  

Landsbankinn hf. (Listing Agent)  

Ellert Arnarson  

 

Camarco (Financial PR)  

Billy Clegg  

Elfie Kent  

Charlie Dingwall  

+44 (0) 20 3757 4980  

For Company updates:  

Follow @Amaroq_minerals on Twitter  

Follow Amaroq Minerals Inc. on LinkedIn  

Further Information:  

About Amaroq Minerals  

Amaroq Minerals' principal business objectives are the identification, acquisition, exploration, and development of gold and strategic metal properties in Greenland. The Company's principal asset is a 100% interest in the Nalunaq Project, a development stage property with an exploitation license including the previously operating Nalunaq gold mine. The Corporation has a portfolio of gold and strategic metal assets in Southern Greenland covering the two known gold belts in the region. Amaroq Minerals is incorporated under the Canada Business Corporations Act and wholly owns Nalunaq A/S, incorporated under the Greenland Public Companies Act.

Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the Company's current expectations regarding future events, performance and results and speak only as of the date of this release.

Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to: material adverse changes, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration, refurbishment, development or mining programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations.

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.

Glossary

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 Amaroq Minerals and a Chartered Geologist with the Geological Society of London, and as such a Qualified Person as defined by NI 43-101.

Amaroq Minerals Ltd.

UNAUDITED CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and nine months ended September 30, 2023

The attached financial statements have been prepared by Management of Amaroq Minerals Ltd. and have not been reviewed by the auditor

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.