Amaroq pours first gold at Nalunaq mine in Greenland
Thu Nov 28 2024
Amaroq Minerals (TSXV: AMRQ; LSE: AMRQ) has completed the first gold pour at its flagship Nalunaq gold mine in Greenland. The pour took place on Wednesday, following the Greenlandic government’s approval of the first stage of commissioning of the Nalunaq processing plant.
The initial gold pour at Nalunaq yielded 1.2 kg of gold after a 10-hour processing period.
“First gold pour at the Nalunaq mine signifies a major step on our journey, triggering initial cash flow generation,” said Amaroq CEO Eldur Olafsson. “As Nalunaq transitions from being a cost centre to a cash generator, our focus turns to resource, mine life extension and further exploration to unlock the full mineral potential of our Greenland portfolio.”
Amaroq’s pour sets it apart as among the few foreign mining companies to reach production in Greenland, a challenging country for mineral development due to limited infrastructure despite its enormous landmass and strict government regulations on natural resource development. The autonomous Danish territory banned uranium exploration and mining in 2021, a prohibition that also affects companies exploring for rare earths, since the metals often contain some amounts of uranium. Meanwhile, melting ice in polar regions is raising miners’ interest in Greenland, which hosts vast mineral riches, including the world’s largest rare earths deposit.
Weekly pour targeted
The company said it will continue to optimize the processing plant during the commissioning’s first stage and it aims to conduct a gold pour on a weekly basis. The second stage of commissioning, incorporating the flotation circuit, is due to complete in next year’s second quarter. Ramp-up to a steady state nameplate plant capacity of 260-300 tonnes per day of material between 12-16 grams gold per tonne is expected to take place in Q4 2025.
Amaroq plans to publish an updated resource estimate for Nalunaq in the first quarter of 2025. The past-producing Nalunaq mine was open between 2004 and 2013, producing more than 350,000 oz. of gold. Amaroq acquired the project in 2015 and has since expanded the resource base through drilling, incorporating a new geological model (Dolerite Dyke).
Shares of Amaroq Minerals rose 2.6% to $1.54 apiece by on Thursday afternoon in Toronto. The miner has a market capitalization of $520.7 million.
Source: https://www.northernminer.com/