Proactive Investors - Amaroq Minerals Ltd (TSX-V:AMRQ, AIM:AMRQ) took steps to accelerate mining at its Nalunaq gold project in Greenland during the first quarter of 2024.
The company raised approximately $74.52 million in February to accelerate mining of the Target (NYSE:TGT) Block at the Nalunaq mine to maintain the processing plant’s current nameplate capacity of 300 tonnes of ore processed per day in 2025.
Funds will also be used for the extension of the process plant to include a flotation circuit and dry-stack tailings facility.
“During the quarter we successfully completed a fundraise to accelerate mining at Nalunaq, whilst continuing to invest in our wider gold and strategic minerals portfolio in South Greenland,” Amaroq CEO Eldur Olafsson said in a statement.
The company has also been preparing for a “busy” 2024 field season, which will include a targeted mineral resource growth plans at Nalunaq and copper-nickel-cobalt drilling at Stendalen among other project development programs.
"I have been on site at Nalunaq now for some weeks, participating across all workstreams, and am highly encouraged by how operations are progressing,” Olafsson commented.
“The experience gained this winter, in our first year of year-round operations, has been invaluable to improving our understanding and planning for developing future projects in South Greenland. Construction works over this period were completed despite pack ice conditions, thanks to the foresight of the team who ensured that all the required equipment was mobilized to site ahead of time.”
Olafsson intends to provide the market with a further update on operations at Nalunaq during a June 13 Capital Markets event being held in Iceland, where the company will present visuals of the progress made to date and provide guidance on the cost to complete as well as the expected date of first gold production.
“In addition, we will present our plan for resource growth at Nalunaq, along with details of our expanded drilling programme at the Stendalen copper-nickel discovery,” he said.
"Finally, progress on new growth opportunities within South Greenland, including Strategic Minerals, Hydro and Servicing are progressing well and we look forward to providing an update to the market in due course, during or before the Capital Markets Day.”
The company exited the first quarter with group liquidity of $96.31 million in cash balances, undrawn revolving credit facilities, and undrawn revolving credit overrun facility less trade payables.
Amaroq's gold business capital was reported to be $78.2 million as of March 31, with around $17.47 million of this capital allocated for prepaid contractors specifically for the Nalunaq project.
Net loss during Q1 was $9.2 million.
Amaroq Minerals is an independent mine development company with a substantial land package of gold and strategic mineral assets in Southern Greenland.