AEX Gold makes 'significant progress' at Nalunaq

Greenland-focussed gold company AEX Gold updated the market on the development of the Nalunaq property in South Greenland on Monday, reporting that it remained on target and was making “significant progress”, with the award of key procurement packages.

The AIM-traded firm said it had selected its contractor for the underground development as part of the exploration programme, reporting that the two companies would form an “integrated project team”, and were currently finalising the contractual terms which would lead to mobilisation in the second half of 2021.

Major equipment to support the underground development programme had been procured, including jumbos, an underground haul truck, load haul dump loaders, and other underground service mobile equipment.

Mine underground services, such as for ventilation, dewatering, compressed air and power distribution, were in the tendering process and would be procured during the first half.

Long lead process equipment packages, including the crushing, grinding, gravity and tailings thickening circuits, were awarded in December and early January, and the balance of equipment would be procured during the first half, including the gold room equipment, power generators and pumping systems.

AEX said equipment performance and specifications would be “key” in finalising the project's assessments and permits.

All surface support equipment required to support the exploration programme, such as the 100 tonnes rough-terrain crane, fuel and water trucks, tractors and trailers, and others had also been procured.

With procurement activities progressing according to plan, the board said the company would continue de-risking project execution, and expected development of the asset to start in line with its previously-announced timelines.

The company said that in the next few weeks it would provide further project development updates at Nalunaq, further exploration results from the 2020 exploration season, as well as the upcoming exploration plan for 2021 in South Greenland.

“By locking down the key long lead items, supported by our engineering efforts, we have been able to continue de-risking the project's schedule,” said chief executive officer Eldur Olafsson.

“We remain committed to, and confident about, the development of Nalunaq and appreciate the strong support we are receiving from the project's various stakeholders, especially those in Greenland.”

At 0945 GMT, shares in AEX Gold were down 0.12% at 48.44p.