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AEX Gold continues to make good progress at the fully-funded Nalunaq Project in South Greenland

The company noted that significant work has been completed on key work streams since the group's successful AIM listing in London and fundraising in July 2020

Greenland
AEX Gold said the project remains on track, with workstreams progressing in line with management expectations

AEX Gold Inc. (LON:AEXG) (CVE:AEX), an independent gold company with a portfolio of gold licences in Greenland, has said it continues to make good progress at the fully-funded Nalunaq Project in South Greenland.

The company noted that significant work has been completed on key work streams since the group's successful AIM listing in London and fundraising in July 2020. The project remains on track, with workstreams progressing in line with management expectations, the group added.

READ: AEX Gold says infill drilling at Nalunaq in Greenland successfully intercepted Main Vein with some of the thickest intersections ever drilled

In a statement, Eldur Olafsson, CEO of AEX, commented: "I am pleased to report on the significant progress that we have made as a team over the past few months since the AIM listing. The commitments we have made already to the project around the camp facilities and the front-end engineering are crucial steps in securing the project timeline.

"On the process engineering front, our team and third-party experts are progressing well and are currently out for firm quotes on long lead process equipment, which will ultimately allow us to commit to the supply of key process components and continue optimizing the project's schedule. Additionally, we have been able to add value to the project by demonstrating that a flotation circuit at Nalunaq is likely to be a very attractive and a cost-effective solution to produce a highly marketable gold grade concentrate, providing the Corporation with gold recovery in the range of 91%-97%.

"We continue to work diligently as a team on all of the project workstreams as we look to bring Nalunaq into production and we look forward to providing further updates to the market in due course," he added.

AEX Gold spotlighted significant progress in the contracting of key infrastructure and long lead items, with camp and ancillary system providers now contracted and the bidding processes for underground development and processing equipment are well progressed.

The company also noted that conversations are ongoing with a number of potential working capital or vendor financing providers and said it is in receipt of a number of attractive proposals and is in a number of further discussions, and will consider all options available before moving forward.

The group pointed out that the Terms of Reference for Nalunaq's Environmental Impact Assessment (EIA) and Social Impact Assessment (SIA) have been accepted by the Greenlandic authorities and will shortly commence public consultation. The final EIA, SIA and closure plan, as well as a further public consultation, will commence in the first half of 2021, it added.

AEX Gold also highlighted continued progress in the assessment of flotation as an alternative to leaching for second stage processing. Flotation offers an attractive option with overall gold recovery rates of 91% to 97%, and offering the potential for significant cost savings, shorter time to implementation, and limited environmental risks.

Discussions with global smelters provide confidence in the marketability of the gold concentrate produced by flotation and the company is now undergoing an advanced costing exercise, it added.

Contact the author at jon.hopkins@proactiveinvestors.com

Quick facts: AEX Gold

Price: 48.5 GBX

AIM:AEXG
Market: AIM
Market Cap: £85.89 m
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