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AEX Gold updates on 2020 exploration drilling campaign at the Nalunaq property, says results complementary to those reported earlier

Drilling highlights of further results from the Valley Block infill drilling programme include 52.4 grams per ton gold over 0.55 meters (m) (hole AEX2008) and 5.9 g/t over 0.5m (hole AEX2009)

Gold nuggets
AEX said visible gold was observed in hole AEX2009

AEX Gold Inc. (LON:AEXG) (CVE:AEX) has provided an update to its 2020 exploration drilling campaign at the Nalunaq property in South Greenland, saying the results are complementary to those reported in its news release of October 21, 2020.

The London and Toronto-listed independent gold company, with a portfolio of gold licences in Greenland, said the drilling highlights of further results from the Valley Block infill drilling programme include 52.4 grams per ton (g/t) gold over 0.55 meters (m) from hole AEX2008 and 5.9 g/t over 0.5m from hole AEX2009, with visible gold observed in AEX2009.

READ: AEX Gold third quarter results demonstrate significant increase in activity across portfolio as it transitions towards development

AEX Gold said the results support the interpretation that Valley Block is a high-grade domain with a similar footprint to South Block. The objective of the drilling program is to further develop the company's understanding of the Valley Block area to the south-west of the deposit that is thought to be a parallel structure.

This area has previously demonstrated good continuity of the Main Vein through extensive drilling between 2017-2020 and returned high-grade intersections The 2020 infill drilling program was designed to understand the thickness and continuity of the Main Vein in the Valley Block.

In a statement, Eldur Olafsson, CEO of AEX Gold, commented: "We are very encouraged at the prospective nature of the Valley Block following the delivery of further interesting drilling results from this year's drilling campaign. With previous drilling suggesting that the Valley Block has a similar footprint to other historically mined blocks at Nalunaq as evidenced by the thickness and continuity of the vein, we believe that there is significant potential in the area given the mineralized structure is open at depth and along strike.

"We are confident that with the implementation of an underground development program in the area next year, supported by a surface drilling program, will enable the Corporation to enlarge the Valley Block area in 2021."

Drilling in 2020 was designed to improve confidence in the Valley Block ahead of planned exploration underground development in this area in late 2021/early 2022. The zone lies approximately 100 meters to the south of the South Block and has now been drilled to 30m or closer drill spacing over an area of approximately 200mby 250m. Valley Block remains open along strike to the south-west and is open at depth and up-dip.

The company said drilling at Nalunaq is primarily used to determine the presence of the Main Vein structure, with drilling generally under calling grades when compared to historical production due to the strong nugget effect observed at Nalunaq.

Contact the author at jon.hopkins@proactiveinvestors.com

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Price: 48.5 GBX

AIM:AEXG
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