AEX Gold posts positive drilling results from Nalunaq

Greenland-focussed AEX Gold updated the market on its 2020 exploration drilling campaign at the Nalunaq property in South Greenland on Wednesday, reporting that the results were complementary to the drilling results reported on 21 October.

The AIM-traded firm said the objective of the drilling was to further develop its understanding of the area to the south west of the deposit that was thought to be a parallel structure, now known as Valley Block.

It said the area had previously demonstrated good continuity of the main vein through extensive drilling between 2017 and 2020, and returned high-grade intersections.

The 2020 infill drilling programme was designed to understand the thickness and continuity of the main vein in the Valley Block.

AEX said further results from the infill drilling programme included 52.4 grams of gold per tonne over 0.55 meters at AEX2008, and 5.9 grams of gold per tonne over 0.5 meters at AEX2009.

Visible gold was observed in AEX2009, with the board adding that the results supported the interpretation that Valley Block was a “high-grade domain” with a similar footprint to South Block.

“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,” said chief executive officer Eldur Olafsson.

“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.”

At 0800 GMT, shares in AEX Gold were up 1.61% at 44.2p.