AEX Gold upbeat on exploration results from Vagar

The AIM-traded firm said the programme consisted of mineral system modelling, high-resolution airborne geophysics, surface hyperspectral imagery, and reconnaissance sampling, designed to assess, define and prepare a number of key targets for more substantial exploration into 2022.

It said the results more than doubled the Vagar Ridge footprint, confirming its potential to be a multi-million ounce prospect.

As a result of the 2021 exploration results, AEX said it believed Vagar Ridge could host up to four orogenic gold veins, with new rock chip samples giving up to 86.7 grams of gold per tonne.

The programme included hyperspectral imaging, reconnaissance sampling and a 385 square kilometre high-resolution airborne magnetic survey, interpreted by SRK Consulting, which defined a “significant” deformation zone extending more than 50 kilometres across the licence and into AEX's neighbouring licences, highlighting five further high priority targets.

Vagar Ridge was historically sampled and drilled across two kilometres, discovering up to 2,533 grams of gold per tonne in vein material, and 13 metres at 70.1 grams per tonne from follow-up channel sampling and a core drilling programme.

It also identified granodiorite-hosted mineralisation of up to 14.4 grams of gold per tonne, opening up the potential for a large-scale Intrusion-related gold mineralisation.

AEX said the results also confirmed gold mineralisation within the host rock, verifying the presence of widespread granodiorite-hosted mineralisation, including 9.25 grams of gold per tonne in scree samples from a previously-unexplored northern target.

Ground-based hyperspectral imaging was proving to be an effective method for identifying hydrothermal alteration and altered granodiorite, the company explained, which is the preferential host of both orogenic and intrusion-related gold mineralisation in the Vagar licence.

“The 2021 results from our Vagar licence, just 25 kilometres north of Nalunaq, are extremely encouraging,” said chief executive officer Eldur Olafsson.

“It was always our belief that the 'Vagar Ridge' discovery had the potential to be significantly larger than the previously-mapped extent of two kilometres.

“With the conclusion of our exploration studies in 2021, this has materially increased in footprint with not only orogenic but also intrusion-related gold mineralisation potential.”

Olafsson explained that at Nalunaq, the mineral resource is hosted in one orogenic vein, while at Vagar Ridge, the firm’s studies suggested the potential for multiple mineralised veins as well as mineralised granodiorite host rock.

“If this proves to be the case, we believe Vagar Ridge has the potential to become a globally significant discovery.

“We aim to further test the size and prospectivity of this target during the 2022 season.

“Additionally, we have discovered five further prospects over the Vagar Licence with similar structures and alteration as seen at Vagar Ridge, and these will also be the focus of further exploration.”

At 1220 BST, shares in AEX Gold were flat in London at 44p.