Amaroq Minerals Ltd. (AIM, TSXV, NASDAQ Iceland: AMRQ), an independent mine development corporation with a substantial land package of gold and strategic mineral assets across Southern Greenland, announces that it has successfully completed its 2024 exploration programmes across its portfolio in South Greenland.

Zak Mir spoke with Eddie Wyvill, Corporate Development of Amaroq Minerals. The company is on the verge of production. It has been a long seven-year journey, but finally, they see the light at the end of the tunnel.

Welcome to an exciting update from Amaroq, where they are on the brink of a significant milestone. Eddie Wyvill, head of corporate development, shares insights into the company’s journey and the challenges faced along the way.

The Road to Gold Production

After seven years of hard work, Amaroq is set to pour its first gold bar in Greenland. This moment represents the culmination of a long journey, and the excitement is palpable among the team. As Eddie puts it, “It’s the end of a seven-year journey to get there.” The company is not just talking about future production; they are ready to deliver.

Why Now?

The decision to move forward with production comes after significant preparation and investment. While many companies in the London market often delay actual production, Amaroq has taken concrete steps. The company has been mining since May and is currently testing equipment on site. A large shed has been erected, and the team is gearing up for the moment they can lift the first gold bar.

Understanding the Nalac Mine

The Nalac mine has a rich history, having produced 350,000 ounces of gold at an impressive grade of 15 grams per ton in the past. However, it shut down in 2014 due to previous operator issues. Amaroq’s team has drilled extensively over the past six years, uncovering a resource of 320,000 ounces at an astonishing 28 grams per ton, which is among the highest resources globally.

Production Plans

Amaroq is moving forward with a phased approach to production. The first phase involves building a 300-ton per day plant, with expectations of producing approximately 45,000 to 50,000 ounces of gold annually. This high-grade mining operation allows for lower costs, as less rock needs to be moved compared to lower-grade mines. The company aims to achieve low all-in sustaining costs while benefiting from favorable gold prices.

Challenges and Considerations

Building a mine in South Greenland comes with unique challenges, including logistical hurdles and the need for precise planning. Eddie emphasizes the importance of being prepared for potential issues, given the remote location of the mine. The team has learned to stockpile essential parts and equipment to avoid delays.

Key Factors for Success

Several factors have contributed to Amarok’s progress:

High-Grade Ore: The mine’s high-grade ore allows for better recovery rates and lower costs.
Existing Infrastructure: The Nalac mine has existing underground infrastructure, saving significant costs and time in development.
Strong Management Team: Eddie and his team bring extensive experience to the project, crucial for navigating the complexities of mining in remote locations.
Regulatory Environment: Operating in Greenland, a Danish sovereign country with a robust mining code, has facilitated a smoother permitting process compared to other regions.

Looking Ahead

As Amaroq prepares to ramp up production, the team remains focused on maintaining efficiency and managing costs. They are optimistic about the future, knowing that successful production could lead to substantial free cash flow and increased valuations in the gold mining sector.

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