Amaroq Minerals Announces Significant Increase in Nalunaq Gold Resource
Why we think this is good
The RNS from Amaroq Minerals contains positive news about a 51% increase in the contained gold at the Nalunaq gold mine, as well as the inclusion of a maiden Indicated Mineral Resource category. This suggests the company's flagship asset is strengthening and has potential to extend its mine life. However, the RNS also notes that the increase in mine life is only 'potential', indicating some uncertainty remains. Overall, the news is positive for the company's prospects, but the valuation appears to be towards the higher end of the 52-week range, suggesting the market may have already priced in some of this good news.
Key Points
- 51% increase in overall contained gold at Nalunaq gold mine
- Inclusion of maiden Indicated Mineral Resource category
- Potential to increase mine life from ~6 years to ~10 years
Summary
Amaroq Minerals Ltd. has announced a significant 51% increase in overall contained gold at its Nalunaq gold mine in Greenland, to 157.6koz Indicated plus 326.3koz Inferred. The update also includes a maiden Indicated Mineral Resource category, supporting potential future conversion to Mineral Reserves and advancing the project's development. Based on the current estimate, the potential mine life has now extended to over 10 years, with substantial upside remaining. The company remains committed to ongoing exploration and development activities aimed at further expanding the resource.