TIDMAEXG
RNS Number : 3927G
AEX Gold Inc
25 November 2020
("AEX" or the "Corporation")
AEX Drills 52.4 g/t Gold Over 0.55 m in the Valley Block at
Nalunaq
TORONTO, ONTARIO - November 25, 2020 - AEX Gold Inc. (AIM: AEXG;
TSXV: AEX), an independent gold company with a portfolio of gold
licences in Greenland, announces an update to its 2020 exploration
drilling campaign at its Nalunaq property in South Greenland. The
results are complementary to the drilling results reported in a
previous press release on October 21, 2020.
References to figures and tables relate to the version visible
in PDF format on the website by clicking the link below:
https://www.aexgold.com/investors/regulatory-news-alerts/#tsx-news
Objective of drilling program
-- To further develop the Company's understanding of the area to
the south west of the deposit that is thought to be a parallel
structure now known as "Valley Block".
-- This area has previously demonstrated good continuity of the
Main Vein ("MV") 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.
Drilling result highlights
-- Further results from the Valley Block infill drilling
programme include 52.4 g/t over 0.55 meters (AEX2008) and 5.9 g/t
over 0.5 meters (AEX2009).
-- Visible Gold observed in AEX2009.
-- These results support the interpretation that Valley Block is
a high-grade domain with a similar footprint to South Block.
Eldur Olafsson, CEO of AEX, 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."
Nalunaq
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. This zone lies
approximately 100 meters to the south of the South Block (Figure 1)
and has now been drilled to 30 meters or closer drill spacing over
an area of approximately 200 meters by 250 meters. Valley Block
remains open along strike to the south west and is open at depth
and up-dip.
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 (see section below). Fundamental
sampling error can also be high at Nalunaq due to geological
heterogeneity resulting in the potential for with coarse gold being
present in the unsampled half drill core, which remains in the core
box.
Highlights from the second batch of assay results from the 2020
field season are shown in Table 1, with the location of the
drillholes shown in Table 2.
Figure 1 Preliminary outline of the "Valley Block". 2020
drillhole traces shown in red.
Updated 2020 Drilling Assay Results
Table 1 Summary of significant Main Vein intersections from the
second sample batch sent from the 2020 drilling programme.
Intervals provided as true widths. A cut-off of 0.05 g/t Au has
been used to report Main Vein intersections. Assay results from
hole AEX2006 are pending.
Hole ID From To (m) Interval True Width Au (g/t) Main Vein Description
(m) (m) (m) (True Width)
AEX1909(#) No significant intercept - MV may have been displaced
by faulting
------------------------------------------------------------------------------------
AEX2001(#) No significant intercept - MV may have been displaced
by faulting
------------------------------------------------------------------------------------
3 cm quartz vein in
1 m zone of moderate
AEX2002* 173.30 174.80 1.50 1.36 4.2 calc-silicate alteration
------- ------- --------- ----------- --------- -------------------------------
1.2 m quartz vein
with abundant diopside
inclusions and fine-grained
visible gold at the
AEX2003* 161.90 163.25 1.35 1.30 6.6 footwall contact
------- ------- --------- ----------- --------- -------------------------------
AEX2004 No significant intercept - granite dyke at MV target
depth
------------------------------------------------------------------------------------
AEX2005 No significant intercept - hole did not reach MV target
depth
------------------------------------------------------------------------------------
5 cm quartz vein in
zone of intense calc-silicate
AEX2006 160.70 161.60 0.90 0.82 TBD chlorite alteration
------- ------- --------- ----------- --------- -------------------------------
50 cm laminated quartz
vein with diopside
stringers and trace
AEX2007 141.60 142.25 0.65 0.64 2.02 pyrite and arsenopyrite
------- ------- --------- ----------- --------- -------------------------------
Hanging wall calc-silicate
AEX2008 150.55 151.05 0.50 0.48 0.66 alteration zone
------- ------- --------- ----------- --------- -------------------------------
5 cm quartz vein with
strong calc-silicate
alteration at the
AEX2008 151.05 151.6 0.55 0.53 52.36 footwall contact
------- ------- --------- ----------- --------- -------------------------------
Hanging Wall calc-silicate
AEX2009 169.80 170.3 0.50 0.45 0.35 alteration zone
------- ------- --------- ----------- --------- -------------------------------
25 cm quartz vein
with abundant diopside
and wall rock inclusions
- Visible Gold at
AEX2009 170.30 170.80 0.50 0.45 5.9 the footwall contact
------- ------- --------- ----------- --------- -------------------------------
Footwall Vein - possible
bifurcation of the
AEX2009 173.45 173.95 0.50 0.35 1.41 Main Vein
------- ------- --------- ----------- --------- -------------------------------
Footwall alteration
AEX2009 173.95 174.45 0.50 0.35 0.06 zone
------- ------- --------- ----------- --------- -------------------------------
AEX2010 Hole has not reached target depth and will be completed
in 2021
------------------------------------------------------------------------------------
(#) Some samples have yet to be assayed and will be notified if
significant
* Disclosed previously on 21 October 2020
MV assay results pending for hole AEX2006
Table 2 Summary of 2020 drill holes (Projection WGS 84 UTM zone
23N). The upper part of hole AEX1909 was drilled in 2019.
Hole ID X Y Z Core Diameter Dip Azimuth Total Depth
(m)
AEX1909 509426 6691201 236 NQ 85 315 287.50
------- -------- ---- -------------- ---- -------- ------------
AEX2001 509426 6691201 236 NQ 55 315 215.70
------- -------- ---- -------------- ---- -------- ------------
AEX2002 509113 6690844 307 NQ 80 315 231.00
------- -------- ---- -------------- ---- -------- ------------
AEX2003 509113 6690844 307 NQ 70 315 219.00
------- -------- ---- -------------- ---- -------- ------------
AEX2004 509113 6690844 307 NQ 60 315 200.80
------- -------- ---- -------------- ---- -------- ------------
AEX2005 509127 6690868 306 NQ 80 315 148.50
------- -------- ---- -------------- ---- -------- ------------
AEX2006 509133 6690904 304 NQ 85 315 216.00
------- -------- ---- -------------- ---- -------- ------------
AEX2007 509133 6690904 304 NQ 70 315 213.00
------- -------- ---- -------------- ---- -------- ------------
AEX2008 509127 6690868 306 NQ 62 315 175.30
------- -------- ---- -------------- ---- -------- ------------
AEX2009 509127 6690868 306 NQ 85 315 321.00
------- -------- ---- -------------- ---- -------- ------------
AEX2010 509499 6691504 240 NQ 80 315 100.50
------- -------- ---- -------------- ---- -------- ------------
A note on drilling at Nalunaq and the nugget effect - "Drill for
structure, drift for grade."
The high variability of gold grades in high-nugget deposits such
as Nalunaq means accurate estimation of grade from widely spaced
drilling data alone is challenging. Historic operators of Nalunaq
defined Mineral Resources based predominantly on underground
channel sampling from development drives, and drilling was used as
a guide to confirm the presence of Main Vein. A comparison of all
past surface drilling in mined areas with block model grades
(estimated using underground channel samples which reconcile with
production) suggests that surface drilling typically under-calls
gold grade (Figure 2). This phenomenon is not unique to Nalunaq,
and AEX emphasises that whilst drilling is useful for identifying
the mineralised structure, it may not be a reliable indicator of
grade. With this in mind, the 2020 drilling program has been
successful, locating the Main Vein structure in six holes.
Ultimately, underground exploration development will be required in
order to estimate grade and Mineral Resources above the Inferred
category.
Figure 2 Main vein intercepts in historical drilling were
compared to the nearest block in the official 2017 SRK block model
(both datasets diluted to 1.5 meters mining width). Grades are
plotted on the above scatter plot. Points highlighted in the red
box represent historical drilling intervals that underreported the
production grades. Dashed lines show 5 g/t Au cut-off, which was
the historical mining cut-off grade. Note log scale.
Selective sampling of historic cores may have missed the Main
Vein structure where there is subtle gold-bearing alteration and no
well-developed quartz vein. To ensure all potential mineralisation
is captured in the 2020 campaign, the entire length of the drill
hole was half-core sampled. Samples were also assayed for 33
elements by ICP-AES with four-acid digestion to better understand
the geochemistry of mineralised intersections. This dataset will
support a future study investigating geochemical indicators for
potential high-grade domains. Holes AEX1703 and AEX1707 from the
2017 drilling campaign were also re-examined and sampled over their
entire lengths, although assays are pending.
Sampling and QAQC Disclosure
Drill core was cut in half using a diamond blade core saw. Where
a bottom of hole orientation line was present, the cut line was
marked approximately 5 degrees off axis, and the right-hand side of
the core was sampled. Drill core samples were placed into calico or
thick polymer bags with a sample ticket, weighed, and assigned a
sample ID. Each sample was sealed with a security tag, which
assigns a unique security ID to the sample. Samples were
transported from site to an accredited laboratory for analysis;
priority samples were sent to SGS Burnaby, BC, Canada and all
remaining samples were sent to SGS Sudbury, ON, Canada.
Sample preparation scheme PRP94 was used on all samples, with
the addition of a rotary split. This involves crushing to 75%
passing 2 mm, rotary split off 1 kg, and pulverizing the split to
better than 85% passing 75 microns. Samples were then analysed by
50g fire assay with ICP-AES finish, technique GE_FAI50V5 which has
a detection limit of 0.001 ppm Au. Samples containing visible gold
and samples considered to be the Main Vein were assayed with
screen-metallics fire assay technique GO FAS50M which has a
detection limit of 0.01 ppm Au. This involves screening 1 kg of
pulverised sample to 106 um followed by 50 g fire assay of the
entire plus fraction and duplicate analysis of the minus fraction.
In addition, all samples were assayed with a Four-Acid Digestion /
33 element ICP-AES package, technique GE_ICP40Q12.
The QA/QC program of AEX consists of the systematic insertion of
certified standards of known gold content, and blanks, at a rate of
1 in 20 or 5% per QAQC type. In addition, SGS insert blanks and
standards into the analytical process. The average sample mass was
2.08 kg.
Qualified Person Statement
The technical information presented in this press release has
been approved by James Gilbertson CGeol, who is a full-time
employee and Managing Director of SRK Exploration Services Limited
and a Chartered Geologist with the Geological Society of London,
and as such a Qualified Person as defined by NI 43-101.
Enquiries:
AEX Gold Inc.
George Fowlie, Director and CFO 1-416-587-9801
gf@aexgold.com
Eldur Olafsson, Director and CEO +354 665 2003
eo@aexgold.com
Stifel Nicolaus Europe Limited (Nominated +44 (0) 20 7710
Adviser and Broker) 7600
Callum Stewart
Simon Mensley
Ashton Clanfield
+44 (0) 20 3757
Camarco (Financial PR) 4980
Gordon Poole
Nick Hennis
Emily Hall
Further Information:
About AEX
AEX's principal business objectives are the identification,
acquisition, exploration and development of gold properties in
Greenland. The Corporation's principal asset is a 100% interest in
the Nalunaq Project, an advanced exploration stage property with an
exploitation license including the previously operating Nalunaq
gold mine. The Corporation has a portfolio of gold assets covering
3,870 km(2) , the largest portfolio of gold assets in Southern
Greenland covering the two known gold belts in the region. AEX is
incorporated under the Canada Business Corporations Act and wholly
owns Nalunaq A/S, incorporated under the Greenland Public Companies
Act.
Forward-Looking Information
This press release contains forward-looking information within
the meaning of applicable securities legislation, which reflects
the Corporation's current expectations regarding future events and
the future growth of the Corporation's business. In this press
release there is forward-looking information based on a number of
assumptions and subject to a number of risks and uncertainties,
many of which are beyond the Corporation's control, that could
cause actual results and events to differ materially from those
that are disclosed in or implied by such forward-looking
information. Such risks and uncertainties include, but are not
limited to the factors discussed under "Risk Factors" in the Final
Prospectus available under the Corporation's profile on SEDAR at
www.sedar.com. Any forward-looking information included in this
press release is based only on information currently available to
the Corporation and speaks only as of the date on which it is made.
Except as required by applicable securities laws, the Corporation
assumes no obligation to update or revise any forward-looking
information to reflect new circumstances or events. No securities
regulatory authority has either approved or disapproved of the
contents of this press release. Neither TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
Inside Information
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No. 596/2014, and is
disclosed in accordance with the Corporation's obligations under
Article 17 of those Regulations. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Glossary
Au Gold
g grams
g/t Grams per tonne
kg Kilograms
um Micrometer
mm Millimeter
oz. Ounces
ppm Parts per million
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