Amaroq Minerals makes strong progress in first quarter

14th May 2024 11:53

(Sharecast News) - South Greenland-focussed mine developer Amaroq Minerals reported decent operational progress in its first quarter on Tuesday, as it maintained a robust total liquidity position of $96.31m in cash reserves, undrawn revolving credit facilities, and available funds.

The AIM-traded firm said its gold business working capital was $78.2m, while the Gardaq joint venture retained available liquidity of $17m.

On the operational front, Amaroq noted the successful closure of public consultations for the environmental impact assessment (EIA) and social impact assessment (SIA) for the Nalunaq project by 1 March.

It said contracts for 81% of key components for the processing plant had been concluded, with substantial progress made in procurement.

The company said it recently awarded the last major contract for structural, mechanical, and processing plant equipment installation to Scott Steel Erectors.

Substantial advancements were also reported in process plant detailed design and engineering, reaching 86% completion by the end of the first quarter.

Construction activities, including processing plant pad construction and steel structure erection, were said to be progressing well.

Mine rehabilitation was completed, and the first underground blast at Nalunaq was initiated in March.

Exploration efforts were continuing, Amaroq said, with plans for resource development at Nalunaq and exploration drilling at copper-nickel-cobalt sites, among others.

During the first quarter, a total of 60,372 hours were worked, with an average of 55 personnel on-site at Nalunaq, and zero lost time injuries.

The board said the ratio of Greenlandic personnel at Nalunaq stood at 53%.

Looking ahead, Amaroq said recruitment efforts weer underway to appoint a new chief financial officer following the announced resignation of Jaco Crouse.

The completion of all engineering for the process plant in the second quarter, along with subsequent procurement activities, was also flagged.

Progress at Nalunaq was continuing, with construction of the processing plant structure expected to be completed by June.

"During the quarter we successfully completed a fundraise to accelerate mining at Nalunaq, whilst continuing to invest in our wider gold and strategic minerals portfolio in South Greenland," said chief executive officer Eldur Olafsson.

"I have been on site at Nalunaq now for some weeks, participating across all workstreams, and am highly encouraged by how operations are progressing.

"With our new general manager Jaco Duvenhage hired to oversee all operations at Nalunaq, we are seeing good progress on all fronts."

Olafsson said the experience gained over the winter, in the firm's first year of year-round operations, was "invaluable" to improving its understanding and planning for developing future projects in South Greenland.

"Construction works over this period were completed despite pack ice conditions, thanks to the foresight of the team who ensured that all the required equipment was mobilised to site ahead of time.

"In addition, at the end of March, the successful first underground mining blast at Nalunaq was initiated at the 720m level, which was a key milestone.

"Finally, progress on new growth opportunities within South Greenland, including Strategic Minerals, Hydro and Servicing are progressing well."

At 1022 BST, shares in Amaroq Minerals were up 0.14% at 71.1p.

Reporting by Josh White for Sharecast.com.