AEXG.L Share News (AEXG)

(Sharecast News) - Greenland-focussed AEX Gold has been granted a new mineral exploration licence in the south of the country, it announced on Tuesday, by the Mineral Licence and Safety Authority (MLSA).
The AIM-traded firm said the licence covers 335 square kilometres in South Greenland, and was considered "highly prospective" for multiple commodities including gold, copper, zinc and molybdenum.

It said the licence, 'Kangerluarsuk' or MEL 2021-02, covers granitic rocks of the late Julianehåb igneous complex.

Historic prospecting in the licence had returned grab samples grading up to 382 grams of gold per tonne, 100 grams of silver per tonne, 3.4% copper and 3.7% zinc.

The company said it believed that there were similarities between the late Julianehåb igneous complex in South Greenland and similar age granites in Sweden, which hosted several porphyry copper deposits.

It said the granite north of Kangerluarsuk fjord hosted "abundant" quartz veins, widespread propylitic alteration and local malachite staining, suggesting a "potentially large" magmatic-hydrothermal mineral system.

The area was readily accessible, adjacent to deep water fjords close to the regional population centres of Narsaq and Qaqortoq, 30 kilometres south west of the Narsarsuaq international airport.

AEX said it was working with GoldSpot Discoveries to generate exploration targets and work programmes for 2021.

"Our geologists have spent considerable time assessing various exploration licence opportunities in South Greenland and we believe this is one of the most exciting and prospective we have seen outside the known gold belts, where we already hold the prime acreage," said chief executive officer Eldur Olafsson.

"This new licence is highly complementary to our existing portfolio and will provide further optionality for the company as we seek to prioritise targets for future development as part of our strategy of creating a full cycle gold mining company."

Olafsson said the historic grab samples on the licence, and the nature of the intrusions, were "exactly" what the company was looking for, and were highly prospective for gold as well as copper, zinc and molybdenum.

"Through our partnership with GoldSpot we are compiling and analysing data with the aim of targeting a more detailed exploration programme on the ground in 2021.

"Speaking as a geologist myself, this type of deposit is exactly what makes Greenland so exciting and we look forward to updating the market as we progress."

At 1224 GMT, shares in AEX Gold were down 0.32% at 44.86p.