Amaroq Minerals Ltd. has released its Q2 2023 Financial Results, reporting a gold business working capital of $41.0 million as of June 30, 2023. The company completed the GCAM Joint Venture transaction in April, resulting in available liquidity of $29.3 million for its strategic minerals business. Amaroq is also progressing with preparations to upgrade its Icelandic listing from Nasdaq First North Growth Market to the Nasdaq Main Market. The company expects a senior secured debt funding package of $50.9 million to close by the end of August 2023.
In terms of operational highlights, Amaroq is currently in the permitting stage for its Nalunaq project in Greenland, with the Environmental Impact Assessment (EIA) and Social Impact Assessment (SIA) being translated for public consultation later this year. Key contracting processes for the processing plant, infrastructure, construction, underground mine rehabilitation, and mining are 60% complete. Processing plant engineering and preparations for construction are 70% complete. Construction activities, such as pad building and camp expansion, have commenced, and components for the processing plant are being mobilized to ship to Greenland. Mine design, inspection, and procurement of long lead items have also taken place.
Amaroq has completed 1,735m resource drilling at Nalunaq, targeting resource expansion areas directly up dip from the proposed mining area of the Mountain Block. The company has also progressed preparation for exploration projects at the Sava Copper Belt, Stendalen, Kobberminebugt, and Paatasoq during the period.
The Nalunaq project has achieved several key performance indicators, including 19,272 total hours worked in Q2 2023, a daily average of 30 people working on site, zero Lost Time Injuries, and a 50% ratio of Greenlandic personnel among the workforce. The project is progressing on budget and to schedule.
Looking ahead to Q3 2023, Amaroq expects key contracting processes to be 80% complete, with Halyard and Thyssen Schachtbau finalized. Overall engineering for the processing plant is expected to be 75% complete. Construction is targeting 20% completion, with pad construction, fuel storage and transport infrastructure, and tailings storage facilities essentially complete. Mine rehabilitation equipment and personnel will be mobilized to site, and the Nalunaq base camp expansion and upgrade are expected to be completed by the end of 2023. Nalunaq drilling results from the 1,735m campaign are expected in Q3 2023, and the Sava drilling program is expected to be completed in Q4 2023.
Eldur Olafsson, CEO of Amaroq, stated that the company is focused on preparations for initial mining activities at Nalunaq, with rehabilitation works set to commence in Q4 and first gold production anticipated next year. Exploration activities for strategic minerals are also ramping up, particularly in the Sava Copper Belt.
The company provided an update on its H2 2023 operational workplan for the Nalunaq project, including mine rehabilitation works, mining trials, and the possible production of first gold in H2 2024. Results from the Mountain Block drilling at Nalunaq are expected in Q3, and additional data collection and in-mine exploration will target further potential resource expansion zones.