GreenX Metals #GRX to continue exploration at Eleonore North Gold Prospect

GreenX Metals Ltd (GreenX or the Company) is pleased to announce that it has entered into a revised agreement with Greenfields Exploration Pty Ltd (GEX) to acquire up to 100% in the Eleonore North gold project (Eleonore Northor the Project) in eastern Greenland. 

REVISED TERMS

Following renegotiation with GEX, GreenX will acquire a 100% interest in the Eleonore North project through a revised Option Agreement.  Having spent the required amount on an agreed work exploration program for the Project; GreenX will now acquire the Project on revised terms as follows:

o   an issue of 1.5% Net Smelter Royalty (NSR); plus

o   a payment of A$300,000 in GreenX shares (escrowed for 12 months from date of issue).  There will be no cash payment as in the original option agreement; plus

o   a further deferred payment of A$1,000,000 in cash or shares (with a floor price of A$0.30) in GreenX, at the Company’s election, if GreenX decides to retain the Project after 31 December 2025 subsequent to having completed further exploration work.

GreenX will now act as the project manager for Eleonore North.

These revised terms provide GreenX with the opportunity to retain the Project with no further cash payments and conduct further exploration work before making a decision to continue with the Project by 31 December 2025.

RESULTS FROM SEISMIC SURVEY

The Company commissioned a passive seismic survey over the Noa Pluton target at Eleonore North licence for the 2023 field season. Passive seismic surveys use ambient noises generated by nature instead of active noise sources. Natural noise sources include waves crashing in the ocean or creaking glaciers whereas active noise sources include vibration trucks or explosives. Passive seismic surveys with ambient noise are therefore much less impactful on the environmental.

Fieldwork was completed by GEX in conjunction with the Institute of Mine Seismology (IMS). Eleonore North is prospective for reduced intrusion related gold systems (RIRGS) similar to the Fort Knox and Dublin Gulch/Eagle Gold deposits. The RIRGS deposit style hosts structurally-controlled gold in plutons as well as in the surrounding hornfels aureole. The purpose at of the survey at Eleonore North was to identify plutons that are blind to the surface in the target area.

Data collected from the array of passive seismic nodes was processed by IMS. As shown in the conceptual 3D velocity model below, multiple blind plutons may be situated in the target area (Figure 1). Hornfels have been mapped at Noa Dal, but the causative plutons have not yet been identified. Noa Dal has only been mapped at 1:250,000 scale by GEUS, so it is possible that detailed mapping could identify the currently unknown plutons. More likely however, the causative plutons are blind to the surface (as shown in the cross-section in Figure 1).

The results from 2023’s passive seismic survey have significantly reduced the exploration search space at Eleonore North. Future fieldwork will target these sites where plutons approach the surface. Within a RIRGS setting, 1-2 km-wide elongated plutons rising from a deeper batholith are very favourable exploration targets.

Figure 1:  IMS’s conceptual 3D velocity model from Noa Dal target area with GreenX’s interpretation of target plutons. Inset shows survey location in Noa Dal. Velocity values above 2,900 m/s are considered to be igneous material. The A-A’ section shows three potential plutons extending upwards towards the surface.

PLANNED 2024 ACTIVITIES

GreenX is again collaborating with the Geological Survey of Denmark and Greenland (GEUS). For the last two years, GEUS has conducted fieldwork in the region surrounding and within the Eleonore North licence. GEUS has a multi-year project working to update the geological maps to a higher level of detail. This work is primarily being done with traditional field mapping, sample collection, and helicopter-based photography. Based on previous discussions with GEUS, there is the possibility to commission GEUS to fast-track production of an updated geological map at Eleonore North based on helicopter photography collected in 2023. Samples collected by GEUS are also available in Copenhagen for inspection and analysis. These samples may provide a new regional perspective on the gold systems present in NE Greenland.

Figure 2: Map showing regional historical samples collected by GUES as publicly available from GUES, a subset of which are available for inspection.

ELEONORE NORTH SUMMARY

The Eleonore North gold project comprises of two exploration licences covering an area of 1,221 km² in an arid part of north-eastern Greenland, approximately 1,000 km south of the Company’s Arctic Copper Project (ARC) (Figure 3).

The two exploration licences are located on Ymer Island in the south and the Strindberg Land peninsula in the north (Figure 4). The 300 m deep fjords in this area are around 6 km wide, sailed annually by large container ships, and aircraft frequent the area. The Company had identified no significant environmental, archaeological, or social challenges in the area.

Eleonore North has the potential to host a “reduced intrusion-related gold system” (RIRGS). RIRGS can host large scale, shallow, bulk tonnage gold deposits, analogous to large bulk-tonnage deposit types found in Canada including Fort Knox and Dublin Gulch. The Project remains underexplored, with the existence of a possible RIRGS being a relatively new geological interpretation based on the historic data.

Gold mineralisation is documented at the high-priority Noa Pluton prospect within Eleonore North. There is a geophysical “bullseye” anomaly 6 km wide co-incident with elevated gold mineralisation from historical geochemical sampling with anomalous gold mineralisation associated with quartz veining exposed at surface over a length of up to 15 km (Figure 5). Historical sampling includes 4 m chip sample grading 1.93 g/t Au and 1.9% Sb (refer to Appendix 1 and previously reported in ASX announcement dated 10 July 2023)

Field work during 2023 consisted of a seismic survey to determine the depth from surface to the Noa Pluton to aid in future drill targeting.

Figure 5: Eleonore North licence area showing the 6km diameter geophysical anomaly co-incident with gold veining visible at surface over some 15km at the high priority Noa Pluton prospect

ENQUIRIES

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