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#GRX GreenX Metals Ltd – Quarterly Activities Report December 2024
GreenX Metals Limited (ASX:GRX, LSE:GRX) (GreenX or the Company) is pleased to present its Quarterly Activities Report for the period during and subsequent to 31 December 2024.
HIGHLIGHTS
|
· German Project – Tannenberg Copper Project |
|
o In January 2025, GreenX was selected as as one of eight exploration companies to participate in BHP’s 2025 Xplor program. |
|
o BHP Xplor will provide GreenX with approximately US$500,000 in non-dilutive funding to support and accelerate its exploration plans at the Tannenberg Copper Project (Tannenberg) during the 6-month period of the program. |
|
o BHP Xplor is expected to accelerate the geological concept build-out and exploration timeframe at Tannenberg. |
|
· Greenland Projects |
|
o The Company notes the recent U.S. strategic interest in Greenland including Greenland Prime Minister publicly stating that he is open to discussions with the U.S. |
|
o Greenland is endowed with an abundance of critical minerals which are essential for batteries, technology and defence. |
|
o The Company is well placed to capitalise on the increased interest in Greenland with two large scale, strategic projects prospective for critical minerals located in Greenland. |
|
o Enhanced project and technical team for GreenX, with the appointment of inhouse specialist geologist based in Scandinavia to re-evaluate and re-design exploration programs in Greenland. |
|
Eleonore North Project |
|
o During the quarter, GreenX received outstanding antimony results at the Eleonore North project in Greenland (Eleonore North or ELN). |
|
o Antimony price now US$40,000/t from historical prices of ~US$5,000 to 10,000/t. |
|
o Critical mineral crisis escalating – China has now restricted export of critical and strategic antimony, graphite, gallium, germanium, tungsten, titanium and rare earths. |
|
o Antimony and tungsten have been designated as “Critical Minerals” by the U.S. and the EU, with NATO designating tungsten as defence-critical for the Allied defence industry. |
|
o Historical results from fieldwork at ELN include grab samples from outcropping mineralised veins with individual specimens grading up to 23% antimony (Sb), and other samples up to 4g/t gold (Au). |
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o Antimony mineralisation has been identified along a ~4km trend in veins and structures, that broadly aligns with previously identified gold veining at surface within a 15km trend. |
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o Review and verification of new historical data, including radiometric data, at ELN underway with further updates to be made in the coming weeks. |
|
Arctic Rift Copper Project |
|
o The Company is targeting large scale copper in multiple settings across a 5,774 km2 licence at the Arctic Rift Copper Project (ARC). |
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o With the new enhanced technical team now in place, further analysis on remote-sensing options underway which aims to improve understanding of the known copper mineralisation and to plan the next exploration program at the project. |
|
· Arbitration Award |
|
o During the quarter, GreenX was awarded up to £252 million (A$497 million/PLN 1.3 billion) in compensation from the successful outcome of the international arbitration claims against the Republic of Poland (Poland) under both the Australia-Poland Bilateral Investment Treaty (BIT) and the Energy Charter Treaty (ECT). |
|
o Interest income of ~£14 million (A$28 million / PLN 70 million) per annum is currently accruing to GreenX. Against this, interest expense of ~£2.7 million (A$5.3 million / PLN 13.5 million) per annum is accruing on the US$11.3 million of litigation funding utilised. |
|
o Upon satisfaction of the award, it is GreenX’s intention to return the majority of the available cash to shareholders. |
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o Since the award was made, Poland has lodged a request to set-aside the award with the courts of England and Wales in relation to the BIT award and the courts of Singapore in relation to the ECT Award. Poland is challenging jurisdictional aspects of both awards and alleging procedural unfairness, including in the Tribunal’s decision on damages. |
Classification: 2.2 This announcement contains inside information
ENQUIRIES
|
Ben Stoikovich +44 207 478 3900
|
TANNENBERG COPPER PROJECT (GERMANY)
During the quarter, the Company announced that following a rigorous selection process, it has been selected as one of eight exploration companies to participate in BHP’s 2025 Xplor program in relation to Tannenberg.
The Xplor program was established in 2023 to support promising minerals explorers to accelerate the exploration needed to support the energy transition. Over a six-month program period, BHP Xplor targets development of technical, business and operational excellence within participating companies.
As a 2025 BHP Xplor cohort company, GreenX will receive a one-off, non-dilutive grant of up to US$500,000, and in-kind services, mentorship, and networking opportunities with BHP and other industry experts and investors.
It is expected GreenX’s participation in Xplor will expedite the build-out of geological concepts and the exploration timeframe at Tannenberg. GreenX intends to use the grant to conduct geophysics programs over the Tannenberg licence area.
Figure 1: Tannenberg is located in the industrial centre of Europe
GREENLAND PROJECTS
Eleonore North Project
During the quarter, GreenX announced that high grade antimony mineralisation had been identified at its Eleonore North project in Greenland, based on historical results recently released by the Geological Survey of Denmark and Greenland (GEUS). The historical results indicate the potential for a high-grade antimony-gold mineral system at ELN. Antimony prices have been on a rapid uptrend since China announced antimony export controls from 15 September 2024, with antimony prices in the US having rocketed to over US$40,000/t from US$18,300/t2.
Figure 2: Newly released GEUS assay results show evidence for high-grade antimony and gold mineralisation above the interpreted Noa Pluton.
Previously reported historical data confirmed the presence of gold and high-grade antimony in outcropping veins at ELN including:
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· 14m long chip sample grading 7.2% Sb and 0.53g/t Au3 |
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· 40 m chip line with a length weighed average of 0.78g/t Au3 |
Significantly, GEUS geologist’s identified stibnite (Sb2S3) as the antimony mineral. Stibnite is well-understood and the predominant ore mineral for commercial antimony production.
Antimony is designated a Critical Raw Material by both the EU and the US, with China being the world’s major antimony ore producer and major exporter of refined antimony oxides and metallic antimony.
Global strategic interest in antimony has significantly increased in 2024 due to several factors:
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· China controls ~50% of global antimony mining, most downstream processing and 32% of global resources according to the Lowy Institute. |
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· China’s recent export ban on antimony, effective from 15 September 2024, has caused market disruption4. |
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· Antimony is a crucial material in the defence supply chain, used in various military applications including ammunition, flame retardants, and smart weaponry. |
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· Antimony is essential in renewable energy technologies including more-energy-efficient solar panel glass and in preventing thermal runaway in batteries. |
The antimony market is expected to grow by 65% between 2024 and 20325. However, the supply side, declining antimony grades and depleting resources for existing mines are becoming increasingly relevant.
To aid the Company’s exploration targeting and fieldwork planning for ELN, GreenX’s technical team intend to locate, analyse, and study further historical samples and data within GEUS’s archives.
ANTIMONY RESULTS FROM NEWLY PUBLISHED GEOLOGICAL SURVEY ARCHIVE MATERIAL
GEUS’s archives host an extensive collection of rock samples (with and without assays), maps, as well as government and company reports going back many decades. A sub-set of the archive material is available in digital format. GEUS is continuously digitising and publishing its archive material. The newly released data covers 2008 field work at the Noa Dal valley within the Company’s ELN project. Government geologists collected mineralised samples from outcropping veins and scree near to the interpreted Noa Pluton. Selected highlights are presented in Table 1 below.
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Table 1: Selected antimony and gold results from 2008 GEUS fieldwork |
|||
|
Sample # |
Sb (%) |
Au (g/t) |
Field description |
|
469506 |
23.40 |
0.00 |
Quartz vein with stibnite. Sample from boulder or scree |
|
496901 |
22.20 |
0.44 |
Massive stibnite from mineralised zone |
|
496918 |
15.10 |
0.54 |
Quartz vein + galena + chalcopyrite |
|
469504 |
6.65 |
0.83 |
Shale with stibnite |
|
496912 |
0.10 |
4.10 |
Clay alteration: hanging wall |
|
496904 |
0.11 |
4.70 |
Clay alteration: footwall |
|
496910 |
0.04 |
2.20 |
Intense clay alteration |
These newly released results conform with previously released historical results from the Noa Dal area (previously reported in ASX announcement dated 10 July 2023).
GEOLOGICAL SIGNIFICANCE OF ANTIMONY
GreenX is targeting Reduced Intrusion-related Gold Systems (RIRGS) at ELN. The hypothesised blind-to-the-surface Noa Pluton forms the basis for the RIRGS exploration model. Antimony-gold veins at surface were considered to be supporting evidence for RIRGS at ELN. With the favourable shift in the antimony market, the outcropping veins have become a potentially viable and attractive target.
The antimony-gold mineralisation at ELN could be analogous to Perpetua Resources’ Stibnite Gold Project in Idaho, USA. There, RIRGS and orogenic gold mineralisation styles overprint each other. Prior to the RIRGS model at ELN, the gold-bearing veins at Noa Dal were thought to be of orogenic origin. It is relatively common in gold deposits which are proximal to intrusions to feature characteristics of RIRGS and orogenic gold mineralisation styles.
The scale and potential of the antimony-gold veins will be evaluated with a follow-up investigation in the next phase of fieldwork.
GEUS is in the process of releasing results from regional mapping and sampling surveys from field seasons in 2022 and 2023 across East Greenland. GreenX plans to use the soon-to-be-released data as part of ongoing evaluation of the antimony and gold potential at ELN and the region.
Given recent developments in the antimony market, GreenX’s exploration strategy at the ELN project in East Greenland will continue with a renewed focus on the known Sb-Au mineral systems at the Noa pluton.
GreenX has been able to access further historical data for ELN with a review currently underway. Following completion of this review further updates will be made, expected in the coming weeks.
Arctic Rift Copper Project
The Arctic Rift Copper Project (ARC) in Greenland is an exploration joint venture between GreenX and Greenfields Pty Ltd (Greenfields). GreenX can earn-in up to 80% in ARC with the Company currently owning a 51% interest in the project. The project is targeting large scale copper in multiple settings across a 5,774 km2 Special Exploration Licence in eastern North Greenland. The area has been historically underexplored yet is prospective for copper, forming part of the newly identified Kiffaanngissuseq metallogenic province.
The results of work program announced previously have demonstrated the high-grade nature of the known copper sulphide mineralisation and wider copper mineralization in fault hosted Black Earth zones and adjacent sandstone units. The exact position of a native copper fissure at the Neergaard Dal prospect was also identified.
The Company is in the process of analysing further remote-sensing options for ARC, which would be used to enhance current understanding of the known copper sulphide mineralisation and refine plans for the next exploration program.
SUCCESSFUL ARBITRATION OUTCOME IN DISPUTE WITH POLISH GOVERNMENT
In October 2024, GreenX reported a successful outcome of the international arbitration claims (Claim) against Republic of Poland (Poland or Respondent) under both the BIT and the ECT (together the Treaties).
The Company was awarded:
· approximately £252m (A$490m / PLN1.3bn) in compensation by the Tribunal under the BIT (BIT Award) which includes interest compounded at SONIA plus one percentage point (+1%) compounded annually from 31 December 2019 to the date of the award (7 October 2024).
· approximately £183m (A$355m / PLN 941m) in compensation by the Tribunal under the ECT (ECT Award), which includes interest compounded at the SONIA overnight rate +1% compounded annually from 31 December 2019. Interest will continue to accrue at SONIA +1% compounded annually until full and final payment by the Respondent.
· Additional Interest of approximately £4 million (A$8 million / PLN 20 million) has accrued since the award to end of January 2025 and will continue to compound annually until full and final payment by the Respondent.
· Interest income of ~£14 million (A$28 million / PLN 70 million) per annum is currently accruing to GreenX. However, interest expense of only ~£2.7 million (A$5.3 million / PLN 13.5 million) per annum is accruing on the US$11.3 million of litigation funding utilised.
· Both Awards are subject to any payments made by the Respondent to the Claimant in the other arbitration such that the Claimant is not entitled to double compensation i.e., any amount paid by Poland in one arbitration (i.e., ECT) is set off against Poland’s liability in the other arbitration (i.e., BIT).
The compensation is denominated in British pound sterling. No hedging is in place for the compensation and accordingly is subject to fluctuations in foreign currency.
During the quarter, the Polish Prime Minister, Mr Donald Tusk, stated in a press conference that:
“The case is rather hopeless, because a lost arbitration is a lost arbitration. We have two big cases on our shoulders. The PiS government blew this issue.
The Australians, as you know, were promised that their mine would be built there. For years they were misled and later the commitment was withdrawn. It was quite obvious that they would go to arbitration, and it was rather obvious that they would win this arbitration.
Speaking frankly, I would most likely, and I cannot exclude that it will go this way, to find the person directly responsible for Poland now having to pay well over a billion zloty if we do not find a legal solution – which I think has very little probability to set aside the award in this arbitration. So, speaking the truth, I will expect my officers to inform the public in the coming days who made a decision or refrained from making a decision with the consequence of these gigantic losses, that is the compensation that we as the Polish State must pay to the Australians.” 1
Since the award was made, Poland has lodged a request to set-aside the award with the courts of England and Wales in relation to the BIT Award and the courts of Singapore in relation to the ECT Award. Poland is challenging jurisdictional aspects of both awards and alleging procedural unfairness, including in the Tribunal’s decision on damages.
The threshold to succeed on a set-aside motion in either the English or Singapore courts is very high, with the courts rejecting set-aside applications in the vast majority of cases.
It is important to note that a “set-aside” motion is different from a general “appeal” since a set-aside motion can in general only relate to a lack of jurisdiction on the part of the Tribunal or procedural unfairness. Under both set-aside motions, the actual merits of the Claim cannot be revisited by the courts.
The Company is strongly defending the set-aside motions and will update the market, if required, in line with its continuous disclosure requirements.
All of GreenX’s costs associated with the Claim were funded on a limited basis from Litigation Capital Management (LCM). To date, GreenX has drawn down US$11.3 million from LCM. Once the award compensation is received from Poland, LCM will be entitled to be paid back the US$11.3 million, a multiple of five times of the US$11.3 million and from 1 January 2025, interest on the US$11.3 million at a rate of 30% per annum, compounding monthly (which equates to interest of approximately US$3.4 million (£2.7 million / A$5.3 million / PLN 13.5 million) per annum).
Further information on the Claim and awards can be found in the Company’s announcements dated 8 October 2024, 17 October 2024, 11 November 2024 and 22 January 2025.
CORPORATE
At 31 December 2024, GreenX had a cash balance of A$5 million and an additional US$0.5 million for exploration activities dedicated for Tannenberg from the BHP Xplor program.
-ENDS-
Forward Looking Statements
This release may include forward-looking statements. These forward-looking statements are based on GreenX’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of GreenX, which could cause actual results to differ materially from such statements. GreenX makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.
Competent Persons Statement
The information in this report that relates to exploration results were extracted from the ASX announcements dated 15 July 2024, 2 August 2024 and 27 November 2024 which are available to view at www.greenxmetals.com.
GreenX confirms that (a) it is not aware of any new information or data that materially affects the information included in the original announcement; (b) all material assumptions and technical parameters underpinning the content in the relevant announcement continue to apply and have not materially changed; and (c) the form and context in which the Competent Person’s findings are presented have not been materially modified from the original announcement
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (‘MAR’). Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.
Sources:
1 https://www.gov.pl/web/premier/wsparcie-dla-rodzicow-wczesniakow (refer to the video (29:45-32:00)),
2 SP Angel 22/11/24 & asianmetals.com.
3 Previously reported – refer to ASX announcement dated 10 July 2023.
5 https://www.fortunebusinessinsights.com/antimony-market-104295.
APPENDIX 1: TENEMENT INFORMATION
As at 31 December 2024, the Company has an interest in the following tenements:
|
Location |
Tenement |
Percentage |
Status |
Tenement Type |
|
Germany |
Tannenberg |
-1 |
Granted |
Exploration Licence |
|
Greenland |
Arctic Rift Copper project (Licence No. 2021-07 MEL-S) |
512 |
Granted |
Exploration Licence |
|
Greenland |
Eleonore North gold project |
100 |
Granted |
Exploration Licence |
Notes:
1 In August 2024, the Company announced that it had entered into an earn-in agreement for Tanneberg through which GreenX can earn a 90% interest in the project. As at the date of this report, the Company held no beneficial interest in Tannenberg, other than through the Tannenberg earn-in agreement.
2 In October 2021, the Company announced that it had entered into an earn-in agreement with Greenfields to acquire an interest of up to 80% in ARC. Having met the spend requirement, the Company has been issued with its initial 51% interest in ARC.
Appendix 2: Related Party Payments
During the quarter ended 31 December 2024, the Company made payments of A$222,000 to related parties and their associates. These payments relate to existing remuneration arrangements (director fees, consulting fees and superannuation of A$144,000 and the provision of a serviced office and company secretarial and administration services of A$78,000).
Appendix 3: Exploration and Mining Expenditure
During the quarter ended 31 December 2024, the Company made the following payments in relation to exploration activities:
|
Activity |
A$000 |
|
Germany (Tannenberg) |
|
|
Permitting related costs |
1 |
|
Personnel costs (geology team) |
116 |
|
Sub-total |
117 |
|
|
|
|
Greenland (Eleonore North and ARC) |
|
|
Permitting related costs |
12 |
|
Personnel costs (geology team) |
28 |
|
Other (data review, geoimagery, etc) |
10 |
|
Sub-total |
50 |
|
Total as reported in the Appendix 5B (item 1.2(a) and 2.1(d)) |
167 |
There were no mining or production activities and expenses incurred during the quarter ended 31 December 2024.
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
|
Name of entity |
||
|
GreenX Metals Limited |
||
|
ABN |
Quarter ended (“current quarter”) |
|
|
23 008 677 852 |
31 December 2024 |
|
|
Consolidated statement of cash flows |
Current quarter |
Year to date |
|
|
1. |
Cash flows from operating activities |
– |
– |
|
1.1 |
Receipts from customers |
||
|
1.2 |
Payments for |
(50) |
(156) |
|
(a) exploration & evaluation |
|||
|
(b) development |
– |
– |
|
|
(c) production |
– |
– |
|
|
(d) staff costs |
(371) |
(735) |
|
|
(e) administration and corporate costs |
(201) |
(528) |
|
|
1.3 |
Dividends received (see note 3) |
– |
– |
|
1.4 |
Interest received |
65 |
141 |
|
1.5 |
Interest and other costs of finance paid |
– |
– |
|
1.6 |
Income taxes paid |
– |
– |
|
1.7 |
Government grants and tax incentives |
– |
– |
|
1.8 |
Other (provide details if material) (a) Business Development (b) Arbitration related expenses (c) Occupancy |
(159) – (232) |
(349) (1) (459) |
|
1.9 |
Net cash from / (used in) operating activities |
(948) |
(2,087) |
|
2. |
Cash flows from investing activities |
– |
– |
|
2.1 |
Payments to acquire or for: |
||
|
(a) Entities |
|||
|
(b) Tenements |
– |
– |
|
|
(c) property, plant and equipment |
(3) |
(3) |
|
|
(d) exploration & evaluation |
(117) |
(129) |
|
|
(e) investments |
– |
– |
|
|
(f) other non-current assets |
– |
– |
|
|
2.2 |
Proceeds from the disposal of: |
– |
– |
|
(a) entities |
|||
|
(b) tenements |
– |
– |
|
|
(c) property, plant and equipment |
– |
– |
|
|
(d) investments |
– |
– |
|
|
(e) other non-current assets |
– |
– |
|
|
2.3 |
Cash flows from loans to other entities |
– |
– |
|
2.4 |
Dividends received (see note 3) |
– |
– |
|
2.5 |
Other (provide details if material) |
– |
– |
|
2.6 |
Net cash from / (used in) investing activities |
(120) |
(132) |
|
3. |
Cash flows from financing activities |
– |
– |
|
3.1 |
Proceeds from issues of equity securities (excluding convertible debt securities) |
||
|
3.2 |
Proceeds from issue of convertible debt securities |
– |
– |
|
3.3 |
Proceeds from exercise of options |
– |
– |
|
3.4 |
Transaction costs related to issues of equity securities or convertible debt securities |
(34) |
(111) |
|
3.5 |
Proceeds from borrowings |
– |
– |
|
3.6 |
Repayment of borrowings |
– |
– |
|
3.7 |
Transaction costs related to loans and borrowings |
– |
– |
|
3.8 |
Dividends paid |
– |
– |
|
3.9 |
Other (provide details if material) |
– |
– |
|
3.10 |
Net cash from / (used in) financing activities |
(34) |
(111) |
|
4. |
Net increase / (decrease) in cash and cash equivalents for the period |
||
|
4.1 |
Cash and cash equivalents at beginning of period |
5,933 |
7,163 |
|
4.2 |
Net cash from / (used in) operating activities (item 1.9 above) |
(948) |
(2,087) |
|
4.3 |
Net cash from / (used in) investing activities (item 2.6 above) |
(120) |
(132) |
|
4.4 |
Net cash from / (used in) financing activities (item 3.10 above) |
(34) |
(111) |
|
4.5 |
Effect of movement in exchange rates on cash held |
(1) |
(3) |
|
4.6 |
Cash and cash equivalents at end of period |
4,830 |
4,830 |
|
5. |
Reconciliation of cash and cash equivalents |
Current quarter |
Previous quarter |
|
5.1 |
Bank balances |
1,830 |
2,433 |
|
5.2 |
Call deposits |
3,000 |
3,500 |
|
5.3 |
Bank overdrafts |
– |
– |
|
5.4 |
Other (provide details) |
– |
– |
|
5.5 |
Cash and cash equivalents at end of quarter (should equal item 4.6 above) |
4,830 |
5,933 |
|
6. |
Payments to related parties of the entity and their associates |
Current quarter |
|
6.1 |
Aggregate amount of payments to related parties and their associates included in item 1 |
(222) |
|
6.2 |
Aggregate amount of payments to related parties and their associates included in item 2 |
– |
|
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. |
||
|
7. |
Financing facilities Add notes as necessary for an understanding of the sources of finance available to the entity. |
Total facility amount at quarter end |
|
|
7.1 |
Loan facilities |
19,880* |
18,160 |
|
7.2 |
Credit standby arrangements |
– |
– |
|
7.3 |
Other (please specify) |
808^ |
– |
|
7.4 |
Total financing facilities |
20,688* |
18,160 |
|
|
|||
|
7.5 |
Unused financing facilities available at quarter end |
2,528 |
|
|
7.6 |
Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. |
||
|
On 30 June 2020, the Company executed a Litigation Funding Agreement (LFA) for US$12.3 million (*now worth A$19.8 million with the movement of the A$ compared to the $US) with LCM Funding UK Limited a subsidiary of Litigation Capital Management Limited (LCM), to pursue the damages Claim in relation to the investment dispute between GreenX and Poland). To date, GreenX has drawn down US$11.2 million (A$18.2 million) (Outstanding Funding). In accordance with the terms of the LFA, once the compensation is received, LCM is entitled to be paid the Outstanding Funding, a multiple of five times the Outstanding Funding (based on the period since entering into the LFA) and from 1 January 2025, interest on the Outstanding Funding at a rate of 30% per annum, compounding monthly. ^Subsequent to the end of the quarter, the Company announced that it had been selected to participate in BHP’s 2025 Xplor program which will provide the Company with US$0.5 million (A$0.8 million) in non-dilutive funding to support and accelerate its exploration plans at the Tannenberg Copper Project. |
|||
|
8. |
Estimated cash available for future operating activities |
$A’000 |
|
8.1 |
Net cash from / (used in) operating activities (item 1.9) |
(948) |
|
8.2 |
(Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) |
(117) |
|
8.3 |
Total relevant outgoings (item 8.1 + item 8.2) |
(1,065) |
|
8.4 |
Cash and cash equivalents at quarter end (item 4.6) |
4,830 |
|
8.5 |
Unused finance facilities available at quarter end (item 7.5) |
2,528 |
|
8.6 |
Total available funding (item 8.4 + item 8.5) |
7,358 |
|
8.7 |
Estimated quarters of funding available (item 8.6 divided by item 8.3) |
7 |
|
Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. |
||
|
8.8 |
If item 8.7 is less than 2 quarters, please provide answers to the following questions: |
|
|
8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? |
||
|
Answer: Not applicable |
||
|
8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? |
||
|
Answer: Not applicable |
||
|
8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? |
||
|
Answer: Not applicable |
||
|
Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered. |
||
Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Date: 29 January 2025
Authorised by: Company Secretary
(Name of body or officer authorising release – see note 4)
Notes
1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.
5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.
#GRX GreenX Metals Ltd – High Grade Antimony Identified at Eleonore North
GreenX Metals Limited (GreenX or the Company) is pleased to announce that high grade antimony mineralisation has been identified at the Company’s Eleonore North project (Eleonore North or ELN) in Greenland, based on historical results recently released by the Geological Survey of Denmark and Greenland (GEUS). The historical results indicate the potential for a high-grade antimony-gold mineral system at ELN. Antimony prices have been on a rapid uptrend since China announced antimony export controls from 15 September 2024, with antimony prices in the US having rocketed to US$37,500/t from US$18,300/t1 in the past week.
HIGH GRADE ANTIMONY IDENTIFIED AT ELEONORE NORTH PROJECT
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· |
GreenX receives outstanding antimony results at Eleonore North project in Greenland. |
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· |
Antimony price now US$37,500/t from historical prices of ~US$5,000 to 10,000/t. |
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· |
Critical mineral crisis escalating – China has now restricted export of critical and strategic antimony, graphite, gallium, germanium, tungsten, titanium and rare earths. |
· Historical results from GEUS 2008 fieldwork at ELN have been made available and include grab samples from outcropping mineralised veins with individual specimens grading up to 23% antimony (Sb), and other samples up to 4g/t gold (Au).
· Previously reported historical data confirmed the presence of gold and high-grade antimony in outcropping veins at ELN including:
o 14m long chip sample grading 7.2% Sb and 0.53g/t Au2
o 40 m chip line with a length weighed average of 0.78g/t Au2
· Antimony mineralisation has been identified along a ~4km trend in veins and structures, that broadly aligns with previously identified gold veining at surface within a 15km trend.
Figure 1: Newly released GEUS assay results show evidence for high-grade antimony and gold mineralisation above the interpreted Noa Pluton.
· Significantly, GEUS geologist’s identified stibnite (Sb2S3) as the antimony mineral. Stibnite is well-understood and the predominant ore mineral for commercial antimony production.
· Antimony is designated a Critical Raw Material by both the EU and the US, with China being the world’s major antimony ore producer and major exporter of refined antimony oxides and metallic antimony.
· Global strategic interest in antimony has significantly increased in 2024 due to several factors:
o China controls ~50% of global antimony mining, most downstream processing and 32% of global resources according to the Lowy Institute.
o China’s recent export ban on antimony, effective from 15 September 2024, has caused market disruption3.
o Antimony is a crucial material in the defence supply chain, used in various military applications including ammunition, flame retardants, and smart weaponry.
o Antimony is essential in renewable energy technologies including more-energy-efficient solar panel glass and in preventing thermal runaway in batteries.
· The antimony market is expected to grow by 65% between 2024 and 20324. However, the supply side, declining antimony grades and depleting resources for existing mines are becoming increasingly relevant.
o In terms of new deposits, antimony is harder to find than most metals because stibnite has no geophysical electrical or magnetic response
· To aid the Company’s exploration targeting and fieldwork planning for ELN, GreenX’s technical team intend to locate, analyse, and study further historical samples and data within GEUS’s archives in the coming weeks.
GreenX Metals’ Chief Executive Officer, Mr Ben Stoikovich, commented: “Antimony is of critical importance in multiple defence applications and for the energy transition. Antimony features on both the EU and US critical raw materials lists due to China’s dominance of global antimony supply. Whilst we had previously focussed on the ELN project primarily for gold mineralisation, the newly published historical results with out-cropping vein samples grading up to 23% antimony, indicate the potential for ELN to host viable antimony mineralisation. We plan to now re-focus our exploration program at ELN on both gold and antimony targets.“
The Announcement Contains Inside Information
Figure 2: Noa Pluton prospect area within the Eleonore North Licence.
ANTIMONY RESULTS FROM NEWLY PUBLISHED GEOLOGICAL SURVEY ARCHIVE MATERIAL
GEUS’s archives host an extensive collection of rock samples (with and without assays), maps, as well as government and company reports going back many decades. A sub-set of the archive material is available in digital format. GEUS is continuously digitising and publishing its archive material. The newly released data covers 2008 field work at the Noa Dal valley within the Company’s ELN project. Government geologists collected mineralised samples from outcropping veins and scree near to the interpreted Noa Pluton. Selected highlights are presented in Table 1 below.
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Table 1: Selected antimony and gold results from 2008 GEUS fieldwork |
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Sample # |
Sb (%) |
Au (g/t) |
Field description |
|
469506 |
23.40 |
0.00 |
Quartz vein with stibnite. Sample from boulder or scree |
|
496901 |
22.20 |
0.44 |
Massive stibnite from mineralised zone |
|
496918 |
15.10 |
0.54 |
Quartz vein + galena + chalcopyrite |
|
469504 |
6.65 |
0.83 |
Shale with stibnite |
|
496912 |
0.10 |
4.10 |
Clay alteration: hanging wall |
|
496904 |
0.11 |
4.70 |
Clay alteration: footwall |
|
496910 |
0.04 |
2.20 |
Intense clay alteration |
These newly released results conform with previously released historical results from the Noa Dal area (previously reported in ASX announcement dated 10 July 2023).
GEOLOGICAL SIGNIFICANCE OF ANTIMONY
GreenX is targeting Reduced Intrusion-related Gold Systems (RIRGS) at ELN. The hypothesised blind-to-the-surface Noa Pluton forms the basis for the RIRGS exploration model. Antimony-gold veins at surface were considered to be supporting evidence for RIRGS at ELN. With the favourable shift in the antimony market, the outcropping veins have become a potentially viable and attractive target.
The antimony-gold mineralisation at ELN could be analogous to Perpetua Resources’ Stibnite Gold Project in Idaho, USA. There, RIRGS and orogenic gold mineralisation styles overprint each other. Prior to the RIRGS model at ELN, the gold-bearing veins at Noa Dal were thought to be of orogenic origin. It is relatively common in gold deposits which are proximal to intrusions to feature characteristics of RIRGS and orogenic gold mineralisation styles.
The scale and potential of the antimony-gold veins will be evaluated with a follow-up investigation in the next phase of fieldwork.
GEUS is in the process of releasing results from regional mapping and sampling surveys from field seasons in 2022 and 2023 across East Greenland. GreenX plans to use the soon-to-be-released data as part of ongoing evaluation of the antimony and gold potential at ELN and the region.
Given recent developments in the antimony market, GreenX’s exploration strategy at the ELN project in East Greenland will continue with a renewed focus on the known Sb-Au mineral systems at the Noa pluton.
ENQUIRIES
Ben Stoikovich Sapan Ghai
Chief Executive Officer Business Development
+44 207 478 3900 +44 207 478 3900
-ENDS-
COMPETENT PERSONS STATEMENT
Information in this announcement that relates to Exploration Results is based on information compiled by Mr Joel Burkin, a Competent Person who is a member of the Australian Institute of Geoscientists. Mr Burkin is a consultant engaged by GreenX. Mr Burkin has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Burkin consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
FORWARD LOOKING STATEMENTS
This release may include forward-looking statements, which may be identified by words such as “expects”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These forward-looking statements are based on GreenX’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of GreenX, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. GreenX makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (‘MAR’). Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.
Sources:
1 Source: SP Angel 22/11/24 & Asianmetals.com
2 Previously reported – refer to ASX announcement dated 10 July 2023
3 https://chemical.chemlinked.com/news/chemical-news/china-restricts-export-of-antimony-and-related-products
4 https://www.fortunebusinessinsights.com/antimony-market-104295
Appendix 1: Exploration results and JORC Tables
Table 1: Historical GEUS rock samples from 2008
|
Sample ID |
Easting |
Northing |
Sb (ppm) |
Au (g/t) |
Field Description |
|
469501 |
-25.0093 |
73.29184 |
85,100 |
0 |
Silicified quartzite with stibnite |
|
469502 |
-25.0078 |
73.29173 |
39,600 |
0.55 |
Silicified quartzite with stibnite |
|
469503 |
-25.0054 |
73.29182 |
96,500 |
0 |
Silicified quartzite with stibnite |
|
469504 |
-24.9471 |
73.2908 |
66,500 |
0.83 |
Shale with stibnite |
|
469505 |
-25.0675 |
73.30148 |
129,000 |
0 |
Quartzite with stibnite |
|
469506 |
-25.0675 |
73.30148 |
234,000 |
0 |
Vein quartz with stibnite, Sample from boulder or scree |
|
469507 |
-25.0669 |
73.30519 |
987 |
Vein quartz with galena and chalcopyrite |
|
|
469508 |
-24.925 |
73.29301 |
577 |
Silicified limestone breccia |
|
|
496901 |
-25.0063 |
73.29178 |
222,000 |
0.44 |
Massive stibnite from mineralised zone |
|
496902 |
-25.0063 |
73.29178 |
50,900 |
0 |
Quartzite breccia + stibnite |
|
496903 |
-25.0015 |
73.28947 |
274 |
Footwall quartzite |
|
|
496904 |
-25.0064 |
73.29182 |
1,130 |
4.7 |
Clay alteration: footwall |
|
496905 |
-25.0063 |
73.29178 |
451 |
1.1 |
Clay alteration: footwall |
|
496906 |
-25.0063 |
73.29178 |
184 |
0.07 |
Quartzite breccia |
|
496907 |
-25.0062 |
73.29173 |
62 |
0 |
Quartzite breccia + stibnite |
|
496908 |
-25.0061 |
73.29168 |
78 |
2 |
Stibnite-rich breccia + heavy alteration |
|
496909 |
-25.0062 |
73.29166 |
143 |
2.4 |
Clay alteration: hanging wall |
|
496910 |
-25.0064 |
73.29171 |
383 |
2.2 |
Intense clay alteration: hanging wall |
|
496911 |
-25.0065 |
73.29166 |
58 |
0.18 |
Quartzite hanging wall |
|
496912 |
-25.0075 |
73.29166 |
1,080 |
4.1 |
Clay alteration: hanging wall |
|
496913 |
-24.9465 |
73.29073 |
1,180 |
4 |
Quartzite breccia + alteration |
|
496914 |
-24.9471 |
73.29088 |
267 |
0.28 |
Quartzite breccia + quartz-veining |
|
496915 |
-24.947 |
73.29084 |
65,100 |
0.66 |
Quartzite breccia + stibnite |
|
496916 |
-24.9474 |
73.29085 |
63,700 |
0.65 |
Wall rock quartzite |
|
496917 |
-25.0657 |
73.30175 |
10,000 |
Stibnite-rich breccia in quartzite. Sample from boulder or scree |
|
|
496918 |
-25.0658 |
73.30178 |
151,000 |
0.54 |
Quartz-vein + galena + chalcopyrite |
Note: Coordinates are in WGS 84 decimal degree format.
10,000ppm = 1%
JORC Code, 2012 Edition – Table 1 Report
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
|
Criteria |
JORC Code explanation |
Commentary |
|
Sampling techniques |
Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. |
GEUS collected grab samples of in situ and loose rocks. |
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Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. |
No QAQC was reported. |
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Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. |
Work was not conducted to modern industry standards. |
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Drilling techniques |
Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). |
N/A |
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Drill sample recovery |
Method of recording and assessing core and chip sample recoveries and results assessed.
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N/A |
|
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Measures taken to maximise sample recovery and ensure representative nature of the samples. |
N/A |
|
|
Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. |
N/A |
|
Logging |
Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. |
Rock grab samples were described in the field and are not used in any estimates or studies. |
|
|
Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. |
The logging of rock grab samples was qualitative/descriptive in nature. If photos of the samples exist, they have not been released by GEUS. |
|
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The total length and percentage of the relevant intersections logged. |
N/A |
|
Sub-sampling techniques and sample preparation |
If core, whether cut or sawn and whether quarter, half or all core taken. |
N/A |
|
If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. |
N/A |
|
|
For all sample types, the nature, quality and appropriateness of the sample preparation technique. |
N/A |
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Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. |
N/A
|
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Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. |
N/A |
|
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Whether sample sizes are appropriate to the grain size of the material being sampled. |
N/A |
|
Quality of assay data and laboratory tests |
The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. |
All samples are historical in nature and do not comply with modern QAQC protocols. |
|
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For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. |
N/A |
|
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Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. |
N/A |
|
Verification of sampling and assaying |
The verification of significant intersections by either independent or alternative company personnel.
|
No verification carried out. |
|
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The use of twinned holes. |
N/A |
|
|
Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. |
N/A |
|
|
Discuss any adjustment to assay data. |
N/A |
|
Location of data points |
Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. |
Location of samples was collected with a handheld GPS unit. No Mineral Resource estimate is given. |
|
|
Specification of the grid system used. |
Location data is provided in the World Geodetic System 1984 (WGS 84) in decimal degrees. |
|
|
Quality and adequacy of topographic control. |
N/A |
|
Data spacing and distribution |
Data spacing for reporting of Exploration Results. |
The samples GEUS collected in 2008 are select rock grab samples. They did not attempt to collect data at regular spacings. |
|
|
Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. |
N/A |
|
|
Whether sample compositing has been applied. |
N/A |
|
Orientation of data in relation to geological structure |
Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. |
The grab samples are point data and were likely collected biased to visible mineralisation. They were collected within and adjacent to mineralised veins and fault structures. |
|
|
If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. |
No sampling bias. |
|
Sample security |
The measures taken to ensure sample security. |
The practices of GEUS in 2008 are unknown to GreenX, but are not considered material for the present potential of Eleonore North. |
|
Audits or reviews |
The results of any audits or reviews of sampling techniques and data. |
GreenX is unaware if any audits or reviews were performed but has no concerns about their absence. |
Section 2 Reporting of Exploration Results
(Criteria in the preceding section also apply to this section.)
|
Criteria |
JORC Code explanation |
Commentary |
|
|
Mineral tenement and land tenure status |
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. |
The Eleonore North Project is a result of a scientific and systematic reduction of Greenfield Exploration’s (GEX) ‘Frontier’ Project. Eleonore North comprises two Exploration Licences (MEL2023-39 and MEL 2018-19). The combined spatial area of licences is 1,220.81 km2. The boundaries of Eleonore North Project are defined by the points:
MEL2023-39 (two polygons: 1,189.77 km2) 73.98333 °N 25.30000 °W 73.98333 °N 25.13333 °W 73.95000 °N 25.13333 °W 73.95000 °N 25.01667 °W 73.91667 °N 25.01667 °W 73.91667 °N 24.86667 °W 73.88333 °N 24.86667 °W 73.88333 °N 24.51667 °W 73.86667 °N 24.51667 °W 73.86667 °N 24.48333 °W 73.85000 °N 24.48333 °W 73.85000 °N 24.43333 °W 73.70000 °N 24.43333 °W 73.70000 °N 24.48333 °W 73.68333 °N 24.48333 °W 73.68333 °N 25.01667 °W 73.70000 °N 25.01667 °W 73.70000 °N 25.05000 °W 73.71667 °N 25.05000 °W 73.71667 °N 25.08333 °W 73.73333 °N 25.08333 °W 73.73333 °N 25.21667 °W 73.75000 °N 25.21667 °W 73.75000 °N 25.26667 °W 73.76667 °N 25.26667 °W 73.76667 °N 25.33333 °W 73.78333 °N 25.33333 °W 73.78333 °N 25.38333 °W 73.80000 °N 25.38333 °W 73.80000 °N 25.48333 °W 73.91667 °N 25.48333 °W 73.91667 °N 25.25000 °W 73.95000 °N 25.25000 °W 73.95000 °N 25.30000 °W
73.41667 °N 25.31667 °W 73.41667 °N 25.03333 °W 73.43333 °N 25.03333 °W 73.43333 °N 24.60000 °W 73.23333 °N 24.60000 °W 73.23333 °N 25.60000 °W 73.26667 °N 25.60000 °W 73.26667 °N 25.53333 °W 73.30000 °N 25.53333 °W 73.30000 °N 25.45000 °W 73.31667 °N 25.45000 °W 73.31667 °N 25.31667 °W
MEL 2018-19 (two polygons: 31.04 km2) 73.16667 °N 25.11667 °W 73.16667 °N 25.01667 °W 73.15000 °N 25.01667 °W 73.15000 °N 25.05000 °W 73.13333 °N 25.05000 °W 73.13333 °N 25.15000 °W 73.15000 °N 25.15000 °W 73.15000 °N 25.11667 °W
73.23333 °N 25.05000 °W 73.23333 °N 24.76667 °W 73.21667 °N 24.76667 °W 73.21667 °N 25.01667 °W 73.20000 °N 25.01667 °W 73.20000 °N 25.05000 °W The licences are currently in credit due to previous expenditure. Expenditure above the minimum regulatory requirement is carried forward for a maximum of three years. Eleonore North is in good standing and GreenX owns 100% of the licences following conclusion of a revised option agreement as announced on 15 July 2024..
GreenX will issue a 1.5% NSR for Eleonore North. |
|
|
|
The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. |
The licences are in good standing. |
|
|
Exploration done by other parties |
Acknowledgment and appraisal of exploration by other parties. |
1953 – lead, copper and zinc bearing veins were discovered in Noa Valley as part of a regional mapping program by Nordisk Mineselskab A/G (‘Nordisk’).
1974 – 1976: Nordisk mapped the Holmesø copper-antimony prospect in Brogetdal, Strindbergland. Geophysical surveying was performed. The outcropping mineralisation was blasted a 100kg bulk sample was retrieved, of which 35kg was sent for analysis. Finally, an attempt was made to drill the mineralisation, and only the top 1.4m of a targeted 17m mineralised horizon was sampled before the rig broke down. Nordisk concluded that the Holmesø mineralisation is epigenetic.
1981 – 1983: Nordisk discovered the two small, high-grade tungsten and antimony-tungsten deposits on Ymer Island. These are respectively known as South Margeries Dal and North Margeries Dal. These deposits were drilled Historical Estimates were made. Economic studies were performed but concluded that more mineralised material was needed. The drilled mineralisation is open at depth and along strike. The historical work on the tungsten and antimony is not material to the understanding of the project’s gold potential.
1984 – 1986: As part of Nordisk’s search for more tungsten mineralisation, a large gold bearing vein was discovered in the southern cliff face of Noa Valley. The mineralisation in the scree was sampled. Geochemical sampling was also performed which identified a 10 to 15 km long multielement anomaly dominated by arsenic and antimony, which have a positive correlation with gold. Nordisk had a strategic shift towards petroleum exploration after this point in time.
1992: With the demise of Nordisk in 1991, the Greenland state owned enterprise, NunaOil A/S in collaboration with Australia’s Pasminco Ltd did additional sampling of the Noa gold veins. The program was successful in finding additional veins in the valley floor and extending the known mineralisation. However, the corporate mandate was for ‘high grade gold’ which it was unsuccessful in locating. This result is unsurprising given that the veins are above the hornfels and correspondingly yield high-grade antimony and low-gold content. GEX expects the gold content to increase, and antimony to decrease at depth towards the causative pluton.
2008 – 2009: GEUS visited Ymer Island and took various rock grab samples in the Noa Dal area. Assay results from these samples were recently made publicly available on the Greenland Portal.
2009: NunaMinerals A/S, a public-private spinout from NunaOil A/S, conducted a heliborne magnetic survey over Margeries Valley and Noa Valley. The purpose of this survey was to directly detect tungsten, and antimony deposits. Neither of the known deposits were detectable using this method, however a distinct circular magnetic feature was identified in Noa Valley. This magnetic feature was interpreted to be a granitic/intermediate intrusion. During this time, samples from the South Margeries Dal deposit were sent for metallurgical analysis, which determined that the material was potentially suited to direct-shipping-ore, and amendable to basic beneficiation methods.
2011: Avannaa Resources Ltd (‘Avannaa’) conducted a basin-wide helicopter supported reconnaissance program. This included visits to the Holmesø mineralisation. Avannaa concluded that the Holmesø mineralisation was epigenetic and likely related to the mineralisation observed on Ymer Island.
2018-2019: Independence Group Ltd (subsequently rebranded as IGO Ltd (‘IGO’) through a joint-venture agreement with GEX, conducted three field programs that were focussed on the sedimentary-hosted copper deposit model. During this time, IGO managed all geological aspects of the program while GEX managed the logistics in 2018 and 2019. IGO visited Noa Valley in 2018 and 2019 but focussed on the north slope away from Noa Pluton, and on areas typified by magnetic highs rather than the lows which define Noa Pluton’s circular magnetic signature. Despite this, quartzite mineralisation reminiscent of Holmesø was identified but no mineralogy is recorded in the documentation. While in the field with IGO in 2019, GEX alerted IGO to the presence of antimony and gold in the south side of the valley, but no commensurate sampling was performed. During the IGO earn-in period, GEX located the historical drillhole collars at North and South Margeries Dal tungsten/antimony deposits.
The Holmesø prospect was visited by IGO in 2018, 2019 and 2022. IGO’s Holmesø sampling did not replicate Nordisk’s high-grade blast/bulk sample, or the drill results. Regional sampling identified diagenetic copper, as well as remobilised epigentic copper that expresses as course blebs of chalcocite within porous, bed-cutting, vuggy conduits.
2022: IGO conducted a structural and geochemical sampling program in Strindbergland (no activity on Ymer Island). This program correctly concluded that the ‘sediment-hosted copper deposit model’ is not a suitable analogy. IGO returned to GEX the licences that were in good standing, with the indebted licences being relinquished by IGO. The remaining licences became the ‘Eleonore North’ project, which is a subset of the original ‘Frontier’ project area.
2023: In May, GEX installed an array of passive seismic nodes on Ymer Island within the licence area. Passive seismic nodes record ambient noise in the crust and accumulate data over many weeks. In September 2023, GEX collected the nodes from Ymer Island. The nodes were returned to the Institute of Mine Seismology (IMS) for data download and processing. IMS produced a 3D velocity model. |
|
|
Geology |
Deposit type, geological setting and style of mineralisation. |
Eleonore North licences, for the most part, cover Neoproterozoic-aged sediments belonging to the Eleonore Bay Supergroup. These sediments trend from clastics up to carbonates. The lithology of the sediments is not a primary consideration in the targeting of reduced intrusion related gold systems. These sediments are intruded by granites and intermediate intrusives that are somewhat shallowly sourced due the Caledonian Orogenic event. However, geochronology of the South Margeries Dal tungsten indicates that post-orogenic fluid flow occurred. Post-orogenic granitic intrusions are consistent with RIRGS mineralisation, as the decompression allows for the fluidisation of gold in the mantle while providing conduits to surface. Elsewhere, such post-orogenic emplacement is associated with deeply sourced lamprophyres, like those mapped in Noa Valley and Brogetdal. GEX identified for the first time, that ~373 Ma post-orogenic mineralisation event is related to the 385 Ma Kiffaanngissuseq hydrothermal event some 1,000 km to the north. In the north at Kiffaanngissuseq the post-orogenic event was characterised by an east-west fluid flow. In the south in the Frontier region that hosts Elenore North, the post orogenic event was dominated by magmatic intrusions and little hydrothermal activity. Separating the two areas is the poorly understood, high-metamorphic grade Eclogite Province where peak metamorphism is of similar age to the Frontier and Kiffaanngissuseq processes. |
|
|
Drill hole Information |
A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: easting and northing of the drill hole collar elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar dip and azimuth of the hole down hole length and interception depth hole length. |
No drilling is reported with these results. |
|
|
|
If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. |
No information was excluded from the announcement. |
|
|
Data aggregation methods |
In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. |
No data aggregation has been undertaken. |
|
|
|
Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. |
No data aggregation has been undertaken. |
|
|
|
The assumptions used for any reporting of metal equivalent values should be clearly stated. |
No metal equivalent results have been reported. |
|
|
Relationship between mineralisation widths and intercept lengths |
These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. |
No drilling is reported with these results. The reported results are grab samples from within or adjacent to mineralised veins and structures. They do not characterise the geometry of the mineralisation. |
|
|
|
If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’). |
N/A |
|
|
Diagrams |
Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. |
Appropriate maps and tables are included in the main body of this announcement. |
|
|
Balanced reporting |
Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. |
All results are reported in Appendix 1: Table 1. |
|
|
Other substantive exploration data |
Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. |
All substantive data are reported. |
|
|
Further work |
The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). |
In Noa Valley, the target pluton(s) is constrained by seismic, magnetic and geochemical data. The depth to the pluton is thought to be around 150m below surface based on the seismic results. Field confirmation of potential host structures is warranted ahead of a subsequent drilling program. Future fieldwork will be planned and/or undertaken in conjunction with expert consultant(s).
At the South and North Margeries Dal prospects, a higher resolution digital terrain model should be obtained prior to generating Exploration Targets based on the historical drilling.
Bulk sampling at the prospects will also be considered. |
|
|
|
Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. |
These diagrams are included in the main body of this release. |
|
#GRX GreenX Metals LTD – Extension Of Option Agreement for Eleonore North
Extension Of Option Agreement for Eleonore North Gold Project
GreenX Metals Limited (GreenX or the Company) advises that it has agreed an extension of the Option Agreement (Agreement) with Greenfields Exploration Pty Ltd (GEX), to acquire up to 100% of the Eleonore North gold project (Eleonore North or the Project) in eastern Greenland, from 30 June 2024 to 15 July 2024, while GreenX and GEX negotiate to vary the commercial terms of the Agreement.
As previously announced, Eleonore North has the potential to host a reduced intrusion-related gold system” (RIRGS), analogous to large bulk-tonnage deposit types found in Canada including Donlin Creek, Fort Knox and Dublin Gulch.
Gold mineralisation has been documented at the high-priority Noa Pluton prospect within Eleonore North including:
· Geophysical “bullseye” anomaly 6 km wide co-incident with elevated gold mineralisation from historical geochemical sampling.
· Anomalous gold mineralisation associated with quartz veining exposed at surface over a length of up to 15 km.
· Historical sampling includes 4 m chip sample grading 1.93 g/t Au and 1.9% Sb (refer to Appendix 1 of the Company’s announcement on 10 July 2023).
Eleonore North has potential to host large scale, shallow, bulk tonnage gold deposits. Eleonore North remains underexplored, with the existence of a possible RIRGS being a relatively new geological interpretation based on the historical data. Initial field work consists of a seismic survey to determine the depth from surface to the Noa Pluton to aid in drill targeting.
Figure 1: 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
The Eleonore North license area contains other gold targets as well as copper, antimony and tungsten prospects. At Holmesø there is copper and antimony mineralisation outcropping at surface. Historical mapping and sampling in the 1970s at Holmesø show a prospective horizon between 15 m and 20 m thick, with per cent level grades for both metals.
Eleonore North provides GreenX with gold exposure in Greenland and complements GreenX’s existing exploration prospect in Greenland, the ARC. There are significant synergies with regards to personnel, logistics and equipment in having multiple exploration projects in Greenland. Field works were conducted during the 2023 field season at Eleonore North, with data collected from the seismic survey presently being analysed to inform follow-on exploration program design.
Greenland is a mining friendly jurisdiction with strong Government support for expanding its mining industry, simple laws and regulations, and a competitive fiscal regime.
The primary target in Eleonore North is the Noa Pluton, followed by the Holmesø prospect and its source intrusion. The Noa Veins provide a near-term drill target, however, the Company’s 2023 field work was focussed on determining the depth of the causative intrusion with greater precision using a passive seismic survey. Once analysed, this information will validate the magnetic interpretation, provide more certainty for a future exploration program, and help identify the size of the intrusion within the well-defined hornfels.
|
|
|
|
Figure 2: Map of Greenland showing GreenX’s ARC and Eleonore North license areas |
Figure 3: Map showing prospects and geological features within the Eleonore North license areas |
–ENDS–
Competent Persons Statement
The information in this report that relates to exploration results were extracted from the ASX announcement dated 10 July 2023 which is available to view at www.greenxmetals.com.
GreenX confirms that (a) it is not aware of any new information or data that materially affects the information included in the original announcement; (b) all material assumptions and technical parameters underpinning the content in the relevant announcement continue to apply and have not materially changed; and (c) the form and context in which the Competent Person’s findings are presented have not been materially modified from the original announcement.
#GRX GreenX Metals LTD – Quarterly Activities Report December 2023
In July 2023 GreenX entered into an Option Agreement with Greenfields Exploration Limited (Greenfields) to acquire up to 100% of the Eleonore North Gold Project (Eleonore North) in eastern Greenland.
o 2023 field work at Eleonore North was focused on determining the depth of an intrusion within the project area by deployment of an array of seismic nodes. The nodes have been retrieved with the recorded data now being processed by a geophysics specialist consulting firm. Results from the seismic analysis, expected in the March 2024 quarter, will be used in the next phases of the exploration program at Eleonore North.
o During the quarter, GreenX visited the Geological Survey of Denmark and Greenland in Copenhagen and discussed general co-operation and data sharing in respect of the Eleonore North region. GreenX also met with specialised arctic logistics service providers having extensive experience in East Greenland.
o Eleonore North has the potential to host a “reduced intrusion-related gold system” (RIRGS), analogous to large bulk-tonnage deposit types found in Canada.
· In November 2022, the hearing for the claim against the Republic of Poland under both the Energy Charter Treaty and the Australia-Poland Bilateral Investment Treaty was concluded (Claim).
o Combined arbitration hearing took place in front of the Tribunal in London under the UNCITRAL Arbitration Rules.
o With completion of the hearing, the Tribunal will render an Award (decision) in due course.
o Damages of up to £737 million (A$1.3 billion / PLN4.0 billion) have been claimed including the assessed value of GreenX’s lost profits and damages related to both the Jan Karski and Debiensko projects, and accrued interest related to any damages.
· Cash balance as at 31 December 2023 was A$9.3 million.
Classification 2.2: This announcement contains inside information
GreenX Metals Limited (ASX:GRX, LSE:GRX) (GreenX or the Company) is pleased to present its Quarterly Activities Report for the period during and subsequent to 31 December 2023.
eleonore north gold project
In July 2023, GreenX entered into an Option Agreement (Agreement) with Greenfields to acquire up to 100% of the Eleonore North gold project in eastern Greenland.
Eleonore North has the potential to host a RIRGS, analogous to large bulk-tonnage deposit types found in Canada including Donlin Creek, Fort Knox and Dublin Gulch.
Gold mineralisation documented at the high-priority Noa Pluton prospect within Eleonore North.
· Geophysical “bullseye” anomaly 6 km wide co-incident with elevated gold mineralisation from historical geochemical sampling.
· Anomalous gold mineralisation associated with quartz veining exposed at surface over a length of up to 15 km.
· Historical sampling includes 4 m chip sample grading 1.93 g/t Au and 1.9% Sb (refer to Appendix 1 of the Company’s announcement on 10 July 2023).
Eleonore North has potential to host large scale, shallow, bulk tonnage gold deposits. Eleonore North remains underexplored, with the existence of a possible RIRGS being a relatively new geological interpretation based on the historical data. Initial field work consists of a seismic survey to determine the depth from surface to the Noa Pluton to aid in drill targeting.
Figure 1: 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
The Eleonore North license area contains other gold targets as well as copper, antimony and tungsten prospects. At Holmesø there is copper and antimony mineralisation outcropping at surface. Historical mapping and sampling in the 1970s at Holmesø show a prospective horizon between 15 m and 20 m thick, with per cent level grades for both metals.
Eleonore North provides GreenX with gold exposure in Greenland and complements GreenX’s existing exploration prospect in Greenland, the Arctic Rift Copper Project (ARC). There are significant synergies with regards to personnel, logistics and equipment in having multiple exploration projects in Greenland. Field works were conducted during the 2023 field season at Eleonore North, with data collected from the seismic survey presently being analysed to inform follow-on exploration program design.
Greenland is a mining friendly jurisdiction with strong Government support for expanding its mining industry, simple laws and regulations, and a competitive fiscal regime.
The primary target in Eleonore North is the Noa Pluton, followed by the Holmesø prospect and its source intrusion. The Noa Veins provide a near-term drill target, however, the Company’s 2023 field work was focussed on determining the depth of the causative intrusion with greater precision using a passive seismic survey. Once analysed, this information will validate the magnetic interpretation, provide more certainty for a future exploration program, and help identify the size of the intrusion within the well-defined hornfels.
|
|
|
|
Figure 2: Map of Greenland showing GreenX’s ARC and Eleonore North license areas |
Figure 3: Map showing prospects and geological features within the Eleonore North license areas |
ARCTIC RIFT COPPER PROJECT
The ARC project is an exploration joint venture between GreenX and Greenfields. GreenX can earn-in up to 80% of ARC by spending A$10 million by October 2026. ARC is targeting large scale copper in multiple settings across a 5,774 km2 Special Exploration Licence in eastern North Greenland. The area has been historically underexplored yet is prospective for copper, forming part of the newly identified Kiffaanngissuseq metallogenic province.
The results of work program announced last year have demonstrated the high-grade nature of the known copper sulphide mineralisation and wider copper mineralization in fault hosted Black Earth zones and adjacent sandstone units. The exact position of a native copper fissure at the Neergaard Dal prospect was also identified.
Analysis of this information is underway and will be key to future planned work programs.
DISPUTE WITH POLISH GOVERNMENT
In November 2022, the Company reported the conclusion of the Claim against the Republic of Poland under both the Energy Charter Treaty (ECT) and the Australia-Poland Bilateral Investment Treaty (BIT) (together the Treaties). The hearing took place in London in and lasted two weeks.
Following completion of the hearing, the Tribunal will render an Award (i.e., the legal term used for a ‘decision’ by the Tribunal) in due course with no specified date available for the Tribunal decision.
As previously advised, the arbitration and hearing proceedings in relation to the Claim are required to be kept confidential.
Details of the Claim
The Company’s Claim against the Republic of Poland is being prosecuted through an established and enforceable legal framework, with GreenX and Poland agreeing to apply the United Nations Commission on International Trade Law Rules (UNCITRAL) rules to the proceedings. The arbitration claims are being administered through the Permanent Court of Arbitration in the Hague.
The evidentiary hearing phase of the arbitration proceedings has now been completed in front of the Arbitral Tribunal. With completion of the hearing, the Arbitral Tribunal will render an Award in due course. There is no specified date for an Award to be rendered. The Company’s claims for damages against Poland are in the amount of up to £737 million (A$1.3 billion/PLN4.0 billion), which includes a revised assessment of the value of GreenX’s lost profits and damages related to both the Jan Karski and Debiensko projects, and accrued interest related to any damages. The Claim for damages has been assessed by independent external quantum experts appointed by GreenX specifically for the purposes of the Claim.
In July 2020, the Company announced it had executed the LFA for US$12.3 million with LCM. US$10.7 million of the facility has been drawn down to cover legal, tribunal and external expert costs as well as defined operating expenses associated with the Claim. The Company does not anticipate further material drawdowns in relation to the ongoing BIT and ECT Tribunal proceedings. The LFA is a limited recourse loan with LCM that is on a “no win – no fee” basis.
In September 2020, GreenX announced that it had formally commenced with the Claim by serving the Notices of Arbitration against the Republic of Poland. In June 2021, GreenX announced that it had formally lodged its Statement of Claim in the BIT arbitration, including the first assessed claim for compensation. The Company’s Statement of Reply, the last material filing to be made by the Company for the BIT arbitration proceedings, was submitted in July 2021. The Statement of Reply addresses various points raised by the Republic of Poland in their Statement of Defence. The Statement of Reply also contains a re-evaluation of the claim for damages based on responses to Poland’s Statement of Defence.
GreenX’s dispute alleges that the Republic of Poland has breached its obligations under the applicable Treaties through its actions to block the development of the Company’s Jan Karski and Debiensko projects in Poland which effectively deprived GreenX of the entire value of its investments in Poland.
In February 2019, GreenX formally notified the Polish Government that there exists an investment dispute between GreenX and the Polish Government. GreenX’s notification called for prompt negotiations with the Government to amicably resolve the dispute and indicated GreenX’s right to submit the dispute to international arbitration in the event of the dispute not being resolved amicably.
GreenX’s investment dispute with the Republic of Poland is not unique, with international media widely reporting that the political environment and investment climate in Poland has deteriorated since the change in Government in 2015. As a result, there are a significant number of International Arbitration claims being bought against Poland.
CORPORATE
Financial Position
GreenX had cash of A$9.3m as at 31 December 2023.
-ENDS-
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (‘MAR’). Upon the publication of this announcement via Regulatory Information Service (‘RIS’), this inside information is now considered to be in the public domain.
Forward Looking Statements
This release may include forward-looking statements. These forward-looking statements are based on GreenX’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of GreenX, which could cause actual results to differ materially from such statements. GreenX makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.
Competent Persons Statement
The information in this report that relates to exploration results were extracted from the ASX announcement dated 10 July 2023 which is available to view at www.greenxmetals.com.
GreenX confirms that (a) it is not aware of any new information or data that materially affects the information included in the original announcement; (b) all material assumptions and technical parameters underpinning the content in the relevant announcement continue to apply and have not materially changed; and (c) the form and context in which the Competent Person’s findings are presented have not been materially modified from the original announcement
APPENDIX 1: TENEMENT INFORMATION
As at 31 December 2023, the Company has an interest in the following tenements:
|
Location |
Tenement |
Percentage |
Status |
Tenement Type |
|
Greenland |
Arctic Rift Copper Project (Licence No. 2021-07 MEL-S) |
–1 |
Granted |
Exploration Licence |
|
Greenland |
Eleonore North gold project |
–2 |
Granted |
Exploration Licence |
|
Jan Karski, Poland |
Jan Karski Mine Plan Area (K-4-5, K6-7, K-8 and K-9)2 |
–3 |
In dispute3 |
Exclusive Right to apply for a mining concession3 |
|
Debiensko, Poland |
Debiensko 1 |
–3 |
In dispute3 |
Mining3 |
Notes:
1 In October 2021, the Company announced that it had entered into an Earn-In Agreement (EIA) with Greenfields to acquire an interest of up to 80% in ARC. As at the date of this announcement, the Company held no beneficial interest in ARC, other than through the EIA.
2 In July 2023, the Company announced that it had entered into an Option Agreement with Greenfields to acquire an interest of up to 100% in Eleonore North. As at the date of this announcement, the Company held no beneficial interest in Eleonore North, other than through the Option Agreement.
3 GreenX formally commenced international arbitration claims against the Republic of Poland under both the ECT and the BIT in 2021. GreenX alleges that the Republic of Poland has breached its obligations under the Treaties through its actions to block the development of the Company’s Jan Karski and Debiensko projects in Poland. Refer to discussion of the Claim above. The Company has received notice from the relevant Polish authority that the Debiensko mining licence has been extinguished.
Appendix 2: Related Party Payments
During the quarter ended 31 December 2023, the Company made payments of A$241,000 to related parties and their associates. These payments relate to existing remuneration arrangements (director fees, consulting fees and superannuation of A$146,000 and the provision of a serviced office and company secretarial and administration services of A$95,000).
Appendix 3: Exploration and Mining Expenditure
During the quarter ended 31 December 2023, the Company made the following payments in relation to exploration activities:
|
Activity |
A$000 |
|
Greenland (Eleonore North and ARC) |
|
|
Project Management |
178 |
|
Exploration program, including sampling |
27 |
|
Transport costs (including equipment and fuel) |
5 |
|
Other (field supplies, equipment, fuel, satellite imagery, etc) |
1 |
|
Total as reported in the Appendix 5B (item 2.1(d)) |
211 |
There were no mining or production activities and expenses incurred during the quarter ended 31 December 2023.
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
|
Name of entity |
||
|
GreenX Metals Limited |
||
|
ABN |
Quarter ended (“current quarter”) |
|
|
23 008 677 852 |
31 December 2023 |
|
|
Consolidated statement of cash flows |
Current quarter |
Year to date |
|
|
1. |
Cash flows from operating activities |
– |
– |
|
1.1 |
Receipts from customers |
||
|
1.2 |
Payments for |
– |
– |
|
(a) exploration & evaluation |
|||
|
(b) development |
– |
– |
|
|
(c) production |
– |
– |
|
|
(d) staff costs |
(412) |
(787) |
|
|
(e) administration and corporate costs |
(574) |
(937) |
|
|
1.3 |
Dividends received (see note 3) |
– |
– |
|
1.4 |
Interest received |
159 |
252 |
|
1.5 |
Interest and other costs of finance paid |
– |
– |
|
1.6 |
Income taxes paid |
– |
– |
|
1.7 |
Government grants and tax incentives |
– |
– |
|
1.8 |
Other (provide details if material) (a) Business Development (b) Property rental and gas sales (c) Occupancy |
(105) 4 (236) |
(219) 10 (430) |
|
1.9 |
Net cash from / (used in) operating activities |
(1,164) |
(2,111) |
|
2. |
Cash flows from investing activities |
– |
– |
|
2.1 |
Payments to acquire or for: |
||
|
(a) Entities |
|||
|
(b) Tenements |
– |
– |
|
|
(c) property, plant and equipment |
(2) |
(2) |
|
|
(d) exploration & evaluation |
(211) |
(1,253) |
|
|
(e) investments |
– |
– |
|
|
(f) other non-current assets |
– |
– |
|
|
2.2 |
Proceeds from the disposal of: |
– |
– |
|
(a) entities |
|||
|
(b) tenements |
– |
– |
|
|
(c) property, plant and equipment |
– |
– |
|
|
(d) investments |
– |
– |
|
|
(e) other non-current assets |
– |
– |
|
|
2.3 |
Cash flows from loans to other entities |
– |
– |
|
2.4 |
Dividends received (see note 3) |
– |
– |
|
2.5 |
Other (provide details if material) |
– |
– |
|
2.6 |
Net cash from / (used in) investing activities |
(213) |
(1,255) |
|
3. |
Cash flows from financing activities |
– |
4,164 |
|
3.1 |
Proceeds from issues of equity securities (excluding convertible debt securities) |
||
|
3.2 |
Proceeds from issue of convertible debt securities |
– |
– |
|
3.3 |
Proceeds from exercise of options |
– |
– |
|
3.4 |
Transaction costs related to issues of equity securities or convertible debt securities |
(18) |
(154) |
|
3.5 |
Proceeds from borrowings |
– |
– |
|
3.6 |
Repayment of borrowings |
– |
– |
|
3.7 |
Transaction costs related to loans and borrowings |
– |
– |
|
3.8 |
Dividends paid |
– |
– |
|
3.9 |
Other (provide details if material) |
– |
– |
|
3.10 |
Net cash from / (used in) financing activities |
(18) |
4,010 |
|
4. |
Net increase / (decrease) in cash and cash equivalents for the period |
||
|
4.1 |
Cash and cash equivalents at beginning of period |
10,715 |
8,674 |
|
4.2 |
Net cash from / (used in) operating activities (item 1.9 above) |
(1,164) |
(2,111) |
|
4.3 |
Net cash from / (used in) investing activities (item 2.6 above) |
(213) |
(1,255) |
|
4.4 |
Net cash from / (used in) financing activities (item 3.10 above) |
(18) |
4,010 |
|
4.5 |
Effect of movement in exchange rates on cash held |
(2) |
– |
|
4.6 |
Cash and cash equivalents at end of period |
9,318 |
9,318 |
|
5. |
Reconciliation of cash and cash equivalents |
Current quarter |
Previous quarter |
|
5.1 |
Bank balances |
1,818 |
2,715 |
|
5.2 |
Call deposits |
7,500 |
8,000 |
|
5.3 |
Bank overdrafts |
– |
– |
|
5.4 |
Other (provide details) |
– |
– |
|
5.5 |
Cash and cash equivalents at end of quarter (should equal item 4.6 above) |
9,318 |
10,715 |
|
6. |
Payments to related parties of the entity and their associates |
Current quarter |
|
6.1 |
Aggregate amount of payments to related parties and their associates included in item 1 |
(241) |
|
6.2 |
Aggregate amount of payments to related parties and their associates included in item 2 |
– |
|
Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments. |
||
|
7. |
Financing facilities Add notes as necessary for an understanding of the sources of finance available to the entity. |
Total facility amount at quarter end |
|
|
7.1 |
Loan facilities |
18,040* |
15,709 |
|
7.2 |
Credit standby arrangements |
– |
– |
|
7.3 |
Other (please specify) |
– |
– |
|
7.4 |
Total financing facilities |
18,040* |
15,709 |
|
|
|||
|
7.5 |
Unused financing facilities available at quarter end |
2,331 |
|
|
7.6 |
Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well. |
||
|
On 30 June 2020, the Company executed a Litigation Funding Agreement (LFA) for US$12.3 million (*now worth A$18.0 million with the movement of the A$ compared to the $US) with LCM Funding UK Limited a subsidiary of Litigation Capital Management Limited (LCM), to pursue damages claims in relation to the investment dispute between GreenX and the Polish Government that has arisen out of certain measures taken by Poland in breach of the Energy Charter Treaty and the Australia – Poland Bilateral Investment Treaty (BIT). LCM will provide up to US$12.3million (~A$18.0 million), denominated in US$, in limited recourse financing which is repayable to LCM in the event of a successful Claim or settlement of the Dispute that results in the recovery of any monies. If there is no settlement or award, then LCM is not entitled to any repayment of the financing facility. In return for providing the financing facility, LCM shall be entitled to receive repayment of any funds drawn plus an amount equal to between two and five times the total of any funds drawn from the funding facility during the first five years, depending on the time frame over which funds have remained drawn, and then a 30% interest rate after the fifth year until receipt of damages payments. |
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8. |
Estimated cash available for future operating activities |
$A’000 |
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8.1 |
Net cash from / (used in) operating activities (item 1.9) |
(1,164) |
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8.2 |
(Payments for exploration & evaluation classified as investing activities) (item 2.1(d)) |
(211) |
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8.3 |
Total relevant outgoings (item 8.1 + item 8.2) |
(1,375) |
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8.4 |
Cash and cash equivalents at quarter end (item 4.6) |
9,318 |
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8.5 |
Unused finance facilities available at quarter end (item 7.5) |
2,331 |
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8.6 |
Total available funding (item 8.4 + item 8.5) |
11,649 |
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8.7 |
Estimated quarters of funding available (item 8.6 divided by item 8.3) |
8 |
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Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7. |
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8.8 |
If item 8.7 is less than 2 quarters, please provide answers to the following questions: |
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8.8.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not? |
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Answer: Not applicable |
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8.8.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful? |
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Answer: Not applicable |
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8.8.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis? |
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Answer: Not applicable |
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Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered. |
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Compliance statement
1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
2 This statement gives a true and fair view of the matters disclosed.
Date: 31 January 2024
Authorised by: Company Secretary
(Name of body or officer authorising release – see note 4)
Notes
1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [name of board committee – eg Audit and Risk Committee]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.
5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.
Greenland – Right Opportunity, Right Time? Alan Green talks to AEX Gold #AEXG CEO Eldur Olafsson
Greenland – Right Opportunity, Right Time? Alan Green talks to AEX Gold #AEXG CEO Eldur Olafsson. This AIM and TSX-V listed company’s principal asset is its 100% interest owned Nalunaq Project, an advanced exploration stage property with an exploitation license that includes the previously operating Nalunaq gold mine. The district scale portfolio of gold assets covers over 4,090km2, making it the largest portfolio of gold assets in Southern Greenland covering the two known gold belts in the region. Read about the projects here
Greenland’s Mineral Assets – Right Opportunity and Right Time for AEX Gold
by Arjun Thakkar and Alan Green
Formerly perceived as a remote, inaccessible land mass in the North Atlantic, Greenland is fast developing into a highly desirable and fertile territory for mining companies due to an abundance of metals and minerals. As the ice from Arctic has begun to melt in Greenland due to global warming, energy resources and minerals like gold, iron, rare earth elements have become more accessible.
A progressive political administration has ensured that facilities and opportunities are made readily available to assist in the extraction of natural resources as a central part of Greenland’s plans to become self-sufficient. Detailed regulatory structures are all in place to safeguard the land and environment, and at the same time the Government has created an attractive investment climate to attract global mining giants such as Anglo American.
This pro-mining climate and active support from the Government has also attracted some of the smaller junior mining companies such as AEX Gold.
Greenland’s 2020-2024 Mineral Strategy attracts junior mining companies by making the process of granting applications and mining simpler through a simplified transition from exploration to exploitation with fewer requirements. Greenland has also showed support to the mining industry to diversify the economy by doubling budgets from 2020-2021.
In order to simplify the transition from exploration to exploitation, the government of Greenland has prepared standardised models to ensure fast and easy transition while ensuring all junior mining companies can independently assess the potential profitability of exploitation projects. Further benefits are available, provided that companies follow rules and regulations pertaining to environmental, social or other matters.
AEX Gold
AEX Gold, listed on the London AIM market and Canada’s TSX Venture market (AIM: AEXG, TSX-V: AEX) is a Greenland-focused mining company engaged in the identification, acquisition, exploration, and development of gold properties and other strategic mineral assets. The Company was founded in 2017 by CEO Eldur Olafsson, who previously worked for over 7 years on integrated mining projects in Greenland. Both he and AEX Gold have stated that Greenland represents an attractive ‘untouched’ location for mining companies due to the environmental and political awareness of the Government. Currently AEX Gold operates seven different projects in Greenland – Nalunaq, Vagar, Tartoq, Nanoq, Sava, Saqqaa and Norrearm projects as well as more than 4,000 km2 of exploration ground.
AEX Gold’s commitment towards responsible mining in Greenland has ensured it is eligible to receive benefits from the Government and current administration. The responsible mining charter AEX will adhere to includes use of local wind and hydro power to support the mine at its flagship Nalunaq project, and it will help reduce environmental footprint and any impact on wildlife. There are also social and governance factors that include a target to train and employ up to 50% of the workforce from the local population, the prioritization of Greenlandic law, practices and regulatory standards in all working practices – all this while maintaining continuing constructive dialogue with the government with EIA and SIA objectives.
AEX Gold has set out its intentions, incorporating responsible mining practice with its schedule of works on its corporate website as follows:
- Leverage extensive existing infrastructure in the redevelopment of the past producing Nalunaq mine
- Responsible mining, by bringing benefits to local communities where we operate and to Greenland as a whole
- Managing safety risks by committing to abide by the highest Health and Safety standards
- Exploring innovative technologies to operate in the most sustainable way
Projects
Nalunaq Project
AEX is leveraging first mover advantage to deliver shareholder value by redeveloping the past-producing Nalunaq mine and is generating significant upside from the Company’s portfolio of high-impact exploration assets in Southern Greenland. Having produced approximately 350 thousand ounces of gold between 2004 and 2013, 
Nalunaq has demonstrated a low-cost production potential from past operations. The mine operated until 2013, when it closed as a result of falling gold prices, financial difficulties and a lack of exploration. This led to the site being partially decommissioned in 2014 and the widespread view that the deposit was exhausted. AEX has challenged this view and intends to capitalise on the latest mining and processing methods in its plans to bring the historical mine back into production. The asset has significant pre-existing infrastructure and development left in place by the previous operators, and has access to services like waste incinerator, critical fleet, ambulances, roads and bridges, and a 50 person all weather camp. In February 2021, Halyard Inc. were commissioned to undertake a 3rd party engineering study, focussed on the costs of the main components of the Nalunaq Development. Halyard looked at the cost overrun announced in February 2021, and importantly confirmed that the process design philosophy met the necessary criteria for processing the Nalunaq ore body.
Vagar Project
In a 2019 interview with High North News, AEX CEO Eldur Olafsson stated that he believed there were more gold deposits in the Vagar area in Greenland than previously expected, and that the gold is not only found in connection with quartz, but also in the bedrock itself. Historical data and discoveries confirm that gold deposits in southern Greenland hold high levels of purity. Also in 2019, AEX confirmed that gold had been recorded within the host granodiorite, with grades up to 12.1 g/t Au at Femøren and 14.4 g/t Au at Øresund.
Tartoq Project
AEX’s 100% owned Tartoq project covers the entire Tartoq Gold Belt and all known gold occurrences, for a total of 248 km2. Locally high-grade orogenic gold mineralisation is hosted in a classic Archean greenstone belt setting. Apart from gold, up to 14% Pb, 1,210 g/t Ag and 0.7% Cu have also been identified in semi-massive sulphide lenses.
Nanoq Project
Nuna Nutaaq, licence 2019/113, which host the Nanoq Project comprises of 5 sub areas within the Nanortalik Gold Belt and covers all major gold showings and prospective areas identified by AEX’s regional machine learning study. These targets were previously investigated by Crew Gold, NunaMinerals and Goldcorp. Nanoq itself is believed to be a folded and duplicated gold bearing quartz vein and shear sampled at surface (with channel and grab samples returning up to 175g/t Au and 3.83% Cu) over at least 800m and being open in both strike and depth.
Sava Project
Sava is a large licence targeting IOCG (Iron Ore, Copper Gold) style mineralisation similar in style to the massive deposit of Olympic Dam in southern Australia. This project which is only 30km from the international airport at Narsarsaq, has returned histrocal grades of 3.4% copper, 3.7% zinc, 0.28% molybdenum as well as gold, silver and niobium.
Saqqaa Project
Saqqaa is a Platinum Group Metals (PGMs), Gold and Nickel-Copper bearing dyke systems overlooking the Nalunaq mine. Pervious samples have given up to 10g/t palladium, 6% copper and 1g/t gold.
Nørrearm Project
Nørrearm is one of multiple graphite occurrences within AEX’s licences and exists as a 5m thick graphite and sulphide rich later over 2000m in strike with samples returning 10-14% total graphitic carbon content. This , and other graphite occurrences AEX controls hold many similarities to the Amitsoq deposit run by GreenRoc Mining in southern Greenland.
Exploration Licences
On top of these describes project sites, AEX hold a large land portfolio hosting numerous targets that are being developed into the next projects, these licence areas include:
Anoritooq licence
Anoritooq is divided into two sub-areas: the main zone lies between AEX’s Saarloq and Vagar exploration licenses and covers parts of the Niaqornaarsuk, Akuliaruseq and Nanortalik peninsulas to the northeast of Nanortalik, and a second sub-area on the southeast coast of Greenland that follows the inner parts of Kangerluluk and Igutsaat Fjord. The most advanced gold exploration target in this licence is known as Lake 410, located on the southern end of the Nanortalik Peninsula.
Sarlooq licence
The Saarloq Licence 2020/31 covers an area of 818 km2 and is predominantly underlain by granitoid rocks of the Julianehåb Batholith, with several enclaves of metavolcanic and appinitic rocks. The principal feature of interest is the large, crustal-scale Saarloq Shear Zone that runs through the licence in a north-easterly direction. The shear zone and its subsidiary features represent prospective settings for structurally controlled gold mineralisation, especially in areas where brittle deformation has occurred. Qaqortoq is the closest major town to the Saarloq licence area and forms a good staging post for exploration work.
Kobbermineburgt licence
A new licence area acquired in 2021 that hosts the former producing Josva copper mine and numerous disseminated and strata bound copper sulphide targets
Investment Potential
Despite the impact of a travel ban and Nalunaq project cost increases at the start of 2021, the AEX share price has steadily recovered over the past 4 months, rising from 25p to 35.21p. The exploration team arrived back on site at Nalunaq in June 2021, and with 51 drill holes completed by the end of the year, CEO Eldur Olafsson cited “encouraging early signs from the drilling and the clarity from Halyard” as factors all pushing Nalunaq towards pre-feasibility level study stage, “providing an optimal plan for the project”.
So with extensive local government backing and favourable environmental conditions, Nalunaq looks poised to deliver considerable additional potential, and with six other major minerals projects under development, AEX Gold appears to have timed its Greenland market entry to perfection.
A board and management team with diverse backgrounds all delivering on commitments to stakeholders makes for a solid investment case, and with clear progress at the flagship Nalunaq project, together with sustainable mining practices and an empowered local community, AEX Gold looks to have timed its entry perfectly. Time perhaps for investors to do the same and take full advantage of this steady growth in asset value reflected in a steady, rising share price.