Critical minerals explorer GreenX Metals (ASX:GRX) has entered into an option agreement with unlisted Australian explorer Greenfields Exploration to acquire the Eleonore North Gold Project in Greenland.
Under the agreement, GreenX could acquire 100% of Eleonore North once it has spent $600,000 on an agreed exploration program within 12 months and can be exercise in return for 1.5% net smelter royalty (NSR), plus $250,000, payable in either $250,000 in cash or GreenX shares at GreenX’s election.
Greenfields will act as the project manager until 30 June 2024, with the option to act as the project manager after this date under certain circumstances.
GreenX reports the agreement provides it with a ‘low-cost’ entry point into gold exploration in Greenland, noting the synergies of an established team, infrastructure, and equipment in Greenland for the Arctic Rift Copper (ARC) Project.
The company says Eleonore North remains underexplored, and a new geological interpretation based on historical data points towards the project hosting an intrusion-related gold system.
At Eleonore North, GreenX will initially focus on the Noa Pluton prospect where the Noa Veins provide a near-term drill target. This will be followed with work at the Holmesø prospect.
The company plans to determine the depth of the intrusion with greater precision using a passive seismic survey which will validate the magnetic interpretation, provide more certainty for a future drilling program, and help identify the size of the intrusion within the ‘well-defined’ hornfels.
Commenting on the agreement, GreenX Metals Chief Executive Officer Benjamin Stoikovich says: “The Eleonore North Project diversifies GreenX with an exposure to gold and the bulk tonnage targets fits with the company’s strategy of pursuing globally significant discoveries.
Its location allows us to unlock significant operational synergies in future field seasons with our ARC copper project in northern Greenland in conjunction with our JV partner and project manager Greenfields Exploration. We believe the mineral potential of Greenland is enormous, and we are progressively working on unlocking this potential.”
“We believe the mineral potential of Greenland is enormous, and we are progressively working on unlocking this potential”
The Eleonore Project covers 1,221km-square across 2 exploration licences in northeast Greenland, and lies about 1,000km south of GreenX’s ARC Project.
According to GreenX, Eleonore North has all the hallmarks of a ‘reduced intrusion-related gold system’ (RIRGS), which are found in Canada, and are often associated with tin and tungsten provinces.
GreenX Metals is an ASX-listed critical minerals explorer focused on the ARC and Eleonore North Gold projects in Greenland. The company had $10 million cash at hand as of 31 March 2023, according to its latest quarterly report published on 28 April 2023.
Write to Harry Mulholland at Mining.com.au
Images: GreenX Metals Ltd
