Nuuk, 2013-11-12 23:01 CET (GLOBE NEWSWIRE) --
The Board of Director of NunaMinerals A/S has today considered and approved the Interim Report for the first nine months of 2013.
Highligths:
- Strongest gold anomalies in Greenland identified during continued exploration at the Vagar gold project in South Greenland, with identification of multiple new gold targets over >96 km2, and a significant extension to the strike length of existing targets.
- Four channel sample profiles across the Vein 2 gold mineralised structure were successful in demonstrating that wide intersections of exceptional high grade gold mineralisation occur, including several of the best intersections from the Vagar gold project to date, yielding up to 13 meters at 70 g/t gold with visible gold observed in eight of the samples. Drilling confirms the down dip continuity of the Vein 2 mineralised system to >300 meters depth below surface.
- New petrological and lithogeochemical studies support the presence of highly prospective Intrusion Related Gold Systems (IRGS) at Vagar.
- As a consequence of the Company’s successfull exploration at the Vagar Gold Project and decision to focus on this, and in the light of the challenges in obtaining funding for further exploration and the Company’s liquidity position, the Company will reduce the scope of its current exploration activities. This results in major write downs of the value of the license portfolio, as some licenses will be handed back and written off while other licenses will be kept but the value be reduced. The total write down is 52 mDKK and is incorporated in the Q3 result. The write downs will have no impact on the liquidity.
- The result before tax for the period was a loss of 57 mDKK after capitalisation of exploration and evaluation costs.
- Due to the write down of the value of the Company’s license portfolio, the Company now expects a negative result before tax of 57-62 mDKK for 2013. The Company’s original expectations for 2013 were a negative result before tax of 5-10 MDKK.
- NunaMinerals A/S has invested 12 mDKK in exploration and evaluation during the first nine months of 2013, following the plans laid out in the Annual Report 2012.
- The Company had Cash and Cash Equivalents of 2 mDKK as of September 30 2013. In addition the Company has an unutilised credit facility of 2 mDKK.
- The Company is aware that, additional funding will be required to ensure continued operating activities beyond 2013. Accordingly the Company is currently investigating the possibilities to raise additional equity so as to be able to pursue the continued exploration at the Vagar Gold Project, as described in company announcements no. 16 of 18 September 2013 and no. 15 of 28 August 2013. The Board of Directors and the management of NunaMinerals believe they are taking the appropriate steps with the view to secure the liquidity position of the Company. NunaMinerals largest shareholder has indicated to the Company that they are prepared to support the Company’s plan with an amount to obtain funding short term.
On behalf of NunaMinerals A/S
Birks Bovaird, Chairman of the Board of Directors • Ole Christiansen, President and CEO
