Angel Mining (Gold) A/S (“Angel”), a wholly owned subsidiary of Angel Mining plc, purchased the Nalunaq mining assets in July 2009 for US$1,500,000, which included mining equipment, a fully operational mine camp and ship loading harbour facilities located close to the town of Nanortalik at the southern tip of Greenland. The target annual production rate is approximately 24,000 ounces of gold per year.
Angel will use innovative techniques to operate the mine profitably. The deposit reposes at a fairly constant 35deg and the company is using a stope mining method that will enable it to use existing mining equipment.
A processing plant has been built inside the mine. It is believed to be the world’s first underground cyanide leaching plant and it produced the first gold doré bar on 27 May 2011.
The plant enables Angel to eliminate the costs of shipping and external processing, which proved to be such a heavy burden for the previous operation.
It also provides Angel with the ultimate environmental control to ensure that there is no damage done to the Kirkespirdalen valley.
The deposit is ‘nuggety’ by nature, which means that diamond drill exploration results are extremely variable and interpretation of the recoverable gold is more difficult than it would be if the gold were more evenly dispersed within the host rock. This means that it is very difficult to measure a JORC compliant resource, however the Company’s geologists believe that there is sufficient gold for the Company to make a healthy profit on its investment. It is also hoped that the plant will eventually process material from other mines, which are likely to be developed in the vicinity as there are several active gold exploration sites in the surrounding area.