The ammassalik PROSPECT

Komatiite hosted Nickel-copper-pge mineralisation In southeast

(Contained within exclusive license 2012/26)

The Ammassalik project comprises exclusive mineral rights covering 84 km 2 in a widely unexplored segment of the Palaeoproterozoic Nagssugtoqidian Orogen in East Greenland. Historic exploration on Ammassalik Island has led to the discovery of numerous showings of nickel-copper-PGE rich sulphide mineralisation over a distance of 8-9 kilometres along strike within the fragmentized Siportoq supracrustal sequence. Promising new showings discovered up to 30 kilometres away in neighbouring supracrustal segments increases the target for exploration to be traceable for more than 75 kilometres.

Project highlights

 The Ammassalik region represents the continuation of the Trans-Hudson and Torngat orogens into Greenland. Genetic resemblance to world class deposit areas such as Thompson, Raglan and Pechenga  Ni-Cu-PGE sulphide mineralisation is associated with ultrabasic rocks (locally komatiitic) and graphite-rich supracrustals of the Siportoq sequence  Mini-bulk sampling from Main Mineralisation at Ammassalik Island return 1.39% Ni, 0.46% Cu and 0.3 ppm PGE (Pt-dominated; tenor values of 4.76% Ni and 1.56% Cu)  Surface sampling at Qorqortoq at Ammassalik Island returns up to 1.51% Ni, 0.23% Cu and 216 ppb Au+PGE (tenor values of 3.58% Ni and 0.80% Cu)  MMI survey and boulder sampling indicates continuity between isolated sulphide lenses at Qorqortoq Bay  Drill program outlined at Ammassalik Island in order to test the Main Mineralisation and Qorqortoq targets  Untested new mineralisation (c.1% Ni) at Kitak 30 kilometers west of Ammassalik Island representing the continuation of sulphide mineralised sequence. Large upside potential for new discoveries.  License area is excellent sited next to the coastal town of with daily flights to the west coast and Iceland

Infrastructure and Geological Setting

The Ammassalik region is located in Southeast Greenland next to the coastal town of Tasiilaq, which is the most populous community in East Greenland with c. 3000 inhabitants. Tasiilaq has daily flight connections to Iceland and other parts of Greenland and a modern harbour with frequent cargo and shipping connections served by Royal Greenland. The geography is characterised by coastal mountains with elevations from 1000 to 2000 meters height, which are intersected by numerous large deep-water fjord systems. However, more gentle glaciated terrain exists in the interior western parts of the license area. The weather is mild with average temperatures in the summer period of 5-10°C. Ammassalik is part of the Palaeoproterozoic Nagssuqtoqidian orogen of East Greenland [1900-1800 Ma] that formed in the collision zone between two parts of a previously broken up (rifted) Archaean continent. The present shape of the region comprises a 300 kilometers wide belt of Archaean gneisses and reworked Palaeoproterozoic supracrustal and magmatic rocks. The license area is centered around the so called Ammassalik Intrusive Complex [c. 1886 Ma], which comprises a suite of polyphase plutonic rocks [dioritic and more basic components] that intruded into metasedimentary and interleaved ultrabasic rocks known as the Siportoq supracrustals comprising various graphite-garnet rich paragneisses and -schists, marbles, undifferentiated amphibolites, metagabbros and metaperidotites/-pyroxenites the latter locally of komatiitic nature. Regarded as having been a coherent sedimentary sequence, the Siportoq supracrustals were later subjected to Proterozic regional deformation including tight isocline folding and south directed thrusting. Disrupted fragments of the sequence now occur scattered over significant parts of the Ammassalik region with individual strike lengths of up to 75 kilometers.

Geological map of the Ammassalik region and coastal stretch of southeast Greenland. The license area is located next to Tasiilaq within Palaeoproterozoic supracrustal rocks.

Historic exploration within the license area

Despite the easy approach to Tasiilaq, the Ammassalik region has seen limited exploration activities. Historic indications of elevated nickel were not investigated until the mid-90s where the Greenlandic exploration company NunaOil A/S initiated a regional sediment sampling and reconnaissance program. During the following years several locations hosting orthomagmatic Ni-Cu-PGE mineralisation were discovered, mainly along the south coast of Ammassalik Island with the Main Mineralisation as the most promising discovery. Indications of gold mineralisation were also observed in many places throughout the region. In 2003, the Ni-Cu-PGE potential was investigated again by the Danish company PF&U who joint ventured the project with Diamond Fields Int., Canada. At Ammassalik Island a sulphide discovery at Qorqortoq Bay extended the mineralisation 2,5 kilometres to the east and boulder tracing indicated that massive sulphides could be found for up to 25 kilometres along strike. Geological mapping demonstrated that Ni-Cu-PGE-bearing sulphides primarily were associated with ultramafic rocks in close proximity to the Siportoq supracrustal sequence. Imbricate thrusting suggested that the mineralised sequence was repeated forming multiple layers of Ni-Cu-PGE occurrences. In addition, a 2000 line kilometre EM/Mag geophysical survey was completed in 2004 covering the south coast of the Ammassalik Island. In 2005 Diamond Fields Int. & PF&U joint ventured the project with INCO who had noticed the geological resemblance to the nickel camps in Thompson and Raglan of Canada. However, a short drill program at Ammassalik Island failed to intersect any significant mineralisation due to misinterpretation of the mineralised structure. Having worked with the project in the 90s, NunaMinerals A/S [the former NunaOil A/S] picked up the license where Inco had left in 2007. An MMI soil sampling survey at Qorqortoq indicated that isolated sulphide outcrops were combined under the coastal scree zones and additional channel and mini-bulk sampling were carried out where possible. Furthermore, a new discovery on Kitak 30 kilometres west of Ammassalik Island added significant upside potential to the region.

Mineralisation

Main Mineralisation: Ni-Cu-PGE-bearing sulphide mineralisation occurs at numerous locations along the south coast of the Ammassalik Island forming a discontinuous outcrop pattern almost nine kilometers long. The Main Mineralisation is the most well exposed lens and can be followed on surface for 90-100 meters with widths from one to eight meters. The present sulphide outcrop covers app. 440m 2. The mineralised lens is striking 310° and dipping 70° NE with an isocline fold axis plunging 127°/38°. Mineralisation is hosted by serpentinised ultramafic rocks and comprises semi-massive sulphides (30-50%) forming a matrix/network texture in the host rock. Ore minerals include pyrrhotite, cobalt-rich pentlandite, chalcopyrite and subordinate magnetite and pyrite. Extensive gossan formations make it difficult to collect fresh samples, however, mini- bulk sampling blasted from one meters depth returned grades of 1.39% Ni, 0.46% Cu and 0.3 ppm PGE (Pt-dominated) with average tenor values of 4.76% Ni and 1.56% Cu. Locally, channel samples return up to 2.78 ppm PGE (Pt dominated). Qorqortoq: A few kilometers east of the Main Mineralisation semi-massive sulphide mineralisation crops out at the Qoqortoq Bay area. Due to extensive scree cover exposure is limited. However, boulder tracing and MMI profile sampling indicates that mineralisation is continuous. Surface sampling at Qorqortoq returns up to 1.51% Ni, 0.23% Cu and 216 ppb Au+PGE with average tenor values of 3.58% Ni and 0.80% Cu. Kitak: Supracrustal rocks are widespread in the Ammassalik region and in 2007 limited reconnaissance work was carried out in the Kitak area 30 kilometers west of Ammassalik Island. Here, topography is gentler and surface sampling returned up to 0.8% Ni and 0.4% Cu with nickel tenors above 4%. Considering the unexplored nature of the region it is believed that the Kitak area has a large upside potential for additional discoveries.

Gneiss u Gneiss, banded F lo Ref. 16a 1 at 322981 Diatexite 15 S m EM Amphibolite, banded et 1 er , S EM Komatiite 2 & S Komatiite, serpentinized EM 3 Pyroxenite - mono-mineralic diopside Marble w. diopside Calcite fillings Ore, Matrix-sulphide Ore. Matrix-sulphide, crumply Ore, Matrix-sulphide, copper-rich Scree 322980

322979 322989 322972 322982 A3 / 113630 322971 322974 322978

322986

322970 322973

322988 322961 322965 322,987 322966 Ref. 7 322976 322962

322964 Ref. 8 322975 y

322977 12 322967 7° /3 8 322959 A2 / Ref. 11 322968 322963 ° 322969 Ref. 10 322960

322958

0 7.5 15

 METER Ref. 5

Geological map of the Main Mineralisation outcrop. The mineralised gabbroic lens (shown in dark brown colours) is located within Siportoq supracrustals and plunges down a steep gully from right to left. Sample numbers are shown in black.

Channel sampling of sulphide mineralisation within Siportoq supracrustals at Ammassalik Island, 2007.

Recommendation for future work

Suggested exploration work includes the following stages: Stage 1 I. S-isotope studies on sulphide material from both ultramafic and metasedimentary rocks to investigate the provenance of sulphur in the mineralizing system (sedimentary and/or magmatic sources). A sedimentary or mixed source of sulphur will definitely open up the prospectivity for the entire region as a nickel province II. Systematic reconnaissance, channel sampling and lithostratigraphical mapping of sulphide mineralised sequences in the Kitak sub-area, where nickel mineralisation was identified during helicopter reconnaissance in 2007 Stage 2 III. Test- and continuity drilling of known mineralisation targets defined by surface rock and MMI sampling on Ammassalik Island (Main Mineralisation, Qorqortoq Bay) IV. If indicated by S-isotope studies, reconnaissance exploration in supracrustal sequences north of Ammassalik Island

Tentative Budget

Stage 1 Total [including 10 pct. for unforeseen expenses] ...... ≈ EUR 150150,,,,000000 Stage 2 Total [including 5 pct. for unforeseen expenses] ...... ≈ EUR 550550,,,,000000

Key Factors VOISEY’S BAY JINCHUAN KAMBALDA DULUTH PECHENGA AMMASSALIK

Olivine- rich YES – Troctolite Fo50 65 YES – YES – komatiitic YES – Troctolite YES – Peridotite YES Komatiitic magma harzburgite & lavas Fo90 95 Fo50 65 cumulates rocks Fo8388 dunite Fo84

Prominent Uncertain – role of YES – YES? – NNW YES – Lake YES – YES? (continent Crustal Abloviak shear zone is continental faults Superior Rift Perchenga collision zone) Suture not established margin Varzuga zone

Source of YES – Tasiuyak Gneiss NOT Established YES – underlying YES – Virginia YES – Enclosing YES – underlying Sulfur in sediments formation shales Siportoq country supracrustal rock association

Chalcophile YES – Olivine gabbro, NOT Established YES – on a NOT Established NOT Established YES – on a depletion feeder troctolite regional scale regional and local scale

Interaction YES – Basal Breccia YES – SmNd YES – chemical YES – Visual and YES – elevated Unknown with Country sequence and isotopes and data chemical values of γOs Rocks chemical data inherited zircons

Magma YES – Thickened zones in YES – funnel YES – lava NO – sulphides YES – difference Unknown Conduit feeder sheet and entry shaped feeder channels appear to have in γOs of sheet to intrusion formed insitu between ore and sill rocks

Comparison of key criteria from selected global Ni-Cu-PGE deposits with the Ammassalik prospect

Delimitation of Exclusive licence no. 2012/26 W038.5 ° W038.25 ° W038 ° W037.75 ° W037.5 ° W037.25 ° W037 ° W036.75 °

AMMASSALIKAMMASSALIK KITAKKITAK ISLANDISLAND N65.75 °

- Tasiilaq - 0 10.00 kilometres Airport

W038.5 ° W038.25 ° W038 ° W037.75 ° W037.5 ° W037.25 ° W037 ° W036.75 °

W038.5 ° W038.25 ° W038 ° W037.75 ° W037.5 ° W037.25 ° W037 ° W036.75 °

AMMASSALIKAMMASSALIK KITAKKITAK ISLANDISLAND N65.75 °

- Tasiilaq - 0 10.00 Kulusuk kilometres Airport

W038.5 ° W038.25 ° W038 ° W037.75 ° W037.5 ° W037.25 ° W037 ° W036.75 ° Red polygons outline mafic-ultramafic spectral signatures as interpreted from ASTER remote sensing data.