2017 43-101 Report
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AN INDEPENDENT TECHNICAL REPORT ON THE TARTOQ PROJECT, SOUTH GREENLAND Prepared for NALUNAQ A/S Report prepared by SRK Exploration Services Ltd ES7680 Head Office UK: +44 2920 233 233 12 St Andrew’s Crescent Denmark: +45 272 088 71 Cardiff Russia: +7 4955 454 413 CF10 3DD Gabon: +241 173 0501 United Kingdom Email: [email protected] Web: www.srkexploration.com Tartoq 2016 ITR An Independent Technical Report on the Tartoq Project, South Greenland Nalunaq A/S c/o Nuna Advokater ApS, Qullilerfik 2, 6., 3900 Nuuk, Greenland e-mail: [email protected] website: www.arctic-resources.com Tel: +44 1778 570 141 SRK Exploration Services Ltd 12 St Andrew’s Crescent, Cardiff, UK CF10 3DD e-mail: [email protected] website: www.srkexploration.com Tel: + 44 29 20 233 233 Fax: + 44 29 20 233 211 SRK ES Project Number ES7680 Effective date: 30 January, 2017 Signature date: 20 March, 2017 Authored by: James Gilbertson, CGeol Jon Russill, FGS Peer Reviewed by: Gareth O’Donovan, CEng SRKES_Tartoq_NI43-101_V2-1 March 2017 Page ii Tartoq 2016 ITR IMPORTANT NOTICE This report was prepared as a National Instrument 43-101 Standards of Disclosure for Mineral Projects Technical Report for Nalunaq A/S by SRK Exploration Services Ltd. (SRK ES). The quality of information, conclusions, and estimates contained herein are consistent with the quality of effort involved in SRK ES’ services. The information, conclusions, and estimates contained herein are based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended for use by Nalunaq A/S subject to the terms and conditions of its contract with SRK ES and relevant securities legislation. The contract permits Nalunaq A/S to file this report as a Technical Report with Canadian securities regulatory authorities pursuant to National Instrument 43-101. Except for the purposes legislated under provincial securities law, any other uses of this report by any third party is at that party’s sole risk. The responsibility for this disclosure remains with Nalunaq A/S. The user of this document should ensure that this is the most recent Technical Report for the property as it is not valid if a new Technical Report has been issued. COPYRIGHT AND DISCLAIMER Copyright (and any other applicable intellectual property rights) in this document and any accompanying data or models is reserved by SRK Exploration Services Limited ("SRK ES") and is protected by international copyright and other laws. The use of this document is strictly subject to terms licensed by SRK ES to its client as the recipient of this Report and unless otherwise agreed by SRK ES, this does not grant rights to any third party. This document may not be reproduced or circulated in the public domain (in whole or in part) or in any edited, abridged or otherwise amended form unless expressly agreed by SRK ES. This document may not be utilised or relied upon for any purpose other than that for which it is stated within and SRK ES shall not be liable for any loss or damage caused by such use or reliance. SRK ES respects the general confidentiality of its clients’ confidential information whether formally agreed with clients or not. See the attached Terms and Conditions as included in the Commercial Appendices contain mutual confidentiality obligations upon SRK ES and the Client. The contents of this Report should be treated as confidential by the Client. The Client may not release the technical and pricing information contained in this Report or any other documents submitted by SRK ES to the Client, or otherwise make it available to any third party without the express written consent of SRK ES. Client Feedback We merit all comments received from our clients, take pride in providing an excellent service and place value on our ability to correct error. Should you wish to comment on any aspect of the service that an individual staff member has provided, or the company as a whole, please send an email to [email protected], or if appropriate write in confidence to our Managing Director at the address above. © SRK Exploration Services Ltd 2017 SRKES_Tartoq_NI43-101_V2-1 March 2017 Page iii Tartoq 2016 ITR AN INDEPENDENT TECHNICAL REPORT ON THE TARTOQ PROJECT, GREENLAND EXECUTIVE SUMMARY INTRODUCTION SRK Exploration Services Limited (“SRK ES”) is part of the global SRK Consulting Group and has been commissioned by Nalunaq A/S to produce an Independent Technical Report for the Tartoq Project located in Southwest Greenland. The Tartoq Project is an early stage gold exploration project that exhibits gold mineralisation at a number of prospects within the Archaean greenstone belts. SRK ES’ work has involved a review of historical exploration data, academic research and the results of Nalunaq A/S’ 2016 exploration programme. The outcomes of this, including recommendations for further exploration, are presented in this report which has been prepared following the guidelines of the Canadian Securities Administrators’ National Instrument 43-101 and Form 43-101F1. SRK ES understands that this technical report will be used by Nalunaq A/S to support an application for listing on the TSX Venture Exchange. PROPERTY DESCRIPTION AND OWNERSHIP The Tartoq Project is located in South Greenland at 61°30ʹ N latitude and 48°40ʹ W longitude in the municipality of Sermersooq. The property is situated on the headlands either side of the Sermiligaarsuk Fjord some 80 km southeast of the town of Paamuit. The project area lies within Exploration Licence number 2015/17, which covers an area of 83 km2. The licence was granted to Nanoq Resources Ltd. On 4th May 2015 and is valid until 31st December 2019. Nalunaq A/S purchased 100% ownership of the project from Nanoq in December 2016 following a sales agreement between the parties that was signed in July 2016. The exploration licence grants Nalunaq A/S the exclusive right to undertake mineral exploration within the licence area. The Tartoq Project is split into two sub areas named Nuuluk and Iterlak on the southern and northern sides of Sermiligaarsuk Fjord respectively. The Project can be accessed by boat and then on foot to reach the main target areas, or by helicopter. There is no infrastructure within the licence area. GEOLOGY AND MINERALISATION The Tartoq Project lies on the northern edge of the North Atlantic Craton on the contact with the Ketilidan Mobile Belt that formed between 1,850 Ma to 1,725 Ma during the subduction of an oceanic plate under the southern margin of the North Atlantic Craton. The Archaean greenstone belts that represent the gold-bearing Tartoq Group are supracrustal rocks composed of metasedimentary units, submarine mafic metavolcanics and mafic to ultramafic intrusives. The units have all been metamorphosed varying from greenschist to amphibolite SRKES_Tartoq_NI43-101_V2-1 March 2017 Page iv Tartoq 2016 ITR facies increasing from west to east with sharp tectonic or intrusive contacts with the surrounding Archaean tonalite–trondhjemite–granodiorite (“TTG”) basement rocks. The Tartoq Group has undergone two main phases of ductile deformation and one phase of brittle faulting. The ductile deformation has resulted in north- to northeast-trending kilometre- scale, multi-phase complex folding with brittle cataclasites. Unlike other greenstone belts in Greenland, much of the Tartoq Group has retained its primary fabric and has a more variable, generally lower metamorphic grade. Deformation and associated fluid flow has resulted in pervasive alteration including carbonatisation from late-stage structurally controlled hydrothermal infiltration, which has been linked to the orogenic gold mineralisation within the belt. Gold mineralisation within Nuuluk area is found with two carbonate alteration zones that are some 3 km long and 100 m wide named the Western and Eastern Carbonate Zones (“WCZ” and “ECZ”). Gold grades within these zones are high in some areas but are also typically erratic. There are three gold-bearing lithologies: 1. Quartz +/- carbonate veins contain the highest gold grades although these are generally thin, discontinuous and often boudinaged. Gold is thought to occur as inclusions and fracture fill in sulphide grains. The erratic grades suggest a high nugget effect and the possible presence of coarse gold; 2. Massive and semi-massive sulphide bodies, dominated by arsenopyrite, pyrite and pyrrhotite, consistently contain elevated gold grades; 3. Schists that have structurally controlled alteration with variable quantities of quartz veining and sulphides have moderate gold grades. SRK ES considers that the carbonate-altered schists, particularly where banded iron formations are present, may have the best potential to hold the tonnage required to represent an economic project. Further exploration will be needed to demonstrate that gold mineralisation shows continuity, is associated with hydrothermal alteration and sulphides, and is not restricted to thin quartz veining. Information on the gold mineralisation at the Iterlak prospect is more limited compared to Nuuluk, but historical information suggests similar mineralisation styles to those at Nuuluk are present. EXPLORATION STATUS SRK ES considers exploration at the project to be at an early stage. Exploration for gold and base metals in the Tartoq area was carried out by several companies between the 1970s and 1990s. This work focused on the WCZ and ECZ at Nuuluk and the Western Valley Sulphide Showing (“WVSS”) at Iterlak. Work included geological mapping, surface rock sampling and two small drilling programmes totalling 1,824 m. Drilling, had mixed results, often failing to confirm the continuity of mineralisation encountered at surface. The best drill intersections were 6.60 g/t gold over 2.00 m at the WCZ at Nuuluk, and 8.28 g/t gold over 1.97 m at the WVSS at Iterlak.