Option Over Potentially Large-Scale Gold Prospect

GREENX METALS LIMITED

NEWS RELEASE 10 JULY 2023

GREENX ACQUIRES OPTION OVER POTENTIALLY LARGE-SCALE, SHALLOW BULK TONNAGE GOLD PROSPECT

GreenX Metals Limited (GreenX or the Company) is pleased to announce that it has entered into an Option Agreement (Agreement) with Greenfields Exploration Limited (GEX) to acquire up to 100% of the Eleonore North gold project (Eleonore North or the Project) in eastern Greenland. 

·   Eleonore North has the potential to host a "reduced intrusion-related gold system" (RIRGS), analogous to large bulk-tonnage deposit types found in Canada including Donlin Creek, Fort Knox and Dublin Gulch.

·      Gold mineralisation documented at the high-priority Noa Pluton prospect within Eleonore North.

o  Geophysical "bullseye" anomaly 6 km wide co-incident with elevated gold mineralisation from historical geochemical sampling.

o  Anomalous gold mineralisation associated with quartz veining exposed at surface over a length of up to 15 km.

o  Historical sampling includes 4 m chip sample grading 1.93 g/t Au and 1.9% Sb (refer to Appendix 1).

·     Eleonore North has potential to host large scale, shallow, bulk tonnage gold deposits. The Project remains underexplored, with the existence of a possible RIRGS being a relatively new geological interpretation based on the historical data. Initial field work consists of a seismic survey to determine the depth from surface to the Noa Pluton to aid in drill targeting.

·     Eleonore North license area contains other gold targets as well as copper, antimony and tungsten prospects. At Holmesø there is copper and antimony mineralisation outcropping at surface. Historical mapping and sampling in the 1970s at Holmesø show a prospective horizon between 15 m and 20 m thick, with per cent level grades for both metals.

·     Option to earn 100% of the Project vests upon GreenX spending A$600,000 on exploration on the Project within 12 months and can be exercised in return for a 1.5% Net Smelter Royalty plus A$250,000 payable in cash and A$250,000 payable in either cash or GreenX shares at GreenX's election.

·     Transaction provides GreenX with gold exposure in Greenland and complements GreenX's existing exploration prospect in Greenland, the Arctic Rift Copper project (ARC). There are significant synergies with regards to personnel, logistics and equipment in having multiple exploration projects in Greenland. Field works for the 2023 have already commenced at Eleonore North, with follow-on exploration field activities for the ARC project currently being planned.

·    Greenland is a mining friendly jurisdiction with strong Government support for expanding its mining industry, simple laws and regulations, and a competitive fiscal regime.

Mr Stoikovich, Chief Executive Officer of GreenX said: "The Eleonore North project diversifies GreenX with an exposure to gold and the bulk-tonnage target 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."

Classification: 2.2 Inside Information

ELEONORE NORTH SUMMARY

The Eleonore North Project comprises of two Exploration Licences covering an area of 1,221 km² in an arid part of north-eastern Greenland, approximately 1,000 km south of the Company's ARC project.

The Project comprises two licences, located on Ymer Island in the south and the Strindberg Land peninsula in the north. The 300 m deep fjords in this area are around 6 km wide, sailed annually by large container ships, and aircraft frequent the area.  The Company identifies no significant environmental, archaeological, or social challenges in the area.

Analogous to Canadian Bulk Tonnage Gold Deposits

Eleonore North has all the hallmarks of a "reduced intrusion-related gold system" (RIRGS).  This type of bulk-tonnage deposit is found in Canada, including the ~45 Moz Au Donlin Creek, 13 Moz Au Fort Knox, and 6.4 Moz Dublin Gulch).

RIRGS deposits are often associated with tin-tungsten provinces.  The gold may express in various environments ranging from within an intrusion, a skarn, an overlying alteration halo ('hornfels'), and distal veins.

The most advanced prospect within the Project is the Noa Pluton, where extensive gold mineralisation is well documented and coincident with a geophysical anomaly. The Noa Pluton is obvious in magnetic data and is at the centre of a multi-element 'bullseye', which is consistent with the deposit type. While gold is the primary motivator, the mineral system includes standalone deposits of the critical metals antimony and tungsten.  This project is more advanced than the Company's existing portfolio.

GEOLOGY

Eleonore North covers a sedimentary basin¹ that is intruded by granite and intermediate plutons of multiple ages (refer to Appendix 2). The plutons of interest intruded shortly after a mountain-building event², releasing the compressive forces allowing deeply sourced, gold-bearing fluids to rise to the surface³. There is strong evidence for the occurrence of a RIRGS process.  The first clue to the potential presence of a gold deposit is the presence of tungsten and antimony-tungsten deposits. These deposits often form a circular and predictable zone around gold anomalism. This metal zonation is consistent with RIRGS, as these deposits are often found in established tin or tungsten provinces. At Eleonore North, tungsten deposits are located up to 20 km away, which gives an indication to the intensity of the mineralising event.

Noa Pluton

A circular magnetic feature is at the centre of the regional geochemical zonation.

This geophysical signature is interpreted to be the alteration halo/hornfels of a pluton (the Noa Pluton). The geophysical anomaly has a diameter of 6 km and is likely to closely approximate the hornfels.  Based on the magnetic data, the top of the intrusion is interpreted to be around 200 m to 300 m below the surface.  The gold mineralisation may extend from surface into the intrusion, giving a substantial vertical target area to the 28 km² aerial extent. 

Geochemical anomalism is coincident with a circular geophysical anomaly. A gold vein is exposed at the surface, and the associated anomalism has a strike extent of at least 10 km and possibly up to 15 km. As there is little in the way of a weathering profile, the anomalism is thought to represent in situ mineralisation. 

This Noa Valley vein varies in width from 5 to 25m and is associated with economically attractive levels of antimony⁴.  Based on limited sampling undertaken in 1983 and 1992, the best results are:

·     40 m chip line with a length weighed average of 0.78 g/t Au and 0.01% Sb, including 15m with a grade of 1.62 g/t Au and 0.02% Sb (Chip Profile 15);

·     35 m chip line with a grade of 0.39 g/t Au and 0.01% Sb, within which there is 15m grading 0.71 g/t Au and 0.27% Sb;

·      4 m chip sample grading 1.93 g/t Au and 1.9% Sb (profile CP-D); and

·      14 m long chip sample grading 7.2% Sb and 0.53 g/t Au (Profile CP-C) refer to Appendix 1 and 2).

At least one other vein is in the valley floor, and others are likely. While these veins are interesting, they represent evidence towards targeting a much larger prospect, the Noa Pluton.  

As the exposed mineralisation has an arsenic-antimony-gold affinity and there are lead-zinc veins in the area, the Company interprets that the exposed mineralisation is just above the inner hornfels⁵ zone. The position in the outer hornfels means the gold content is likely to increase towards the Noa Pluton. 

HOLMESØ

Some 50 km to the north-northwest of Noa Pluton is a strong geochemical anomaly at a location known as Holmesø.  At this prospect, significant antimony-and copper outcrops at the surface.  Historical mapping and sampling in the 1970s at Holmesø show a prospective horizon between 15 m and 20 m thick, with per cent level grades⁶ for both metals. 

The well-exposed mineralisation at Holmesø shares similarities with an anomaly on the north side of Noa Valley, some 5 km from the Noa Pluton. Consequently, Holmesø is interpreted as being caused by a second RIRGS-intrusion, whereby the antimony incorporates the sedimentary⁷ copper found in the region.  While the grades and thickness of the Holmesø mineralisation are attractive and the prospect is drill ready (refer to Appendix 1 and 2), the Company aims to prioritise locating the source RIRGS pluton.

Path forward

The primary target in Eleonore North is the Noa Pluton, followed by the Holmesø prospect and its source intrusion.  The Noa Veins provide a near-term drill target, however, the Company plans to determine the depth of the intrusion with greater precision using a passive seismic survey. This information 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.

SUMMARY OF TERMS

GreenX will acquire a 100% interest in the Eleonore North project through the Option Agreement. Key terms of the Agreement are as follows:

·      The option to acquire the Project vests once GreenX has spent A$600,000 on an agreed work exploration program for the Project within 12 months;

·      Once the option has vested, GreenX can secure the Project on or before 30 June 2024 in return for:

o  a 1.5% Net Smelter Royalty (NSR); plus

o  a payment of A$250,000 in cash; plus

o  a further payment of A$250,000 in cash or shares (with a floor price of A$0.30) in GreenX, at the Company's election.

GEX will act as the project manager until 30 June 2024, with the option, under certain circumstances, to act as the project manager thereafter.

The Agreement provides GreenX with a low-cost entry point into gold exploration in Greenland, given the synergies of established team, infrastructure and equipment in Greenland for the ARC project.  Eleonore North remains underexplored, and the existence of a possible Intrusion Related Gold system is a relatively new geological interpretation based on the historic data.

Greenland is a mining friendly jurisdiction with strong Government support for expanding its mining industry, simple laws and regulations, and a competitive fiscal regime. The country is increasingly recognised as one of the last great mineral resource frontiers having recently attracted interest from Anglo American, Glencore, Trafigura, as well as KoBold Metals which is exploring for materials critical for the electric vehicle and renewable energy revolutions.

--ENDS-

Competent Persons Statement

Information in this announcement that relates to Exploration Results is based on information compiled by Dr Jonathan Bell, a Competent Person who is a member of the Australian Institute of Geoscientists (AIG). Dr Bell is the Executive Director (Technical) of Greenfields Exploration Limited and holds an indirect interest in shares and performance rights in GreenX that are unaffected by Eleonore North. Dr Bell has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Bell consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

To view this announcement in full, including all illustrations and figures, please refer to https://wcsecure.weblink.com.au/clients/greenxmetals/headline.aspx?headlineid=61157660.

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

Sources:

¹ Primarily the sediments of Neoproterozoic-age Eleonore Bay Supergroup.

² The mountain building event is the Caledonian Orogeny, and the tungsten mineralisation associated with the Noa Pluton has an age of ~373 Ma.  The Company's ARC project within the Kiffaanngissuseq Metallogenic Belt contains a copper sulphide mineralisation even that is also related to the waning Caledonian Orogeny and has an age of 385 Ma.

³ The deep-seated source of magmas is evidenced by the presence of lamprophyres close the known mineral occurrences in Eleonore North.  The correlation between gold deposits and lamprophyres is well established elsewhere on Earth.

⁴ Antimony and tungsten are on the critical metals lists of the European Union, United Kingdom, and United State of America. 

⁵ A hornfels is a sedimentary rock that is metamorphosed by contact with a pluton.

⁶ A 100 kg bulk sample yielded grades of 1.07% Sb and 1.35% Cu. A drillhole that penetrated the top 1.4 m of the target horizon, before breaking down, yielded a grade of 0.67% Sb and 1.33% Cu (refer to Appendix 1).

⁷ Strindbergland contains extensive diagenetic chalcocite bands that have several strike kilometres of extent.

Appendix 1

Appendix 2