Crew tables Nalunaq resource (October 24, 2001)

Vancouver — With an eye on developing Greenland’s first gold mine, Crew Development (CRU-T) has established a 1-million oz. resource at its 82% held Nalunaq property.

The preliminary resource estimate is based on the 2001 underground development program. The measured and indicated portion remains unchanged at 360,000 tonnes grading 25 grams gold per tonne. The inferred resource now stands at 1.18 million tonnes grading 19 grams gold for a total resource of 1.54 million tonnes grading 20 grams gold. Once all the assay data is in, the company expects to move 250,000 tonnes to the measured and indicated category from its current place in the inferred section.

Nalunaq comprises 1,080 sq. km in South Greenland and is a high-grade, narrow-vein, underground project. It is 40 km from the village of Nanortalik on the southern tip of Greenland, and 6 km from tidewater. Crew acquired its stake in the project in late 1999 through a merger with Mindex, a Norwegian exploration company. The remaining 19% interest is held by NunaMinerals, which is owned by the state of Greenland.

As part of a prefeasibility study, completed in March 1999, MRDI Canada estimated an indicated and inferred resource of 374,000 tonnes grading 26.4 grams gold, equivalent to 317,000 contained ounces. MRDI used the results from 58 diamond drill holes.

In the latter part of 1999, Mindex completed an additional 19 holes and conducted an extensive surface program of channel sampling along a 550-metre length of the exposed outcrop, between 400 and 890 metres of elevation. Based on results from the 1999 program, Mindex re-calculated the indicated and inferred resources at 455,000 tonnes grading 32 grams, for a total of 425,000 contained ounces.

The prospect is a gold-bearing quartz vein and calc-silicate altered shear system that outcrops on the eastern and northern faces of Nalunaq Mountain. Nunaoil first discovered it in 1992 while following up regional stream-sediment and scree-sampling work done in the late 1980s.

The vein system is exposed semi-continuously along a 1,750-metre slope of the mountain, between a vertical elevation of 400 and 1,250 metres. The vein structure strikes northeast and dips from 25 to 45 southeast at an average of 34. The main vein zone consists of multiple quartz veins within a strongly sheared zone of calc-silicate-altered amphibolite (chlorite, epidote and carbonate). The quartz thickness ranges from 0.01 to 0.75 metre; the zone itself has a true thickness ranging from 0.15 to 1.5 metres. The individual veins pinch and swell and are locally folded or stretched out.

Based on the results from the underground program, Crew aims to begin a feasibility study next month.