Nunaoil discovers Greenland gold

Danish-based Nunaoil A.S. has struck gold on the island of Storo, in the Nuuk region of Greenland.

Sampling delineated a gold-mineralized structure in Archean supracrustal rocks. The mineralized zone strikes northeast-southwest and is open at both ends, covered by a glacier to the southwest and disappearing under scree (detritus) cover to the northeast. Aerial reconnaissance studies indicate that the zone has an exposed strike length of about 700 metres. To date, 26 chip and composite samples have been collected over a 200-metre strike length. Several samples yielded significant gold values, including 91 grams gold per tonne over 4 metres, 42 grams over 2.5 metres and 24 grams over 2 metres. In addition, visible gold has been noted in four places along the structure.

Nunaoil plans to carry out further work on the property in 1995. Elsewhere in Greenland, at Isukasia, in the bottom of the Nuuk Fjord, geophysical surveys have outlined two 1,000-metre-long electromagnetic conductors. The conductors are generally covered by glacial debris, but scattered showings of copper and zinc have been located in bedrock overlying the conductors, suggesting the potential for volcanogenic massive sulphide deposits.

The company is also conducting detailed structural and geological studies on a gold prospect at Nalunaq, in southern Greenland.

In 1993, the prospect was drilled by Nunaoil and joint-venture partner Cyprus Amax Minerals (NYSE), with negative results. With Cyprus now out of the project, Nunaoil has continued to explore the prospect and has managed to delineate new drill targets.

Nunaoil is owned 50% by Greenlandic Home Rule and 50% by the Danish state. The company carries out exploration in Greenland in order to promote mineral and hydrocarbon development.