AEX Gold Inc. Reports Encouraging Results of Sampling at Kangerluluk

The Kangerluluk gold prospect lies 120 km northeast of AEX's Nalunaq project and within the wider Nanortalik Gold Belt. The prospect is deemed highly prospective by AEX and during 2020 the Company carried out reconnaissance exploration designed to confirm historic grades from the main shear zone, sampling potential down-dip extensions, and capturing high resolution images to assist with 3D modelling and future exploration planning.

Highlights

• Historic channel sampling of the main shear zone has returned high grade results with highlights of 175.1 g/t gold over 0.8 m and 35.4 g/t gold over 0.95 m, and with grab samples up to 118 g/t gold.
• One grab sample collected from the main shear zone in 2020 returned 22.3 g/t gold.
• A float sample of highly altered metavolcanic rock rich in malachite and pyrite was collected close to Kangerluluk fjord, approximately 100 metres east of the main shear zone and returned 3.83% copper and 34 g/t silver.
• Follow up structural mapping and sampling at Kangerluluk is planned for 2021.

Eldur Olafsson, CEO of AEX, commented:

"I am very pleased to announce this preliminary data on our Kangerluluk licence, our most northerly asset on the Nanortalik Gold Belt where we hold the vast majority of the acreage. Yet again, the grades reiterate our belief that we are uncovering one of the most exciting Gold provinces in the world. We will continue to carry out exploration activity this year on this licence and over the rest of our portfolio of licences."

Introduction

The Kangerluluk gold prospect lies at the northern edge of the Psammite Zone of the Ketilidian Mobile Belt in South Greenland, approximately 120 km northeast of AEX's Nalunaq gold mine and within the wider Nanortalik Gold Belt (Figure 1). Supracrustal rocks cover an area of about 4 km² and consist of a 200-300 m thick volcano-sedimentary sequence that rests unconformably on granites of the Julianehåb Batholith.

Gold has been reported in samples from the Kangerluluk property that are closely related to NNE-striking, steeply dipping quartz-bearing shear zones in the supracrustal sequence (Stendal et al., 1997). An alteration halo characterised by silicification and epidotisation is found along these zones. The most prominent shear zone is over 1 km long and up to 20 m wide. Gold is associated with copper and occurs in quartz veins and zones of hydrothermal alteration that are 2-5 m wide.

Historic work by the Geological Survey of Denmark and Greenland (GEUS) includes mapping at 1:2000 scale, grab and channel sampling. Goldcorp acquired the project in 1997 and carried out detailed mapping and further channel sampling of the main shear zone. NunaMinerals returned in 2010 to collect further rock samples, confirming historic grades and noting that gold is present not only in quartz veins, but also in the aureole around the quartz veins, potentially increasing the width of the mineralised zone. Mineralisation is open along strike where it is possible that mineralisation extends underneath the inland icecap. Its strike direction suggests a potential relation to the gold occurrence at Jokum's Shear 25 km to the southwest, also held in AEX's Nuna Nutaaq licence.

Historic channel sampling of the main shear zone has returned up to 175.1 g/t over 0.8 m (Goldcorp, 1998), however gold grades are very erratic and the controls on grade remain poorly understood. It is possible that high grades are confined to steeply dipping ore shoots, which often show a strong element of structural or lithological / rheological control in orogenic gold deposits (e.g. Nalunaq). Better understanding the controls on gold grades will be the focus of work planned at Kangerluluk in 2021.

Figure 1 Geological map of South Greenland showing AEX's licences and the location of the Kangerluluk gold prospect.

Results of 2020 reconnaissance

AEX carried out a one-day reconnaissance over the main shear zone in 2020 with the purpose of confirming historic gold grades, sampling potential down-dip extensions, and capturing high resolution images to assist with modelling and future exploration planning.

Main Shear Zone

One grab sample of quartz veining collected from the northern part of the main shear zone in 2020 (see Figures 2 and 3) returned 22.3 g/t Au, confirming the potential for high grades at Kangerluluk. Historic sample grades are very erratic and suggest a high nugget effect. No visible gold has been identified at Kangerluluk to date, however screen metallics analysis suggests that free gold may be present in the samples because the coarse fraction makes a significant contribution to the assay, e.g., in sample 13407 (Table 1) 35% of the gold is in the coarse (+106 µm) fraction. AEX plans to collect a mini bulk sample in 2021 for gold deportment studies and to gain more confidence in the average grade of this part of the main shear zone.

One key aim of the visit was to locate and sample down-dip extensions of the main shear zone in the steep cliffs adjacent to Kangerluluk fjord. From the air, several veins were observed in the cliffs but due to the short time available only two candidates were sampled with a diamond rock saw. Neither structure returned significant gold, although the steeper dipping vein returned up to 0.46% Cu. AEX considers it likely that the sampled veins post-date the main gold mineralising event and that the main shear zone was not located in the short time available. Further sampling is required in this area.

Figure 2 View looking southwest along main gold-mineralised shear zone with selected sampling highlights in g/t Au (true widths). Highlights include historic sampling and results from 2020. Simplified interpretation of main shear zone.

Figure 3 View of the Main Shear Zone looking east over Kangerluluk fjord. Historic sampling of quartz veining in the rusty zone near the centre of the image has returned up to 175.1 g/t Au over 0.8 m (Goldcorp, 1998).

Other significant results

A sample of highly altered metavolcanic rock rich in malachite and pyrite was collected from the scree approximately 100 metres east of the main shear zone and returned 3.83% copper and 34 g/t silver, with trace amounts of gold. To date only limited work has been carried out away from the main shear zone, and the high copper grades warrant follow up prospecting.

Table 1 Summary of significant results from sampling in 2020. (Projection WGS 84 UTM zone 23N).

Next steps

• Detailed structural mapping will be carried out to better understand the controls on potential high-grade ore shoots within the wider shear zone which could then be targeted with an initial phase of diamond drilling.
• Examine multielement data to establish geochemical signatures for different phases of mineralisation and assess relative mineralisation timing
• A mini bulk sample will be collected for gold deportment studies.
• Mapping and sampling will be carried out over the area to the east of the main shear zone, and over the unexplored volcanic inliers on the north side of Kangerluluk fjord.
• Prospecting is required to locate the source of the high-grade copper float and to assess the potential for economic mineralisation of this type within the wider Kangerluluk area.

Sampling and QAQC Disclosure

Samples were placed into calico bags with a sample ticket, weighed, and assigned a sample ID. Each sample was sealed with a security tag, which assigns a unique security ID to the sample. Samples were transported from site to an accredited laboratory for analysis; SGS Burnaby, BC, Canada.

Sample preparation scheme PRP94 was used on all samples, with the addition of a rotary split. This involves crushing to 75% passing 2 mm, rotary split off 1 kg, and pulverizing the split to better than 85% passing 75 microns. Samples were then analysed by screen-metallics fire assay technique GO FAS50M which has a detection limit of 0.01 ppm Au. This involves screening 1 kg of pulverised sample to 106 µm followed by 50 g fire assay of the entire plus fraction and duplicate analysis of the minus fraction. In addition, all samples were assayed with a Four-Acid Digestion / 33 element ICP-AES package, technique GE_ICP40Q12 with overlimits for Cu with technique GO_ICP42Q100.

The QA/QC program of AEX consists of the systematic insertion of certified standards of known gold content, and blanks, at a rate of 1 in 20 or 5% per QAQC type. In addition, SGS insert blanks and standards into the analytical process. The average sample mass was 2.62 kg.

Qualified Person Statement

The technical information presented in this press release has been approved by James Gilbertson CGeol, who is a full-time employee and Managing Director of SRK Exploration Services Limited and a Chartered Geologist with the Geological Society of London, and as such a Qualified Person as defined by NI 43-101.

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About AEX

AEX's principal business objectives are the identification, acquisition, exploration and development of gold properties in Greenland. The Corporation's principal asset is a 100% interest in the Nalunaq Project, an advanced exploration stage property with an exploitation license including the previously operating Nalunaq gold mine. The Corporation has a portfolio of gold assets covering 3,870 km², the largest portfolio of gold assets in Southern Greenland covering the two known gold belts in the region. AEX is incorporated under the Canada Business Corporations Act and wholly owns Nalunaq A/S, incorporated under the Greenland Public Companies Act.

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This press release contains forward-looking information within the meaning of applicable securities legislation, which reflects the Corporation's current expectations regarding future events and the future growth of the Corporation's business. In this press release there is forward-looking information based on a number of assumptions and subject to a number of risks and uncertainties, many of which are beyond the Corporation's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to the factors discussed under "Risk Factors" in the Final Prospectus available under the Corporation's profile on SEDAR at www.sedar.com. Any forward-looking information included in this press release is based only on information currently available to the Corporation and speaks only as of the date on which it is made. Except as required by applicable securities laws, the Corporation assumes no obligation to update or revise any forward-looking information to reflect new circumstances or events. No securities regulatory authority has either approved or disapproved of the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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Glossary

SOURCE: AEX Gold Inc.