Nalunaq Gold Mine AS

Location:          Southern Greenland

Ownership:       82% Crew (18% Nuna Minerals)
Operator:         Crew    

Nalunaq is a high grade gold deposit located on the southern tip of Greenland, and is expected to generate substantial cash flows for Crew. The Nalunaq gold mine is expected to be in production during 2003, and will be the first new mine to be developed in Greenland in over 25 years.

The picture below shows Mt. Nalunaq seen from Mt. Kirkespiret, with the mineralized zone illustrated by red lines, and two main fault zones in green. The mineralized zone runs down the valley almost parallell to the mountain side and continues at depth. The portion of the outcropping vein that has been subjected to sampling exceeds 2000 meters in strike length.

Crew has designed a revised mine plan for Nalunaq to allow for an earlier start up, a higher rate of ore production and thus improved economics of the mine. The new mine plan will allow for full scale mining at a rate of 420-450 tonnes per day (tpd) to be reached during the first quarter of 2004, versus 350 tpd as outlined by the feasibility study.

The average head grade for the first 18 months is estimated to be approximately 0.9 oz per tonne. Based on the revised production plan the initial annual gold production from Nalunaq is expected to exceed 130,000 oz in the first twelve months of operation.