- FinnAust Mining have at long last completed the acquisition of Avannaa Exploration in Greenland from Cairn Energy for a total of 7.6m new shares in FinnAust worth £0.5m at a price of 6.6p/s.
- The Avannaa was previously owned 100% by Cairn Energy, originally set up as part of their strategy to acquire and evaluate world large scale metal occurances the region. Cairn were initially looking for oil however recognised were attracted to the Disko project via GEUS personnel whop later worked for Avannaa in 2012.
- The Cairn Energy team advanced the Avannaa licenses through extensive exploration until the oil price collapsed in H2 2014. The cost of running what was a relatively expensive team through a period of low oil prices persuaded Cairn to look for alternatives with FinnAust as an obvious contender with other assets in the region.
- Avannaa’s two principal assets are the giant Disko nickel sulphide project where >$50m has been spent by a number of larger mining companies and Kangerluarsuk the high grade and also very large Sedimentary Exhalative ZN,Pb,Ag deposit
- At Disko seven anomalies have been identified for drill testing. A 28t boulder has been identified assaying 6.9% Nickel & 3% Copper sparking interest in the area and supporting geological indications of a potentially very large Norilsk Nickel-type polymetallic orebody.
- Kangerluarsuk: is the second of the principal targets drilled by Cominco with further work done by Rio Tinto. With historical results including 41% zinc, 9.3% lead and 596 g/t silver.
- Climate change has stripped away much ice and snow from many targets through the summer making these targets easier to explore with no soil cover to work through and bare rock to examine once the winter snow and ice has melted.
- FinnAust remains principally focussed on the potential development of the high grade Pituffik titanium mineral sands project in the Moriusaq Bay area and Interlak Delta in Greenland.
*SP Angel act as nomad and broker to FinnAust and acted for FinnAust in this placing
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