Skaergaard Project Sees Indicated Resource Rise Amid Rising Gold Prices
A major gold and palladium deposit in southeast Greenland is being developed by Greenland Mines Ltd (Nasdaq: GRML), which has seen its indicated resource increase by about a third. The company announced that drilling has commenced at the Skaergaard project, with a support vessel anchoring near the area identified for initial drilling.
The deposit's resource was calculated using a gold price of $3,500 per ounce, but gold has since traded above $4,300 an ounce. The current market value is about 30% higher than it was a year ago and 9% higher than it was just last month.
The company plans to execute a full field season over the next two months, during which time they will generate data that could support future resource and study work. They expect to complete their first holes within days and have already finished initial drone-based LiDAR surveys.