Icelandic gold potential

Björk Sigurbjörnsdóttir, CEO of Iceland Resources ehf., says there is definitely gold in Icelandic ground; “The question is whether a sufficient amount of it will be discovered to make mining possible.”

“We will be doing research drilling for the purpose of gold search in Þormóðsdalur valley this summer,” she notes. “Preparation for further research is under way, and our next projects are fully funded.”

“The search for gold here [in Iceland] has a history of more than a 100 years, and a great deal of data have been collected,” she continues. “Many people have taken part in the search. Iceland Resources has collected and acquired all data relevant to gold search in Iceland. Our specialists are processing those. Our strength lies in our data bank.”

The company has valid research permits in Þormóðsdalur, about 20 km east of Reykjavík, on the Tröllaskagi peninsula, North Iceland, and in Vopnafjörður fjord, Northeast Iceland.

“We are expecting foreign specialists to arrive this summer, who will review the situation with us and figure out what’s interesting,” Þórdís states. Between ten and 15 people will participate in the research this summer. An Icelandic company will be in charge of drilling. No mining permits for gold mining have been issued, and applying for those takes a few years.

Iceland Resources cooperates with Icelandic and foreign specialists in the field of geology and gold mining. Dr. Helen Salmon and Vincent Barbier are the company’s senior geologists, and geologist Hjalti Franzson is one of the advisory board members.

Samples are sent from Iceland to an international laboratory in Ireland, which specializes in this field.

“I see a great opportunity for Icelanders in utilizing this natural resource,” Þórdís states. “Mines [in Iceland] will never be large, and we have a good idea of how we’d like to do things in an environmentally friendly and neat way.”



Iceland interested in mining projects in Greenland

Greenland has long been a favourite target of international mining companies, as the island is rich in numerous minerals. Supporters of these projects have contended that they create jobs and bring infrastructural improvements, but critics have pointed out the environmental damage mining does, as well as the disruption of wildlife upon which the Inuit depend. Most prevalent within this discussion is the Kuannersuit (also called Kvanefjeld) rare earths and uranium mine, which overlooks the southern town of Narsaq and has been a political flashpoint in Greenland. As protests against several mining projects in Greenland continue to reveal the tensions between international mining concerns and Greenland residents, a new report from Iceland’s Ministry of Foreign Affairs outlines in part Iceland’s willingness to take part in mining in Greenland in numerous sectors. A new report from Iceland’s Ministry of Foreign Affairs, “Cooperation of Greenland and Iceland in a new Arctic”, was made public late last month. This reports details the many ways in which the two countries have been, and could continue to be, working together in the Arctic. This includes the field of mining. Amongst these projects is the Kuannersuit project, called Kvanefjeld in the report.

“In conversations with authorities in Nuuk, it was presented that Greenlanders believe that cooperative efforts with Iceland are the best option for installing and establishing necessary technology [for the mining project] that would be suitable for a small community,” the report reads in part, saying that such technology would be necessary for granting a work permit for the operation.

When it comes to mining in general, Icelandic authorities believe they can have a participatory role in numerous respects. This includes providing construction equipment, passenger flights and helicopters, radiation testing, and rental labour, amongst other things. This cooperation would include the involvement of the Iceland Chamber of Commerce and the Confederation of Icelandic Enterprise, both of which are non-government organisations, specifically for the purpose of providing potential labour for the mines. How these cooperative plans will ultimately play out, if at all, still remains to be seen.



“Eco-Friendly” gold production planned in Iceland

“Our emphasis will be on making the most eco-friendly and socially responsible gold in the world,” St-Georges CEO Vilhjálmur Þór Vilhjálmsson stated in an interview about the company’s plans in Iceland. “We foresee that our gold would be sold with a premium.”

Robots and geothermal energy are expected to help a Canadian company produce “eco-friendly” gold in Iceland, Mining Weekly reports. St-Georges Eco-Mining, which recently acquired all Icelandic mineral licences, is exploring the possibility of gold mining at several locations in Iceland, including at Þormóðsdalur just 20km (12.4mi) east of Reykjavík. Research is still needed to find out whether Iceland’s gold deposits are large or concentrated enough to be mined, and Vilhjálmur stated St-Georges expects to spend ISK 500 million ($3.6m/€3.1m) over the next few years on finding out. If mining does go ahead, Vilhjálmur insists that the operation would be minimally invasive.

“Our ideology is about making minimal disturbances to the ground,” he stated. “In Þormóðsdalur, you will hardly see when mining activity starts.” The company plans to make use of all materials extracted from the ground during mining. After the gold is extracted, the remaining material will be used in building material and concrete.

St-Georges announced in a press release last month that it had acquired all Icelandic mineral licences in Iceland, giving it total control over all the mineral rights in the country. This makes it “the only junior exploration company to own all the mineral rights of a western country,” the press release states. Besides gold, the company also holds exploration rights for silver and copper in Iceland. St-Georges has “direct and indirect control of all issued and pending mineral licences in Iceland,” covering a total area of over 4,600 square kilometres (1,780 square miles) in locations across the country, including Vopnafjörður, Northeast Iceland; Öxnadalur, North Iceland; and Þormóðsdalur. The latter location has some history of gold mining: poet and businessman Einar Benediktsson found a gold deposit at the site which was later investigated and mined between 1908-1925. A senior analyst for metals and mining at Bloomberg Intelligence, Grant Sporre, has expressed scepticism St-Georges could sell Icelandic gold at a premium since there is no universal standard for what qualifies as “green gold.”





St-Georges Eco-Mining acquired Melmi EHF and all mineral licenses in Iceland

The transformative acquisition of Melmi EHF, the Icelandic corporation that owned the majority interest in the Thor Gold Project was done by St-Georges Eco-Mining Corp. The company announced that it has completed the acquisition and the remainder or the Icelandic mineral licenses not already controlled by St-Georges.

This transformative acquisition gives total control over the mineral licenses of the Republic of Iceland to St-Georges, making it the only junior exploration company to own all the mineral rights of a western country. This acquisition allows St-Georges to control its destiny and plan its exploration campaigns with no interference. It also gives the Company’s geological team access to extensive libraries of geological data, a large number of historical mineral samples and a well-maintained and secured national core shack that will be useable for future development. Furthermore, all the diamond drill cores from the Thor Gold project are now in the Company’s ownership and possession. The Company expects to be able to resample these cores in the process of elaborating its maiden NI 43-101 Gold-Silver and Copper resource estimate on the Thor Gold Project.

As previously disclosed in a press release on July 2, the Corporation will pay up to CA$775,000 in consideration of all the Melmi EHF shares as follows:

-pay $65,000 upon the execution of the definitive share purchase agreement (the “Definitive Agreement”)

-pay an additional $60,000 on the earlier of: (a) 90 days of execution of the Definitive Agreement; and (b) the start of drilling on the Thor Gold Project;

-issue $400,000 of non-transferable debentures of the Corporation bearing a 6% annual interest, maturing 3 years from issuance (the “Maturity Date”), of $100,000 will be convertible into common shares in the capital of SX (the “SX Shares”) at a deemed price of $0.10 per SX Shares, $150,000 at a deemed price of $0.15 per SX Shares, and $150,000 at a deemed price of $0.20 per SX Shares; and

-as additional consideration, subject to and upon all the Licences Application having been granted, issue $250,000 non-transferable debentures of SX bearing a 6% annual interest, maturing 3 years from issuance, and convertible into SX Shares at a deemed price of $0.20 per SX Shares.

Iceland Operational Update


In September, the Corporation drilled a reversed circulation (RC) drill hole for a total length of 124 meters. In October, reconnaissance and follow-up fieldwork was conducted in Vopnafjordur (Vopna) and Trollaskagi (Trolla) projects. Mineralization bearing outcrops were identified and sampled and brought to St-Georges’ secure facilities in Reykjavik for petrographic analysis. Some of these samples were prepared to be sent for assays to ALS Laboratories in Dublin, Ireland. Management expects that the results of these essays will become available later this year, and the Company expects to report on it as soon as the information becomes available.