Amaroq Minerals Ltd on Friday said its loss narrowed in the first quarter of the year, despite a considerable rise in exploration expenses.

The Greenland-focused mine development company said its net and comprehensive loss for the first quarter of 2023 narrowed to $3.4 million, from $4.1 million a year earlier.

Exploration and evaluation expenses rose by 17% to $1.2 million from $1.0 million. Amaroq also incurred a loss on disposal of capital assets of $37,791.

However, general and administrative expenses decreased 14% to $2.6 million from $3.0 million. The company also reported a foreign exchange gain of $197,004, swinging from a loss of $147,188. Amaroq made a total operating loss of $3.6 million compared with $4.1 million the prior year.

Amaroq said its Nalunaq project in South Greenland will be prepared for underground development this summer, followed by mine preparation from August to January 2024. Amaroq then will commence a new trial mining operation in the mountain block.

The company also said its recent geophysical survey at Nanoq has highlighted additional targets to be assessed during field investigations this year. It also will aim to construct a robust geological and mineralisation model to inform future exploration at Vagar Ridge. Other projects with further operations planned throughout 2023 include Sava, Saqqaa Dyke and the Kobberminebugt licence. Results from an aerial survey at North Sava will be published in the second half year.

Listing preparation also is currently underway for Amaroq’s entry on the Nasdaq Exchange in Iceland.

‘We enter the second quarter of the year very well-funded, and with a busy programme of exploration to add incremental resource to the company and to bring Nalunaq onstream on time and on budget such that we can meet trial mining in 2024,’ said Chief Executive Officer Eldur Olafsson. ‘At the same time, our plans for a main market listing in Iceland move forward.’

Shares in Amaroq were up 0.5% at 40.20 pence each in London on Friday morning.

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