Good afternoon, everyone. My name is Eddie Wyvill. I'm Head of Corporate Development here at Amaroq Minerals. Thank you all for coming today, both in person and those joining us on the web, to Amaroq Minerals' 2024 Capital Markets Day. We're delighted to be back in Iceland by kind invitation of our host, Landsbankinn, and their wonderful head office here in Reykjavík. On behalf of Amaroq, I'd like to personally thank their fantastic team for all their hard work in helping us put today together. On that note, I'd like to invite the CEO of Landsbankinn, Lilja Einarsdóttir, up to make our introduction.
Thank you very much, and welcome, Amaroq, to your second Capital Markets Day here in Reykjavík. It's a pleasure to host you, and good to see such a big turnout today. Now, today is obviously a good opportunity for investors to ask tough questions and dive into the details with company management, so it's important to see many of you here. An investment in Amaroq obviously involves certain inherent risks, and combined with dealing with the harsher conditions in Greenland. I find it especially important that we are about to hear from the perspective from the Greenlandic Minister of Business, Trade, Mineral Resources, Justice, and Gender Equality, as the Amaroq business has multiple impacts on the Greenlandic economy and nation. Now, it's been a very eventful year for Amaroq since we last met here. Lots has happened. The management is quite active, and the company is on a roll.
Landsbankinn has been a banking partner to Amaroq in various roles, and we provide services including being a bookrunner, and general market making, M&A capital raising, as well as banking services of many kinds. Over the past year, Amaroq upgraded its listing to the main market, into the Icelandic main market, a big step for the company. In February of this year, Landsbankinn, together with Fossar, acted as a bookrunner on the fundraise to accelerate Amaroq's development and exploration activities in both gold and strategic minerals. It's been quite a year for Amaroq, and I'm sure we are here to hear, to get some good questions from the audience and hear some good insights from the management. I wish you all a happy Capital Markets Day here in Landsbankinn, and very pleased to be hosting. Thank you.
Thank you, Lilja. Our second speech today, as Lilja said, is from a member of the government of Greenland. Naaja H. Nathanielsen is the Minister of Business, Trade, Mineral Resources, Justice, and Gender Equality. Unfortunately, Naaja can't be with us today, but we cannot thank her enough or emphasize enough how important the cooperation with the government means to the smooth running of our operations in Greenland. Naaja has kindly recorded a short video for us today.
Hello everyone. First, I would like to thank Eldur Ólafsson, Eldur Ólafsson's team for inviting me back again this year. My purpose for speaking today is to declare beyond any doubt that Greenland is open for business. The current state of the world calls for new ideas, new approaches, and new sources of raw materials. Greenland and the companies doing business in Greenland have an important role to play in this setting. We see our rich mineral deposits as a cornerstone for building a prosperous and sustainable future, not only on our own shores, but on a global level as well. Greenland is playing the long game, meaning we are opening our doors for businesses that are willing to invest in a long-term commitment with the outlook of also achieving long-term goals.
One of the things that we have in common with our Icelandic neighbors is that we are both deeply rooted in our nature and have been formed and transformed by it. We both see value in respecting the traditional ways while striving for a prosperous and modern future. Investing in a local community is more than construction work, hard hats, and spreadsheets. It's about engaging with the local communities face to face and engaging in discussions about the future and possibilities and challenges ahead. Earlier this year, I traveled to the southern part of Greenland with the Amaroq team, with the mayor, and with my colleague, Minister Kalistat Lund. We heard about the plans that Amaroq is developing for the southern part of Greenland, and it was very exciting to hear about.
We also witnessed excitement and interest among the local communities where we engaged and discussed the project with local people. This year, we sensed a rise in the attention and focus on strategic minerals. Greenland has a lot of those minerals and are looking to play an active part. We want to be part of that development, not only at a political or strategic level, but also on a community level. As mentioned, Greenland is open for business, but not on any terms. For us, it's very important to develop our mining sector in a sustainable manner. We are a stable partner and want to develop our mining sector with that focus. Our ambition is to transform the wealth of the ancient underground to apply to modern societies and the challenges we are all facing.
In Greenland, we are looking for allies that share values, that respect the rule of law, that understand the importance of doing mining environmentally correct, and then believe in engaging with the local communities. This is why we're open for business, and this is why we want you to come and do business in Greenland. Finally, I would like to wish you all a good afternoon, a good event later on, and I'm sorry I can't be there. Have a nice day.
I'm sure many of you know about Amaroq Minerals, but we thought we'd put a video together just to remind you of what we do. So.
At Amaroq Minerals, we have four pillars to our business. Our Exploration Division focuses on precious metals and strategic mineral discovery. Our Development and Mining Division focuses on the Nalunaq Gold Mine, as well as future opportunities. Our Logistics and Servicing Division will provide a wide variety of services to the rest of the company, as well as other operators across Greenland. And finally, our Renewable Energy Division focuses on assessing and acting upon hydroelectric and wind opportunities across Southern Greenland. Southern Greenland is serviced commercially from Copenhagen and Reykjavík, with further access for goods and logistics from the East Coast to Canada. Southern Greenland is ice-free, but can face pack ice during the springtime as it breaks off from the East Coast. Icebreaker services can assist to ensure year-round access.
The region hosts a small but enthusiastic population across four key towns and is serviced by one international airport at Narsarsuaq, with a new airport under development at Qaqortoq. Numerous heliports provide access to the region. Southern Greenland hosts a number of key impactful mining projects, including Amaroq's Nalunaq Mine and the Stendalen & Copper Nickel Discovery. The region also hosts numerous gold, base metal, and rare earth occurrences and opportunities. Amaroq have ensured access to these opportunities by holding over 6,000 square kilometers of exploration ground across three mineral belts. These exploration and development efforts are supported by the company's Logistics and Servicing Division, providing shipping, transportation, strategic stores, and drilling services. Southern Greenland hosts significant hydroelectric potential. Power is currently provided by Qorlortorsuaq to the towns of Qaqortoq and Narsaq.
Studies illustrate the potential to provide power to Nalunaq through both hydro and wind power, while in parallel providing cheap power to Nanortalik as an alternative to diesel. Furthermore, the plant at Qorlortorsuaq could be enlarged to provide additional power to the grown communities at Qaqortoq and Narsaq, as well as providing cheap electricity to Amaroq's Sava Copper Belt exploration areas.
Right. Next, I'd like to introduce our Chairman, Graham Stewart, to make our opening statement.
Thanks, Eddie. Thank you. Good afternoon, ladies and gentlemen, and welcome to Amaroq Minerals' second Capital Markets Day. I'm very pleased to be back in Iceland, and especially here with our friends at Landsbankinn. I know from personal experience as a founder and CEO of Faroe Petroleum what it takes to build from nothing a successful and highly valuable resource company. I'm therefore confident in saying that Amaroq's well on its way to achieving its own very significant success. The geopolitical attractiveness of Greenland's 2 million square kilometers of landmass, its vast untapped resource potential, and the ability to produce economically and at scale will, I believe, lead soon to a mining boom in Greenland. We've heard very clearly several times from the Minister that Greenland is very much open for business.
So Amaroq is now on the cusp of unlocking the huge potential to build scale in our company and realize the upside from our land package, the largest of any company in Greenland. As you'll hear shortly, despite the logistical challenges currently posed by working in this very remote part of the world, excellent progress has been made since we last met here. I believe that once we're on production and can prove that we can mine economically and profitably, this will in turn attract much bigger players into Greenland. The value potential for Amaroq lies not only in gold, but as you've heard, also in strategic minerals. We continue to advance our many exploration targets in both gold and strategic minerals while we remain opportunistic and nimble, as small companies must be.
It's also clear that Greenland's mining industry is experiencing an unprecedented level of interest and activity, and we see the opportunity to improve economics significantly by playing an active role in the supply chain, by providing the picks and shovels, using that terminology, as well as in ensuring we have access to sustainable green energy, and more on these shortly. Needless to say, as we deliver our growth ambitions, careful planning, management, and attention to detail need to be of the very highest order. Achieving what we have achieved so far has been a truly Herculean task. There's no doubt about that. We've literally moved mountains in recent months, as you will see. Our team simply takes it all in their stride. The hard work of our dedicated people is really paying off.
As we count down to the commencement of trial mining of Nalunaq, as you'll soon hear about, there is, of course, one person who deserves a special mention. He never fails to impress me, at least, and perhaps others. His passion, integrity, and unwavering dedication to the business and to doing it right are second to none. Already this year, he spent many weeks in Greenland working on site together, bunked up with colleagues at our Nalunaq team, and a lot of that underground at this all-important pre-production phase of our business. And as you know, Eldur always leads from the front, even when that requires him to be away from his young family for sometimes long periods at a time. This is, of course, a massive team effort, however. And we're very proud and fortunate to have a truly outstanding world-class team at Amaroq.
We've handpicked highly qualified professionals right across the company, and we ensure, by drawing on high standards of industry benchmarking, that our team are aligned to the success of the company through compensation and incentives. I was appointed to the board already seven years ago, and since then, I've witnessed the company's impressive growth trajectory from single license explorer to our present position as the largest land package holder in Greenland with our diverse portfolio of assets. And now I'm delighted to say, listed on Nasdaq's Iceland main market, increasing our diverse distribution of investors. We at Amaroq are very proud of our strong governance practices and excellent track record. Governance is front and center in our mission to deliver long-term value for our stakeholders. We're acutely aware that to be investable on an international level, we need at all times to operate with best-in-class governance.
Our corporate culture is based on ethical values and behaviors, and the tone for this is set right from the top. In addition, we're very conscious of the legacy that we wish to leave behind, hopefully in very many years to come. We aim to play a positive role in Greenland's long-term future by supporting the Greenland government in its aim to transition towards clean energy sources, and specifically building up renewable infrastructure near our sites. This will be for both power and operations, and to provide reliable renewable energy to the local communities for the future. Now, before closing, I just want to highlight our upcoming annual and special meeting of shareholders tomorrow. So those of you who have shares, you're very welcome to come along and vote. Otherwise, I'd just like to thank you again for coming today.
I'd now like to hand over to Eldur Ólafsson, our CEO. Thank you.
Thanks for that. Graham, good afternoon, everybody. My name is Eldur Ólafsson, the founder and CEO of Amaroq. Amaroq has been operating now in Greenland for the past seven years as a listed entity. As Graham said earlier, from a single asset to multiple assets, we moved from being two or three in this company towards now we're 120 in total. We are fully funded to start production now in October. The plan is the whole process that we've undergone, and the program is on plan. And we are also increasing our exposure to exploring and developing critical minerals, critical minerals that are of a scale that is not seen in other Western economies around the world. And this has been noticed now with visits, meetings, and further focus between both EU and North American countries, which are putting higher and higher emphases on securing raw materials.
In that sense, we have three categories that we focus on. Obviously, minerals, which we want to explore and mine. But to do that, you need very good operatorship. What we mean by that is that this is not an easy business to set up, far from it. You have to have a team of geologists who understand geological nature, what you're looking for, how to look for it. You then have to have resource geologists. You have to have mining engineers. You have to have people who work on site, drillers, explosive people, health and safety, maintenance, all of the EIA and SIA work we have to do with the community, et cetera, et cetera, et cetera. So this takes a lot of capital, effort, and focus.
But by becoming a good operator, it's critical due to the fact that we believe, and we've seen this happening, that projects will find their place with us, and we can also access more capital, become more investor-friendly. And part of that is to focus on energy. Energy is what we need to mine these minerals, to process them. We are running a power plant in Nalunaq, a 3-megawatt power plant that is run on diesel. And we will have a presentation later on where we will demonstrate how much less expensive it is to actually run it on clean energy. That also relates to the whole business and focus of what we are doing in Greenland. We're leaving something behind. We're not only mining, securing the minerals we need for the world, but also we're leaving energy behind.
Energy is the key for any country that wants to become economically independent, and we probably know that the best here in Iceland. So the four business actions that Amaroq is focused on is number one and two, exploration and development and mining. We have that in the two companies we already own. So the Precious Metal Company, where we have the gold. We then own the company Gardaq, which is the strategic minerals company. Both of these companies are fully funded. However, what you will see in a minute and during the presentation, we have to do everything. There is no Eimskip or crane operators or air freight. We do everything on site, right? So therefore, we have to have to build up logistics and services within the company, permitting, everything.
What we are seeing right now is that those valuable insights are actually very important, not only for our companies, but also for other companies. Investment is growing in Greenland, which you will see also later on. Furthermore, renewable energy is another factor of that, which we will also present later on. We see these entities to be self-funded, meaning Amaroq will provide its value in terms of know-how and so on, and we'll bring in partners just like we did in Canaccord to invest alongside us. Again, we're creating value through what we do and our knowledge for our shareholders. Right. This is a video to show you before and after. In 2021, during COVID, there was little to none that we could do. We were stopped in our development program. There was not much there.
We were working there in the field, literally, with tents as a camp road that was not functioning. This area that you're looking at here was effectively where we are building our processing plant today. Since then, we have made a great effort in starting to build and develop this mine into where it is today, so a few months away from trial mining. Today, what we have done is that we've set up a fully operational, fully all-around, we call it a camp, or you can almost call it a hotel, for more than 100 people. We set up fuel storages for more than 7 months of fuel and energy, stores, maintenance stores, equipment stores, maintenance workshops, and so on, to be able to operate there all year round.
Furthermore, we have set up bonded warehouses to be able to supply anything we need, not only for our mine, but also for our own exploration program. We've actually also serviced other explorers in the country. We set up, expanded our harbor to be able to receive people to come to site, as well as goods and other things at site. I personally stayed in the camp. We have about 95 people now operating and working from there, doing various different things at sites, which I'll show you in a minute. I can truly say that this is a very lovely. Feels like being in a farm in Iceland when I was growing up, a very good-spirited and good working condition. We do everything there. There are recreation rooms.
We always have to do our cleaning, which I haven't done for many, many years, but did it a few times now. But we've also expanded things like our geological department, our drilling services. We set up a lab on site. We store more than 40,000 meters of core. This is our asset. This is to prove to you, investors, that we have found certain material. And this then goes into independent reporting, et cetera, et cetera. We set up internet on site with the local company, Tusass, which covers 4G internet on site, at the campsite, and in the processing plant. Here you can see the workshop. The processing plant is already erected and built. We've set up the mine. We set up the explosive. We have more than 100 tons of explosive storage on site, explosive magazine, we call them.
Furthermore, we have now started to put in the equipment. This is to give you an idea of how the plant will work. The equipment that you see on this picture is ready, delivered, and is being installed as we speak. It goes through these various stages which I will explain in a minute. The purple color is the phase one building. The gray color is the phase two. And again, I will also explain what the difference is in a minute. Coming to here, you can see the plant, the rest of the site, and the mine itself. You're now facing the mine itself. The mine itself has now been operated since September underground. We have rehabilitated, effectively redone more than four kilometers of road underground to be able to access the ore to start mining it. We started mining it. That means drilling. It means mucking.
It means putting it into trucks and getting it all out there. The mining effort is simple. We're drilling with a jumbo, 3 meters at a time. It takes us about 3 minutes to drill each hole. We need 40 holes. We need to fill explosive in there, and we blast. And we take it out. We get it, and we try to do this as often we can every hour to keep the production rate going. But to do these things, we have to drill ahead. You have to have a mining mine plan. You have to have all of these different technical studies because you're working from underground. So this takes scale, and it takes knowledge. That's important.
If we then look at the aspect of where we are in terms of bringing this out, these are some pictures from site where you can see we've just blasted this tunnel here. Now the scoop there is mucking up the material, putting it into the truck. We then have the ventilation. This is where we bring in the air to kind of keep the air clean. And once we do the blasting, then you obviously have quite a bit of dust, which you need to clean up. So we come a long way here throughout this process. The process itself is simple. It's the two jumbo. These are the drilling machines you see there, Mountain Block and Target Block. You make these drilling, as I explained earlier. You blast it. You put it into a truck.
You move that material to the crushing unit, which you saw in the plant. And then you do the gravity separation. That's how we can get up to 70% of the gold out. Once the phase two plant is set up, from the same ton, you can get up to 94%. The biggest cost, effort, time goes into the blasting and crushing. That's the expensive part. Then you actually recover more gold out of the same work you have to do. And that's how you produce the gold bar, which we'll be doing now in October. The plant itself has been designed because the deposit has a very large scale, now with two areas, to be able to go up to 450 tons with a little amount of investment, additional investment.
To put a little bit of scale around what we have been achieving, and I'm not going to lie to you, this has been really hard. This winter this year, January and February, was tough. We were getting packers that are supposed to come in every 8-10 years. Never comes in unless it's in April. We got it in mid-February. But due to the fact that we planned well, we got most of the equipment done well. We had already done the heavy lifting of the work prior to Christmas. We managed to be on time. And that has meant that we have moved more than 170,000 tons of material. We have blasted, crushed 170,000. These are 50,000 trucks to make the 3-meter path above 1,000-year floodline. This is not like in Iceland where you can bring material off the ground. There is no loose material.
Everything needs to be blasted. We have done more than 8,000 tons of mining. We have drilled, as I said, more than 150 holes. We've set up the whole mine. We brought in 400 tons during the winter of containers. Sorry, 400 containers, more than 3,000 tons. We have brought in 100 tons of explosive underground, the permitting, and more than 4 kilometers of underground rehabilitation, meaning redoing all of the mine to be ready to start mining. So I want to congratulate my team specially for a great effort here, and especially the team that is not here today, which is obviously on site, for achieving all of these things. We're extremely proud of that. Here you can see what we were when we talk about rehabilitation. This is something we were doing from January to March.
We were making sure that this road that goes all the way to the Mountain Block where we are now mining is available to drive up and down, move all of this material up and down. So this took us a fair bit of time to do. In January to March, we were erecting the steel, each steel beam. We even had issues also during the Houthi revolt down in the Middle East, where the steel was coming from China, and it took time to get it on site, but it came eventually. But before we put the steel beam down and we had to build the whole path, we had more than 20 or 30, 28 tons pre-cast concrete to put in place and cemented in minus 14 degrees Celsius with heaters and so on. And we got that all on time and on effort.
We had to move those 12 kilometers, take it off the boat, et cetera, et cetera. Tremendous effort. Where we are today with mining from March to May, this is I was there for about 2 to 3 weeks where we were doing this mining bit of 100 meters. We were using a Boomer, the Scoop, and the 2 trucks where we were starting to mine after we'd done all the rehabilitation to access the ore and start taking the ore out. In plant construction, when we finished the whole building, what we were then doing is that all of our equipment on site, what you can see here on the bottom right is the crusher. That is being moved in. What we have to do now is just to plug the piping and the electrics and controls together, which is being done as we speak.
For June and November, we already have 2 drilling machines, 3 scoops, and sorry, 3 trucks, as well as long-haul drilling coming to site to start doing all of the ore mining, developing mining, and stoping. So by November onwards, we will then be both doing development and stopping. What I'm showing you here is that we are always opening more and more access to the mine. It gives us more and more access, more and more equipment that we can increase the throughput. In terms of what is one of the most critical parts of developing value, for this is to increase the resources, increase the years we can mine there. We have been doing that since we started with all of this drilling, so more than 130 holes from year 2005, where there was little to no resources to date, where we had 320,000 ounces.
We have now availability from underground, from the Mountain Block and from the Target Block to access the ore, access how the deposit continues. We will be drilling on surface in Target Block in July, August. In September, we will be drilling underground in both Mountain and Target Block. As you remember from last fall, we are now drilling two veins, not only one vein. By Q1 2025, we intend to have a new resource statement coming out to the market where we will be focusing on increasing the resources, but also creating what we call reserves. That's when you actually start bringing mine material out and going from inferred to effectively indicated and measured reserves. All in all, exploration, surface, going underground, and then we are obviously continuously mapping and doing underground sampling.
We will have new flow coming out in the market all summer and fall about the drilling and the results of these things. Then with the Q1 2025, we intend to have a full mineral resource update. Following that, we will be doing that annually. Trial mining finished the rehabilitation. We are now doing development, and we're starting ore development in 10 days, exactly. We start in Mountain Block. We then go into Target Block. It's about equipment. We just get the equipment over a certain period of time. There is a long lead time of equipment. We will start the Target Block in and around Q1 2025. But prior to that, we have already finalized all of the drilling and mine planning. As for construction, the plant building for phase one is finished.
The processing plant is being set up and plug-and-play for to get first gold out in the beginning of October. For plant building phase two, we have moved that to be quicker. So we intended to start building that over winter, but we've seen that with the experience of last winter that we want to finish the building pre-December so we can work in the building or under a roof, so to say, during the winter period. We then are ramping up our production from October over time. We shall show you the next slide. All from trial mining to steady-state mining to kind of a nameplate capacity, which will then be in Q4 2025. As for project metrics, this is the first one we give out so far.
We are looking at a gold liquidity by end of Q1 quarter of CAD 96 million, almost CAD 100 million Canadian for the gold business. That's separate to the gallon business. We are progressing from a Mountain Block with a 40-60 ton per day as of in the next 10 days. We'll start that. And then each quarter, we are slowly and gradually moving us from 120-140 ton per day. And then we are reaching that 150 ton per day milestone, which we are expecting no later than mid-year 2025. As for the Target Block, that is coming in two quarters later. That is availability of equipment, and we also have to set up the Target Block and finalize drilling it. So that will come in from Q1 2025, and then we will progress with the throughput all the way up to Q4 2025.
In terms of plant recovery, what we get, how much gold we get out of each ton, Q4, we're giving. We're trying to be quite conservative, saying 40%-55%. That is mainly you're fine-tuning the plant and getting it to operate. And then you go up to 65%-70% recovery. And then by mid-2025, the flotation will be installed, and then you're getting up to 94% recovery. In terms of cash outlay up until first cash flow, our operating cost per month, we're not talking about CapEx or anything like that. We like to talk about what it costs to run the company. So this is a total cost of Amaroq. It's now between CAD 8 million-CAD 10 million. That is head office, site, construction, everything. So we have now about CAD 25 million-CAD 30 million left until first gold. Okay?
Once we are in production, then we're obviously not constructing, moving in ships and all of these things that you saw earlier. We are estimating about CAD 4 million-CAD 6 million on a steady-state operation. Right? The reason why we have that range is about both throughput, and then it takes a bit of time to move the contractor to become an employee, which obviously reduces cost. Okay? And you can see the split below here. In terms of guidance on cash flow, we want to finish this next quarter in terms of mining to finalize determination on grade and dilution. Okay? So we do one quarter of mining, what you call trial mining. And then before 1st of October or in and around that period of time, we will bring back to the market what was the exact grade and dilution.
Let me explain what we mean by grade and dilution. The grade in Amaroq is about 28 grams per ton on an inferred basis. But it matters a lot how you mine it. Are you taking a lot more material than actually the gold grade? That is what we call dilution. It's like diluting your gin and tonic or something like that. And so what we want to do during our trial period is to minimize that. And we set up the practice and technique to do that. And that's when we will deliver those numbers to you. Previously, the diluted grade with the previous operator was about 16 grams per ton. But that should not be a measurement for what we are trying to achieve. We will bring those numbers out once we have done one quarter of mining. Okay? And guidance on that. Thank you very much.
We'll have questions later on. I'm sure you have some all the time. I want to turn to James Gilbertson to speak to exploration, the fun bit. Thank you.
Apologies. We can start again. Where are we? Where are we? Okay. Thank you. Thank you, Eldur, for what you've done. Okay. I'd like to give us a bit of an update on our exploration pillar as part of our four pillars as we've just heard about. Firstly, I'm just going to give a bit of an update for everyone as to why we are in Greenland. Okay? I think we all know where Greenland is. Greenland is the world's largest island, but it has a very small population of about 60,000 people focused mainly on towns on the east coast and on the south coast where our operations are.
In terms of geology, we have some really interesting stuff going on here. We have two very, very important sedimentary basins that hold the potential to host such things as copper, sedimentary copper. We have three very important magmatic provinces that hold the potential to host various metals such as copper, nickel, cobalt, and so on and so forth. And that's all centered around the Archean craton, the North Atlantic Archean craton. It's one of the oldest rocks in the world sitting there underneath a lot of it underneath the ice sheet. Now, historical exploration across Greenland has discovered a number of development projects and operating mines, of which Nalunaq is just one of those. If we were to just go back 1.8 or 1.3 billion years, it's important to understand the geological context when we reconstruct.
We see how Greenland is related to the North Atlantic, sorry, particularly to the east coast of Canada and Voisey's Bay, Vale's operation there, but equally to Scandinavia and the various operations there. More intense exploration and development in those regions have discovered some world-class deposits. Greenland is the land in between. If we go back to Greenland briefly, we can see that there has been a year-on-year increase in exploration and development expenditure. That's primarily from the juniors, but we can see that the majors are starting to show interest in the island and are coming in there. It's true to say that a lot of that expenditure is coming in from Amaroq, but we are one of only a number of explorers and developers in the country. If we focus now on South Greenland, where we are.
So South Greenland holds significant, important geological data and mineral occurrences, particularly in terms of gold, base metals, but equally on critical metals. If we look at that in a little bit more detail, there's the Nanortalik Gold Belt. This is a known gold belt that hosts Nalunaq, but equally, it hosts our Vagar and our Nanoq development projects. And it links through to what's known as the Swedish Gold Line in Scandinavia and Agnico Eagle, among others, operations there. Amaroq's team have now also been doing a lot of work. This is our R&D. There's a huge amount of work that's gone into understanding the potential for South Greenland. And we've developed the South Greenland Copper Belt. This holds our Sava, North Sava, and our Josva as a historical copper mine project, but equally connects through geologically to the operations such as LKAB's operations in Scandinavia.
And lastly, and underpinning all of this is the Gardar Province. This is a globally significant province that holds quite possibly the largest concentration of rare earth elements in the world. But it equally hosts some very significant copper and nickel discoveries, particularly if we look into the Labrador areas where we have Vale and their Voisey's Bay operation. And interestingly for us, it also hosts our Stendalen discovery that we made last year. More on that later. Our license package has been designed to fit around these occurrences. So just to recap, as we heard earlier, we have over 6,000 square kilometers of licenses and 13 licenses. And that has secured access to these three important mineral belts. We have our gold assets primarily at Nalunaq, as we know, but equally on operations around Nalunaq and across the Nanortalik Gold Belt. That is 100% owned by Amaroq.
We also have our fully funded Strategic Metals division exploring primarily for copper, rare earths, and nickel. That's fully funded through our joint venture on Gardar. Of particular interest for us today is the Stendalen discovery. Our 2024 exploration program, outside of the work that we've just been discussing that we're doing in Nalunaq, is also going to focus on this new copper-nickel discovery that we made last year. As it's a fairly new project, I want to spend a bit of time to introduce this project and the concepts around it. So it's a short video just to explain this. So firstly, let's just go back to that reconstruction that I was talking to you about and as why Greenland is so importantly placed geologically. I want to focus in a little bit on Voisey's Bay. Voisey's Bay is a huge nickel-copper project run by Vale in Labrador.
But we'd like to focus in on that because we think it's got a very similar exploration history to what we could be having at Stendalen. If we look at Voisey's Bay in a bit more detail. So Voisey's Bay was initially discovered in 1993 by basic geological prospecting, running around picking up rocks, very similar to what we're doing in Greenland today. Off the back of that, they've managed to scrape around and get enough money for their first drilling program, scout drilling program. Hole number 2, success, 33 meters of massive nickel-copper sulfites. But it took them to hole 7 and 8 till they actually confirmed the presence of this. It took a lot of effort and time to get to that.
It wasn't until their 202nd hole that they actually confirmed that this was a world-significant project worthy of a price tag, which ultimately was paid for it, of $4.5 billion. Their share price in that timeframe, that was a five-year timeframe, went from just over $4 to $24. Today, the mine operates with its own icebreaker system of cargo and some significant grades. But I think the take home here for me is that exploration is a long and costly process. There is a need to remain committed and patient. That success does not come without some failure. This is a large process. Now, if we look at Voisey's Bay in more detail in terms of its geology, to be a world-class deposit, it has to tick a lot of boxes. It has to have a lot of ingredients.
Voisey's Bay and other major projects like this have these. They have the fertility or the source. They have the pathways. This is the architecture. This is the geology that they need. And then it's got something called geodynamics, which is the energy. Where's the energy come from? Voisey's Bay has all those through years of research and exploration. If we zoom now into Stendalen, just on the southeast coast of Greenland, why did we go here? Well, last year, we went there with a drill program, a scout drill program. After a couple of years of research, we believed that there was a good chance that there was a nickel-copper sulfide similar lurking underneath Stendalen. We eventually got the support from the board and went out there and took a scout drill hole. Well, we actually took on some geophysics, which led to a scout drill program.
I'll just show you some of those results in a moment. So if we zoom in and have a look at the topography, you can see it's quite rugged, but it is serviced by two deep-water fjords. The mineralization that we've discovered is actually at sea level. The blue that you see here is the intrusion. This is the igneous rocks that hosts everything. This is all modeled from our geological mapping and our geophysics. So the geophysics came in first, gave us the picture of what it was that we're looking at, the scale of this. This is 7 kilometers across. This is a very significant body. If we take a cross-section through this, you can see the form of it. There's this deep root, which is likely to be the feeder zone.
It's one of our main targets where we believe that we could find massive sulfides. But the geophysics highlighted a number of definite targets. Drill hole 1 last year targeted that. We got 140 meters of disseminated nickel-copper sulfides. Low grade, but high tenor, which means it has high degrees of copper and nickel in it. We believe that there are massive sulfides lurking somewhere there in Stendalen. So we haven't been sitting on our laurels all winter. We've been assessing this data with all our team and experts and reassessing that geophysics to really give us a signature exactly where everything is and understanding where those bodies go and designing our 2024 drill program to come in on that. We're going to mobilize 3 new drill rigs from here in Iceland next month, heading up to Stendalen.
If we go back and have a look at the ingredients again of Stendalen and benchmark it against Voisey's Bay, you can see, yes, there is work still to be done. We don't fully understand the source. We don't fully understand the geodynamics or the energy sources, but a lot of the geology and the structure is all there. It ticks all the right boxes. So we're exceptionally excited about what this tells us and where we go from here. Stendalen, as I said, is going to be the focus of our exploration, but we're also going to look regionally because the success of Stendalen, as I highlighted, that these bodies exist. There is nickel-copper out in South Greenland. And now we have mapped these red areas all over South Greenland that are the next level for our exploration. So we have the next step.
So we will need to do our regional exploration and find the next Stendalen. And as you can see, a lot of them lie within our license packages. Now, we're exceptionally excited about Stendalen. It's going to be quite possibly one of the most impactful drilling programs anywhere this year. It's really exciting. We're mobilizing, as I said, three drill rigs, a new geophysics crew, a dedicated geological crew, and we'll be looking forward to providing results for this later on this year. Thank you. James has the most fun job in the company.
Right. Next one up, we want to give you a little bit of background of what we are doing in our servicing business. I want to introduce here Ben, who is the CEO of Tamarack.
Tamarack, we got involved two years ago to do a full-fledged study on Greenland, not only what is happening in the mining industry, but also all of the infrastructure projects that are taking place in Greenland. Ben has an experience with Anglo American group of companies where he worked on various different commodities where they set up exactly the similar system. He's obviously worked also with KPMG and Deloitte in their mining practices and brings on through Tamarack and has been highly capable and his team to help us on all procurement, all sourcing, and then develop the strategy that is now being presented here for the first time of creating effectively an Amaroq service company.
Thank you. Thank you, Eldur and Amaroq team. It's really great to be back in Reykjavík. I was privileged to visit the site last year, so I've seen it with my own eyes.
As Eldur mentioned, we were asked to get involved back in 2022, and it's been a very exciting journey. As you heard from the minister and various of the previous speakers, Greenland is certainly open for business. Certainly, our assessment, if I read the tea leaves, would indicate that it's set to continue and arguably increase as we move forward. Now, where does Tamarack fit in? We're a group purchasing organization for the mining industry. This concept I can share with you later on, but effectively, we bring the picks and shovels into mining precincts. When we started our engagement with Amaroq, the conversation really revolved around the fact that everything that Amaroq mining needs, including the sort of future infrastructure projects, is not really found in Greenland as we speak. It has to come from other parts of the world.
And with that is an opportunity because we discussed the fact that Amaroq's experience on the ground, married or nurtured within a company, ServiceCo, with procurement and sourcing skills and expertise, would present something for not only Amaroq and its subsidiaries, but the broader industry to enable mining and infrastructure development in country. And so the whole premise of our work and focus has been to look at setting up this company in a financially sustainable manner so that you can actually get the things that you need readily available. One of the key aspects of this really revolves around cost of ownership. We know that if you are strategic in your sourcing and procurement activities, whether it's the physical picks and shovels, the things that make noise on a mine, or the equipment needed, you can actually control your costs. And in mining, working capital management is key.
We see into the future that a very finely honed technology underpinned system of using demand from site will help manage the working capital requirements of Amaroq and other companies, and even companies that are sort of starting on infrastructure development projects. We also see that this reduces risk. Mining companies can try and control a lot of things, but weather and geopolitical risk is sort of beyond anybody's control. I think the sort of experiences during COVID and even some of the unrest that we've seen on shipping routes would certainly underpin the fact that if you can control the things you need for mining, continuous mining in Greenland, you're sort of off to a good start. That also enables you to have transparency in your supply chain and procurement.
We've seen lead times increasing for things that you would take for granted in North America or Africa, perhaps, or Australia when it comes from a mining site. How do we do this? Again, we look at technology that enables that transparency so that you actually look at your suppliers' availability. And that really enables you to look at how to manage the supply chain, specifically given some of the real significant weather challenges in southern Greenland. And all of this is based on the fact that Amaroq's desire was to empower local development within southern Greenland and Greenland at large. And so we're looking at sort of three levels of that. There's certainly a number of things that will be new to Greenland when it comes to infrastructure and mining development.
And so Amaroq will take through ServiceCo a significant position on bringing in the equipment, which I'll touch on in a bit later, together with the way in which we manage that business model. But there's also an opportunity with regard to local capacity. Amaroq already relies on local service providers, whether it is to food, moving people, etc. And there's capacity constraints within that that also presents an opportunity for ServiceCo. And that in itself then leads to supplier development opportunities, which I know the Amaroq team is very keen to unlock. What are we talking about when we speak about these assets? There's the mining and drilling exploration type of assets. James mentions the drill rigs, which we procured out of a very reputable drill manufacturer. It was shipped to Iceland. It's moving to Greenland.
Those assets are being made available to Gardar on a rental basis, and that's the basis of this business model. There's other things like scoops and other drills, UTVs to move people around. Those things are not available in Greenland, and we're looking at all of those being made available to both exploration, infrastructure, and mining. Then there's the assets that move people and cargo, which we're also starting to look at because of the capacity constraints and real live examples that I believe the Amaroq team has navigated quite eloquently during the period, certainly since September last year, when it comes to some of the challenges to deliver the tonnages of containers, etc. So we're excited about the prospect of ServiceCo, and I would say to anybody, watch this space. Eldur. Thank you.
Yeah, just as to reemphasize here, what we see here as a structure for this is that Amaroq would be a majority owner in a ServiceCo like this. We are in discussion with a strategic investor who would bring the capital to allow us not only to acquire this equipment, but to grow within Greenland. And again, this is very much looked at as a leasing entity for our current operators because this is the restraint we faced with them. They don't have a balance sheet to acquire rigs, various different things. So imagine if you do a drilling program and we have a company in Iceland called Iceland Drilling. There's a reason why it's one because it's very expensive to move a driller to Iceland, right? And this is the same in Greenland. When it's very expensive to move things into Greenland, you always have to pull it out.
There's an opportunity there for kind of a more longer-term solution in the industry. That's how we can win some very good contracts. Right. Very quickly onwards to renewable energy, South Greenland. The next speaker, great friend, Ásgeir Márkusson, he is known to everybody here, I think, in this room. Ásgeir has to whom he's not known to, he has an experience for the past decades in the renewable energy industry, in construction, in drilling, in building power plants, not only in Iceland, but all around the world. Interestingly, I was speaking to Ásgeir earlier. I think in the past 6 years here in Iceland, he has been involved or part of building 4 power plants, while our national energy company hasn't built anything. Ásgeir brings also experience in a jurisdiction where you don't have a lot of experience on engaging with communities and various different bits.
And he will be presenting here. I should also say that Ásgeir was my first boss when I started my career, so I'm very pleased to have him on board with Amaroq.
Thank you, Eldur, ladies and gentlemen. I was considering saying that I can only take pride in having taken part in Eldur's beginning of professional career and training, but it may not fit the occasion, so I skip it, considering what Eldur has achieved since then. Anyway, we're looking into opportunities for clean energy development in Greenland. That's not totally new to Greenland. There has been some development in hydroelectric power. A few plants have been built, I believe four small hydro plants, all of those with Icelandic involvement, and most of those with the involvement of Verkís, a founding shareholder and partner of Amaroq, whom we work with on this task.
We draw on the experience of previous energy transitions in Iceland. Some of us may remember a little bit about that. The energy transition that we're dealing with now into transportation is the third one. The first one was electrification of the country. That is still to be done partly in Greenland. Second was to bring geothermal heat to remove oil heating from houses in Iceland. Many of us remember something about that. And there we have a lot of gains to be made in Greenland to reduce oil use for house heating, even for power production, not to mention ships, boats, vessels, cars in the longer term, like we are dealing with here in Iceland. And why would we do this? Basically because we can save a lot of money. That's goal number one.
If we look at this slide, we see that the cost of producing electricity with diesel is like 50% more than doing a hydroelectric. This hydroelectric example, levelized cost of $150 per MWh, is an example of a 4-5 MW hydro plant, which is rather small, producing 30 GWh a year, maybe costing $9 million per MW, much more expensive than we're used to here in Iceland. This power price, $150 per MWh, is close to three times what we have in Iceland, still way under the cost of producing electricity with oil. So let's use our experience for that. For a small example like this, Greenland has already built, keep in mind, 5 plants, $2.5 million savings just for oil, not needing to buy the oil per year.
So if we do two or three or four of this, there's a whole lot of savings, plus the emission savings, 23,000 tons of CO2 every single year from one we can reduce from one small plant like this. Eldur and I did a lot of CO2 savings back in China with geothermal back in the days. That's a great achievement. The monetary values are very important and the most important. It's a good benefit also to reduce emissions. It really is. So we are now looking at two primary areas, and there will be more.
If we look at what has been presented here today with other opportunities, we will continue to look for clean energy opportunities in connection with the other Stendalen or Gardar or whatever it is, Vagar opportunities for mining clean energy as well, with the important benefits for society of building infrastructure in a similar manner as we have seen here in Iceland in connection with industrial development. So first, on the top part of the slide, it's a Narsaq-Qaqortoq area. These two towns are close by mining opportunity in Tanbreez. There is a power plant in Qorlortorsuaq, which was built with serious Icelandic involvement some years back, about 7 MW with an expansion opportunity of about 4 MW. There's already a power line being built from this plant to these two towns, and it's 70 km long. It's quite an effort, 70 km.
But by increasing the electrical production, the aim would be to support mining opportunities in this area and also remove diesel-fired house heating in the towns of Qaqortoq and Narsaq. Similar exercise in the Nalunaq-Nanortalik area. So the neighboring town to Nalunaq mine is Nanortalik. It's some 34 km distance between those two. Some might consider it a long distance, but it's only half of the distance in the previous example of a 70-km line. So it's a doable exercise. In between, there is the Tasiusaq hydro opportunity of 6 MW, which could fully provide all electricity needed to Nanortalik and even support electricity use in Nalunaq, reducing our oil needs for the mining operations, including around about 1 MW of small hydro opportunity in the Nalunaq Valley, which we have already studied, which could further save costs of powering the mine and the mining operations.
Now, there are several ways to do this in Greenland based on ownership, etc. First of all, we have an agreement now with the government of Greenland that they share with us all available data on these two hydro opportunities that I have mentioned. We will study these further, doing the feasibility. You have seen a glimpse of the first results of it now in the figures I mentioned earlier. We will do detailed studies of feasibility, technical items, engineering, energy balancing, etc. We will convert that into a financing model. How feasible are these projects? How can we go about? How can we do this? There are different ways to go about. In a small project like 1 megawatt or so, we could just do it on our own.
The government of Greenland is out with a tendering process for large hydro schemes, like hundreds of megawatts, where they want big corporate participation. It's too big for the Greenlanders themselves. It's much more energy than they would ever use themselves in the current shape. In between, plants like 5 or 10 megawatts or typical size, maybe they would want to do it themselves and own it, or we would do it or find a different or alternative way. It really doesn't matter as a primary issue for us. The main issue is that this be done, this be built for the benefit of us, the company, the shareholders, all stakeholders, and the Greenland society. There will be more updates on this to come. Thank you very much for your attention. Thank you very much.
Thank you, Ásgeir. Right. Social engagement. I wanted to do Joan Plant.
Joan Plant has been with the company and our predecessors, worked in Greenland in the past 14 years. Joan is the one in the background. She's an executive of the company who has worked on all development of studies, EIA, SIA, worked throughout with all of the government, permits, etc., etc. Effectively, if there's anything wrong, go to Joan. That's the kind of a message. Joan.
Thanks, Eldur. As Eldur said, I've been working in Greenland for 14 years. And during that time, I've gained a real respect for Greenlandic people and the local communities that surround our projects. And so it's really important to me that we continue to get things right, that we continue to be a responsible operator, and that every day I and the Amaroq team think about our core purpose, which is creating a Greenlandic legacy, which is positive.
Since I've been with you last year at Capital Markets Day, we've been working on a lot of different projects, and we have produced a video that is going to summarize some of that work. If we don't invest in the communities in Greenland, the projects that Amaroq is undertaking now and envisages for the future simply won't work. Underpinning our success is our focus on our core purpose of creating a Greenlandic legacy. The next generation of Greenlandic children and young people will be the key in helping us achieve our goal of building the best Greenlandic companies staffed by Greenlandic workers. Studies in countries including Iceland have proven that children who participate in activities such as singing in a choir or playing in a chess club have a greater chance of success both personally and professionally.
We are strongly committed to the idea that young people in Greenland should have choices and every opportunity possible. We are therefore working on a cooperation with UArctic to provide degree and other further education opportunities, which will enable young people to earn a competitive wage whilst they learn. As the Nalunaq mine moves towards operation, we are also working on projects where we enhance the area after the mine closes. For example, we are planting seedlings this summer at an area close to the camp. At Amaroq, we invest not only in physical infrastructure, but it's important to us that we think about the people behind that who are going to make our project successful.
Joan. I think actually on this point, I've been asked a lot about, you know, what do you react and how do you maintain the social license?
And I think in many ways, when you work and operate in Greenland, you have the same work ethic like we in Iceland used to have here 20 years ago, still in Greenland. You have extremely kind-hearted and good people. And what we have set out to do is that anything countries like Iceland or others have managed to get in terms of activities and so on, we should at least be able to deliver the same effort in Greenland. And I think that has gone really well. And it's not about only capital. Actually, it's at least about that. It's actually about time commitment by people like Joan and others to actually care and focus and bring in other people. And there has been a lot of Icelandic involvement.
I mean, these are things like farmers associated with Iceland and farmers associated with Greenland, sports clubs going to town of Akranes, which is a sister town of Qaqortoq. Just these simple things. It has proven to be very good for us and also the Greenlanders. As for summary conclusion, there's a lot to take in. I get that from this meeting today, but we will be extremely busy going forward. There will also be a lot of reporting coming from Nalunaq, exploration result, milestones on mining, gold production, first production, first gold, phase one, phase two, increase in resources, hopefully, as we go by. And all of that is underpinned then at the same time by our exploration program in Stendalen and all of our other areas that we are conducting right now, which you heard from James.
We will be on a more systematic basis bringing those results to the market. Again, we now have the benefit that we have a full team lab on site. We will have more frequent information to the market on that sense. In the service business, we will be updating the market relatively soon on that, on the next steps there and the potential that we are setting together there. And the energy, I would say next year, we intend to renewable energy, we intend to be in the place where we either say go or not go on that basis. We then have all of the quarterly updates, you know, all of our financial project updates, technical work. This is all done on a quarterly update to kind of allow you to follow our progress.
If I go back to kind of a message in the beginning, again, we're fully funded and well that to first cash flow on October. We progressed through winter and we built this really well and we're extremely pleased about that. We have this fantastic exploration asset and we were fortunate enough to go into the mining industry in 2000, well, first 2015, 2016, 2017 when we founded the company when minerals were not being looked at. And therefore, we built ourselves a position in between Europe and the US in the only frontier that is left. But mind you, for that to be valuable, you need to know what you're doing and you need to have the capability, more importantly, your capital to be able to do it and preserve that capital and make sure you use that capital extremely well.
I think we are at that pinnacle, as Graham said earlier, where we are extremely well positioned to take advantage of a tremendous growth we are seeing in Greenland. Thank you.
Thank you. You can if you want to. Right. We're going to move on to some Q&A. So there's a few questions being sent in, but does anybody have any questions that you'd like to put to anybody? Come on. There must be one. Tim.
Thank you. Yeah, you very early on and even in the conclusion touched on how you're progressing. And you mentioned that you're on time on budget for the trial mining in October, which is really impressive. But actually more impressive is the phase two, which is coming sooner than I expected. Is that, I mean, I was just looking for reasons behind that.
I mean, throughout the presentation, you mentioned you're much better supplied than I anticipated. Is that because you're able to move forward with phase two because you're better supplied for logistics and able to execute better or maybe better funded? But I was just maybe looking for possibly one or two of the reasons behind the facts that you've been able to move so quickly on phase two. Yeah, I think it's a good question. So as for phase two, there are effectively three components to phase two. It's money. It's important. We intended always to build phase two out of cash flow. So therefore, it was set in later. It's the equipment, the actual equipment, flotation equipment, which we already own and we bought that two years ago. So that's ready.
But then it is the steel building, steel building and the cement blocks and all of the measures of putting that in. So when we capitalized ourselves now in or increased the capital in the company in February, it allowed us to move quicker into that part, which is also very good operationally. And this has not been fully taken into account into the savings just because we want to be on a kind of a more careful side. It's that once we finish phase one, rather than sending all of the cranes home and people home, they will continue straight into the building of phase two. And then once they finish phase two building, which is already being moved to site and some of the concretes are there, then they're working under a roof. And that's about 5, 10 guys who and the equipment is already there.
So pulling it quicker will actually the indirect cost, which is usually very high cost component in Greenland, indirect cost, think about this moving people back and forth, food, all of those different things. We will have a huge savings there. So all in all, it makes a lot of sales. We were constrained by capital and not from capital to kind of make the commitment because we never want to commit the company for more than we can actually swallow. So those are the things, the reason why we can move it forward, yeah. And that decision was taken relatively quickly now in May to kind of push that forward, yeah. Anybody else? We've got a few questions that have been sent in. I don't really need the microphone. It's quite loud. You talk a lot about Stendalen in your presentation.
What about Sava and the other exploration prospects mentioned last year? Yeah. So we will be doing conducting exploration work over all of our land packets. The thing about when you're doing exploration, and this is so Sava, we will be doing regional work, we will be doing geophysical work, we might even do some drilling. Sava and many of these lands, it's absolutely there are targets coming up all around, copper, molybdenum, so it's very exciting. But we don't have right now the same full handle on the geological model as we have with Stendalen, right? Which means that when you have a full handle, well, full handle, a very confident handle on the geological model, you know what you're drilling. That's why you become successful in a drilling because you can see this kind of a hole into a seven kilometer intrusion.
You really have to know where to drill to get there, right? And so when we got that success in Stendalen and we got 140 meters of nickel, copper, possibly some cobalt as well in that whole horizon, we said to ourselves, hang on a minute, this is where our effort needs to be focused on because we can create resources quicker potentially and you can create something that is highly, highly valuable. So it's about moving our resources, team, people, rigs onto something that is likely to create value the quickest for our shareholders. But that doesn't mean we stop doing the rest of it, right? We are still doing all of the work and so on, but it's about how you tackle. Quite a simple question now. How do you sell your gold?
Okay, so we will have our offtake agreement announced with a gold offtaker in a few weeks' time. It's effectively a broker who also helps us managing the whole process of selling the gold. And then there is a refinery in Switzerland who takes in it. It happens to be the same broker and the same refinery that took the gold last time, so it's very well known. We sell it either at the harbor in Nalunaq where you have a person who is very good in security receiving the gold. And then there is a change of ownership. We get paid and the gold goes up. That goes with the bar. With the flotation part, that is a concentrate. That is not a bar. We sell that to a different refinery which refines it and then it kind of goes the same route. Yeah.
Also, I want to say one thing. As for the recording, we will be here afterwards so we can also have some questions in Iceland.
Thank you very much to everybody who've come today and to those who've joined us from on the web. We're going to end the recording now.