Endomines commences production at the Pampalo Gold Mine
(Thomson Reuters ONE) -
The press release can be downloaded from the following link:
Press Release (PDF)
Endomines AB is pleased to announce that the commissioning phase of the Pampalo
Gold Mine Project, located in Ilomantsi, Eastern Finland, has been completed.
The mine is now in commercial production, with the first gold concentrates
produced at the mine on January and early February 2011. The first truckload of
gold concentrate has left the site for the Boliden Harjavalta smelter on Monday
7th February.
The most significant milestones of the Pampalo Gold Mine project are outlined
below:
* Underground mine production started in mid-April, 2010, and 1000 meters of
underground development drifting has been completed since then. In total,
45 000 tonnes of ore has been mined by drifting and long-hole stoping.
Combined with existing ore stockpiles of 22 000 tonnes, this amounts to a
total of 67 000 tonnes of ore stockpiled for processing, equaling
approximately 4 month's mill feed. Underground production grade has come in
as expected, and complies with the ore reserve grade.
* Ventilation raises of approximately 175 meters were drifted during 2010.
* Totally some 5000 meters of infill diamond drilling was carried out during
2010.
* On the surface, a new power line and processing plant were completed mid-
November as scheduled. Test runs started immediately, with the plant now
approaching its nominal capacity of 230 000 tonnes/annum.
* The crushing plant is operating at its design capacity of 130 tons/hour.
Optimization of various operating parameters is ongoing with a view to
reaching a steady rate of production flow through the circuit.
* Tailings Storage Facility works were completed in August 2010 as scheduled
* The on-site laboratory is performing as designed and expected.
* All recruitment has been completed, with c. 60-70% of personnel hired
locally and trained by Endomines.
* The total Lost Time Injuries for the project, incurred during the
construction and commission stage, have resulted in an LTI-frequency rate
for own and contractor personnel, of 20.
Markus Ekberg, CEO, expresses his satisfaction: "We are certainly very pleased
with how the commissioning phase for the Pampalo Gold Mine has progressed. Our
supervisory personnel are working diligently to ensure that all the usual start-
up challenges are resolved, and the whole project reaches a steady state, design
capacity as soon as possible.
Given that the gold concentrate transports to Boliden's Harjavalta smelter has
begun, we can expect our first sales revenue within the next few months. This
will be the start of early, free cash flow that will be utilized to implement
the Company's strategy for corporate growth."
Karl-Axel Waplan, Chairman of the Board of Endomines adds: "I would like to take
this opportunity to thank the Endomines management and construction teams,
together with the contractors assisting in the mine construction, for their hard
work, as well as the Finnish Government for their support in helping make the
Pampalo Gold Mine a reality. I would like to also thank all Endomines personnel,
past and present, and in particular, our directors and shareholders for their
continuing support of the Company and its efforts."
The Pampalo Gold Mine is expected to produce approximately 27,000 ounces of
payable gold per full year of production at an estimated life of mine cash cost
of less than US$550 per ounce of payable gold.
For more information and to view production photos, please visit the Company's
website at www.endomines.com
About Endomines
Endomines AB is a gold mining and exploration company with a portfolio
comprising the Pampalo Gold Mine, as well as other gold and industrial mineral
deposits and exploration properties located in Finland.
During 2009-2010, Endomines has taken several important steps from exploration
to full-scale gold production. The company started commercial production at the
Pampalo Gold Mine in February 2011, with a projected annualized output of
900-1.000 kg of gold.
Other deposits along the Karelian Gold Line will be exploited subsequently.
Endomines has additional claims in Finnish Lappland (gold), Ostrobothnia
(ilmenite) and Southern Finland (limestone/wollastonite).
Endomines applies SveMin's & FinnMin's respective rules for reporting (public
mining & exploration companies). Endomines has chosen to report mineral
resources and ore reserves according to JORC-code, which is the internationally
accepted Australasian code for reporting ore reserves and mineral resources.
Endomines applies International Financial Reporting Standards (IFRS) as approved
by the European Union.
The shares of Endomines AB are quoted on the First North Premier segment in
Stockholm under ticker ENDO.ST. Erik Penser Bankaktiebolag acts as Certified
Adviser and Liquidity Provider.
Read more about Endomines on www.endomines.com
----
This news release may contain forward-looking statements, which address future
events and conditions, which are subject to various risks and uncertainties. The
Company's actual results, programs and financial position could differ
materially from those anticipated in such forward-looking statements as a result
of numerous factors, some of which may be beyond the Company's control. These
factors include: the availability of funds; the timing and content of work
programs; results of exploration activities and development of mineral
properties, the interpretation of drilling results and other geological data,
the uncertainties of resource and reserve estimations, receipt and security of
mineral property titles; project cost overruns or unanticipated costs and
expenses, fluctuations in metal prices; currency fluctuations; and general
market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the
Company's management on the date the statements are made. The assumptions used
in the preparation of such statements, although considered reasonable at the
time of preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements.
Concentrate truck leaving the site for the Harjavalta smelter:
http://hugin.info/138043/R/1486391/421617.jpg
Press Release PDF:
http://hugin.info/138043/R/1486391/421610.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Endomines AB via Thomson Reuters ONE
[HUG#1486391]
Unternehmensinformation / Kurzprofil:
Datum: 08.02.2011 - 07:16 Uhr
Sprache: Deutsch
News-ID 51175
Anzahl Zeichen: 7658
contact information:
Town:
Stockholm
Kategorie:
Business News
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"Endomines commences production at the Pampalo Gold Mine"
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