Nordic Mines' gold deposit in Laiva mine continues to grow and now corresponds to another two full years of production
(Thomson Reuters ONE) -
Nordic Mines AB (publ) Uppsala, May 8, 2012
Translation from Swedish
One of the largest gold deposits ever to have been found in the Nordic region is
continuing to grow. Drilling performed during 2011 at the Laiva mine in Finland
indicated that ore reserves are 4 million tonnes larger than the previously
reported estimate. This corresponds to another two full years of production.
Proven and probable ore reserves now amount to 16.9 million tonnes with an
average gold content of 1.60 grams per tonne, corresponding to 27,000 kilos of
gold.
The current report covers drilling results up to year-end 2011. The underlying
mineral resource above cut-off 0.8 grams of gold/tonne now totals 20 million
tonnes with an average content of 2.04 grams of gold per tonne or more than
40,000 kilos of gold. The greater part of these mineral resources is included in
the currently reported ore reserve. The updated ore reserve takes into account
developments since the feasibility study was conducted in the spring of 2010.
During this period the price of gold stabilised on a considerably higher level
and increased exploration drilling has indicated that the deposit is much larger
than the deposit known by Nordic Mines at the time, although certain costs have
also risen sharply during the period, such as costs for diesel fuel and
reagents. As a whole, this has led to much longer operating times and a higher
total cash flow from the Laiva mine, despite the somewhat lower average content.
At the current price for gold, the effect was further strengthened.
"The increase in the ore reserve in combination with the further expansion of
mineral resources, builds the platform for boosting production more," commented
Michael Nilsson, CEO of Nordic Mines, in a statement.
Continuing investigations of the Laiva mine are being planned toward the depth
and to the east where the deposits are still completely open, but also in nearby
identified gold mineralisations.
The ore reserve currently amounts to 16.9 million tonnes with 1.60 g of gold per
tonne, compared to the previously reported figures of 12.9 million tonnes with
1.85 g of gold per tonne. This indicates that the Laiva mine, located outside
Raahe in central Finland, is one of the largest gold deposits in the Nordic
region.
The updated ore calculation is based on core drilling work carried out during
2011. Thirty new holes were drilled during the year, while eight older drill
holes were extended. The new drilling covers a total of 10,017 metres. The
calculation includes a total of 76,244 metres of drilling.
The reported ore reserve is based on a gold price of EUR 750/oz, which is
approximately 40 per cent below current levels.
The international mining consultant group CSA Global (www.csaglobal.com) /
Malcolm Titley, member of the Australasian Institute of Geoscientists, AIG, and
the Australasian Institute of Mining and Metallurgy, AusIMM, has been
responsible for the calculation of the mineral resources and the ore reserves.
The calculations have been performed according to the guidelines specified in
the JORC code. Production costs and other technical parameters are in line with
current costs and conditions at the Laiva mine.
Ore reserve for the Laiva project according to the results of
Whittle open-cast mine optimisation
Ore reserve cut-off
0.51 g/tonne
Gold
Tonnes of ore g/tonne Kg gold oz gold
Proven ore reserve 7 298 000 1,56 11 400 367 000
Probable ore reserve 9 579 000 1,63 15 600 502 000
Total ore reserves 16 870 000 1,60 27 000 869 000
The above ore reserves have been adjusted for 10% dilution and 10% ore loss.
Ore : waste rock ratio is 1:5.16. Economic low-grade ore is between 0.5
g/tonne and 0.8 g/tonne, which can be mined profitably, has been included in
the ore reserves and therefore affects the average
grade.
Remaining mineral resources not included in
the ore reserve
Kg
Mineral resources Tonnes Gold g/tonne gold oz gold
Measured mineral
resources 330 000 1,80 590 19 100
(cut-off 0.8
g/tonne)
Indicated mineral
resources 6 860 000 1,89 12 970 417 000
(cut-off 0.8
g/tonne)
-------------------------------------------------------------------------------
Total Measured &
Indicated 7 190 000 1,89 13 600 436 000
(cut-off 0.8
g/tonne)
-------------------------------------------------------------------------------
Mineral resources,
category B 3 100 000 0,64 1 990 63 800
Measured &
Indicated
Content 0.5-0.8
g/tonne
-------------------------------------------------------------------------------
Inferred mineral
resources 2 100 000 2,06 4 400 140 000
(cut-off 0.8
g/tonne)
The May 2012 model includes adjustment of the resource classification
boundaries. A comparison between the May 2012 and August 2011 MRE is presented
in Table 7, in the CSA report, available on Nordic Mines homepage. The increase
in overall tonnes is a direct result of the additional drilling. The increase in
M&I is due to improved confidence resulting from the improved granite waste
interpretation and infill drilling. The reduction in grade in the MRE at the
0.8 g/t gold cut-off is primarily due to updated parameters used in the grade
estimation. The updated parameters include: 1) the use of variograms derived
from the past 10 months of mine production grade control drilling; 2) additional
surface mapping data resulting in adjustments to the orientation domains used to
control the mineralisation directions; and 3) improvements to the geostatistical
modelling technique to take into account minimum mining widths and in-situ
dilution. This has resulted in some increases in the 'mixing' of high and lower
grades, which has resulted in an overall grade decrease at the 0.8 g/t gold cut-
off, in average with 0,17 g/t.
Attachments:
Summary Report R215.2012 - Mineral Resource and Ore Reserve Update 6(th )May,
2012
Go to www.nordicmines.se/bolagsinfo/rapporter/1171105-rapporter
This press release has been examined by Peter Kuiper, appointed as a Qualified
Person by SveMin and employed as the Head of Development at Nordic Mines.
For further information contact:
Michael Nilsson, Chief Executive Officer of Nordic Mines, phone:
+46 18 84 34 501.
E-mail: mille(at)nordicmines.se
Nordic Mines in brief
Nordic Mines is a Nordic mining and exploration company with the goal to become
one of the leading gold producers in Europe and serve as a role model in
respecting the environment. At the end of summer 2011, the company began mining
gold in Laiva, outside Raahe in central Finland. The gold deposits there are
among the biggest in the Nordic region, with ore reserves of 16.9 million tonnes
and a gold content of 1.60 grams per tonne. Exploration is being conducted in
Finland and Sweden. Nordic Mines was founded in 2005, and as of December
31, 2011, the Group has an equity of SEK 377 million. The Group currently has
88 employees and its head office is in Uppsala, Sweden. The Nordic Mines share
is traded on the Nasdaq OMX Mid Cap exchange in Stockholm. For further
information about the company and its operations, visit our website
www.nordicmines.se.
Mineral Resource and Ore Reserve Update 6th:
http://hugin.info/138647/R/1609744/511409.pdf
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other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Nordic Mines AB via Thomson Reuters ONE
[HUG#1609744]
Unternehmensinformation / Kurzprofil:
Datum: 08.05.2012 - 10:55 Uhr
Sprache: Deutsch
News-ID 143645
Anzahl Zeichen: 9414
contact information:
Town:
Uppsala
Kategorie:
Business News
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