The new mineral resource estimate for Fäboliden forms the basis of open pit optimisation
and studies into options for underground mining. The ongoing feasibility studies will
seek to establish the optimum mining rate and extraction of payable ore.
The Fäboliden gold mineralisation is a central part in the strategy for Lappland
Goldminers to develop as a major gold producing mining company in Europe. Golder
Associates, a renowned international consulting company, has finalised their review of
the mineral resource estimate which will, together with capital investment and operating
costs, form the basis of a new ore reserve calculation which will be reported on in the
The updated resource estimate shows that the measured and indicated mineral resource at
a cut-off grade of 0.4 grams of gold per tonne amounts to 57.8 million tonnes with 1.05
grams of gold per tonne and 2.81 grams of silver per tonne. In addition there is an
inferred mineral resource of 32.4 million tonnes with 1.04 grams of gold per tonne and
with 3.37 grams of silver per tonne. As shown in Table 1, both tonnage and gold grades
in the measured and indicated mineral resource are lower than previously reported
Golder Associates has also estimated the measured and indicated mineral resources at
different cut-off grades as shown in Table 2. This shows the variations of gold and
silver grades and tonnages with varying cut-off grades.
The lower gold grade in the measured and indicated category at a cut-off of 0.4 grams of
gold per tonne impacts the future circumstances for profitable mining and will be
dependent the future level of the gold price expressed in SEK. The feasibility study
will therefore need to consider cut-off grades appropriate to the mining methods now
under consideration. This means selective mining of higher grade portions of the
mineralisation will be investigated that may result in lower production rates and plant
throughputs and a shorter mine life.
If the current high gold price (about 300 SEK per gram) persists, it will have a
positive impact on the study.
The updated mineral resource estimate has led to a need to consider alternative
selective underground mining methods and the need to define a new production optimum. As
a result of these additional studies, the feasibility study is now due to be completed
in the second quarter of 2011.
Fäboliden Mineral Resource Estimate June 2010.pdf
The efforts to increase the ore reserves continues in Pahtavaara.
Pahtavaara mine, where Lappland Goldminers has ongoing gold production, is located in
the municipality of Sodankylä in Finland. The area is considered to have great potential
to host additional gold mineralisation’s that could be mined and sent to the company´s
concentrator. The shallow parts of the Länsi mineralisation, located immediately
adjacent to the existing mine, has been drilled and investigated with 31 core drill
holes and 13 reverse circulation holes (totally 4 700 meter). Measured and indicated
mineral resources are estimated to 60.0 thousand tonnes with 2.97 grams of gold per
tonne (Table 3). The estimate is carried out by T. Lindholm (GeoVista AB) that is an
independent consultant and qualified person (QP), according to the Svemin, the FinnMin
and the JORC codes for reporting.
Estimate of Länsi mineral resource June 2010.pdf
The Länsi mineralisation is still open towards northwest and towards depth. A drilling
program comprising 6000 meter, where the majority is drilled in the Länsi area, has
started in June to investigate the mineralisation further.
Continued core drilling at Ersmarksberget
During the fourth quarter of 2009, a drilling program was resumed to investigate the
previously identified Central and South One gold mineralisation´s at depth. Within the
current mining concession, fourteen core drill holes were drilled (3 400 meter). The
analyses from eight holes aimed at Central and from two aimed at South One, are
available for disclosure (Table 4). The results so far indicate that further drilling is
required towards depth in Central mineralisation. South One mineralisation has been
extended and is still open to the south. An additional drill program comprising of 3 000
meter core drilling has been started during May 2010.
Ersmarksberget Core Drilling Phase I.pdf https://hugin.info/134992/R/1429489/376538.pdf
The goal for the ongoing investigation at Ersmarksberget is to define enough mineral
reserves to allow for profitable mining. If the outcome of the investigation is positive
a mineral resource estimate will be finalised. After metallurgical tests and estimates
of operating costs and a subsequent calculations of ore reserves it should possible to
make a decision in quarter three 2010 about the potential future start up of production.
For further information:
Kjell Larsson, CEO
Tel 0950-27506 eller 070-385 03 57
E-mail: firstname.lastname@example.org mailto:email@example.com
About Mangold Fondkommission: www.mangold.se http://www.mangold.se/
The technical part of this press release has been approved by Risto Virkkunen, the
company´s and by SveMin and FinnMin registered qualified person (QP).
Lappland Goldminers AB is a producing mining company with significant exploration
activities. The Company is listed on the market place First North Premier under the name
GOLD, with Mangold Fondkommission AB as Certified Adviser, as well as on the Norwegian
OTC list. Lappland Goldminers’ strategy is to develop mineral deposits into profitable
producing mines. The Company is strategically positioned with the the fully permitted
Fäboliden gold project and the Ersmarksberget deposit and processing plant in northern
Sweden. The Pahtavaara gold operation is located in the north of Finland and the Haveri
gold deposit in the south of Finland. Lappland Goldminers is a member of SveMin, the
Swedish association for mines, minerals and metal producers, and follows SveMin’s
reporting rules for public mining and exploration companies.
Fäboliden Mineral Resource Estimate June 2010
Estimate of Länsi mineral resource June 2010
Ersmarksberget Core Drilling Phase I.pdf http://hugin.info/134992/R/1429501/376559.pdf
Press release (PDF) http://hugin.info/134992/R/1429501/376556.pdf