The Jokisivu Gold Mine(“Jokisivu”) is located approximately 8 kilometres southwest of the Huittinen town centre, some 40 kilometres southwest of the Vammala Plant in southern Finland.
Jokisivu comprises two deposits, Kujankallio and Arpola that are approximately 200 metres apart. It became Dragon Mining’s second operating mine in Finland, with open-pit mining of the Kujankallio deposit commencing in 2009 and underground development commencing in 2010. The Arpola deposit was mined by open-pit methods in 2011, with underground development commencing in 2014.
The Jokisivu deposits represent structurally controlled orogenic gold systems located within the Palaeoproterozoic Vammala Migmatite Belt. Gold mineralisation at both Kujankallio and Arpola is hosted within relatively undeformed and unaltered diorite, in 1 to 5 metre wide shear zones that are characterised by laminated, pinching and swelling quartz veins.
The Kujankallio deposit has been shown by drilling to extend to 520 metres in depth, the Arpola deposit is defined by drilling over a 300 metre vertical extent from surface. Both deposits remain open with depth and partially along strike.
The first indication of gold mineralisation in the Jokisivu area was obtained in 1964, when a local youth sent a gold-bearing boulder to an ore prospecting competition. Outokumpu Oy began exploring the area in 1985 and continued sporadically until 2003 when Dragon Mining acquired the project. Dragon Mining advanced the project over the years that followed, with production commencing in 2009.
Production from the Jokisivu Gold Mine commenced with open-pit mining of the near surface portion of the Kujankallio deposit in September 2009. A portal for the decline was established at the eastern most end of the open-pit at a depth of 35 metres.
The near surface portion of the Arpola deposit was also mined by open-pit methods in 2011. Underground development of the Kujankallio deposit commenced in 2010 and at Arpola in 2014. Underground access to the deposits is obtained from the decline, which is developed down to the 372m level.
Jokisivu Gold Mine
The Proved and Probable Ore Reserve at Jokisivu totals 500,000 tonnes @ 3.6 g/t gold for 57,600 ounces as at 31 December 2016. The Ore Reserves are based on the Mineral Resource estimates as at 31 December 2016. In addition to site specific mining, metallurgical, cost and revenue factors, the reserve estimates used a gold price of US$1,260 per ounce and a USD:EUR exchange rate of 1.13.
The Measured, Indicated and Inferred Mineral Resources for Jokisivu as at 31 December 2016 and a reporting cut-off grade of 1.50 g/t gold totaled 2,512,000 tonnes @ 3.8 g/t gold for 308,000 ounces. The Mineral Resource includes material from the Kujankallio and Arpola deposits and is inclusive of Ore Reserves.
For further information on the Ore Reserves and Mineral Resources for the Jokisivu Gold Mine refer to the Reserves and Resources page.
Jokisivu received an Environmental Permit in 2006, which was renewed in 2010. The operation continues to meet all of its permit conditions. Waste rock at Jokisivu has been characterized and meets the criteria for inert material, hence, crushing and selling waste rock as construction material is being evaluated as an alternative to disposal on site.
The presence of a flying squirrel population in the Jokisivu area is one of the principal environmental concerns for the mine. The endangered flying squirrel is protected by the European Union´s Habitats Directive and the Finnish Nature Conversation Act.
The population of flying squirrels was known to live in the Jokisivu area before mining activities took place. The flying squirrel habitats and foraging routes were taken into account by the Company during mine planning with nesting boxes placed at appropriate points around the Jokisivu Mining Concession. The flying squirrel population in the Jokisivu area has been studied annually, the most recent report noting that the population of flying squirrels living at the Jokisivu mine site is now larger than when the mine first opened.
Diamond core drilling at Jokisivu continues with campaigns targeting the depth continuations of the Kujankallio and Arpola deposits. Encouraging results have been obtained from these campaigns, supporting the continuation of the lode structures and providing information that has led to the development of a better understanding of the nature and extent of gold mineralisation.