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 Gold Mine Location
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 530 metres in depth, the Arpola deposit is defined by drilling over a 310 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 450m level.
Jokisivu Gold Mine
The Proved and Probable Ore Reserve at Jokisivu totals 1,384 kt @ 2.5 g/t gold for 110 kozs as at 31 December 2018. In addition to site specific mining, metallurgical, cost and revenue factors, the reserve estimates used a gold price of US$1,270 per ounce and a EUR:USD exchange rate of 1.17.
The Measured, Indicated and Inferred Mineral Resources for Jokisivu as at 31 December 2018 totaled 2,139 kt grading 4.1 g/t gold for 282 kozs. 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.
The presence of a flying squirrel population in the Jokisivu area is one of the principal environmental issues for the mine. The endangered flying squirrel is protected by the European Union´s Habitats Directive and the Finnish Nature Conversation Act.
A routine investigation into the protected species was conducted in the Jokisivu district during the second quarter of 2018. The results of the investigation indicated the flying squirrel population in the district is exceptionally dense and lively, due to the good nesting and nourishment opportunities on the mine site and surrounding areas. The Company continues to consider, the flying squirrel and its habitat, in its everyday activities.
Underground diamond core drilling at Jokisivu continued during 2018 with 57 holes drilled over three campaigns for an advance of 12,103.45 metres. These campaigns included:
Each campaign yielded a series of significant intercepts, the results supporting current geological models, further delineating the principal mineralised zones in the Kujankallio Main Zone and Kujankallio Hinge Zone area, whilst providing confidence that high-grade mineralised zones associated with the Arpola deposit continue at depth.
Highlight results from the 26 hole campaign that targeted the Kujankallio Hinge Zone.
The Company also submitted an application for a new Mining Concession with the Finnish Safety and Chemicals Agency (“Tukes”). The application is contiguous with Dragon Mining’s current Mining Concession holding and secures extensions of the known gold deposits at Jokisivu in preparation for future mine development.
Drilling programs will continue at Jokisivu from underground positions in 2019 with the objective of further evaluating the extensions of the Kujankallio and Arpola deposits and associated satellite zones.