The Kaapelinkulma Gold Mine ("Kaapelinkulma”) is an open-pit gold mining operation located in the Valkeakoski municipality in southern Finland, 65 kilometres east of the Vammala Plant.
Kaapelinkulma Gold Mine Location
Kaapelinkulma represents an orogenic gold deposit located in the Palaeoproterozoic Vammala Migmatite Belt. It comprises a set of sub-parallel lodes in a tight array hosted within a sheared quartz-diorite unit inside a tonalitic intrusive.
Two separate gold lode systems have been identified at Kaapelinkulma, the southernmost is the largest and extends over a strike length of 285 metres and defined to a vertical depth of 90 metres. The northern lode system extends over 160 metres to a depth of 60 metres. Both lode systems remain open in several directions, with additional drilling required down plunge and dip to further evaluate the lode systems.
The Company commenced mining at Kaapelinkulma, with the first ore tucked to the Vammala Plant in April 2019.
The Company incurred minimal capital investment to achieve mine start-up as it drew on its extensive experience of establishing mining operations in the Nordic Region.
Mining November 2019
The Kaapelinkulma deposit was discovered by the Geological Survey of Finland (GTK) after a gold bearing boulder was sent by an amateur prospector in 1986. Since 1986 exploration carried out on the Kaapelinkulma Gold Project has principally involved drilling by the GTK, Outokumpu Oy (“Outokumpu”), and then by Dragon Mining. A total of 231 diamond core drill holes for 18,564.63 metres and 135 percussion drill holes for 1,799.33 metres has been completed, resulting in the delineation of the small, medium to high-grade gold lode systems.
In 2017, Dragon Mining completed an 80 hole, 2,548 metre Reverse Circulation (“RC”) program was undertaken across the planned open-pit area. The RC drilling improved the drill spacing in this area, confirming results from historic diamond core drilling and providing confidence in the interpretation of the extent and geometry of the deposit. A number of significant intercepts were returned.
The drilling phase of a new campaign of diamond core drilling was completed in late May 2019. The 28 hole, 2,757.25 metre campaign primarily targeted the northern lode system, which is located 300 metres from the open-pit gold mining operation at Kaapelinkulma.
Twenty-five holes of the 28 hole campaign were designed to better determine the extent and geometry of the known zones of mineralisation at the northern lode system, whilst 3 holes of the 28 hole campaign were directed at examining the depth extensions of the southern lode system.
Geological logging of drill core is now underway, and analytical results are expected to be available during the coming months.
The Measured, Indicated and Inferred Mineral Resource for the Kaapelinkulma Gold Mine totals 150 kt grading 3.8 g/t gold for 18 kozs as at 31 December 2019. The Mineral Resource is inclusive of Ore Reserves and is reported at a cut-off grade of 1.0 g/t gold, which is based on operating costs, mining and processing recoveries from Kaapelinkulma actuals and a gold price of US$1,770 per troy ounce extrapolated for the potential economic extraction of the resource at a level approximating 120% of the short term consensus forecast gold price of US$1,475 per ounce as at 13 November 2019.
The Proved and Probable Ore Reserves for the Kaapelinkulma Gold Mine total 61 kt grading 4.3 g/t gold for 8 kozs as at 31 December 2019. The Ore Reserves are reported at an in-situ ROM cut-off grade of 1.0 g/t gold, which is based on a short term consensus forecast gold price of US$1,475 per troy ounce as at 13 November 2019, a EUR:USD exchange rate of 1.12, process recovery of 88%, mining factors and costs.
For further information on the Mineral Resources for the Kaapelinkulma Gold Project refer to the Reserves and Resources page.
The Company’s third gold mine in southern Finland, is able to commence having received permission to process ore from Kaapelinkulma at the Vammala Plant. The Centre for Economic Development, Transport and the Environment (“ELY Centre”) considered this activity as acceptable and have provided the permission whilst a decision on the new Environmental Permit for the Vammala Plant is still pending. The Environmental Permit to undertake mining at Kaapelinkulma has previously been obtained and the Mining Concession that encompasses the known deposits, granted.