The Kaapelinkulma Gold Mine("Kaapelinkulma”) is a newly established open-pit gold mine located in the Valkeakoski municipality in southern Finland, 65 kilometres east of the Vammala Plant, the Company’s third operational gold mine in the southern Finland region.
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.
Kaapelinkulma Regional Geology
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 drillholes for 18,564.63 metres and 135 percusion drillholes 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 including 7.00 metres @ 18.49 g/t gold, 5.00 metres @ 11.31 g/t gold, 9.00 metres @ 9.97 g/t gold, 7.00 metres @ 30.47 g/t gold, 8.00 metres @ 7.48 g/t gold, 4.00 metres @ 11.19 g/t gold, 3.00 metres @ 17.50 g/t gold, 5.00 metres @ 12.59 g/t gold and the narrow high grade 2.00 metres @ 21.25 g/t gold, 2.00 metres @ 29.66 g/t gold and 2.00 metres @ 34.18 g/t gold.
The Indicated and InferredMineral Resource for the Kaapelinkulma Gold Project totals 168,000 tonnes @ 3.8 g/t gold for 21,000 ounces as at 30 September 2017 at a reporting cut-off grade of 1.0 g/t gold.
With the successful completion of a Pre-Feasibility level study into the development of the Kaapelinkulma Gold Project the Proved and Probable Ore Reserves at Kaapelinkulma, as at 30 September 2017 total 71,000 tonnes grading 4.0 g/t gold for 9,000 ounces. The study was based on the establishment of an open pit mining operation and the haulage of ore to Dragon Mining’s operational Vammala Plant to produce a high grade gold concentrate and the processing of this concentrate at Dragon Mining’s Svartliden Production Centre.
For further information on the Mineral Resources for the Kaapelinkulma Gold Project refer to the Reserves and Resources page.
The Company continued to advance Kaapelinkulma towards mine start-up during 2018 with the establishment of critical onsite infrastructure, the removal of overburden from the open-pit area and the construction of a noise barrier around the southern perimeter of the planned open-pit.
Advancement of Kaapelinkulma towards mine start-up has incurred minimal capital investment to date as the Company drew on its extensive experience of establishing mining operations in the Nordic Region. Mining of ore from Kaapelinkulma is scheduled to commence early in 2019 following the recent completion of the settling ponds, contractor’s laydown area, the selection of a mining contractor and the initial blast in waste rock.
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.