Vammala Production Centre

Overview 

The Vammala Production Centre is located in southern Finland, 160 kilometres northwest of the Finnish capital Helsinki.  The Centre comprises the Vammala Plant, Orivesi Gold Mine and Jokisivu Gold Mine, as well as the soon to commence Kaapelinkulma Gold Mine.

Processing

The Vammala Plant is a 300,000 tonne per annum crushing, milling and flotation facility that was recommissioned in June 2007.  Since recommissioning the plant has produced 297,402 ounces of gold in concentrate to the 30 June 2017.

Ore processed through the Vammala Plant is sourced from the Orivesi Gold Mine, 80 kilometres to the northeast and the Jokisivu Gold Mine, 40 kilometres to the southwest. undefined

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2007*-201220132014201520162017**Total
Ore MilledTonnes1,187,565305,967303,169285,797314,175164,5042,561,177
Average Head Gradeg/t4.63.74.64.73.43.14.3
Recovery%82.378.0081.788.787.184.583.1
Gold in Concentrate Producedounces147,35528,73228,24638,24630,74814,000297,402
Cash Costs (Including Smelter Costs)***USD/oz1256934722792764

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* 6 months of production for 2007

** to the end of June 2017

*** C1 Cash Costs (definition set out by MackenzieWood)

The majority of gold concentrate derived from Jokisivu and Orivesi ore is now being processed at the Svartliden Plant in Sweden, with only a small portion of concentrate delivered to the Boliden Harjavalta Smelter.

Environment

A new Environment Permit was issued on 24 June 2014, following a lengthy process. The new permit will allow for an increase in production throughput, the usage of the 'A' pond and the processing of material from the Kaapelinkulma Gold Project.

Upon review however, the permit contained some inconsistencies related to the water balance and discharge volumes that forced the Company to submit an appeal to clarify the permit conditions.  Until such time that a decision on the appeals are made and the new permit becomes valid, the Vammala Plant can continue to operate under its existing permit.

The Company received permission to process ore from Kaapelinkulma at the Vammala Plant and to continue processing at a rate of 300,000 tonnes per annum following the submission of  a proposal outlining improved actions relating to water management around the Vammala site and additional information pertaining to Kaapelinkulma ore to the Centre for Economic Development, Transport and the Environment (“the ELY Centre”). .  The ELY Centre considered  both activities as acceptable and have provided the permission to undertake these while the new Environmental Permit for the Vammala Plant is still under appeal.

The appeals are being processed by the Supreme Administrative Court, the Company has been informed that the Supreme Court expects to announce its decision during October 2017.

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