Vammala Production Centre

Overview 

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


Vammala Production Centre Location

Processing

The 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 336,219 ounces of gold in concentrate to the 31 December 2018.

Ore processed through the Vammala Plant is currently sourced from the Orivesi Gold Mine, 80 kilometres to the northeast and the Jokisivu Gold Mine, 40 kilometres to the southwest. The first ore from the Kaapelinkulma Gold Mine is expected to be available for processing in early 2019. 

2007*-2012201320142015201620172018Total
Ore MilledTonnes1,187,565305,967303,169285,797314,175317,175308,0703,022,535
Average Head Gradeg/t4.63.74.64.73.43.22.94.1
Recovery%82.378.0081.788.787.182.887.683.5
Gold in Concentrate Producedounces147,35528,73228,24638,24630,74828,20424,883336,219
Cash Costs (Including Smelter Costs)***USD/oz1256934722792723992
 

* 6 months of production for 2007
*** 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 in southern Finland.

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.  The Environmental Permit was subsequently returned back to the permitting authority, the Regional State Administrative Agencies - AVI Western and Inland Finland (“AVI”), by the Supreme Court and supplementary work for the Environmental Permit was provided by the Company to AVI in October 2018.

The Company has however 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 whilst a decision on the new Environmental Permit for the Vammala Plant is pending.

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