Endomines Ore Reserve and Mineral Resource Estimate update
Endomines AB, stock exchange release 3 March 2020 at 08:30 CET
Endomines is pleased to announce its 2020 gold resource estimate for its Pampalo mine and the resources along the Karelian Gold Line in Finland, as of 31 December 2019, and the gold resource estimates for its gold projects in Idaho, USA.
Gold resources at the Pampalo mine and resources along the Karelian Gold Line in Finland
The Pampalo mine has been on care and maintenance since October 2018.Therefore mineral resources at Pampalo have remained unchanged. The Pampalo Deep Zone has indicated resource totaling 16,610 ounces gold contained in 101,500 tonnes mineralized material, as well as an additional inferred resource of 20,340 ounces gold contained in 118,125 tonnes mineralized material. The gold price in 2018 did not yet justify the capital investment required to advance the decline to access the resource. Because of the current higher gold price, a possible development of the Deep Zone is being evaluated by the company.
There have been no changes in the reported mineral resources for other deposits along the Karelian Gold Line. An update and validation of the other mineral resource estimates is targeted for 2020. The update will reflect increased geological understanding of the deposits and changes in the current market conditions.
The estimates for the Pampalo mine and the resources along the Karelian Gold Line in Finland have been prepared according to the 2012 Australasian Code for Reporting of Mineral Resources and Ore Reserves (Joint Ore Reserve Committee - JORC-code).
Gold resources in Idaho, USA
During 2019, Endomines continued to improve its understanding of the Idaho gold projects that the Company acquired in February 2018. Endomines is working on further development of its Friday Underground mine and to convert a portion of the estimated measured and indicated resource totaling 97,200 ounces gold contained in 462,000 tonnes mineralized material, as well as an additional inferred resource of 46,700 ounces gold contained in 296,000 tonnes mineralized material.
In 2018, the historic data and information for the Buffalo Gulch project was validated and converted to a measured and indicated mineral resource of 114,700 ounces gold contained in 6.745 million tonnes mineralized material. Similar conversion of the historic resources at Deadwood are also targeted. Additionally, the Company is working toward developing mineral resource estimates for its Kimberly and Rescue projects through exploration programs targeting known high-grade gold and silver vein systems.
The mineral resources currently quoted regarding the Deadwood, Rescue, and Kimberly exploration projects, are per definition historical, made before the introduction of today’s disclosure standards. Endomines cautions that while the presented historic resources for Kimberly, Rescue, and Deadwood appear to be in general accordance with those set out in NI 43-101 Sections 1.2 and 1.3, a qualified person has not done sufficient work to classify the historical estimates as current mineral resources, and Endomines is not treating the historical estimates as current or reliable.
The mineral resources reported for the Friday Underground and Buffalo Gulch projects in Idaho, USA, are classified in accordance with standards defined by Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”), “CIM Definition Standards - For Mineral Resources and Mineral Reserves”, prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on May 10, 2014.
There have been no changes in the reported mineral resources for other deposits at the Idaho projects. An update and validation of mineral resource estimates is targeted for 2020. The update will reflect increased geological understanding of the deposits and changes in the current market conditions.
Table 1. Mineral resources at Pampalo and the Karelian Gold Line in Finland:
|Mineral Resources – Karelian Gold Line, Finland (status Dec 31, 2019)|
|Pampalo Deep||101 500||5,1||16 610||517||Indicated||Endomines||(1)|
|Pampalo East||229 000||1,8||12 900||401||Indicated||Endomines||(2)|
|Pampalo NW||29 000||2,5||2 280||71||Indicated||Endomines||(3)|
|Pampalo Indicated Total||359 500||2,8||31 790||989||Indicated||Endomines|
|Pampalo Deep||118 125||5,36||20 340||633||Inferred||Endomines||(1)|
|Pampalo D-zone||164 110||1,9||9 910||308||Inferred||Endomines||(1)|
|Pampalo East||62 000||1,4||2 790||87||Inferred||Endomines||(2)|
|Pampalonlammit||103 000||1,8||5 960||185||Inferred||Endomines||(3)|
|Pampalo Inferred Total||447 235||2,7||39 000||1 213||Inferred||Endomines|
|Karelian Gold Line Resources|
|Hosko||35 000||4,1||4 560||142||Measured||Geoconsulting Parkkinen||(4)|
|Hosko||675 000||1,2||25 760||801||Indicated||Geoconsulting Parkkinen||(4)|
|Muurinsuo||354 000||1,9||22 080||687||Indicated||Endomines||(6)|
|Kuivisto East||37 000||3,2||3 810||118||Indicated||MAPTEK|
|Karelian Measured + Indicated Total||1 101 000||1,6||56 210||1 748||Measured + Indicated|
|Hosko||240 000||0,8||6 020||187||Inferred||Geoconsulting Parkkinen||(4)|
|Rämepuro||136 000||2,3||9 930||309||Inferred||Geoconsulting Parkkinen||(5)|
|Muurinsuo||231 000||1,4||10 400||323||Inferred||Endomines||(6)|
|Kuivisto East||145 000||1,0||4 660||145||Inferred||MAPTEK|
|Kuittila||275 000||2,6||22 990||715||Inferred||GSF, historical|
|Korvilansuo||256 000||2,0||16 460||512||Inferred||Outotec (Finland) Oy||(7)|
|Karelian Inferred Total||1 283 000||1,7||70 460||2 191||Inferred|
|Mineral resources estimated according the JORC-code (except Kuittila), all figures independently rounded.|
|Mineral Resources are reported inclusive of Ore Reserves.
|(1) Cut-off 1,5 g/t; top cut 10-20 g/t gold|
|(2) Cut-off 0,5 g/t; top cut 7 g/t gold|
|(3) Cut-off 0,5 g/t; top cut 10 g/t gold|
|(4) Cut off 0,5 g/t; top cut 11g/t (low grade domain) or 50 g/t gold (high grade domain)|
|(5) Cut-off 0,5 g/t, top cut 40 g/t gold|
|(6) Cut-off 0,5 g/t, top cut 10 g/t gold|
|(7) Cut-off 0,5 g/t gold; no top cut|
|Troy ounce = 31,1035 g|
Table 2. Mineral resources in Idaho, USA
|Mineral Resources – Idaho, USA (status Dec 31, 2019)|
|Measured||245 000||6,88||54 200||1 686||Measured||Hard Rock Consulting||(1,2)|
|Indicated||217 000||6,16||43 000||1 337||Indicated||Hard Rock Consulting||(1,2)|
|Measured + Indicated||462 000||6,54||97 200||3 023||M+I||Hard Rock Consulting||(1,2)|
|Inferred||296 000||4,91||46 700||1 453||Inferred||Hard Rock Consulting||(1,2)|
|Buffalo Gulch Resources|
|Measured||3 515 000||0,57||64 800||2 016||Measured||Hard Rock Consulting||(1,3,4)|
|Indicated||3 230 000||0,48||49 900||1 552||Indicated||Hard Rock Consulting||(1,3,4)|
|Measured + Indicated||6 745 000||0,53||114 700||3 568||M+I||Hard Rock Consulting||(1,3,4)|
|Inferred||2 128 000||0,38||25 700||799||Inferred||Hard Rock Consulting||(1,3,4)|
|Rescue||67 000||21,35||45 980||1 430||Historic||Kimberly Mines, (2004)||(5)|
|Kimberly||261 000||19,18||160 930||5 005||Historic||Laczay, (2010)||(5)|
|Deadwood||2 375 000||0,77||58 601||1 823||Historic||BEMA Gold Corporation (1989)||(5)|
|Historic Total||2 703 000||3,06||265 511||8 258||(5)|
|(1) Measured, Indicated and Inferred mineral classifications are assigned according to CIM Definition Standards. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability and there is no guarantee that mineral resources will be converted to mineral reserves. Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
|(2) The mineral resource estimate was prepared by HRC based on data and information available as of March 1, 2016. The Measured, Indicated and Inferred mineral resources are reported considering a base case estimate that applies a cutoff grade of 3.4 g/t Au based on the estimated operating costs, recoveries, and a $1,300/oz gold price.
|(3) The mineral resource estimate was prepared by HRC based on data and information available as of December 10, 2017. The Measured, Indicated and Inferred mineral resources are reported considering a base case estimate that applies a cutoff grade of 0.14 g/t Au based on the estimated operating costs, recoveries, and a $1,300/oz gold price.
|(4) Mineral Resources captured within the pit shell meet the test of reasonable prospect for economic extraction and can be declared a Mineral Resource. Pit optimization is based on assumed gold price of US$1,300/oz. and mining, processing and G&A costs of US$15.20 per ton processed Metallurgical recoveries for gold are 90%.
|(5) Endomines caution that while the historic resources presented appear to be in general accordance with those set out in NI 43-101 Sections 1.2 and 1.3, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources, and Endomines is not treating the historical estimate as current nor reliable.
|Troy ounce = 31.103|
The announced mineral resource update for the Finnish projects has been reviewed and approved by Eurogeologist Jani Rautio MSc (Geol) acting as a Qualified Person in compliance with the Fennoscandian Association for Metals and Mining Professionals, FAMMP, –standards. Jani Rautio is a full-time employee of Endomines.
The Independent Qualified Person for the mineral resource estimates for the Friday Underground and Buffalo Gulch projects is Zachary Black, SME-RM. Zachary Black is a full-time employee of Endomines. Technical reports for the Friday Underground Project and the Orogrande Open Pit Project were completed December 12, 2017.
Greg Smith, CEO, +44 7717 880 923, email@example.com
This information is information that Endomines AB is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication through the contact person set out above at 08:30 CET on 3 March 2020.
Endomines is a mining and exploration company with its primary focus on Au. The Company operates a Gold mine in Pampalo, has exploration activities along the Karelian Au Line in Eastern Finland and develops mining operations in Idaho, USA. Endomines aims to improve its long-term growth prospects by increasing its exploration activities and through acquisitions. Endomines aims to acquire deposits that are situated in stable jurisdictions and can be brought to production rapidly with limited investments.
The shares trade on Nasdaq Stockholm (ENDO) and Nasdaq Helsinki (ENDOM).