Endomines Ore Reserve and Mineral Resource Estimate update
Endomines AB, stock exchange release 7 April 2021 at 12:15 CEST
Endomines is pleased to announce 2021 gold reserve and resource estimates for the Pampalo mine and for resources along the Karelian Gold Line in Finland, as of 31 December 2020, as well as gold and silver resource estimates for its gold projects in Idaho and Montana, USA.
Gold reserves and resources at the Pampalo mine and resources along the Karelian Gold Line in Finland
The Pampalo mine has been on care and maintenance since 2018. The re-start of the Pampalo mine is planned for 2021 and therefore a part of the mineral resource was converted to ore reserves. The deep extension area has a probable ore reserve of 131,000 tonnes with a grade of 2.93 g/t gold for a total of 12,300 ounces gold, in addition to inferred mineral resource of 118,125 tonnes with a grade of 5.36 g/t gold for a total of 20,300 ounces gold. The company is planning an underground infill drilling program in 2021 to increase the drilling density and upgrading the classification of the deep extension area.
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 planned for 2021. 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 2020, Endomines continued work 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.
The mineral resources regarding the Deadwood, Rescue, and Kimberly exploration projects, are per definition historical, and 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 planned for 2021. The update will reflect increased geological understanding of the deposits and changes in the current market conditions.
Gold and silver resources in Montana, USA
In October 2020 Endomines completed the acquisition of the US Grant and Kearsarge gold projects in Montana, USA. The US Grant is a high-grade, underground gold and silver project with a historical resource totaling 165,700 ounces of gold and 4.47M ounces of silver contained in 346,000 tonnes of mineralized material. Gold and silver ores have periodically been mined at the US Grant mine between 1867 and 1984. The Kearsarge project is a high-grade, underground gold project with a historical resource totaling 380,700 ounces of gold contained in 4.1 million tonnes of mineralized material.
The addition of the US Grant and Kearsarge gold projects adds a historical total of 546,400 ounces of gold and 4.47 million ounces of silver with considerable potential for additional resources to be discovered through exploration of the district.
Endomines is not treating the US Grant and Kearsarge historic estimates as either a mineral resource or mineral reserve as defined in NI 43-101.
Table 1. Gold reserves and resources at Pampalo and the Karelian Gold Line in Finland:
| Ore reserves - Karelian Gold Line (status Dec 31 2020) | |||||||||||
| Deposit | Tonnes | Grade Au g/t |
Oz | kg | Classification | Prepared by | |||||
| Pampalo | 131 000 | 2.93 | 12 340 | 384 | Probable | Endomines | (1) | ||||
| Pampalo Reserves total | 131 000 | 2.93 | 12 340 | 384 | Probable | Endomines | |||||
| Grand total | 131 000 | 2.93 | 12 340 | 384 | |||||||
| The mineral resources are additional to the ore reserves. | |||||||||||
| Mineral Resources – Karelian Gold Line, Finland (status Dec 31 2020) | |||||||||||
| Deposit | Tonnes | Grade Au g/t |
Oz | Kg | Classification | Prepared by | |||||
| Pampalo Resources | |||||||||||
| Pampalo East | 229 000 | 1.8 | 12 897 | 401 | Indicated | Endomines | (3) | ||||
| Pampalo NW | 29 000 | 2.5 | 2 284 | 71 | Indicated | Endomines | (4) | ||||
| Pampalo Indicated Total | 258 000 | 1.8 | 15 181 | 472 | Indicated | Endomines | |||||
| Pampalo Deep | 118 125 | 5.36 | 20 341 | 633 | Inferred | Endomines | (2) | ||||
| Pampalo D-zone | 164 110 | 1.9 | 9 912 | 308 | Inferred | Endomines | (2) | ||||
| Pampalo East | 62 000 | 1.4 | 2 791 | 87 | Inferred | Endomines | (3) | ||||
| Pampalonlammit | 103 000 | 1.8 | 5 961 | 185 | Inferred | Endomines | (4) | ||||
| Pampalo Inferred Total | 447 235 | 2.7 | 39 005 | 1 213 | Inferred | Endomines | |||||
| Karelian Gold Line Resources | |||||||||||
| Hosko | 35 000 | 4.1 | 4 557 | 142 | Measured | Geoconsulting Parkkinen | (5) | ||||
| Hosko | 675 000 | 1.2 | 25 761 | 801 | Indicated | Geoconsulting Parkkinen | (6) | ||||
| Muurinsuo | 354 000 | 1.9 | 22 080 | 687 | Indicated | Endomines | (7) | ||||
| Kuivisto East | 37 000 | 3.2 | 3 807 | 118 | Indicated | MAPTEK | |||||
| Karelian Measured + Indicated Total | 1 101 000 | 1.6 | 56 204 | 1 748 | Measured + Indicated | ||||||
| Hosko | 240 000 | 0.8 | 6 019 | 187 | Inferred | Geoconsulting Parkkinen | (5) | ||||
| Rämepuro | 136 000 | 2.3 | 9 926 | 309 | Inferred | Geoconsulting Parkkinen | (6) | ||||
| Muurinsuo | 231 000 | 1.4 | 10 398 | 323 | Inferred | Endomines | (7) | ||||
| Kuivisto East | 145 000 | 1.0 | 4 662 | 145 | Inferred | MAPTEK | |||||
| Kuittila | 275 000 | 2.6 | 22 988 | 715 | Inferred | GSF, historical | |||||
| Korvilansuo | 256 000 | 2.0 | 16 461 | 512 | Inferred | Outotec (Finland) Oy | (8) | ||||
| Karelian Inferred Total | 1 283 000 | 1.7 | 70 453 | 2 191 | Inferred | ||||||
| Mineral resources estimated according the JORC-code (except Kuittila), all figures independently rounded. | |||||||||||
| (1) The ore reserve estimate is based on underground stope and development designs.Cut-off grade 1.5 g/t Au, top cut 10 g/t gold, waste rock dilution 15-30% and ore loss in stoping 5%. | |||||||||||
| (2) Cut-off 1,5 g/t; top cut 10-20 g/t guld | |||||||||||
| (3) Cut-off 0,5 g/t; top cut 7 g/t guld | |||||||||||
| (4) Cut-off 0,5 g/t; top cut 10 g/t guld | |||||||||||
| (5) Cut off 0,5 g/t; top cut 11g/t (low grade domain) or 50 g/t gold (high grade domain) | |||||||||||
| (6) Cut-off 0,5 g/t, top cut 40 g/t gold | |||||||||||
| (7) Cut-off 0,5 g/t, top cut 10 g/t gold | |||||||||||
| (8) Cut-off 0,5 g/t gold; no top cut | |||||||||||
| Troy ounce = 31.1035g | |||||||||||
Table 2. Gold resources in Idaho and Montana, USA
| Mineral Resources – Idaho/Montana, USA (status Dec 31 2020) | |||||||
| Deposit | Tonnes | Grade Au g/t |
Oz | kg | Classification | Prepared by | |
| Friday Resources | |||||||
| 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 | |
| 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) |
| Historic Resources | |||||||
| 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) |
| US Grant | 346 000 | 14.89 | 165 700 | 5 152 | Historic | McLeod, (1990) | (5) |
| Kearsarge | 4 100 000 | 2.98 | 381 000 | 12 218 | Historic | Transatlantic Mining, (2019) | (5) |
| Historic Total | 7 149 000 | 3.58 | 812 211 | 25 628 | (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 = 31.1035g |
Table 3. Silver resources in Montana, USA
| Silver Mineral Resources – Montana, USA (status Dec 31 2020) | |||||||
| Deposit | Tonnes | Grade Ag g/t |
Oz | kg | Classification | Prepared by | |
| US Grant | 346 000 | 402 | 4 470 000 | 139 033 | Historic | McLeod, (1990) | (1) |
| Historic Total | 346 000 | 402 | 4 470 000 | 139 033 | |||
| (1) 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. | |||||||
This ore reserve and mineral resource update 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.
Contact person
Rauno Pitkänen, Interim CEO, +358 40 595 4412, rauno.pitkanen@endomines.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 12:15 CEST on 7 April 2021.
About Endomines
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).
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