Maiden mineral resource from Hautalampi project in Finland estimates 100 % resource upside

Highlights

• Compared to earlier estimates, the total tonnage in the measured, indicated and inferred resource categories has increased approximately 100% and contained metal approximately 50% in the mine lease area
• The estimate has been prepared and reported in accordance with the recommendations of the 2012 Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC-code)
• Hautalampi deposit measured and indicated mineral resource:
  • 5.3 million tonnes (Mt) at an average grade of 0.35% Ni, 0.24%Cu and 0.08%
  • Contained metal Ni 18 300 tonnes, Cu 12 800 tonnes and Co 4 300 tonnes in the measured and indicated category
  • Additional inferred resources at Hautalampi area 0.2 Mt at an average grade 0.26% Ni, 0.14 Cu and Co 0.05%
• Newly established NorthEastern extension of Hautalampi project, known as “the Mökkivaara deposit” with following inferred resource:
  • 2.2 Mt at an average grade 0.25%Ni, Cu 0.16% and Co 0.06%
  • Contained metal Ni 5 400 tonnes, Cu 3 500 tonnes and Co 1200 tonnes
• The mineral resource is estimated using a database containing approximately 82 000 m of diamond core drilling including 3 768 meters drilled during the 2020 campaign
• An additional drilling campaign is planned for in the coming months. It is expected that the majority of the inferred mineral resources could be upgraded to indicated with this additional drilling

Eurobattery Minerals AB (Nordic Growth Market: “BAT”; “the company”), a growth company in the mining and exploration industry with the vision to help Europe become self-sufficient in ethical battery minerals, has been informed that FinnCobalt Oy has received a new maiden mineral resources estimate results from its Hautalampi mine development project. The new resource estimate includes newly estimated Hautalampi area and its North-Eastern extension known as the Mökkivaara deposit area, which was the target of the year 2020 core drilling campaign. Eurobattery Minerals has the option to acquire 100% of FinnCobalt Oy in a staged acquisition.

“We are very pleased for the outcome of this now completed JORC-compliant mineral resource estimate of the Hautalampi project. Compared to earlier, historical resource estimates from the area, we can observe that the total resource tonnage has doubled and contained metal tonnes increased some 50%”, comments Roberto Garcia, CEO of Eurobattery Minerals AB.

The resource estimate is based on database containing ca. 82 000 meters, 457 holes of core drilling including 3 768 meters, 29 holes which were drilled during 2020.

The resource estimate and estimation principles have been tabulated below:

For details about mineral resource notes and assumptions, please see further down.  

Mineral resource notes and assumptions:

(1) The mineral resource estimate has an effective date of June 21, 2021. (2) Mineral resources do not have demonstrated economic viability. (3) The estimate has been prepared and reported in accordance with the recommendations of the 2012 Australasian Code for Reporting of Mineral Resources and Ore Reserves (JORC 2012).  (4) Exhange rate used: USD/EUR 1.18. (5) Base case cut-off grade for the estimate of the mineral resources is 0.3 % NiEq. (6) NiEq = nickel equivalent percentage. NiEq grade calculated using (USD prices of) nickel US $17,500 /t, copper US$ 7,500 /t and cobalt US$ 45,000 /t. No metallurgical or recovery factors have been assumed at this early stage of the Project. NiEq grade calculation = Ni% + (Co%*45000+Cu%*7500)/17500. (7) It is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated or measured mineral resources with continued exploration. (8) FinnCobalt is not aware of any legal, political, environmental, or other risks that could materially affect the potential development of the mineral resources.

The Ordinary Kriging method (“OK”) algorithm for grade interpolation was used for the Hautalampi Mineral Resource using an experimental variogram models created for the elements Ni, Cu, Co, S, Fe and Zn. Mökkivaara Mineral Resource estimation was carried out using the Inverse Distance Squared method (“ID²”) algorithm using a search ellipsoid oriented to the average strike, plunge and dip of the mineralised zone.

Samples within the wireframes were composited to 1.5 m interval. The estimate is based on a block size of 5 m (X)by 5 m (Y) by 5m (Z), with sub-blocks of 2.5m by 2.5m by 2.5m. The block model is rotated -45 degrees around Z -axis to match the general strike of the mineralization.   A bulk density value of 2.82t/m³ was assigned to all material (ore and waste).

The new resource estimate covers the whole Hautalampi project area including the results from the year 2020 drilling program at the project, in eastern Finland. The drilling confirmed significant resource expansion potential from 800m to 1 400m along strike to the northeast of the historical mineral resource, as well as continuity of the westernmost mineralised horizon in a southwest direction towards the historic Hautalampi mineral resource.“We have a plan for an additional core drilling campaign in the next months to close the gap between Hautalampi and Mökkivaara resource area.  We believe that with this additional drilling the tonnage will increase also in the future. The next step will be to use this robust resource base for the technical and economical evaluations of the project viability”, said Roberto Martinez Garcia.The map of the mine lease area including Hautalampi and Mökkivaara deposit resource areas is presented below.
 

The complete Hautalampi and Mökkivaara deposit project mineral resources estimate report will be published on the Eurobattery Minerals AB and FinnCobalt Oy web pages immediately when the companies receives the report. This is expected to happen during July 2021.

Competent Person's Statement

The Information in this release that relates to Mineral Resources is based on information compiled by Mr. Ville-Matti Seppä, a Competent Person who has an EurGeol qualification. Mr. Seppä is a full-time employee of AFRY Finland Oy. Mr. Seppä has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources, and Ore Reserves”. Mr. Seppä has reviewed, verified, and approved the contents of this news release as they relate to the mineral resource estimate. Mr. Seppä owns no shares in FinnCobalt Oy or Eurobattery Minerals AB.

For further information, please contact:

Roberto García Martínez, CEO 

E-mail: roberto@eurobatteryminerals.com

Website: https://eurobatteryminerals.com/en/

This information is of the kind that the Company is required to disclose in accordance with the EU’s Market Abuse Regulation. The information was issued for publication through the agency of the contact person set out above on 21th of June 2021 at 08:00 CEST.

About Eurobattery Minerals

Eurobattery Minerals AB is a Swedish mining company listed on NGM Nordic SME (BAT) and Börse Stuttgart (EBM). As the foundation of the battery value chain the company’s vision is to help Europe become self-sufficient in ethical and fully traceable battery minerals for the electric vehicle industry. The company is focused on exploration and development of several nickel-cobalt-copper projects in Europe to supply sustainably mined raw materials critical to the rapidly growing battery market.

Please visit www.eurobatteryminerals.com for more information.

Augment Partners AB, e-mail: info@augment.se, phone: +46 8-604 22 55, is the company’s Mentor.