Drilling of the Engebø rutile deposit
Nordic Mining’s subsidiary Nordic Rutile AS has assigned the Finnish company Oy Kati Ab for drilling of the Engebø rutile deposit in Naustdal municipality in western Norway. The drilling is expected to start in February 2016 and continue for approximately 8 weeks. Wardell Armstrong has been assigned for geotechnical assessments.
The plan is to drill about 40 holes with a total length of approximately 6,500 meters. The main purpose of the drilling program is to have a precise definition of the open pit part of the rutile deposit. Rutile production at Engebø is planned from the open pit in the first 10 - 15 years, followed by underground operation for the remaining part of the estimated 50 year life-of-mine period.
The drill cores will be subject to various analyses to determine rutile grade, by-product garnet quality, and other mineral characteristics. The data will be used for re-estimation and reclassification of the deposit in accordance with the JORC Code. The estimations will be carried out by the independent Qualified Person, Mr. Adam Wheeler who is also a registered Chartered Engineer. The revised mineral resource data will later be incorporated into the pre-feasibility study (“PFS”) for the Engebø rutile project.
The drilling is expected to start in February 2016 and continue for approximately 8 weeks. Drill core analyses and the subsequent resource estimation and reclassification are expected to be completed in Q3 2016.
The current estimation of the Engebø deposit is 154.3 million tonnes at an average rutile grade of 3.77% with classification of the mineral resource in the Indicated (31.7 million tonnes) and Inferred (122.6 million tonnes) categories in accordance with the JORC Code 2004. The target is to improve the resource classification, primarily of the open pit, to the Measured and Indicated categories in accordance with the JORC Code 2012 as a basis for the PFS financial modeling of the Engebø project.
In addition to definition drilling, holes will be drilled for geotechnical assessment of the deposit, i.a. evaluation of slope angles for planning of the open pit. The international mining consultant Wardell Armstrong LLP has been assigned for geotechnical services.
Exploration Manager Mona Schanche comments: “We are pleased to have Kati as the contractor for drilling services and Wardell Armstrong as the geotechnical consultant. Both companies are renowned for high-quality services and extensive international experience. The results from the upcoming activities will be important input to the PFS and the further planning of the Engebø project.”
For further information please contact Exploration Manager Mona Schanche, telephone +47 922 81 253.
Oslo, 22 December 2015
Nordic Mining ASA
Nordic Mining ASA (www.nordicmining.com)
Nordic Mining ASA (“Nordic Mining” or “the Company”) is a resource company with focus on high-end industrial minerals and metals in Norway and internationally. The Company’s project portfolio is of high international standard and holds a significant economic potential. The Company’s assets are in the Nordic region.
Through the subsidiary Nordic Rutile AS, Nordic Mining is undertaking a large-scale project development at Engebø in Sogn and Fjordane where the Company has rights to a substantial eclogite deposit with rutile and garnet. Permits for the project were granted by the Norwegian government in April 2015. Nordic Mining has rights for exploration and production of high-purity quartz in Kvinnherad in Hordaland and develops the project through its subsidiary Nordic Quartz AS. Nordic Mining’s associated company Keliber Oy in Finland plans to start mining of lithium bearing spodumene and production of lithium carbonate. Nordic Mining holds exploration rights on the Øksfjord Peninsula in Troms and Finnmark where the Company has discovered a prospective area of sulphide mineralisation. Through the subsidiary Nordic Ocean Resources AS, Nordic Mining is exploring opportunities related to seabed mineral resources.
Nordic Mining is listed on Oslo Axess.