Keliber's drilling program improves project viability
Keliber's drilling program was completed mid-January 2011. A new spodumene pegmatite deposit at Outovesi in Kaustinen municipality was discovered and the Länttä resource base has been upgraded. Also a south-western continuation of the Länttä ore zone has been indicated.
The exploration work has improved the quality and classification of Keliber's mineral deposits at Länttä and Outovesi. Approximately 1.26 million tonnes of ore are classified in the ore reserve category (proven and probable). An ore reserve is the portion of a mineral resource which is evaluated as technical and economical feasible in a viable project.
"Significant tonnages in ore reserve category are encouraging and important for the further feasibility process in Keliber," says CEO Ivar S. Fossum in Nordic Mining. "We have been successful in the exploration work in 2010 and taken a large step to improve the viability of the contemplated lithium production in Keliber."
Outotec (Finland) Oy has been engaged to make independent classifications of the deposits. The estimates were made by Markku Meriläinen (geologist) and Pekka Lovén (mining engineer). Both are competent persons registered with the Australasian Institute of Mining and Metallurgy (AusIMM) and have long experience in the mining industry. The resource and reserve estimates are made according to the reputable JORC Code.
Länttä - significant ore reserve estimate
The updated estimates of mineral resources and ore reserves for Länttä are:
| Länttä | Resources | Reserves | |||
| Res. class | Tonnes | Li2O% | Res. class | Tonnes | Li2O% |
| Measured | 433 000 | 1.12 | Proven | 472 000 | 0.98 |
| Indicated | 868 000 | 1.06 | Probable | 513 000 | 0.96 |
| Total | 1 301 000 | 1.08 | Total | 985 000 | 0.97 |
Resources are not additional to reserves.
Cut-off grade in the estimates is 0.5% Li2O. Ore reserve tonnage and grade include 95% mining recovery and 15% waste rock dilution at 0% Li2O grade. The estimated maximum open pit extends to a bedrock depth of 120 meters with a waste/ore ratio of 6.9. In future mine planning optimization, a combination of open pit and underground mining will be considered to find the most economical mining method.
Outovesi - promising new deposit
The new estimates of mineral resources and ore reserves for the Outovesi deposit are:
| Outovesi | Resources | Reserves | |||
| Res. class | Tonnes | Li2O% | Res. class | Tonnes | Li2O% |
| Indicated | 289 400 | 1.49 | Probable | 277 000 | 1.17 |
| Total | 289 400 | 1.49 | Total | 277 000 | 1.17 |
Resources are not additional to reserves.
Cut-off grade is 0.5% Li2O, mining recovery 95% and waste rock dilution 25%. The vertical depth of the estimated open pit is 60 meters.
Further feasibility and development work
Exploration activities will continue in February by detailed ground magnetic measurement in Outovesi in order to establish a geophysical model for the new pegmatite vein, to test a possible fold structure close to the vein and to get indications of possible new veins in the area. Magnetic measurement will also be done on the south-western continuation of the Länttä ore zone. Additional drilling may be considered after the results of the magnetic measurement have been evaluated.
Further, new beneficiation techniques are tested to optimize the processing of the ore. This includes i.a. selective fragmentation and mineral separation by optical sorting. The purpose is to improve mineral liberation to increase lithium recovery and to optimize utilization of the various minerals in the ore (i.a. spodumene, columbite, quartz and feldspar). A revised processing route may also result in lower investments and reduced operating costs for the project.
For questions please contact CFO Lars K. Grøndahl on telephone +47 901 60 941.
Oslo, 1 February 2011
Nordic Mining ASA