Press release:
Mineral Resource Estimate ("MRE") totals to 9,242 million tons (Measured, Indicated and Inferred) at average grades of 54 g/t silver, 0,20 g/t gold, 0,23 % lead and 0,56 % zinc or 93 g/t as silver equivalent.
- The detailed breakdown of the Mineral Resource classification is given in the appendix 1 of this release.
-
MRE is prepared by
Afry Finland Oy in accordance with the JORC 2012 code. - Historic drilling data (prior to 2011) has been excluded from the dataset as it doesn't comply with the requirements of the JORC 2012 due to the lack of reliable survey and quality assurance/quality control practices of the time.
- Drilling conducted in 2020-2021, ca. 5,6 km, has been included in the estimation.
- MRE includes mineralization down to 550 to 700 meters.
Ore Reserve Estimate ("ORE") totals to 1,909 million tons (Proven, Probable and Non-JORC) at average grades of 104 g/t silver, 0,29 g/t gold, 0,22 % lead and 0,52 % zinc or 129 g/t as silver equivalent.
- The detailed breakdown of the Ore Reserve classification is given in the appendix 2 of this release.
- ORE represents the portion of the MRE where the data has been sufficient to support the mine planning and the assessment reasonably justifies the eventual extraction.
-
ORE has been prepared internally and the data from the historic drilling (prior to 2011) and the production stage sludge drilling has been used. Due to this, it can not be regarded as JORC 2012 compliant, but the management concludes that the prepared ORE gives a reliable estimate of the currently known mineable part of the
Silver Mine . - ORE includes to mineralization down to 450 meters (JORC-compatible) and includes stopes to 500-600 meters (Non-JORC).
Exploration potential and new drilling in 2022
The Silver Mine remains open at the depth and further exploration targets have been identified also in the already drilled depths.- Until now, we have drilled ca. 6 km of new drill core in 2022 both from the surface and underground and the full year target is ca. 12 km, which is significant increase to earlier.
- Drilling in 2022 has been directed to a) to further define and confirm the reserve between 350 to 500 meters, i.e., the development and production area during the next few years, and b) to confirm the continuity of the ore between 600 to 700 meters and create targets for further drilling.
Management view
- The Management and the Board of Directors see that the substantial part of the current Mineral Resource, which is not included in the Ore Reserve, could be upgraded, and included to the Ore Reserve in the future by continued drilling.
- In view of the above, the current Ore Reserve and, the portion of the Mineral Resource which have reasonable prospects for economic extraction, are estimated to give the Life of Mine of 7-8 years with potential to increase further.
CEO
Appendix 1: Mineral Resource Estimate of the
Resource | Mass | Ag | Au | Pb | Zn | AgEq |
classification | (kt) | g/t | g/t | % | % | g/t |
Measured | 1 395 | 54 | 0,26 | 0,21 | 0,55 | 97 |
Indicated | 3 795 | 56 | 0,23 | 0,22 | 0,51 | 94 |
Sub total (M&I) | 5 190 | 55 | 0,24 | 0,22 | 0,52 | 95 |
Inferred | 4 052 | 52 | 0,16 | 0,25 | 0,61 | 90 |
Grand total | 9 242 | 54 | 0,20 | 0,23 | 0,56 | 93 |
Table 1: The Silver Mine Mineral Resource estimate
Mineral Resource notes and assumptions:
(1) The Mineral Resource estimate has an effective date of June 2X, 2022. (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) Exchange rate used: USD/
Samples within the wireframes were composited to 1 m intervals. The estimate is based on a block size of 5 m (X) by 10 m (Y) by 10m (Z), with sub-blocks of 1m by 1m by 1m. A bulk density value of 2.82t/m³ was assigned to all materials (ore and waste).
Competent Person's Statement
The Information in this release that relates to Mineral Resources is based on information compiled by Mr Ville-Matti Seppä and Mr Ove Klavér, both are Competent Persons with EurGeol qualifications. Seppä and Klavér are full-time employees of
Appendix 2: Ore Reserve Estimate of the
Reserve | Mass | Ag | Au | Pb | Zn | AgEq |
classification | (kt) | g/t | g/t | % | % | g/t |
Proved | 1 097 | 89 | 0,23 | 0,20 | 0,50 | 113 |
Probable | 57 | 81 | 0,23 | 0,36 | 0,91 | 123 |
JORC-compatible | 1 154 | 89 | 0,23 | 0,20 | 0,52 | 113 |
Non-JORC | 755 | 129 | 0,37 | 0,24 | 0,53 | 153 |
Grand total | 1 909 | 104 | 0,29 | 0,22 | 0,52 | 129 |
Table 2: The Silver Mine Ore Reserve estimate
Ore Reserve Notes and assumptions:
(1) Ore Reserve estimate is based on the above-mentioned Mineral Resource estimate (JORC-compatible) and additional resources supported by the old data and sludge drilling samples (Non-JORC). (2) Mine design has been done for the portion of the Mineral Resource where sufficient information has been available to support the mine designing. The design parameters and principles are adopted from the current mining operations and have been proved suitable for the ore type. (3) Cut-off grade of the NSR has been
Appendix 3:
Schematic long section illustration of the classification and the management view LOM. A) Mined out indicates the area, where mining has been mostly completed, however, scattered stopes still exist. B) JORC Compliant Reserve indicates the area, where the amount and quality of the data has been sufficient for measured/indicated resource classification. C) Non-JORC Compliant Reserve indicates the area, where resource is based on inferred resource and has been supported by the old drilling. D) Management view LOM extension indicates the part of the mineral resource which can be upgraded to Ore Reserve by additional drilling.
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