Scandinavian Resources Ltd has been drilling the deposits at its Kiruna project in northern Sweden. The project has an estimated resource of 412Mt at an average grade of 39% Fe.
Established 1835 THE MINING INDUSTRY’S WEEKLY NEWSPAPER October 21, 2011 Papua New Guinea supplement Exploration expands in Norway page 17 Iron ore is on the up in Sweden page 22 Finland is welcoming miners page 32 INSIDE URS-SCOTTWILSON.COM Mine to Port Mining, environmental & infrastructure engineering - worldwide [email protected]+44 (0) 207 821 4102 NORTHERN Dynasty Minerals Ltd has announced that the Pebble Partnership and the State of Alaska will fight a ballot initiative to restrict large-scale developments in the Lake & Peninsula Borough in southwest Alaska. The public ballot, which was supported by a vote of 280 to 246, seeks to prevent developments of more that one square mile in size within the 31,000 square mile borough, and would impact development of the Pebble copper-gold- molybdenum project. The Pebble Partnership and state say the initiative was sponsored by “anti-Pebble activists” and deemed it unconstitutional and unenforceable “because it seeks to restrict development of state-owned resources on state lands through a municipal ordinance”. The project (pictured), controlled 50:50 between a wholly-owned affiliate of Northern Dynasty and a wholly- owned subsidiary of Anglo American plc, has met opposition from environmental and fishing groups as a result of concerns about damage to downstream salmon-fishing grounds. The Alaska Superior Court will begin proceedings to consider the constitutionality of the Lake & Peninsula Borough ordinance on November 7. Ron Thiessen, president and chief executive officer of Northern Dynasty, said that the Partnership would continue to invest with the goal of finalising a prefeasibility study for the project, and to initiate federal and state permitting under the National Environmental Policy Act (NEPA) in late 2012. In September, the Superior Court of the State of Alaska ruled in favour of the state in a case brought by non-profit organisation Nunamta Aulukestai. The court found that the activities at the Pebble deposit had not impacted or caused harm to long-term concurrent uses. The Pebble project is located 320km southwest of Anchorage, and the Pebble Partnership was established in July 2007 as an equal partnership between the two mining companies. Both Northern Dynasty and Anglo American have equal rights of management, operatorship and control in the Pebble Partnership. Anglo must maintain funding for development of the project in order to retain its 50% interest, committing as much as US$1.5 billion. Northern Dynasty sets out Pebble (Feb 25) Read more: www.mining-journal.com/256987 Anglo under attack again (Apr 23, 2010) Read more: www.mining-journal.com/213356 Pebble Partnership and Alaskan state to challenge vote RIO Tinto has countered Cameco Corp’s hostile takeover bid for Hathor Exploration Ltd with a C$578 million (US$567 million) friendly offer for the Canadian uranium junior. Shareholders of Hathor have been offered C$4.15/share by Rio Tinto, which represents a 55% premium to the company’s closing price the day before the bid. The offer trumps the C$520 million, C$3.75/share offer Cameco made for Hathor during August. Hathors’s key asset is the Roughrider uranium deposit in the Athabasca Basin of northern Saskatchewan, where it owns a number of properties. The project is estimated to contain indicated and inferred resources containing about 17.2Mlb and 40.7Mlb, respectively, and is located about 25km northwest of Cameco’s Rabbit Lake mill. Michael Gunning, Hathor chief executive officer, said the Rio Tinto offer “provides fair value” compared with the unsolicited Cameco bid. He added: “The strategic context of the Rio Tinto offer underscores the ‘best of breed’ global stature of the Roughrider uranium deposit relative to its peers of undeveloped uranium deposits around the world.” Doug Ritchie, Rio Tinto energy chief executive officer, said an acquisition of Hathor would form part of its growth plans in Canada. He said: “The medium and long-term outlook for the uranium market is positive, with uranium assuming a significant role in the world’s primary energy needs.” Dahlman Rose & Co said in its analysis of the offer that there could be further developments in a deal for Hathor. The investment bank said: “We note that Rio Tinto and Hathor have agreed to a relatively small break fee of C$20 million, this is conceivable that Cameco may look to counter this offer or it is possible that other bidders may emerge. “Given the close proximity between Hathor’s and Cameco’s assets, we believe Cameco could reap higher synergies than almost any other company.” Cameco goes hostile on Hathor (Sept 2) Read more: www.mining-journal.com/282897 ON TUESDAY , police in South Wales made Y Y an arrest in relation to the Gleision colliery accident last month. An unnamed 55-year old man was held on suspicion of manslaughter but, according to a spokesman, has since been bailed. Four men (Charles Breslin, aged 62, Philip Hill, 44, Garry Jenkins, 39, and David Powell, 50) died after becoming trapped in the mine on September 15. Soon after the incident, an investigation was launched by the police into the flooding, and resulting death of the four miners. Police are working with the Health and Safety Executive to investigate the circumstances surrounding the deaths. According to a statement, examination of the scene is complete. The mine remains closed, and is under the control of the Coal Authority. Senior investigating officer detective chief inspector Dorian Lloyd said: “The arrest follows consultation between the South Wales Police, Health and Safety Executive and the Crown Prosecution Service to review the evidence gathered.” Gleision arrest Rio Tinto outbids Cameco offer for Hathor
Transcript
Established 1835 THE MINING INDUSTRY’S WEEKLY NEWSPAPER October 21, 2011
Papua New Guinea
supplement
Exploration expands in Norwaypage 17
Iron ore is on the up in Sweden page 22
Finland is welcoming minerspage 32
INSIDE
URS-SCOTTWILSON.COM
Mine to PortMining, environmental & infrastructure engineering - worldwide
NORTHERN Dynasty Minerals Ltd has announced that the Pebble Partnership and the State of Alaska will fight a ballot initiative to restrict large-scale developments in the Lake & Peninsula Borough in southwest Alaska.
The public ballot, which was supported by a vote of 280 to 246, seeks to prevent developments of more that one square mile in size within the 31,000 square mile borough, and would impact development of the Pebble copper-gold-molybdenum project.
The Pebble Partnership and state say the initiative was sponsored by “anti-Pebble activists” and deemed it unconstitutional and unenforceable “because it seeks to restrict development of state-owned resources on state lands through a municipal ordinance”.
The project (pictured), controlled 50:50 between a wholly-owned affiliate of Northern Dynasty and a wholly-owned subsidiary of Anglo American plc, has met opposition from environmental and fishing groups as a result of concerns about damage to downstream salmon-fishing grounds.
The Alaska Superior Court will begin proceedings to consider the constitutionality of the Lake & Peninsula Borough ordinance on November 7.
Ron Thiessen, president and chief executive officer of Northern Dynasty, said that the Partnership would continue to invest with the goal of finalising a prefeasibility study for the project, and to initiate federal and state permitting under the National Environmental Policy Act (NEPA) in late 2012.
In September, the Superior Court of the State of Alaska ruled in favour of the state in a case brought by non-profit organisation Nunamta Aulukestai.
The court found that the activities at the Pebble deposit had not impacted
or caused harm to long-term concurrent uses.
The Pebble project is located 320km southwest of Anchorage, and the Pebble Partnership was established in July 2007 as an equal partnership between the two mining companies. Both Northern Dynasty and Anglo American have equal rights of management, operatorship and control in the Pebble Partnership.
Anglo must maintain funding for development of the project in order to retain its 50% interest, committing as much as US$1.5 billion.
Northern Dynasty sets out Pebble (Feb 25)Read more: www.mining-journal.com/256987
Anglo under attack again (Apr 23, 2010)Read more: www.mining-journal.com/213356
Pebble Partnership and Alaskan state to challenge vote
RIO Tinto has countered Cameco Corp’s hostile takeover bid for Hathor Exploration Ltd with a C$578 million (US$567 million) friendly offer for the Canadian uranium junior.
Shareholders of Hathor have been offered C$4.15/share by Rio Tinto, which represents a 55% premium to the company’s closing price the day before the bid. The offer trumps the C$520 million, C$3.75/share offer Cameco made for Hathor during August.
Hathors’s key asset is the Roughrider uranium deposit in the Athabasca Basin of northern Saskatchewan, where it owns a number of properties.
The project is estimated to contain indicated and inferred resources
containing about 17.2Mlb and 40.7Mlb, respectively, and is located about 25km northwest of Cameco’s Rabbit Lake mill.
Michael Gunning, Hathor chief executive officer, said the Rio Tinto offer “provides fair value” compared with the unsolicited Cameco bid. He added: “The strategic context of the Rio Tinto offer underscores the ‘best of breed’ global stature of the Roughrider uranium deposit relative to its peers of undeveloped uranium deposits around the world.”
Doug Ritchie, Rio Tinto energy chief executive officer, said an acquisition of Hathor would form part of its growth plans in Canada. He said: “The medium and long-term outlook for the uranium market is positive, with
uranium assuming a significant role in the world’s primary energy needs.”
Dahlman Rose & Co said in its analysis of the offer that there could be further developments in a deal for Hathor.
The investment bank said: “We note that Rio Tinto and Hathor have agreed to a relatively small break fee of C$20 million, this is conceivable that Cameco may look to counter this offer or it is possible that other bidders may emerge.
“Given the close proximity between Hathor’s and Cameco’s assets, we believe Cameco could reap higher synergies than almost any other company.”
Cameco goes hostile on Hathor (Sept 2)Read more: www.mining-journal.com/282897
ON TUESDAY, police in South Wales made N TUESDAY, police in South Wales made N TUESDAYan arrest in relation to the Gleision colliery accident last month. An unnamed 55-year old man was held on suspicion of manslaughter but, according to a spokesman, has since been bailed.
Four men (Charles Breslin, aged 62, Philip Hill, 44, Garry Jenkins, 39, and David Powell, 50) died after becoming trapped in the mine on September 15.
Soon after the incident, an investigation was launched by the police into the flooding, and resulting death of the four miners.
Police are working with the Health and Safety Executive to investigate the circumstances surrounding the deaths. According to a statement, examination of the scene is complete. The mine remains closed, and is under the control of the Coal Authority.
Senior investigating officer detective chief inspector Dorian Lloyd said: “The arrest follows consultation between the South Wales Police, Health and Safety Executive and the Crown Prosecution Service to review the evidence gathered.”
Gleision arrest
Rio Tinto outbids Cameco offer for Hathor
01MJ111021.indd 1 20/10/2011 17:25
12 Mining Journal October 21, 2011
EXPLORATION & DEVELOPMENT
�NORICUM RESULTSNoricum Gold Ltd has received assays results from drilling at two of its gold properties in Austria. The holes tested its Rotgülden (BL) and Kliening (BB) targets, which are about 100km apart. The company noted that anomalous tungsten mineralisation was found in one of the Kliening samples. The better of the results included:
Hole From Intercept Au Ag (m) (m) (g/t) (g/t)BL03 173.7 3.1 11.69 –BL07 224.8 0.5 6.68 –BB-07-01 4.5 2.0 4.47 9.54and 11.0 0.5 4.71 21.99and 11.0 0.5 4.71 21.99and
�MORE FROM LLAHUINResource drilling at Southern Hemisphere Mining Ltd’s recently-optioned Llahuin porphyry copper property in Chile has continued to intersect long intervals of mineralisation. The company can buy Llahuin for US$1.9 million in cash and shares. The better of the latest assays are as follows:
�QMC DISCOVERY Queensland Mining Corporation Ltdhas discovered copper sulphide mineralisation at the Duck Creek property south of Cloncurry in Queensland. The better intersections included:
Hole From Int Cu Au Co (m) (m) (%) (g/t) (ppm)HS11RC06 91 22 1.99 0.20 110HS11RC09 186 37 1.72 0.17 111HS11RC10 74 22 1.29 0.09 96HS11RC13 198 36 2.66 0.23 238ND11RC04 85 10 2.65 0.14 81
�HARREJAURE IRONDiamond-drilling at Scandinavian Resources Ltd’s Kiruna iron project in Sweden has confirmed mineralisation at the Harrejaure prospect, about 30km from the town of Kiruna. The company noted the magnetite-haematite mineralisation was classified as apatite iron ore, with relatively high levels of phosphorus.
Hole From Intercept Fe (m) (m) (%)HAR11001 21 110 47HAR11002 43 50 44HAR11002 99 37 38
Read more: www.mining-journal.com/276708
A PRELIMINARY economic assessment has recommended that Zincore Metals Inc should continue its investigations into the viability of its Accha zinc oxide project (pictured) in Peru.
The study, by consultant AMEC, designed several stages of open-pit mining exploiting the various deposits at Accha. The mine plan also included an underground option at the end of the open-pit phase at the Accha deposit.
The pit designs captured 13.5Mt of material above the cut-off grade (total resources are detailed in the table), at an average grade of 4.6% Zn and 3.1% Pb.
These resources were considered
sufficient for a ten-year mine life. An average 1.3Mt/y (0.3Mt/y from
Accha and 1Mt/y from the Yanque deposit) would be fed to the preparation plant, which would crush the feed and mix it with fine anthracite before pelletisation.
The pellets would then be fed into three Waelz rotary kilns, where zinc, lead and cadmium oxides would be vaporised and collected, washed and filtered.
The fume-oxide concentrate could be sold to a refinery, or processed further at a planned refinery located at the port of Matarani to yield special high-grade (SHG) zinc ingot and a lead sulphide by-product.
Capital costs to produce SHG zinc ingot were estimated at US$351 million, including sustaining capital of US$21 million and a contingency of US$54 million. Cash operating costs were estimated at US$0.80/lb zinc produced, or US$0.18/lb including a premium for the zinc plus credit for lead by-product.
In the alternative scenario of production of an oxide concentrate, capital costs were estimated at US$215 million, including the sustaining capital requirement of US$21 million.
Cash operating costs were estimated at US$1.11/lb, or US$0.40/lb including lead credit.
Positive prefeasibility for Accha (May 9, 2008)Read more: www.mining-journal.com/62669
IGE Resources AB’s Rönnbäcken nickel project in Sweden could also produce an iron concentrate, according to the results of preliminary metallurgical testing.
The independently-conducted work indicated that the tailings produced by the proposed treatment plant for the nickel project could be treated further using four stages of wet low-intensity magnetic separation and concentrate regrinding.
The treatment was forecast to achieve magnetite recovery of up to 84%, representing a mass yield of 5%, yielding a concentrate averaging 66.4% Fe.
At the proposed 30Mt/y throughput rate of the project, this treatment would represent 1.53Mt/y of concentrate. Inferred iron resources
at Rönnbäcken, within three separate deposits, were estimated at 555.9Mt at an average grade of 5.59% Fe.
The by-product credits generated by the additional output was calculated to reduce cash operating costs estimated earlier this year by a preliminary economic assessment (or scoping study) from US$5.55/lb
payable nickel to US$4.10/lb. The scoping study, by consultant
SRK, found that that the project could support a 19-year operation, at a production rate of 26,000t/y nickel-in-concentrate, with by-product cobalt of 760t/y.
The processing plant would be able to handle 30Mt/y (achieved in the second year of operations), using conventional flotation after crushing and grinding to yield about 95,000t/y of concentrate averaging 28% Ni (at average recoveries estimated at 80%).
The addition of a magnetite recovery plant would add US$87 million to start-up capital requirements, for a total US$1.26 billion.
CRAZY Horse Resources Inc’s Taysan porphyry copper-gold deposit in southern Luzon, Philippines, has been updated with an independent resource estimate that included drilling completed by the company.
The previous calculation was prepared using only historical data, and consultants Mining Associates and AMEC
Minproc included results from 45 holes completed by Crazy Horse since a March estimate.
Taysan is about 100km south of
Manila, and 20km from Batangas City. Crazy Horse described the deposit as
copper-gold porphyry mineralisation hosted by potassic-altered hornblende granite and hornblenede feldspar porphyry.
Mineralisation occurs as disseminated chalcopyrite and bornite in the altered porphyry and stockwork-hosted within quartz veins and breccias.
Category Tonnage Cu Au Ag (Mt) (%) (g/t) (g/t)Indicated 411 0.27 0.10 0.92Inferred 542 0.18 0.07 0.47Using a cut-off grade of 0.1% Cu
Sundsberget
10km
Rönnbäcksnäset
Exploration permits
Exploration concession Vinberget
12MJ111021.indd 12 20/10/2011 12:57
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October 21, 2011 Mining Journal 17www.mining-journal.comwww.mining-journal.comwww.mining-journal.com
FOCUS NORWAY
TOTAL primary production in the mining and quarrying industry rose from a value of NK10 billion (US$1.7 billion) in 2009 to NK10.8 billion in 2010, the main changes being a 25% fall in the value of coal production and a
110% increase in the value of metals production (owing to the two iron-ore mines).
All indications point to a significantly higher overall figure in 2011. Prospecting and mining activities have shown very positive trends through 2010 and into 2011.
The area covered by new claims for metal prospecting in 2010 was over 1,139km2, an all-time high. This figure was more than doubled by new claims in 2011 as of September.
High metals prices have, of course, been important
but two domestic factors (the wider recognition that extensive areas in historical mining provinces in Norway were unclaimed and the introduction of a Mining Act in January 2010) have also influenced this growth.
The Act facilitates the claiming process, allowing for single blocks up to 10km2 at low fees for the first three years.
More than half of the claimed area is held by companies based in Norway and one third by Australian companies. US, Canadian, Danish and Swedish companies also hold significant areas.
Exploration activity is also most prominent in the northern half of the country, where 70% of the area claimed occurs. This is the area occupied by the Caledonides and the Fennoscandian Shield.
GOVERNMENTAL SUPPORTThe Mining Act was the first of several steps by the government to encourage a positive development of the mineral industry.
The Geological Survey (NGU) has been allocated additional funds of NK25 million a year for the period 2011-2014 to improve coverage of basic geological information relevant to assessment of the mineral potential of the three northernmost counties (the MINN programme).
The Ministry of Trade and Industry, of which NGU and the Mining Directorate are parts, is working on a strategy for the mineral industry, to include consideration of the impact of global trends, the mineral industry in Norway and mineral resources, including their documentation, the legal framework and the need for research in the whole mineral-based value chain. The strategy is to be completed by June 2012.
The Research Council is following this lead and, based on a position paper prepared by a group of organisations, is developing a mineral-industry research programme for which the first funding is anticipated in 2013.
Nordic co-operation in this field is also highly prioritised. The industry organisation, Norwegian Mining and Quarrying Industries, has given active
support to these measures, and has also recently approved the code of ethical standards already operative in Finland and Sweden for use by its member companies in their prospecting activities.
The MINN programme covers the northernmost 113,000km2 (35%) of mainland Norway. The majority of the funding (75%) is being used to improve coverage of geophysical data (magnetic, electromagnetic and radiometric) in prospective areas. Processed data will be released, free of charge, on the NGU website as they become available.
The additional funding will also enable NGU to intensify geological investigation of key metallogenic and mineral provinces.
The results are expected to lead to significant development of national databases and of Norway’s input to the Fennoscandian Ore Deposit Database (FODD).
DEVELOPMENTS IN EXISTING OPERATIONSCoal-mining company Store Norske Spitsbergen Kulkompani (SNSK), which operates the world’s northernmost mining operation at 78o N on Svalbard, is in the process of securing governmental approval for opening a new coal mine, Lunckefjell, with mineable resources of 8.1Mt.
Reserves in the main mine, Svea Nord, are sufficient for only a further three years (at a current rate of about 2Mt/y), and the approval (which is expected) is crucial for continued coal mining on Svalbard.
Northern Iron Ltd continues to focus on optimising the concentrator at its Sydvaranger iron-ore operation close to the border with Russia in the northeasternmost part of Norway to achieve a production rate of 2.8Mt/y of magnetite concentrate in 2012.
In June the company released an updated reserve estimate for the development, placing total probable reserves at 176.6Mt at a grade of 32% Fe.
The company says the reserve growth has extended the life of the operation from 17 to 25 years at the proposed 7Mt/y mining rate.
The company has also started the permitting and
Positive developmentsGovernmental encouragement and increased exploration are keeping Norway’s mining sector healthy
Norway
FAST FACTSCapital: OsloPopulation: 4.7 million (July 2011)Government: Constitutional monarchyCurrency: Norwegian kronerGDP Growth: 0.4% (2010 est)
Area of Norway claimed by ore type
Ag0.81%
Au3.49%
Au-(C
u-Pb
-Zn)
6.23
%
Co0.82%
Cu(-Au) 16.04%
Ni, Cu, PGE 8.39%
Cu-Pb-Zn 29.39%
Fe5.35%
Fe, Ti, V 0.74%
Ti 0.69%
Mo 1.00%
Nb, SM 2.87%
REE 22.30%
Th 0.26%
U+1.59%
W, Au, Bi0.02%
Norwegian Crystallites plant producing quartz
Sibelco Nordic’s nepheline-syenite mine
BY ROGNVALD BOYD
Phot
o: H
alfd
an C
arst
ens
17,19, 21MJ111021.indd 17 19/10/2011 13:20
October 21, 2011 Mining Journal 19www.mining-journal.comwww.mining-journal.comwww.mining-journal.com
FOCUS NORWAY
approvals process aimed at doubling production at Sydvaranger to 14Mt/y (over a 15-year life) by 2015.
Work currently underway to support this expansion includes commencement of an environmental and social-impact study, a scoping study for the plant flowsheet and an infill-drilling programme aimed at increasing the reserve inventory.
Rana Gruber AS has, within the past three years, doubled production of iron ore from 1.5Mt to 3Mt from its mine near the port of Mo i Rana in Nordland county.
The company estimates that its concession area contains resources of at least 600Mt and, on this basis, aim to further double their production to 6Mt/y.
Sibelco Nordic AB, formed in 2009 by a merger between North Cape Minerals and Sibelco Scandinavia, is the world’s leading supplier of olivine from the plants at Åheim and Raubergvik in western Norway.
The Raubergvik olivine plant was reopened this year after a period of temporary closure.
The Stjernøy nepheline syenite operation in northern Norway celebrates its 50-years anniversary in 2011, with opening of the extended open pit which contains reserves for another 100 years of mining. Stjernøy, along with the company’s operations in Canada, make Sibelco
the world’s leading producer of nepheline syenite. Norway’s long ice-free coast and the proximity of
many economically attractive deposits to the coast have been important factors in development of parts of the mineral industry and of at least one port, Narvik, from which a large part of the Sweden’s iron-ore production is shipped.
Northland Resources SA, which is developing the Kaunisvaara iron-ore project in northern Sweden, has signed an agreement with the Narvik port authority to establish an iron-ore terminal with a capacity of 5Mt/y.
This facility will be separate from the terminal operated by LKAB, which ships 22Mt/y from Narvik and plans further expansion of its production.
Various authorities in Sweden and Norway are discussing the urgent need for expansion of the capacity of the railway link from Kiruna to Narvik.
DEVELOPMENTSDeposits in the Bidjovagge area in the Proterozoic Kautokeino Greenstone Belt in northern Norway were mined for copper from 1971 to 1975 and for gold and copper from 1985 to 1991.
Arctic Gold AB, a Swedish company, acquired the rights to the area in 2008 and aims to take a decision on a new phase of mining in 2013.
The company has conducted 8,000m of diamond drilling in 2011, partly close to previously-known mineralisation and partly on new finds.
The indicated mineral resource (JORC) at the end of 2010 was estimated at 1.36Mt at an average grade of 2.74g/t Au and 1.21% Cu. The company is preparing all the necessary planning applications and is in close dialogue with community interests.
Nussir ASA has made significant progress towards a decision on mining the Nussir copper-noble metal and Ulveryggen copper deposits, which occur near Hammerfest in northern Norway.
The Nussir deposit contains in situ indicated and inferred resources of 25.5Mt grading 1.44% Cu equivalent (JORC) and is open downwards and along strike in both directions.
The Ulveryggen deposit, 3.5km southeast of Nussir, contains in situ indicated and inferred resources of 7.7Mt grading 0.81% Cu.
The company released an environmental impact study in June 2011, and has recently signed a three-year drilling contract to a value of NK25 million, aiming to establish mining operations in 2013.
Meanwhile, Nordic Mining is moving towards final approval for opening of a mine at the Engebø rutile deposit in western Norway.
Planning approval was obtained from the relevant municipal and county authorities this year and is now subject to final approval by the Ministry of Environment. The deposit contains 380Mt in situ mineralisation containing 3.96% TiO2. Mineable reserves should support a minimum lifetime of 50 years with production of 3-6Mt/y.
MAJOR PROSPECTING CAMPAIGNSStore Norske Gull AS, a subsidiary of Store Norske Spitsbergen Kulkompani, is exploring an extensive, previously unknown gold-mineralised shear zone on the western part of Svalbard showing gold grades up to 55g/t. Reconnaissance drilling of 3,400m in 2010 confirmed the mineralised system at depth, and further drilling is planned.
Phot
o: H
alfd
an C
arst
ens
Open pit at Rana Gruber’s iron-ore mine
17,19, 21MJ111021.indd 19 19/10/2011 13:21
FOCUS NORWAY
Store Norske Gull is also engaged in exploration in the northernmost part of the mainland, where its main focus has been on gold and base metals in the Karasjok Greenstone Belt, a northern continuation of the productive Kittilä area in northern Finland.
Airborne geophysics, geochemistry and drilling have outlined numerous targets, and further drilling is the subject of a positive dialogue with the indigenous Sami peoples.
Interesting gold and base-metal targets have been located on the coast near Tromsø, where airborne geophysical data have been acquired by NGU this year.
Scandinavian Highlands Holding AS, a Danish company, holds blocks of claims on several types of mineralisation in the region between Narvik and Tromsø, but its main focus in 2010-2011 has been on the Mauken gold project. The company has carried out an extensive programme of soil sampling this year, and gold mineralisation is hosted in a shear zone that is 1-6m wide and can be followed for 1,800m. Typical grades are quoted as 1-4g/t Au.
Norwegian company Metal Prospecting AS has eight exploration projects, but also holds rights for two more advanced mine projects, Skiftesmyr and Godejord, in
the Grong area north of Trondheim. Previous holders of the rights to Skiftesmyr,
Outokumpu/Norsulfid calculated the economically mineable ore in 1992 to be 2.68Mt at 1% cut-off Cu-equivalent, with average grades of 1.1% Cu, 1.6% Zn, 9g/t Ag and 0.31g/t Au.
Drake Resources Ltd, an Australian company, holds more than 650km2 of claims, particularly in areas historically known for copper-rich massive sulphides. Two of these areas, the Løkken area, southwest of Trondheim and the Hersjø area southeast of Trondheim, were covered by helicopter-borne VTEM surveys this year. Other holdings include blocks of claims in the Grong and Sulitjelma areas.
Scandinavian Resources Ltd and associated companies, also Australian, hold 14 blocks of claims totalling 744km2, all within the three northern counties. The blocks are prospective for a range of commodities, including base metals, iron and gold.
One of the smaller exploration operations is a ‘first’ in several senses. Kimberlitt AS, a Norwegian company, is the first company to explore for diamond deposits in Norway, in an area close to the border with Russia.
Following an extensive programme of till sampling in 2010, it carried out an airborne magnetic survey this summer using a drone, and has determined a number of anomalies that warrant further investigation. The company plans to start drilling in 2012.
The dramatic expansion in areas claimed in 2011, much of which is in historical mining areas that have never been explored using modern methods, gives every reason to anticipate positive results in the coming year.
Cu [mg/kg]>131-623>41.0-131>11.1-41.0>3.04-11.1
0.616-3.04
Till samples, <0.063mmaqua regia extraction
0km 100km
October 21, 2011 Mining Journal 21www.mining-journal.com
Arctic Gold is planning on a rapid re-start of gold mine in Norway
Arctic Gold AB is a Swedish exploration and mining development company. Its main project is the gold and copper deposit in Bidjo-vagge in northern Norway. Profitable gold and copper production was previously taking place in the Bidjovagge mine during the 70’s and 80’s. The current high prices on gold and copper make re-ope-ning the mine interesting.
During 2011 the company has started the work on a planning pro-gram for the Bidjovagge project. The planning program is an im-portant step where all parts of the project are described and all possible consequences are illuminated.
The development of our mining project in Bidjovagge is progres-sing according to plan, and we have published estimations of the mineral resource in Bidjovagge totaling 1.83 million tons indicated resource with 2.45 g/t gold and 1.10% copper which corresponds to around 4,500 kg of gold and 20,000 tons of copper. The company was recently granted a ”utvinningsrett” (roughly equivalent to ex-ploitation concession) for the mine field by the Norwegian authori-ties, and this is a major step forward for our continued work in Bidjo-vagge. The goal is to within three years make investment decisions for the mine and processing plant for gold and copper production.
Arctic Gold AB | Box 275, 751 05, Uppsala , Sweden | Telephone: +46 (0)18-15 64 23 | Mobile: +46 (0)70-673 32 94 | E-mail: [email protected] | www.arcticgold.com
Copper in samples of glacial till in northern-most Norway
Sour
ce: G
eolo
gica
l Sur
vey o
f Nor
way
Dr Rognvald Boyd is team leader of the Industrial Minerals and Metals division of the Geological Survey of Norway
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22 Mining Journal October 21, 2011
FOCUS SWEDEN
BY SVEN ARVIDSSON
SWEDEN has recovered well from the global financial crisis that struck the mining industry hard during 2009. Economic growth in 2011 is predicted to exceed 4%, while commodity prices have recovered for most metals.
There is a growing focus on iron-ore exploration and many deposits are under consideration, with trial production already having started at three sites: Gruvberget and Mertainen, close to Kiruna; and Dannemora, close to Uppsala.
The Swedish government, in its autumn-budget allocation, included funding for upgrading of infrastructure, particularly the the railway system, with more funds for Trafikverket (the Swedish Transport Administration).
This is of particular interest to iron-ore producers in northern and central Sweden as rail transportation is becoming a bottleneck for planned increases in iron-ore production.
Mining companies are also facing a growing shortage of skilled employees and as a result have begun to support technical education at primary schools and universities. LKAB alone has set aside
SK75 million (US$11 million) for primary schools in the neighbourhood of their mines.
IRONORE PRODUCTIONLuossavaara-Kiirunavaara AB (LKAB) is operating four mines in the far north of Sweden, with total production during the first half year of 12.5Mt (of which 10.2Mt was pellets).
The company has invested around SK30 billion in upgrading logistics and operations in recent years, including two new pelletising plants and a new harbour facility in Narvik, Norway, the company’s Atlantic port.
LKAB plans to keep investments at SK5 billion - 6 billion a year with a large share being assigned to new production levels at both of the company’s mines in Malmberget and Kiruna. The strategy aims to boost production from the current 28Mt/y of iron-ore products to 37Mt/y by 2015.
In order to get new ore the company plans to open up three smaller open-pit mines in the Svappavaara area (Gruvberget, Mertainen and Leveäniemi).
Gruvberget was the first mine to be opened, in May 2010, and will produce 2Mt of crude ore for the Svappavaara pelletising plant when in full operation. Trial mining was started at Mertainen in 2011 and the mine is expected to be in full production by 2013, the
FAST FACTS
Capital: StockholmPopulation: 9 millionGovernment: constitutional monarchyCurrency: Swedish krona GDP Growth: 4.5% (2011 est)
Strength to strengthAs iron ore moves to the fore, Sweden is on the up
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same year as the Leveäniemi mine will start production provided environmental permissions are granted.
The company also has boosted exploration in the area around its mining sites at a reported cost of SK60 million in 2011.
Investments are also being directed towards the Kiruna and Malmberget mines with ongoing work on main transport levels and automation through data communication on a wireless network at both.
LKAB faces increasing costs relating to local infrastructure as the deepening operations create deformation zones that are impacted the cities surrounding the operations.
In Kiruna, for example, the main railway and the main road to Narvik will be moved to safer ground.
According to a joint agreement between LKAB and the Municipality of Kiruna, LKAB will build houses to replace the residential properties that are subject to the urban transformation up until 2016.
LKAB now plans to build 150 flats on Mount Luossavaara (on land owned by the company) in an area that does not lie above its ore deposits and is not subject to the effects of ground deformation caused by mining.
Meanwhile, Dannemora Minerals AB is redeveloping the Dannemora mine, which is located 110km north of Stockholm.
The company recently signed a five-year off-take agreement with ThyssenKrupp Steel Europe AG to supply at least 200,000t/y iron ore, with an option to increase this to up to 300,000t/y.
Deliveries are planned to start in the June quarter of 2012, with shipments to Rotterdam, where it will be forwarded for consumption at Hüttenwerke Krupp Mannesmann.
The present railway from the mine to the port of Hargshamn has been renovated jointly by the mining company and the Swedish Transport Administration, with the work completed in August 2011.
At full production Dannemora will mine 2.5Mt/y of iron ore with an average 35.2% Fe. This is estimated to yield 1.5Mt/y of final products equally divided between lump ore (50% Fe) and fines (55% Fe).
BASE METALS PRODUCTIONBoliden AB is one of Sweden’s most successful base-metal producers. Revenues increased to SK20 billion during the first six months of the year owing to increased production at the Rönnskär smelter as well as increased sales of sulphuric acid.
Boliden has been successfully exploring extensions to its Garpenberg mine in recent years, contributing to the company’s decision to increase ore production from 1.4Mt/y to 2.5Mt/y year at the mine.
The total investment, calculated at SK3.9 billion, includes a new concentrator, new shafts, underground installations and surface infrastructure. The new Garpenberg facilities are expected to be operation in 2014 and reach full production at 2.5Mt/y in 2015.
The investment is expected to reduce production costs at the operation by 25%.
In the Boliden area, zinc, copper, lead and gold ores are mined at Kristineberg, Renström, Maurliden and Maurliden Östra in the Skelleftea mining district.
During the first half of 2011 the production totalled 836,000t of ore, which yielded concentrates containing 21,138t of zinc, 6,744t of copper, and some lead, gold and silver.
In addition, Boliden plans to start operations at its Kankberg gold and tellurium mine in the Boliden area in mid-2012. The company has invested SK475 million in the mine and in rebuilding the Boliden concentrator and gold-leaching plant. The ore reserves of the mine are estimated at 2.78Mt and annual production is scheduled for 37,000oz of gold and around 41t of tellurium.
Boliden has also invested SK6 billion in the Aitik mine and concentrator, which has resulted in increased production. There were however some drawbacks
during the winter with a bottleneck in the crushers and low availability of the mining trucks owing to the extreme cold winter at the mine, which is situated
“There is a growing focus on iron-ore exploration and
many deposits are under consideration, with trial
production having started at three sites”
LKAB is moving the main road around its Kiruna mine
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FOCUS SWEDEN
north of the polar circle. Production is ramping up to reach a target of 36Mt/y of ore by 2014.
Alongside the Aitik open pit, Boliden began mining the satellite Salmijärvi mine in December 2010. During the first half of 2011 the plant treated 14.7Mt of ore, an increase of 17% compared with the same period in 2010.
Meanwhile, Lundin Mining Corp produced 544,163t of ore at its Zinkgruvan copper-zinc mine in the first half of 2011. The tonnage of metals produced was lower than expected owing to the treatment of accumulated material from the flotation overflow facility in June.
The ore is treated in a zinc plant with an annual capacity of 1.1Mt and a copper plant, which was commissioned during the June quarter 2010, built in order to treat a copper ore body that had not been mined previously.
In order to get greater flexibility in the processing plant, the copper plant is now being converted to treat zinc ore in addition to copper.
The conversion is expected to be complete in the December quarter giving Zinkgruvan the combined
plant capacity to produce around 100,000t/y of zinc in concentrates, if warranted by metal prices. The 2010 production contained 72,206t of zinc, 36,636t of lead and 540t of copper
Lovisagruvan is a small lead-zinc mine close to the former iron ore mine of Stråssa in Mid-Sweden operated by Swedish company Lovisagruvan AB. Production in 2010 totalled 28,893t at 8.7% zinc and 7.7% of lead, and in the first half of 2011 was 19,711t with 7.6% lead and 7.2% zinc.
The ore is mined using a method developed at the site that leaves the barren rock in the mine. The ore is crushed at the mine site and then trucked to the Boliden flotation plant in Garpenberg. The production level is currently around 2,500t/mth, but is being increased to reach a target of 40,000t/y.
GOLDDragon Mining Ltd has been investing in exploration activities to enlarging the reserves and resources at its existing gold mines in Sweden and Finland, as well as expanding the resources at the Kuusamo gold project in northern Finland to enable the project to advance to a feasibility study in 2012.
The Svartliden mine in Sweden produced 11,578oz from 71,956t of ore at an average grade of 2.50g/t in the first half of 2011.
The company is preparing to move to underground mining and a decline is being developed to reach the ore. Permission for test mining 100,000t of ore has already been received and Dragon is waiting for
permission to develop the underground mine.Gold Ore Resources Ltd is producing gold from
both underground and open-pit operations at its Björkdalsgruvan mine near the historical Boliden gold-arsenic deposit at a rate of roughly 40,000oz/y. Measured resources are estimated at 2.3Mt grading 2.56g/t and indicated resources at 14.2Mt grading 1.6g/t.
The mine has produced 30,471oz in the first nine months of this year.
Meanwhile, Lappland Goldminers AB is keeping its Ersmarksberget mine and Blaiken concentrator idle. The company is working on a feasibility study at the operation with gold recoveries of more than 85% having been achieved in testing. Test mining of 50t of ore will give a basis for confirmation of the results.
In the meantime, drilling is continuing in order to get a more precise understanding of the deposit and of the rock mechanical parameters.
EXPLORATION RETURNSExploration in Sweden continued at a high rate in 2010, with expenditures totalling SK675 million, an increase of 38% compared with the previous year.
The Geological Survey of Sweden (SGU) estimates 2011 exploration expenditures at SK690 million (US$110 million).
It is clear that mining companies are returning to exploration and spend more money on this activity supported by high metals prices.
Most focus in exploration is directed towards base metals, followed by iron ore and gold. There is also a growing interest in other commodities such as rare-earth elements, lithium, vanadium, tungsten and molybdenum
Exploration in Sweden is supported by the state through information supplied by SGU.
From its office in Malå, SGU supplies exploration companies with access to drill core and exploration reports from across the country, with the information increasingly being digitised for easier access.
Boliden is continuing its large exploration programme, focusing primarily on its existing mine-sites and their surroundings.
Field exploration is focused on base metals and gold
“Exploration in Sweden continued at a high rate in
2010, with expenditures totalling SK675 million, an increase of 38% compared
with the previous year”
Drilling at Tasman’s Norra Karr project
The Swedish company Botnia Exploration has grown rapidly and successfully since its start in 2007. The company is listed on Aktietorget, under the ticker BOTX.
The company strategy is to develop exploration licences into mining licences, creating opportunities for joint ventures or to proceed as a small-scale mining company. Botnia is concentrating its work mainly in gold, as well as base metals, tungsten and REE.
The company has some 30 high-priority exploration licences. The focus is on the Vindelgransele area along the ‘Gold Line’, an area with great potential close to the Boliden region. In this area the Vargbäcken mining licence is located, which was a part of the acquisition of
Hansa Resources in 2010. The Vindelgransele area also includes four exploration licences. Environmental approval has been given for test mining, which will start on November 3. Metallurgical tests with excellent recovery results have been achieved.
“We have indicated several gold and base-metal projects in the area. Small-scale mining methods might be considered. At the end of 2012 we will see the results,” Bengt Ljung (pictured), CEO of Botnia pictured), CEO of Botnia picturedExploration, says.Botnia Exploration AB, Herserudsvägen 18, Lidingö, Sweden. Tel: +46 (0)8- 636 25 15. Web: www.botniaexploration.com
Company profileBOTNIA EXPLORATION
Boliden is one of Sweden’s most successful base-metal producers
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in the Skellefte district and on base metals in Bergslagen and Norrbotten.
The company’s latest development is the Kankberg gold-tellurium mine, where it is investing SK475 million this year.
The mine is anticipated to begin production next year (through to 2020) at an average rate of 37,000oz/y of gold and 41t/y of tellurium.
The mine has estimated ore reserves of 2.78Mt at a grade of 4.1g/t Ay and 186g/t Te.
LKAB also continues to increase its exploration efforts in the areas close to its mines, in an effort to increase future output 35-40Mt/y.
Drilling has been performed mainly on orebodies soon to be mined, such as Gruvberget and Mertainen, but also on properties closer to the running mines.
Northland Resources SA is planning to begin production at its Kaunisvaara iron-ore project (pictured, right) at the end of 2012.right) at the end of 2012.right
The project comprises two iron-ore properties (Tapuli and Sahavaara) located approximately 100km north of the Arctic Circle in the municipality of Pajala (near the village of Kaunisvaara).
Northland recently signed an agreement with Vattenfall, the Swedish energy company, to construct the main power supply line. The line would have a capacity of 130kV and power is anticipated to be delivered by October 2012, in advance of the planned start of the processing plant.
The magnetite concentrate will be transported on the Malmbanan railway (also used by LKAB) to the port of Narvik in Norway. The Kaunisvaara project is on schedule for production to start in 2012 and within budget. Full production of 5Mt/y is anticipated to be reached in 2014.
Scandinavian Resources Ltd has been drilling the deposits at its Kiruna project in northern Sweden. The project has an estimated resource of 412Mt at an average grade of 39% Fe.
In September the company signed an agreement with Boliden allowing Scandinavian’s subsidiary Kiruna Iron AB to earn 100% interest in the Lannavaara iron
rights. The Lannavaara project has an estimated resource of 74–92Mt at a grade of 34–41% Fe, last explored in the 1970s.
Nordic Iron Ore AB, operated by Kopparberg Mineral, is planning for future mining in the former iron-ore fields of Blötberget and Håksberg close to the city of Ludvika.
The Swedish company Botnia Exploration has grown rapidly and successfully since its start in 2007. The company is listed on Aktietorget, under the ticker BOTX.
The company strategy is to develop exploration licences into mining licences, creating opportunities for joint ventures or to proceed as a small-scale mining company. Botnia is concentrating its work mainly in gold, as well as base metals, tungsten and REE.
The company has some 30 high-priority exploration licences. The focus is on the Vindelgransele area along the ‘Gold Line’, an area with great potential close to the Boliden region. In this area the Vargbäcken mining licence is located, which was a part of the acquisition of
Hansa Resources in 2010. The Vindelgransele area also includes four exploration licences. Environmental approval has been given for test mining, which will start on November 3. Metallurgical tests with excellent recovery results have been achieved.
“We have indicated several gold and base-metal projects in the area. Small-scale mining methods might be considered. At the end of 2012 we will see the results,” Bengt Ljung (pictured), CEO of Botnia pictured), CEO of Botnia picturedExploration, says.Botnia Exploration AB, Herserudsvägen 18, Lidingö, Sweden. Tel: +46 (0)8- 636 25 15. Web: www.botniaexploration.com
Company profileBOTNIA EXPLORATION
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The company is planning for a common ore concentrator close to the present railway between Ludvika and Örebro, and shipping from the port of Gävle situated on the east coast some 160km north of Stockholm.
There are, however, constraints in the railway transport capacity at present and probably more for the future.
Nearby Grängesberg Iron AB, which is planning for future re-opening of the former iron-ore mine at Grängesberg, has signed a letter of intent with the port of Oxlösund some 100km south of Stockholm on the coast of the Baltic Sea.
This has led the Swedish Transport Administrations (Trafikverket) to further investigate the constraints and possible solutions for these two companies’ need of transporting some 3Mt/y each.
Meanwhile, Beowulf Mining plc is conducting drilling at its Kallak iron-ore project, where it is preparing a maiden resource estimate.
Continental Precious Minerals Inc has continued its work at the Viken area, which is close to the city of Östersund in the centre of Sweden.
The company is exploring a deposit containing vanadium, molybdenum, nickel and uranium, and has reported an estimated indicated and inferred resource of 223Mt at a grade of 0.017% U3O8, 0.032% Ni, 0.268% V2O5 and 0.024% Mo.
A preliminary economic assessment completed last year suggests a conventional open-pit operation producing 40,000t/d over a 16 year life.
IGE Resources AB has received a mining licence for the Rönnbäcken nickel project, which comprises low-grade, high-tonnage Ni-sulphide (heazlewoodite)
work at the Viken area, which is close to the city of Östersund in the centre of Sweden.
vanadium, molybdenum, nickel and uranium, and has reported an estimated indicated and inferred resource of 223Mt at a grade of 0.017% UV
year suggests a conventional open-pit operation producing 40,000t/d over a 16 year life.
the Rönnbäcken nickel project, which comprises low-grade, high-tonnage Ni-sulphide (heazlewoodite)
Lundin is ramping up production at its Zinkgruvan mine
Gold-Ore Resources Ltd is a gold-producing company focused in the low political risk jurisdiction of Sweden.
The company’s primary asset is the Bjorkdal gold mine, which has produced 1,040,000oz in the past 23 years of operation.
Bjorkdal is currently producing gold from both underground and open-pit operations at an annualized rate of over 40,000oz/y.
The estimated gold resources from underground and open pit at Bjorkdal are: � Measured – 188,000oz (2.3Mt grading 2.56g/t); and,� Indicated – 732,000oz (14.2Mt grading 1.6g/t).
The company is still expanding the resource base through development drilling, while also searching for new deposits on highly-prospective ground surrounding the minesite.
The company has a strong balance sheet, generates significant cash flow from gold sales, and remains un-hedged. Gold-Ore has also maintained a good capital structure, with only 85.2 million shares issued (90.9 million fully diluted). Tel: +604 687 8884 Email: [email protected]: www.goldoreresources.comTSX: GOZ.TO
Company profileGOLD-ORE RESOURCES LTD
GeoVista AB is an independent consulting company within mineral exploration and engineering geophysics/geology. We are a group of people with wide knowledge and long experience of geological issues.
The company is a major supplier of services, specialising in geophysics, geology, mining and GIS, mainly in the Nordic countries.
We plan and carry out field surveys and process, model and interpret all kinds of geophysical and geological data. Geological mapping, drilling management, geochemical and petrophysical sampling are also part of our services.
One senior partner is a Qualified Person for
reporting of mineral resources, according to NI 43-101.Currently GeoVista provides geophysical and
geological services to several mineral exploration projects and ongoing mining operations in the Fennoscandian region. We help our exploration clients with the necessary permits, and together we define appropriate investigation methods on the ground, in boreholes or in the air. With our knowledge and long experience, we support our clients and help them in their decision making.
GeoVista is an authorized partner to Pitney Bowes Business Insight and since 2004 a reseller of its software. We are also certified to give training in the Encom suite of GIS, geology and geophysics software.
Company profileGEOVISTA AB
GeoVista (www.geovista.se) launches a drill project for a client
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in serpentinised ultramafic rocks, with practically no iron sulphide.
Recent metallurgical test work at the project has yielded a high-grade magnetite iron concentrate by-product from nickel flotation tailings, should reduce cash cost from US$5.55/lb (US$12,236/t) to US$4.10/lb (US$9,034/t) of nickel. The company plans to produce approximately 1.53Mt/y of magnetite iron concentrate from the project, and an updated preliminary economic assessment is scheduled for mid-November this year.
Meanwhile, Kopparberg Mineral and Gold Ore Resources have signed an agreement to combine
their base-metal assets in the Skelleftea mining district into an equally-owned subsidiary company.
Norrliden Mining AB will own the Norrliden and Eva volcanic massive sulphide deposits, several exploration permits and an extensive database including proprietary geochemical surveys and airborne geophysical surveys covering much of the prolific Skelleftea mining district.
The Skelleftea district has produced more than 161Mt at an average grade of 3.0% Zn, 0.7% Cu, 1.9 g/t Au, 47 g/t Ag and 0.8% Pb.
Tasman Metals Ltd is focusing on the Norra Kärr
heavy rare-earth element and zirconium project situated east of Lake Vättern, southwest of Stockholm.
The company reported in July that the project has been declared a site of ‘national interest’ by the Swedish Geological Survey, under the Swedish Environment Act. The classification protects the project from any land use that may compete with future mining, the company says.
Norra Karr is the only NI 43-101 compliant REE resource in mainland Europe. At a total rare-earth oxide (TREO) cut off of 0.4%, the inferred mineral resource is estimated at 60.5Mt at an average grade of 0.54% TREO
Scandinavia Resources exploring at it Kiruna project
Gold-Ore Resources Ltd is a gold-producing company focused in the low political risk jurisdiction of Sweden.
The company’s primary asset is the Bjorkdal gold mine, which has produced 1,040,000oz in the past 23 years of operation.
Bjorkdal is currently producing gold from both underground and open-pit operations at an annualized rate of over 40,000oz/y.
The estimated gold resources from underground and open pit at Bjorkdal are: � Measured – 188,000oz (2.3Mt grading 2.56g/t); and,� Indicated – 732,000oz (14.2Mt grading 1.6g/t).
The company is still expanding the resource base through development drilling, while also searching for new deposits on highly-prospective ground surrounding the minesite.
The company has a strong balance sheet, generates significant cash flow from gold sales, and remains un-hedged. Gold-Ore has also maintained a good capital structure, with only 85.2 million shares issued (90.9 million fully diluted). Tel: +604 687 8884 Email: [email protected]: www.goldoreresources.comTSX: GOZ.TO
Company profileGOLD-ORE RESOURCES LTD
GeoVista AB is an independent consulting company within mineral exploration and engineering geophysics/geology. We are a group of people with wide knowledge and long experience of geological issues.
The company is a major supplier of services, specialising in geophysics, geology, mining and GIS, mainly in the Nordic countries.
We plan and carry out field surveys and process, model and interpret all kinds of geophysical and geological data. Geological mapping, drilling management, geochemical and petrophysical sampling are also part of our services.
One senior partner is a Qualified Person for
reporting of mineral resources, according to NI 43-101.Currently GeoVista provides geophysical and
geological services to several mineral exploration projects and ongoing mining operations in the Fennoscandian region. We help our exploration clients with the necessary permits, and together we define appropriate investigation methods on the ground, in boreholes or in the air. With our knowledge and long experience, we support our clients and help them in their decision making.
GeoVista is an authorized partner to Pitney Bowes Business Insight and since 2004 a reseller of its software. We are also certified to give training in the Encom suite of GIS, geology and geophysics software.
Company profileGEOVISTA AB
GeoVista (www.geovista.se) launches a drill project for a client
Gold-Ore Resources Ltd is a gold-producing company focused in the ‘low political risk’ jurisdiction of Sweden. The company’s primary asset is the Bjorkdal gold mine, which has produced 1.04Moz in the past 23 years of operation. Bjorkdal is producing gold from underground and open-pit operations at a rate of 40,000oz/y. The estimated gold resources from underground and open-pit at Bjorkdal are: 188,000oz (measured; 2.3Mt grading 2.56g/t), and 732,000oz (indicated; 14.2Mt grading 1.6g/t). The company is still expanding the resource base through development drilling, while also searching for new deposits on highly prospective ground surrounding the minesite. The company has a strong balance sheet, generates signifi cant cash fl ow from gold sales and remains unhedged. Gold-Ore has also maintained a good capital structure, with only 85.2 million shares issued (90.9 million fully diluted).
Producing Gold in Sweden
Consultants in exploration and miningwww.geovista.se Luleå - Sweden
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and 1.72% ZrO2 (zirconium oxide), with 53.7% of the TREO being the higher-value heavy rare-earth oxide. The resource is unusually low in radioactive metals relative to peer projects, the company says, with fewer than 15ppm each of uranium and thorium.
Botnia Exploration Holding AB has been awarded a permit for trial mining of 65,000t of ore at the Vargbäcken gold deposit in the Skellefte district.
The indicated resource is currently estimated at 1.2Mt at 1.44g/t Au, and 0.9Mt at 1.68g/t Au in the inferred category.
Both flotation and leaching has shown high yields of
gold in laboratory tests giving the company the opportunity to negotiate with companies running gold plants within a distance of some 100km (including Boliden, Dragon Mining and Lappland Goldminers).
Avalon Minerals Ltd has completed a prefeasibility study at its Viscaria copper-iron project near Kiruna. A base case scenario was tested at two ore-output rates, 1.5Mt/y and 3Mt/y, over mine lives of ten years and five years, respectively, with an additional development case also considered at 3Mt/y for ten years.
Average annual copper concentrate output in the base-case scenarios is forecast at 37,800t or 75,700t
for 1.5Mt/y and 3Mt/y, respectively.In the development case, average annual copper
concentrate production is forecast at 63,300t, and magnetite concentrate at 735,000t.
Capital costs are estimated at US$123 million for the ten-year base case, US$145.5 million for the five-year base case, and US$160.4 million for the development case. The estimated JORC resources totals 66.2t of both VMS and skarn type mineralisation for 601,000t of contained copper and 2.4Mt of contained iron. Production is scheduled to start in 2013.
Other early stage projects include Wiking Mineral AB’s Gladhammar gold deposit, Orex Minerals Inc’s Barsele gold project and Northfield Exploration AB’s exploration rights over the former mine area of Stekenjokk in the south western part of Västerbotten.
OUTLOOKLarge levels of investment in base-metal mining continues and will lead to increased production of copper, zinc and lead in Sweden in coming years.
In addition, the growing demand for iron-ore products has led to increasing production within existing mines, as well as a growing interest in exploration with an iron-ore focus.
This creates challenges to the transport capacity at the Malmbanan railway between Kiruna and Narvik, which is expected to generate increased capacity through new and extended sidings.
Exploration is continuing not only for iron ore and the traditional sulphide minerals and gold, but also for rare-earth elements, lithium and ferro-alloy metals.
SWEDISH ENVIRONMENTAL CODEThe rules of the Swedish Environmental Code apply to all whose activities are potentially detrimental to human health or the environment, damage the natural or cultural environment or deplete biological diversity. The rules apply to all kinds of effects on the natural environment, whether large or small.
They also apply to the housing environment and the built environment, and to all other places to which the public has access. All operations that give rise to emissions to land, water or air are deemed environmentally-hazardous and must therefore comply with the rules.
The provisions of the Environmental Code apply to operations and measures that affect the environment and human health even where these are covered by other legislation, and its rules and the provisions of other legislation are therefore applicable in parallel.
The purpose of the provisions concerning land
management is to specify important areas of interest to community development that are to be given priority when decisions are made concerning land use.
The interests referred to in the provisions are to be protected as far as possible from such changes in land use as would be detrimental to them.
The provisions concerning land management take into account both conservation interests and utilisation interests. In specific areas, these conservation and utilisation interests may be designated national interests by the government, which means that they enjoy even stronger protection against development.
The provisions on national interests apply mostly to very large areas. They are therefore not intended to prevent the development of urban areas and local industry, or total defence installations or the extraction of certain substances and materials.
SGU’s Mineral Resources Information Office in Malå
operates as a one-stop shop with public Swedish
exploration data for explorers. This office will help
you with geological information: maps, reports and
databases.
The Swedish National Drill Core Archive in Malå
is also managed by SGU and is a vast collection of
more than 4,000,000 m of public drill core relating
