Regional Geology of the Ilomantsi-Kostamuksha greenstone belt (Hattu Schist Belt). From Ward 1993
The Karelian Gold Line covers part of the Achaean Ilomantsi greenstone belt in the easternmost part of Finland and continues to Russia. The Karelian Gold Line is more than 40 km long in north-south direction and generally less than five km wide. Endomines’ most important gold deposits are located along the Karelian Gold Line. Endomines’ deposits along the Karelian Gold Line include 23 deposits and occurrences. The most developed deposits are Pampalo, Pampalo East, Hosko, Rämepuro, Muurinsuo and Kuivisto.
Geography and Climate
The Karelian Gold Line runs through Ilomantsi municipality in North Karelia in the easternmost part of Finland. Endomines’ claims extend about 40 km in the Hattuvaara village, only couple of kilometres from the Russian border. Accessibility to the area is good. A pavement road follows the gold line from south to north with numerous diverging forestry roads, which make the basis for a well functioning communications net to the Company’s exploration targets.
The municipality of Ilomantsi was founded in 1875. The area totals 3 172 square kilometres from which 402 square kilometres consist of lakes. Distance to the closest central place, Joensuu, is 73 kilometres. In Joensuu there is an airport, port and railway station. Distance to Helsinki is around 500 km.
There are around 6 000 inhabitants in the municipality. The rate of unemployment is high. At the moment the biggest employers are the municipality and the border guard.
The climate in Ilomantsi is sub-continental with precipitation of about 650 mm per year. Much of the precipitation falls as snow, and the average snow depth during winter is 60 cm. The annual average temperature is 2,1°C. The average temperature in July is about 21°C.
The Karelian Gold Line. The identified and significant gold findings named in the map. Source: Geological Survey of Finland.
The gold mining history along the Karelian Gold Line goes back to the mid 1980s when the exploration by Geological Survey of Finland (GTK) led to the discovery of auriferous quartz-calcite veins. Some significant geochemical gold and arsenic anomalies in the southern part of the Karelian Gold Line were also found. Outokumpu’s geologists noticed simultaneous some significant gold contents relating to a copper deposit in Rämepuro, south of Pampalo. The geological and structural environment in the Ilomantsi area is similar to other well-known Archaean gold fields like the Australian Kalgoorlie and Canadian Timmins.
In 1986 the GTK initiated the”Ilomantsi Gold Project”. According the exploration results they concluded that the bedrock along the Karelian Gold Line was highly auriferous in several locations. Until 1990 Geological Survey had identified a gold mineralisation in Pampalo and more than ten additional gold findings along the southern part of the Karelian Gold Line.
After that GTK extended their exploration to north and was able to identify even there several gold bearing structures. Hosko, Korpilampi,Sivakko, Kivijärvi and Kuivisto findings were results of that study.
Ministry of Trade and Industry (MIT) that through a competitive bidding offered the southern claim areas to various mining and exploration companies in 1994 sold the claim rights of the southern part of the Karelian Gold Line, including Pampalo, to Outokumpu Mining. Later they were transferred to Polar Mining Oy, a subsidiary of Australian Dragon Mining NL. All the existing mining licences and claims, including all exploration results, along the Karelian Gold Line’s southern part were in October 2006 transferred to Endomines, who already 1996 had acquired the northern claim areas from MIT.
Ore Reserves and Mineral Resources
Over the years Endomines Oy has used several qualified and independent consultants for estimation of the Mineral Resources and Ore Reserves along the Karelian Gold Line. Details of the estimation methods and results can be found from the reports on the page: Reports and Drilling Results
As a mining company Endomines Oy has decided to report mineable Ore Reserves and additional Resources. Results of the estimates have been compiled to the table 1 below.
Endomines owns 4 mining concessions (446,2 ha), 66 claims (5242,7 ha) and 11 exploration permits (2390,6 ha) along Karelian Gold Line. Endomines has also one exploration reservation (308,17 km2) and has further lodged applications for 2 mining concessions (168,87), 1 mining permit (60,81 ha) and 5 exploration permits (864,7 ha).
Endomines Oy acquired its first claims along the Karelian Gold Line in 1996 from the State of Finland. The trade included, apart from the actual claims, also the right to all exploration results in the possession of Geological Survey of Finland. According to the purchasing contract between the State of Finland and Endomines Oy, the Company shall in the eventual future mining of the bought claims north of Pampalo pay royalties of 0,39 EUR/t to the State of Finland from the first two million tonnes that will be mined and after that 1,31 EUR/t up to the maximum amount of 2,5 M EUR.
The remaining claims do not oblige Endomines into any future royalty engagements.
Endomines possesses mining licences for two different areas along the Karelian Gold Line, Pampalo and Rämepuro. The Pampalo deposit includes two mining licences 297 hectares. The Rämepuro deposit is covered by a mining licence of a 61 hectares' area.