31.3.2022

Endomines reports significant increase in gold reserves at Pampalo

Press release (PDF)

Endomines AB, stock exchange release 31 March 2022 at 14:00 CET

 

Endomines is pleased to announce a significant increase in gold reserves at its Pampalo mine in eastern Finland as of 31 December 2021.  An update of the reserves and the resources at the mine and in other deposits along the Karelian Gold Line in Finland has been carried out as well as updates of the gold and silver resources for the company’s gold projects in Idaho and Montana, USA.

 

Gold reserves and resources at the Pampalo mine and resources along the Karelian Gold Line in Finland

 

The Pampalo mine was re-started in 2021 after being on care and maintenance since 2018. The updated ore reserve estimate for the deep extension area of Pampalo has a proven ore reserve of 161,000 tonnes with a grade of 3.55 g/t gold for a total 18,400 ounces gold. The updated ore reserve represents a 23 % increase in tonnes and 49 % increase in ounces when compared to the ore reserve estimate at 31 December 2020.

 

The increase is due to the results of a drilling campaign completed in 2021. A total of 87 drill holes were drilled into the planned stoping area between the levels 755 and 815, and the results returned several spectacular high-grade intersections (press releases August 12, 2021 and November 18, 2021) that are incorporated into the present estimate. Most of the increase in tonnes and ounces is derived from a previously undrilled extension of the southern ore body.

 

An additional inferred mineral resource of 122,000 tonnes with a grade of 5.24 g/t gold for 20 600 ounces gold has been reported for the area directly below the ore reserves (Pampalo Deep). The mineral resource remained approximately the same as on 31 December 2020, since no drill holes were drilled into this area in 2021. The deposit remains open at depth and the company is planning to continue underground drilling in 2022.

 

There have been no changes in the reported mineral resources for other deposits along the Karelian Gold Line. An update and validation of the other mineral resource estimates is planned for 2022. The update will reflect increased geological understanding of the deposits and changes in the current market conditions.

 

The estimates for the Pampalo mine and the resources along the Karelian Gold Line in Finland have been prepared according to the 2012 Australasian Code for Reporting of Mineral Resources and Ore Reserves (Joint Ore Reserve Committee - JORC-code).

 

Gold resources in Idaho, USA

 

During 2021, Endomines continued work to improve its understanding of the Idaho gold projects that the Company acquired in February 2018. Endomines is working on further development of its Friday Underground mine and currently concentrating on an underground drilling program to better define the boundaries of the ore lodes and to confirm the continuity of the grades, as well as testing the mineralization at deeper levels. The results of this drilling will be used to complete a new mineral resource estimate in 2022.

 

The mineral resources currently quoted regarding the Deadwood, Rescue, and Kimberly exploration projects, are per definition historical and made before the introduction of today’s disclosure standards. Endomines cautions that while the presented historic resources for Kimberly, Rescue, and Deadwood appear to be in general accordance with those set out in NI 43-101 Sections 1.2 and 1.3, a qualified person has not done sufficient work to classify the historical estimates as current mineral resources, and Endomines is not treating the historical estimates as current or reliable.

 

The mineral resources reported for the Friday Underground and Buffalo Gulch projects in Idaho, USA, are classified in accordance with standards defined by Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”), “CIM Definition Standards - For Mineral Resources and Mineral Reserves”, prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on May 10, 2014.

 

There have been no changes in the reported mineral resources for other deposits at the Idaho projects. An update and validation of mineral resource estimates is targeted for 2022. The update will reflect increased geological understanding of the deposits and changes in the current market conditions.

 

Gold and silver resources in Montana, USA

 

In October 2020 Endomines completed the purchase of the US Grant and Kearsarge gold projects in Montana, USA. The US Grant is a high-grade, underground gold and silver project with a historical resource totaling 165,700 ounces of gold and 4.47M ounces of silver contained in 346,000 tonnes of mineralized material. The US Grant mine has had gold and silver mined periodically between 1867 and 1984. The Kearsarge project is a high-grade, underground gold project with a historical resource totaling 380,700 ounces of gold contained in 4.1 million tonnes of mineralized material.

 

The addition of the US Grant and Kearsarge gold projects brings a historical total of 546,400 ounces of gold and 4.47 million ounces of silver with considerable potential for additional resources to be discovered through exploration of the district. An update and validation of the US Grant and Kearsarge mineral resource estimates is planned for 2022.

 

Endomines is not treating the US Grant and Kearsarge historic estimates as either a mineral resource or mineral reserve as defined in NI 43-101.

 

Table 1. Gold reserves and resources at Pampalo and the Karelian Gold Line in Finland:

 

Ore reserves - Karelian Gold Line  (status Dec 31 2021)

 

 

 

 

Deposit

Tonnes

Grade
Au g/t

Oz

kg

Classification

Prepared by

Pampalo

161 000

3.55

18 376

572

Proven

Endomines

(1)

Pampalo Reserves total

161 000

3.55

18 376

572

Proven

Endomines

 

Grand total

161 000

3.55

18 376

572

 

 

 

 

 

 

 

 

 

 

 

The mineral resources are additional to the Ore reserves.

 

 

 

 

 

 

 

 

 

 

 

 

Mineral Resources – Karelian Gold Line, Finland (status Dec 31 2021)

 

 

 

Deposit

Tonnes

Grade
Au g/t

Oz

kg

Classification

Prepared by

Pampalo Resources

 

 

 

 

 

 

 

Pampalo East

229 000

1.8

12 897

401

Indicated

Endomines

(3)

Pampalo NW

29 000

2.5

2 284

71

Indicated

Endomines

(4)

Pampalo Indicated Total

258 000

1.8

15 181

472

Indicated

Endomines

 

Pampalo Deep

122 461

5.24

20 600

642

Inferred

Endomines

(2)

Pampalo D-zone

164 110

1.9

9 912

308

Inferred

Endomines

(2)

Pampalo East

62 000

1.4

2 791

87

Inferred

Endomines

(3)

Pampalonlammit

103 000

1.8

5 961

185

Inferred

Endomines

(4)

Pampalo Inferred Total

451 571

2.7

39 264

1 222

Inferred

Endomines

 

Karelian Gold Line Resources

 

 

 

 

 

 

Hosko

35 000

4.1

4 557

142

Measured

Geoconsulting Parkkinen

(5)

Hosko

675 000

1.2

25 761

801

Indicated

Geoconsulting Parkkinen

(6)

Muurinsuo

354 000

1.9

22 080

687

Indicated

Endomines

(7)

Kuivisto East

37 000

3.2

3 807

118

Indicated

MAPTEK

 

Karelian Measured + Indicated Total

1 101 000

1.6

56 204

1 748

Measured + Indicated

 

Hosko

240 000

0.8

6 019

187

Inferred

Geoconsulting Parkkinen

(5)

Rämepuro

136 000

2.3

9 926

309

Inferred

Geoconsulting Parkkinen

(6)

Muurinsuo

231 000

1.4

10 398

323

Inferred

Endomines

(7)

Kuivisto East

145 000

1.0

4 662

145

Inferred

MAPTEK

(8)

Korvilansuo

256 000

2.0

16 461

512

Inferred

Outotec (Finland) Oy

(9)

Karelian Inferred Total

1 008 000

1.5

47 465

1 476

Inferred

 

 

Karelian Gold Line Historic Resources

 

 

 

 

 

 

Kuittila

275 000

2.6

22 988

715

Historic

GSF, (1990)

(10)

Karelian Historic Total

275 000

2.6

22 988

715

Historic

 

 

 

 

 

 

 

 

 

 

Mineral resources estimated according the JORC-code (except Kuittila), all figures independently rounded.

 

(1) The ore reserve estimate is based on underground stope and development designs. Cut-off grade 1.5 g/t Au; Waste rock dilution 10-30%; Ore loss in drifting 0% and in stoping 5%.

(2) Cut-off 1,5 g/t; top cut 10-20 g/t gold

 

 

 

 

 

 

(3) Cut-off 0,5 g/t; top cut 7 g/t gold

 

 

 

 

 

 

(4) Cut-off 0,5 g/t; top cut 10 g/t gold

 

 

 

 

 

 

 

(5) Cut off 0,5 g/t; top cut 11g/t (low grade domain) or 50 g/t gold (high grade domain)

 

 

(6) Cut-off 0,5 g/t, top cut 40 g/t gold

 

 

 

 

 

 

(7) Cut-off 0,5 g/t, top cut 10 g/t gold

 

 

 

 

 

 

(8) Cut-off 0,5 g/t gold; no top cut

 

 

 

 

 

 

(9) Cut-off 0,5 g/t gold; no top cut

 

 

 

 

 

 

(10) The estimate is historical in nature and not reported in accordance with the JORC Code

 

 

Troy ounce = 31.1035g

 

 

 

 

 

 

 

 

 

Table 2. Gold resources in Idaho and Montana, USA

 

Mineral Resources – Idaho/Montana, USA  (status Dec 31 2021)

Deposit

Tonnes

Grade
Au g/t

Oz

kg

Classification

Prepared by

 

Friday Resources

 

 

 

 

 

 

 

Measured

245 000

6.88

54 200

1 686

Measured

Hard Rock Consulting

(1,2)

Indicated

217 000

6.16

43 000

1 337

Indicated

Hard Rock Consulting

(1,2)

Measured + Indicated

462 000

6.54

97 200

3 023

M+I

Hard Rock Consulting

(1,2)

Inferred

296 000

4.91

46 700

1 453

Inferred

Hard Rock Consulting

 

Buffalo Gulch Resources

 

 

 

 

 

 

 

Measured

3 515 000

0.57

64 800

2 016

Measured

Hard Rock Consulting

(1,3,4)

Indicated

3 230 000

0.48

49 900

1 552

Indicated

Hard Rock Consulting

(1,3,4)

Measured + Indicated

6 745 000

0.53

114 700

3 568

M+I

Hard Rock Consulting

(1,3,4)

Inferred

2 128 000

0.38

25 700

799

Inferred

Hard Rock Consulting

(1,3,4)

Historic Resources

 

 

 

 

 

 

 

Rescue

67 000

21.35

45 980

1 430

Historic

Kimberly Mines, (2004)

(5)

Kimberly

261 000

19.18

160 930

5 005

Historic

Laczay, (2010)

(5)

Deadwood

2 375 000

0.77

58 601

1 823

Historic

BEMA Gold Corporation, (1989)

(5)

US Grant

346 000

14.89

165 700

5 152

Historic

McLeod, (1990)

(5)

Kearsarge

4 100 000

2.98

381 000

12 218

Historic

Transatlantic Mining, (2019)

(5)

Historic Total

7 149 000

3.58

812 211

25 628

 

 

(5)

 

(1) Measured, Indicated and Inferred mineral classifications are assigned according to CIM Definition Standards. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability and there is no guarantee that mineral resources will be converted to mineral reserves. Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.

(2) The mineral resource estimate was prepared by HRC based on data and information available as of March 1, 2016. The Measured, Indicated and Inferred mineral resources are reported considering a base case estimate that applies a cutoff grade of 3.4 g/t Au based on the estimated operating costs, recoveries, and a $1,300/oz gold price.

(3) The mineral resource estimate was prepared by HRC based on data and information available as of December 10, 2017. The Measured, Indicated and Inferred mineral resources are reported considering a base case estimate that applies a cutoff grade of 0.14 g/t Au based on the estimated operating costs, recoveries, and a $1,300/oz gold price.

(4) Mineral Resources captured within the pit shell meet the test of reasonable prospect for economic extraction and can be declared a Mineral Resource. Pit optimization is based on assumed gold price of US$1,300/oz. and mining, processing and G&A costs of US$15.20 per ton processed Metallurgical recoveries for gold are 90%.

(5) Endomines caution that while the historic resources presented appear to be in general accordance with those set out in NI 43-101 Sections 1.2 and 1.3, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources, and Endomines is not treating the historical estimate as current nor reliable.

Troy ounce = 31.1035g

 

Table 3. Silver resources in Montana, USA

 

Mineral Resources – Montana, USA  (status Dec 31 2021)

Deposit

Tonnes

Grade
Ag g/t

Oz

kg

Classification

Prepared by

 

US Grant

346 000

402

4 470 000

139 033

Historic

McLeod, (1990)

(1)

Historic Total

346 000

402

4 470 000

139 033

 

 

 

 

 

 

 

 

 

 

 

(1) Endomines caution that while the historic resources presented appear to be in general accordance with those set out in NI 43-101 Sections 1.2 and 1.3, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources, and Endomines is not treating the historical estimate as current nor reliable.

 

This ore reserve and mineral resource update has been reviewed and approved by Eurogeologist Jani Rautio MSc (Geol) acting as a Qualified Person in compliance with the Fennoscandian Association for Metals and Mining Professionals, FAMMP, –standards. Jani Rautio is a full-time employee of Endomines.

 

For further information, please contact:

Kari Vyhtinen, CEO, kari.vyhtinen@endomines.com, +358 40 585 0050

Jani Rautio, Head of Geology, Finland, jani.rautio@endomines.com, +358 50 593 0812

 

This information is information that Endomines AB is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication through the contact person set out above at 14:00 CET on 31 March 2022.

 

About Endomines

Endomines is a mining and exploration company with its primary focus on Au. The Company operates a Gold mine in Pampalo, has exploration activities along the Karelian Au Line in Eastern Finland and develops mining operations in Idaho, USA. Endomines aims to improve its long-term growth prospects by increasing its exploration activities and through acquisitions. Endomines aims to acquire deposits that are situated in stable jurisdictions and can be brought to production rapidly with limited investments.

The shares trade on Nasdaq Stockholm (ENDO) and Nasdaq Helsinki (ENDOM).