Lappland Goldminers AB

Lappland Goldminers AB is a producing mining company with significant exploration activities. The company is listed on the market place First North Premier under the name Gold, with Mangold Fondkommission AB as Certified Adviser.Lappland Goldminers’ strategy is to develop mineral deposits into profitable producing mines. The company is strategically positioned with the fully permitted Fäboliden Gold Project in northern Sweden and the ongoing Pahtavaara gold operation in northern Finland. Lappland Goldminers is a member of SveMin, the Swedish association for mines, minerals and metal producers, and follows SveMin’s reporting rules for public mining and exploration companies. For further information about the company visit www.lapplandgoldminers.com

Lappland Goldminers AB
Fäboliden Gold Project
The project site is located some 40 km west of Lycksele in the Västerbotten County in northern Sweden. The Fäboliden Project is a central part of Lappland Goldminers’ strategic plan to develop into an important gold producer in the long term.

The Fäboliden gold deposit was located through core drilling in 1998. Between 1993 and 2008, 323 holes have been drilled (59,650 m) in order to locate and investigate the deposit. During 2004 Lappland Goldminers obtained an exploitation concession for the deposit, and in 2008 the Company received a permit from the Environmental Supreme Court for mining and processing on site. With that, all the essential permits to commence mining operations are in place.

There are only a few rock outcrops in the Fäboliden area, which is why knowledge about the bedrock is primarily based on the core drilling carried out by the Company. The dominant rock type is a highly schisted, biotitebearing metagreywacke, although in the central part of the region there are also deposits of metavolcanic rocks. The supracrustal rock types are surrounded by Revsund granitoids.

The gold-bearing zone, which is approximately 50 metres wide, has been measured through core drilling at 1,300 metres in the direction of the strike and down to a depth of approximately 500 metres. The gold occurs primarily in arsenopyrite-bearing quartz veins, which are associated with a north-south striking, steeply dipping shear zone. The gold-bearing quartz veins are partly steeply dipping and parallel with the general schistosity and partly shallowly dipping.

The highest gold levels are found in areas where the two fissure systems cross one another. The gold is fine-grained (2–40 μm) and often located in thin fissures and as inclusions in the arsenopyrite and löllingite. Free grains of gold also occur in the silicate matrix in the host rock. The mineralised area is crossed by shallow, northwest to southeast striking, post-metamorphic, nondeformed dolerite veins.

A Definitive Feasibility Study is in progress. The study is being carried out parallel to the evaluation of an optimum financing solution for the project. The mining strategy involves selective mining in open pit and underground (open stoping with backfill). The processing plant is designed for an annual capacity of 1.5 million tonnes and the stages of the process consist of crushing, autogenic grinding, flotation, cyanide leaching and elution.

Lappland Goldminers AB map lappland pahtavaara gold mine swedenPAHTAVAARA GOLD MINE
In spring 2008, Lappland Goldminers acquired the Pahtavaara gold mine. The deposit is located in Sodankylä municipality in northern Finland, some 150 km north of Rovaniemi. Previous owners had mined the ore during the periods 1996-2000 and 2004-2007, initially in open pits and subsequently going underground.

The bedrock in the Pahtavaara area is part of the Central Lapland Greenstone Belt, which primarily comprises komatiitic lavas, volcaniclastic sediment and mafic metavolcanic rocks. This deposit comprises several irregular, lens-shaped, sub-vertical bodies, which occur adjacent to east-northeasterly shear zones at the point of contact between the komatiitic lavas and the volcaniclastic sediments.

The gold-bearing mineralisations occur both in various alteration rock types such as biotite-tremolite skarn and talc-biotite schist, as well as in talc-dolomite veins and quartz-barite veins. The gold overwhelmingly occurs as free grains at the boundaries between silicate minerals, carbonate minerals and barite. Gold is also found locally enclosed in magnetite, sulphur pyrite and copper pyrite. Gold that is visible to the naked eye has been noted in particular in quartz-barite veins.

Lappland Goldminers ABFollowing a review of previous studies, and against the background of the results of a core drilling campaign conducted in 2008, Lappland Goldminers decided to resume operations in the Pahtavaara mine. Ore production from the mine commenced in December 2008.

The ore in Pahtavaara is mined through open stoping. Stope heights vary between 15-25 m. A ramp is drifted in under the ore body, after which the ore boundaries are defined using rock chip drilling. Openings are made far into the ore body, either using an alimac raised shaft or by blasting. The mining and milling yearly capacity is about 500 000 ton of ore.

As the gold occurs in free grains, concentration can take place using a gravity circuit and a flotation circuit. The ore is first crushed and then grinded to 1.5 mm grain size. This finely-ground material goes through a cyclone, where gold grains continue on to a cone separator. Afterwards the material continues through a magnetic separator and spiral separators before ending up at the concentrating table. The lighter material is separately processed in a flotation circuit. The final product is two different concentrates: Gravitation concentrate and flotation concentrate.

Lappland Goldminers AB
+46 950 27 500
http://www.lapplandgoldminers.com