Jokisivu Gold Mine
The Jokisivu Gold Mine is located 40 kilometers south west of the Vammala Production Centre and hosts a Measured, Indicated and Inferred Resource totalling 368,000 ounces from two desposits 200 metre apart. The Kujankallio deposit has been shown by drilling to extend to at least 525 metres depth, though resource drilling currently extends only down to 440 meters, whilst the Arpola resource has only been drilled down to 200 metres. Both remain open at depth and along strike and recent diamond drilling has indicated that the two deposits Arpola and Kunjankallio may possible converge.
Development
Drilling at Jokisivu continued in earnest during the year, with 76 diamond core holes completed (11,504.9 metres) targeting areas along the eastern portion and below the Kujankallio open pit, the area between Kujankallio and Arpola and Arpola itself. This activity has resulted in the total Mineral Resource inventory at Jokisivu increasing 12% to 368,000 ounces.
The Kujankallio resource update was prepared by independent consultants Runge Limited, increasing the Mineral Resource reported at a 2 g/t gold cut-off to 1.34Mt @ 6.1 g/t gold (261,900 ounces) to a vertical depth of 440 metres, an increase of 43,600 ounces from the previous estimate. The Arpola resource is unchanged at 0.49Mt @ 6.8 g/t gold (106,700 ounces) to a vertical depth of 200 metres. Drill core logging and assaying are currently in progress and a resource update for Arpola is scheduled for mid-2010.
To a depth of approximately 200 metres below surface the Jokisivu deposits display a combined inventory of 1,100 ounces per vertical metre (OVM). The continuity of the mineralising systems below this depth appears excellent and is currently only constrained by drilling density. Recent drilling has also indicated that the two deposits Arpola and Kujankallio may possibly converge.
A preliminary underground mine design has been completed for the Kujankallio deposit, which will form the basis for ongoing internal studies that will determine the viability of commencing an underground operation at Jokisivu. As open pit ore from Kujankallio is scheduled to be exhausted by the end of 2010, a transition from the Kujankallio open pit to an underground operation encompassing both the Kujnakallio and Arpola deposits will require development to commence in the second half of 2010.