Orivesi Gold Mine
Kutema Ore Lodes
The Orivesi Gold Mine commenced production in 1994, and produced 419,600 ounces of gold from a series of near vertical pipe-like lodes at Kutema. The ore was processed through the Vammala Production Centre and mining was undertaken by mechanised methods with access provided by a decline. Two of the five principal pipe-like lodes are known to continue beyond the current extent of the decline at 720 mRL.
The 150,000 ounce resource at Kutema Deeps represents a substantial, medium to high grade depth extension below the existing underground mine. Development to deepen the mine to the 820m level continues to be considered. A decision to mine Kutema Deeps is expected to be made in 2010.
Remnant mining recommenced in June 2007 from the Kutema stopes.
Sarvisuo Ore Loads
Mining from the Sarvisuo ore loads commenced in April 2008 with the ore being processed at the Vammala Production Centre located 80km to the southwest.
Mining is being conducted from the 285m level to the 540m level. Since commencement 470,852 tonnes of ore have been mined and transported from Orivesi to Vammala.
Sarvisuo
Dragon Mining completed a total of 69 drill holes for an advance of 9,777 metres at Sarvisuo targeting extensions of this lode system between the 440m and 540m levels, the deeper depth extensions below the 540m level and new mineralisation to the north.
An update of the Sarvisuo Resource was completed by independent consultants Runge Limited incorporating all recent drilling, returning a total Mineral Resource of 292,000t @ 7.3 g/t gold (68,700 ounces) between the 130m and 600m levels at 3 g/t gold cut-off and inclusive of Reserves.
Drilling between the 440m and 540m levels returned a number of strong intercepts including 4.95m @ 17.95 g/t gold and 5.40m @ 5.70 g/t gold. As a result of the work completed during the year, a decision to proceed with the development of the Sarvisuo decline, up from the 525m level to the 440m level and development of the decline between the 525m and 540m levels to access new Reserves was made. By the end of the year a total of 623 metres of development had been undertaken, the development work scheduled to be completed in April 2010.
The evaluation of the extensions of the lode system below the 540m level commenced, with results from the 540m to 580m levels returning a number of encouraging intercepts including 7.30m @ 15.12 g/t gold, 3.05m @ 5.58 g/t gold and 4.60m @5.57 g/t gold. Sub-parallel drilling targeting deeper structures down to the 700m level was also completed, returning intercepts such as 28.5 metres @ 6.03 g/t gold, 28.15 metres @ 6.81 g/t gold and 23.00 metres @ 12.32g/t gold from the existing Sarvisuo pipe cluster, whilst intercepts of 3.95 metres @ 4.61 g/t gold highlighted new deeper mineralisation positions west of the existing pipe cluster. It is proposed that 8,000 metres of drilling, designed to further test the Sarvisuo depth extensions will be completed during 2010, the aim to define sufficient Resources and Reserves to justify the decline being extended below the 540m level.
Holes designed to examine the potential for mineralisation to the north of the Sarvisuo lode system were completed from the 360m, 440m and 540m levels, returning a number of promising results including 4.20m @ 5.30 g/t gold. The results obtained indicate the possible existence of a new mineralised pipe or pipe cluster only 40 metres away from the existing mine development.
It is planned to establish an exploration drift into this area from the 420m level, to serve as a station from which a fan drilling campaign will be completed in early 2010.
Kutema Deeps
The 150,000 ounce resource for Kutema Deeps represents a substantial, medium to high grade depth extension below the existing underground mine that was developed down to the 720m level. Planning to deepen the mine to the 820m level continues to be considered. Beyond this, a significant amount of drilling is still required to accurately define the deeper portions of the Kutema Deeps resource, as well as assist with the overall interpretation of the lode structure.
Results from limited infill holes completed in 2009 continued to return promising results including intercepts such as 18.30m @ 6.10 g/t gold.