Reserves and Resources

Gold Reserves — 1 August 2009

ProjectClassificationTonnesGrade (g/t Gold)Ounces
SVARTLIDEN        
Svartliden - Open Pit (1) Proved 56,200 3.4 6,100
  Probable 320,700 3.9 40,200
  Total 376,900 3.8 46,300
         
Svartliden - Stockpiles (2) Proved 46,900 4.0 6,000
Probable      
  Total 46,900 4.0 6,000
         
Total Svartliden Reserve Inventory   423,800 3.8 52,300
         
VAMMALA        
Orivesi - Sarvisuo Lodes (3) Proved      
  Probable 127,300 7.6 31,100
  Total 127,300 7.6 31,100
         
Orivesi - Kutema Lodes (4) Proved      
  Probable 3,700 6.6 800
  Total 3,700 6.6 800
         
Jokisivu - Kujankallio (5) Proved 56,000 5.3 9,500
  Probable 33,500 4.9 5,300
  Total 89,500 5.2 14,800
         
Total Orivesi Reserve Inventory   220,500 6.6 46,700
         
Group Total Proved 159,100 4.2 21,600
  Probable 485,200 5.0 77,400
  Total 644,300 4.8 99,000
(1-2) The grade estimates provided in the Mineral Resource model incorporates dilution and ore loss for the appropriate selective mining unit (SMU) size for open pit mining equipment and no additional dilution was added. Ore loss was set at 7% in line with reconciliation figures. Metallurgical recoveries average 92%, with ore processed through a 300kt/yr CIL plant. The Ore Reserves that have been declared are based on a gold price of US$900/oz and a gold cut-off grade of 1.8g/t gold.
(5) Dilution was set at 28% and ore loss at 10%. Metallurgical recoveries average 85% from test work, with ore to be processed through a 200kt/yr Flotation plant. The Ore Reserves that have been declared are based on a gold price of US$900/oz and a gold cut-off grade of 2g/t.
(1 and 2) The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of the company and have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.
(3 and 4-5) The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists and Mr Urpo Kuronen MSc (Geology), a Member of the Australian Institute of Mining and Metallurgy, who are full time employees of the company and have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards and Mr Urpo Kuronen consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Gold Resources — 1 August 2009 (Inclusive of Reserves)

ProjectClassificationTonnesGrade (g/t Gold)Ounces
SVARTLIDEN        
Svartliden - Near Surface (1) Measured 124,800 3.1 12,400
  Indicated 611,500 3.2 63,700
  Inferred 57,200 1.9 3,400
  Total 793,500 3.1 79,500
         
Svartliden - Depth Extensions (2) Measured
  Indicated 259,000 7.2 59,700
  Inferred 53,000 6.8 11,700
  Total 312,000 7.1 71,400
         
Svartliden — Stockpiles (3) Measured 46,900 4.0 6,100
  Indicated 254,100 1.8 14,900
  Total 301,000 2.2 21,000
         
Svartliden Total Measured 171,700 3.3 18,500
  Indicated 1,124,600 3.8 138,300
  Inferred 110,200 4.2 15,100
  Total 1,406,500 3.8 171,900
         
Orivesi - Kutema Pillars (4) Measured
  Indicated 71,300 3.0 6,900
  Total 71,300 3.0 6,900
         
Orivesi — Kutema Deeps (5) Indicated 310,400 5.1 50,800
Inferred 515,000 6.0 100,100
Total 825,400 5.7 150,900
         
Orivesi — Sarvisuo Lodes (6) Measured 79,500 6.9 17,600
  Indicated 180,000 6.0 34,700
-280 to 380 m Levels Inferred 54,600 7.2 12,600
  Total 314,100 6.4 64,900
         
Jokisivu - Kujankallio (7) Measured 88,000 6.5 18,300
  Indicated 303,000 5.5 53,300
  Inferred 687,000 6.6 146,700
  Total 1,077,000 6.3 218,300
         
Jokisivu - Arpola (8) Indicated 354,000 6.3 71,700
  Inferred 136,000 8.0 35,000
  Total 490,000 6.8 106,700
         
Kaapelinkulma (9) Indicated 78,000 8.4 21,000
  Inferred 83,000 4.1 10,900
  Total 161,000 6.2 31,900
         
Vammala Total Measured 167,500 6.7 35,900
  Indicated 1,296,700 5.7 238,500
  Inferred 1,475,600 6.4 305,300
  Total 2,939,800 6.1 579,700
         
KUUSAMO        
Juomasuo (10) Inferred 779,000 4.2 105,200
  Total 779,000 4.2 105,200
         
Hangaslampi (11) Inferred 176,000 6.0 34,000
  Total 176,000 6.0 34,000
         
Pohjasvaara (12) Inferred 82,000 3.2 8,400
Total 82,000 3.2 8,400
         
Meurastuksenaho (13) Inferred 284,000 2.3 21,000
  Total 284,000 2.3 21,000
         
Sivakkaharju (14) Inferred 28,000 11.3 10,200
Total 28,000 11.3 10,200
         
Kuusamo Total Inferred 1,349,000 4.1 178,800
  Total 1,349,000 4.1 178,800
         
Total - Nordic Measured 339,200 5.0 54,400
  Indicated 2,421,300 4.8 376,800
  Inferred 2,934,800 5.3 499,200
  Total 5,695,300 5.1 930,400
         
Zara JV - DRA 20%        
Koka (15)     0 to 150 m Inferred 490,000 4.9 77,000
  Total 6,100,000 3.2  620,000
         
Koka       < 150 m Inferred 490,000 4.9 77,000
Total 900,000 5.1 140,000
         
Zara JV Total        
Koka Inferred 490,000 4.9 77,000
Total 5,040,000 5.8 944,000
         
Group Total* Measured 339,200 5.0 54,400
  Indicated 3,331,300 5.1 550,200
  Inferred 3,032,800 5.3 514,600
  Total 6,703,300 5.2 1,119,200

* Group Total includes 20% of the Zara JV Total

Notes  
(1) Svartliden In-situ Mineral Resource reported above a nominal 1.3 g/t gold lower cut of grade. MIK derived SMU model estimates using a 12.5mE x 5mN x 2.5mRL SMU dimension to emulate open pit mining selectivity. Gold grade tonnage distributions are subdivided by JORC resource categories.
(2) Gold Tonnage Distributions subdivided by JORC Categories; Ordinary Kriging (OK) grade interpolation, constrained by resource outlines on mineralisation envelopes prepared using a nominal 2g/t gold cut-off and a minimum down hole length of 2 metres. Block dimensions used in the model were 2m NS x 10m EW x 10 m Vertical. A high grade cut of 70g/t was utilised.
(3) Tonnage Distributions subdivided by JORC Categories; ID2 Estimate using 10mE x 5mN x 10mRL Block Dimensions; Reported at a 3.0 g/t Au Cut Off. A minimum down hole width of two metres was used. The resource is reported using high grade cuts 80 g/t Au for Lode 1 and 110 g/t Au for Lode 2 (Main Lode).
(4) Tonnage Distributions subdivided by JORC Categories; ID2 Estimate using 10mE x 5mN x 10mRL Block Dimensions; Reported at a 3.0 g/t Au Cut Off. A minimum down hole width of two metres was used. The resource is reported using high grade cuts 80 g/t Au for Lode 1 and 110 g/t Au for Lode 2 (Main Lode).
(5) Tonnage Distributions subdivided by JORC Categories; ID2 Estimate using 10mE x 5mN x 10mRL Block Dimensions; Reported at a 3.0 g/t Au Cut Off. A minimum down hole width of two metres was used. The resource is reported using high grade cut of 70 g/t gold.
(6) Tonnage Distributions subdivided by JORC Categories; ID2 Estimate using 2mE x 5mN x 5mRL Block Dimensions; Reported at a 2.0 g/t Au Cut Off. The resource is reported using high grade cut of 50-90 g/t gold.
(7) Tonnage Distributions subdivided by JORC Categories; ID2 Estimate using 10mE x 1mN x 10mRL Block Dimensions; Reported at a 2.0 g/t Au Cut Off. The resource is reported using high grade cut of 50 g/t gold.
(8) Tonnage Distributions subdivided by JORC Categories; ID2 Estimate using 10mE x 2mN x 5mRL Block Dimensions; Reported at a 1.0 g/t Au Cut Off. The resource is reported using high grade cut of 20-60 g/t gold.
(9) Juomasuo mineral resource estimate by Outokumpu Mining Services. Ordinary Kriging estimate using 5mE x 2.5mN x 12mRL Block Dimensions. Reported at 2 g/t Gold Equivalent (AuEq = Au g/t + 10 * Co %) cut-off. A minimum down hole width of two metres was used. The resource is reported using high grade cut of 33 g/t gold, the cut made prior to calculation of AuEq. Tonnage Distributions subdivided by JORC Categories.
(10) Hangaslampi mineral resource estimate by Outokumpu Mining Services. Ordinary Kriging estimate using 3mE x 3mN x 4mRL Block Dimensions. Reported at 2 g/t Gold Equivalent (AuEq = Au g/t + 10 * Co %) cut-off. A minimum down hole width of two metres was used. The resource is reported using high grade cut of 33 g/t gold, the cut made prior to calculation of AuEq. Tonnage Distributions subdivided by JORC Categories.
(11) Mineral resource estimate by Outokumpu Finnmines. The resource is reported using high grade cut of 10 g/t gold. Reported at 2 g/t Gold Equivalent (AuEq = Au g/t + 10 * Co % + Cu %) cut-off. Tonnage Distributions subdivided by JORC Categories.
(12) Mineral resource estimate by Outokumpu Finnmines. The resource is reported using high grade cut of 10 g/t gold. Reported at 2 g/t Gold Equivalent (AuEq = Au g/t + 10 * Co % + Cu %) cut-off. Tonnage Distributions subdivided by JORC Categories.
(13) Mineral resource estimate by Outokumpu Finnmines. The resource is reported using high grade cut of 14 g/t gold. Reported at 3 g/t Gold Equivalent (AuEq = Au g/t + 10 * Co% + 2 * Cu %). Tonnage Distributions subdivided by JORC Categories.
(14) Mineral resources estimate by Outokumpu Finnmines. The resource is reported using high grade cut of 21 g/t gold. Reported at 3 g/t gold cut-off. Tonnage Distributions subdivided by JORC Categories.
(15) Koka In-situ Mineral Resource reported above a nominal 1.2 g/t gold lower cut of grade. MIK derived SMU model estimates using a nominal 5mE x 10mN x 5mRL SMU dimension to emulate assumed open pit mining selectivity. Bulk density of 2.73t/m³ has been applied to mineralised zones. Gold grade tonnage distributions are subdivided by JORC resource categories. Depletion is to the natural surface, with no mining assumed to date. The reported resource is otherwise unconstrained but limited by depth of drilling and model extents.
(1) This Mineral Resource Statement has been compiled in accordance with the guidelines defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2004 Edition). All information in this Statement which relates to Mineral Resources is based on, and accurately reflects reports prepared by the persons named below. All of the persons listed are Members of the Australasian Institute of Mining and Metallurgy or the Australian Institute of Geoscientists and have the necessary experience relevant to the style of mineralisation, the type of deposit and the activity undertaken to qualify as a ‘Competent Person’ under the JORC Code, 2004. Svartliden Drill hole Database and Geology – Neale Edwards, Chief Geologist, Dragon Mining Limited Svartliden Resource Estimate - Ingvar Kirchner, Manager Resource Geology, West Perth, Coffey Mining Ltd Each of the Competent Persons has given their consent for the inclusion of the material in the form and context in which it appears.
(3, 16) The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists, who is a full time employee of the company and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
(2, 4 to 7, and 9) The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Paul Payne BAppSc, a Member of the Australian Institute of Mining and Metallurgy, who is a full time employee of Runge Limited and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Paul Payne consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
(8) The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Ms Ivy Chen Bsc (Hons) in 2005. Ms Ivy Chen, a Member of the Australian Institute of Mining and Metallurgy, was then a full time employee of Maxwell Geoservices Pty Ltd and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Person as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. The Arpola Mineral Resource remains unchanged since that date. Maxwell Geoservices Pty Ltd has verified the form and context in which the information regarding the Arpola Mineral Resource has been used and considers it to be consistent with the original work undertaken in 2005.
(10 to 11) The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Esa Sandberg, formerly of Outokumpu Mining Services. The Juomasu and Hangaslampi Mineral Resources has remained unchanged since estimation. Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists and Mr Urpo Kuronen MSc (Geology), a Member of the Australian Institute of Mining and Metallurgy, who are full time employees of the company and have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards and Mr Urpo Kuronen have verified the form and context in which the information regarding the Juomasu and Hangaslampi Mineral Resources have been used and consider it to be consistent with the original work undertaken.
(12 to 14) The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Jarmo Lahtinen and Rauno Hugg both formerly of Outokumpu Finnmines. The Pohjasvaara, Meurastuksenaho and Sivakkaharju Mineral Resources has remained unchanged since estimation. Mr Neale Edwards BSc (Hons), a Member of the Australian Institute of Geoscientists and Mr Urpo Kuronen MSc (Geology), a Member of the Australian Institute of Mining and Metallurgy, who are full time employees of the company and have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Neale Edwards and Mr Urpo Kuronen have verified the form and context in which the information regarding the Pohjasvaara, Meurastuksenaho and Sivakkaharju Mineral Resources have been used and consider it to be consistent with the original work undertaken.
(15) The information in this report that relates to the Mineral Resource is based on information compiled by Brian Wolfe, who is a Member of the Australasian Institute of Mining and Metallurgy. Brian Wolfe is an employee of Coffey Mining Ltd. Brian Wolfe has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and for the activity which he has undertaken to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, mineral Resources and Ore Reserves – The JORC Code”. Brian Wolfe consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Resources - Other Metals - 1 August 2009

ProjectClassificationTonnesNickel 
(%)Copper
(%)Nickel
(t)Copper
(t)
VAMMALA            
Stormi (1) Inferred 1,600,200 0.40 0.30 7,000 4,600
  Total 1,600,200 0.40 0.30 7,000 4,600
             
Ekojoki (2) Inferred 1,095,900 0.50 0.40 5,600 4,600
  Total 1,095,900 0.50 0.40 5,600 4,600
             
Vammala Total Inferred 2,696,100 0.47 0.34 12,600 9,200
Total 2,696,100 0.47 0.34 12,600 9,200
             
KUHMO JV            
Vaara (3) Indicated 2,432,000 0.37 0.03 9,000 700
  Inferred 3,694,000 0.33 0.02 12,200 700
  Total 6,126,000 0.35 0.03 21,200 1,400
             
Peura-aho (4) Indicated 371,000 0.42 0.20 1,600 700
  Inferred 171,000 0.44 0.23 700 400
  Total 542,000 0.43 0.21 2,300 1,100
             
Hietaharju (5) Indicated 413,000 0.56 0.31 2,300 1,300
  Inferred 590,000 0.38 0.19 2,200 1,100
  Total 1,095,900 0.45 0.24 4,500 2,400
             
Kuhmo JV Total Indicated 3,216,000 0.40 0.09 12,900 2,700
  Inferred 4,455,000 0.34 0.05 15,200 2,200
  Total 7,671,000 0.37 0.07 28,100 4,900
             
Group Total Indicated 160,800 0.40 0.09 645 135
  Inferred 2,918,850 0.46 0.32 13,360 9,310
  Total 3,079,650 0.46 0.31 14,005 9,445
(1) Tonnage distributions subdivided by JORC Categories, ID2 estimate using 10mE x 10mN x 10mRL block dimensions and a minimum downhole width of approximately two metres.
(2) Tonnage distributions subdivided by JORC Categories, ID2 estimate using 10mE x 10mN x 10mRL block dimensions and a minimum downhole width of approximately two metres.
(3 to 5) The Resources are reported above a nicjkel equivalent (NiEq) cut-off of 0.3%. Nickel equivalent was estimated by Snowden mining Industry Consultants using the following formula – NiEq = Ni% = (Cu % * 0.2) + (Co % * 2,727) + (((Pd g/t * 523,636) + (Pt g/t * 232,727) + (Au g/t * 1,221,818))/1000). All three resources were estimated using Ordinary Kriging. Estimated block sizes were 25mN x 20mE x 10mRL. Classification has been carried out according to JORC Guidelines.
(1 & 2) The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Paul Payne BAppSc, a Member of the Australian Institute of Mining and Metallurgy, who is a full time employee of Runge Limited and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Persons as defined in the 2004 Edition of the Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr Paul Payne consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
(3 to 5) The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information as lodged with the ASX on August 22, 2006 by Vulcan Resources Limited “Vulcan’s First Nickel Estimate Contains 30,000t Nickel and 120,000 ounces Platinum and Palladium” and “Annoucement Ammendment – First Nickel Estimate”. These resources have been reported according to the Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves (2004 JORC Code). The Resource estimates were supervised and have been authorised by Ian Glacken, FAusImMM (CP), CEng, who is a Fellow of the Australian Institute of Mining and Metallurgy and who has over five years experience in the mining, interpretation and estimation of nickel sulphide deposits. Mr Glacken consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.