Kylylahti

The project is located 600 km north-east of Helsinki and 24 northwest of Outokumpu in Finland.

The Kylylahti deposit hosts a measured, indicated and inferred resource of 7.8Mt at 1.17% copper, 0.24% cobalt, 0.22% nickel, 0.49% zinc and 0.70g/t gold. It is some 1.2 km long and plunges at 30 degrees from surface where it is 5-10 m thick to 650-700 m deep where it is up to 60 m thick.

The deposit will be mined at a rate of 550,000 to 650,000 t per annum via a 1 in 7 gradient underground decline developed from a surface portal. Mining is currently envisaged to commence at 110 metres below surface to 700 m below surface. Ore will be extracted by longhole open stoping with paste fill for maximum extraction.

Mine life is expected to be a minimum of 13 years and life of mine planned production is estimated to be 7.10Mt at 1.15% Cu, 0.23% Co, 0.20% Ni, 0.48% Zn, 0.69 glt Au.

Ore will be processed via conventional crushing, SAG and ball mill grinding followed by flotation of sulphides, a 25-29% copper and 8-17 grams per tonne gold concentrate is separated from the initial concentrate. Following removal of the copper-gold concentrate, a bulk sulphide concentrate will be produced for subsequent treatment off-site by roasting and leaching.

The average recoveries to the copper concentrate that were achieved in the flotation testwork are approximately 75-85% copper and 66% gold. The annual production of bulk sulphide concentrate will be approximately 200,000 t. The bulk sulphide concentrate will be trucked 100 km to a hydrometallurgical processing facility at Siilinjärvi

Tailings storage on surface will be minimized by returning most tailings underground in the form of paste fill. Most potential acid forming waste rock will be crushed and also used as fill or will be encapsulated in waste rock stockpiles.