Deposits

Endomines’ gold projects along the Karelian Gold Line in Ilomantsi and in the Porkonen and Kivimaa areas in Finnish Lapland.

Description of Gold Deposits

Endomines Oy operates in three different geographical and geological environments: along the Karelian Gold Line in eastern Finland, in the area Porkonen in the municipality of Kittilä and in the Kivimaa area in the municipality of Tervola.

The Karelian Gold Line mineralisations are of Archaean age meaning that they were formed more than 2 500 million years ago. Usually gold is found as individual grains or together with sulphides, oxides or tellurides in quartz veins, breccias or shear zones. These orogenic mineralisations are considered to be formed so that gold has leached out from the surrounding bedrock during intensive shearing and precipitate again in structural traps doe to the changes in the pressure and temperature. The Porkonen deposit is a banded iron formation of early Proterozoisk age. The Kivimaa deposit in the Palaeoproterozoic Peräpohja Schist Belt, is an orogenic copper-gold deposit

Ore Reserves and Mineral Resources

Table 1. Gold ore reserves and resources along the Karelian Gold Line

Note: Reserves and Resources reported according the JORC-code(except Kuittila), Mineral Resources are additional to ore reserves
WAI stock pile estimate: top cut 10 g/t
Outotec estimate: reserve cut-off 1 g/t, gold price 843 €/oz (equals ~1030 usd /oz);
Waste Rock Dilution 10-20%
Resource estimate cut-off 0,8 g/t
Ore losses: drifting 0 %, stoping 5 % and stoping nearby talc chlorite rock 40 %
Maptek Pampalo East: Cut-off: 1,0 g/t; 5% Ore loss & 15% dilution
Maptek Hosko and Rämepuro estimates: Used gold price 720 USD/oz, cut-off 0,5 g/t; ore loss 5%, dilution 15%
Maptek Muurinsuo estimate: Used gold price 720 USD/oz, cut-off 1,0 g/t; ore loss 5%, dilution 15%
Troy ounce = 31,1034768 g

Kalvinit’s Ilmenite Deposits

Kalvinit’s ilmenite deposits are located in Kälviä area in central Ostrobothnia. The Company owns five deposits: Koivu, Kaire, Perä, Riutta and Lyly. These are described in the section ”Kälviä”.

Kalvinit’s deposits in Kälviä. Source: Geological Survey of Finland.

Mineral Resources – Ilmenite

Kalvinit has also applied for exploration licensees for Kuovila calcite-wollastonite deposit which is one of southern Finland's largest calcite and wollastonite deposits. The historical mineral resources which are established by the Geological Survey of Finland amounted to 20.2 Mt containing 81.8% kalcit and 5.8 Mt containing 62,5 % calcite and 13% wollastonite.