Orivesi Gold Mine
Kutema Ore Lodes
The Orivesi Gold Mine commenced production in 1994, and produced 422,000 ounces of gold from a series of near vertical pipe-like lodes at Kutema. The ore was processed through the Vammala Production Centre, with mining undertaken by mechanised methods and 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 m/RL into the Kutema Deeps area.
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.
Mining of remnant ore from the Kutema stopes recommenced in June 2007.
Sarvisuo Ore Lodes
Mining from the Sarvisuo ore loads commenced in April 2008 with ore being processed at the Vammala Production Centre 80km to the southwest.
Mining has been conducted from the 285m level to the 540m level with the decline being extended to 620m level. Since commencement 506,032 tonnes of ore have been mined and transported from Orivesi to Vammala.
Orivesi Gold Mine
Sarvisuo
Dragon Mining completed a total of 101 drill holes for an advance of 14,198.5 metres since the start of 2009 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.
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 2009, a decision to proceed with the development of the Sarvisuo decline between the 540m and 440m levels to access new Reserves was made. As at the end of June 2010, decline development was almost complete.
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. The results of a follow-up infill drilling in this area have highlighted the extension of the known pipes with intercepts of 7.15m @ 16.35 g/t gold, 4.30m @ 7.48 g/t gold, 4.00m @ 3.47 g/t gold and 3.55m @ 3.91 g/t gold whilst also identifying new deeper mineralised positions to the west of the Sarvisuo pipe cluster with an intercept of 4.65m @ 13.34 g/t gold.
Results for 16 of the 24 hole infill campaign have been received, assays for 6 holes remain pending whilst 2 holes are yet to be drilled.
Given the strength of these results, consideration is being given to extending the decline from the 540m level to the 620m level with a decision expected in late July.
Significant intercepts from recent Sarvisuo extension drill campaign (540-600m levels).
Sub-parallel drilling targeting deeper structures down to the 700m level has also been completed, returning intercepts such as 28.5m @ 6.03 g/t gold, 28.15m @ 6.81 g/t gold and 23.00m @ 12.32g/t gold from the existing Sarvisuo pipe cluster, whilst intercepts of 3.95m @ 4.61 g/t gold again highlight new deeper mineralisation positions west of the existing pipe cluster.
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. An exploration drift has been completed into this area from the 420m level, from which a RC drilling campaign has been completed. Results are pending.
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.
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.