SVARTLIDEN

Svartliden Gold Mine

The Svartliden gold deposit is located in Sweden, approximately 700 kilometres north of Stockholm.  It comprises several steeply dipping, medium to high grade zones of gold mineralisation, which are hosted within a Palaeoproterozoic meta- sediment and volcanic sequence. The higher grade zones of mineralisation occur within well defined structures and these have been the target for underground resource drilling in recent years.

Location of the Svartliden Gold Mine

An aggressive drilling program targeting areas to the east and down dip of the Svartliden underground resource was instigated in early 2010  The initial campaigns returned a number of near surface intercepts in the eastern portion of the deposit, including 10.00m @ 14.87 g/t gold, 2.00m @ 27.56 g/t gold, 14.00m @ 3.21 g/t gold, 8.00m @ 3.25 g/t gold and 10.00m @ 2.91 g/t gold.  The success of this drilling resulted in the  open pit being deepened, open pit production now expected to be completed in October 2012.

Svartliden 2011 and 2011 Drill Panels

Further drilling in the east between 100 metres and 250 metres below surface (Phase 12) has provided additional encouragement with the return of a series of higher grade intercepts, including 4.00m @ 12.87 g/t gold, 2.00m @ 32.45 g/t gold and 3.00m @ 19.53 g/t gold.   These results highlight the  continuation of the North Lode below the open pit.  A 9 hole campaign (Phase 15) is now in progress to further test the eastern depth extensions between Profiles 2050 and 2250 .

Drilling also continued on the western portion of the Svartliden deposit, with analysis returning a number of good intercepts including 4.00m @ 13.18 g/t gold, 4.00m @ 6.39 g/t gold, 6.00m @ 7.66 g/t gold, 1.00m @ 53.30 g/t gold, 9.00m @ 4.01 g/t gold and 3.00m @ 24.19 g/t gold within and along strike of the existing underground resource.

Promising intercepts were also  obtained from the up-dip and lateral extensions of a lower lens of mineralisation (Phase 13) , including 4.00m @ 5.10 g/t gold, 4.00m @ 4.75 g/t gold, 5.00m @ 5.44 g/t gold  and 7.00m @ 6.44 g/t gold.   A further campaign of drilling (Phase 16) is now underway to extend and better define this lower lens, 2 holes of a 9 hole and 2 re-entry hole program completed.

Results from drilling below the underground resource between 200 metres and 400 metres below surface (Phase 11) were disappointing, with drilling indicating that the mineralised system pinches with depth. The extending of two historic holes however did return a series of intercepts including 6.00m @ 3.48 g/t gold, 3.00m @ 7.04 g/t gold and 11.00m @ 2.41 g/t gold from the extensions of the lower lens of mineralisation.

The discovery of a new zone of mineralisation at the Far East target, approximately 800 metres east of the Svartliden open pit was confirmed by drilling.  Identified through an ongoing program of geological and geophysical modelling of the near mine area, holes intersected rock type’s characteristic of the Svartliden host sequence and returned a best intercept of 6.0m @ 6.69 g/t gold at a vertical depth of approximately 350 metres below surface.   A further phase of drilling has been planned for the Far East area, this 5 hole campaign expected to commence in early 2012.

Programs of trenching and reconnaissance drilling have also been completed across targets at  Svartliden West, identifying mineralised zones 400 metres west of the Svartliden open pit. Analysis of these zones returned anomalous gold results, providing confidence that potential remains for the identification of satellite zones of gold mineralisation associated with the extensions of the Svartliden host geological sequence. Deeper drilling of the western extensions is expected to be completed in 2012

Svartliden Gold Mine – Regional Project

The Svartliden Gold Mine – Regional Project  comprises a series of Exploration Permits that encompass prospective geological sequences, similar to those that host the Svartliden gold deposit  within 25 kilometres of the mine. 

 A  detailed airborne geophysical survey flown in 2008 over the  Svartliden holding has established  a platform from which regional exploration activities could advance.

A number of areas of interest  remain untested on this holding, providing a project pipeline  for the immediate future.