SVARTLIDEN
Background
The Svartliden Gold Mine is located 700km north of Stockholm and west of the world class Skellefte Mining District.
Ore from Svartliden is mined by open-cut methods and processed through a conventional carbon in leach plant (CIL) with a design capacity of 300,000 tonnes per annum, which operates continuously throughout the year.
Operation
Svartliden was brought into production in March 2005 and was the first integrated mine and treatment plant to be developed under the new Swedish Environment and Mining Acts.
The open-pit at Svartliden currently extends over 1,000 metres in length and will attain a maximum depth of 100 metres. By the end of December 2011 the mine had produced 282,785 ounces of gold at a cash cost of US$552 per ounce, from 2.0 million tonnes of ore grading 4.54 g/t gold.
The following table displays the production statistics for Svartliden to 31 December 2011.
| 2005-2008 | 2009 | 2010 | 2011 | Total | ||
|---|---|---|---|---|---|---|
| Ore Mined | tonne | 1,218,954 | 347,031 | 297,938 | 169,706 | 2,033,629 |
| Waste Mined | tonne | 6,453,323 | 2,227,939 | 1,837,275 | 3,125,643 | 13,644,180 |
| Ore Milled | tonne | 1,149,723 | 337,945 | 336,197 | 312,296 | 2,136,161 |
| Head Grade | g/t | 5.14 | 3.90 | 4.10 | 3.48 | 4.54 |
| Recovery | % | 91.27 | 88.00 | 91.40 | 91.10 | 90.84 |
| Gold Produced | ounce | 173,501 | 37,400 | 40,135 | 31,835 | 282,785 |
| Cash Costs | USD/oz | 450 | 584 | 624 | 993 | 552 |
Mining from the open pit will be completed by the end of 2012.
Underground Development
An internal feasibility study of the Svartliden underground was completed during 2010, the study indicating that the project is strong both technically and financially. The consistent geometry of the near vertical lodes, combined with very good rock quality is favorable for underground mining.
The Company awarded a contract to Lemminkäinen Sverige AB to complete the decline and undertake underground mining at Svartliden. The contract is for 3,500 metres of decline and lateral development.
The underground commenced with the first blast of the Karl-Erik Marttala decline fired on 17 August 2011 and by the end of 2011, the decline had advanced 462 metres in total. The portal is located within the western portion of the open pit, 80 metres from surface. The underground development is progressing on schedule and within budget and should allow a seamless transition from open cut to underground mining.
Svartliden Gold Mine open pit and underground development