SVARTLIDEN
Background
The Svartliden Gold Mine is located 700km north of Stockholm and south 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 80 metres. By the end of September 2011 the mine had produced 273,674 ounces of gold at a cash cost of US$538 per ounce, from 2.1 million tonnes of ore grading 4.54 g/t gold.
The following table displays the production statistics for Svartliden to 30 September 2011.
| 2005-2008 | 2009 | 2010 | 2011* | Total | ||
|---|---|---|---|---|---|---|
| Ore Mined | tonne | 1,218,954 | 347,031 | 297,938 | 134,740 | 1,998,663 |
| Waste Mined | tonne | 6,453,323 | 2,227,939 | 1,837,275 | 2,372,841 | 12,891,378 |
| Ore Milled | tonne | 1,149,723 | 337,945 | 336,197 | 241,000 | 2,064,965 |
| Head Grade | g/t | 5.14 | 3.90 | 4.10 | 3.24 | 4.54 |
| Recovery | % | 91.27 | 88.00 | 91.40 | 90.30 | 90.75 |
| Gold Produced | ounce | 173,501 | 37,400 | 40,135 | 22,638 | 273,674 |
| Cash Costs | USD/oz | 450 | 584 | 624 | 1,004 | 538 |
*9 months to 30 September
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, while the narrowness of the ore lodes will require the stringent adherence to quality mining practices to ensure ore dilution is minimised.
Mining contractor Lemminkäinen Sverige AB will complete the decline, development and underground mining.
The decline commenced from the base of the open pit in August 2011. The decline is expected to be completed within 12 months and first ore from the underground is expected in the second quarter of 2012.
The mine life has been extended until 2014.
Svartliden Gold Mine and proposed underground development
The Svartliden Gold Mine is expected to produce 32,500 ounces of gold in 2012.