Endomines - Ilomantsi Gold Project

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1 Endomines - Ilomantsi Gold Project Page 1 of 6 1 ILOMAN. AR E A 1 Lo c a t i o n 2 T e n u r e 3 G e o l o g y 4 E x p l o r a t i o n 5 R e s o u r c e s 6 Or e T e s t s 7 E n v i r o n 8 P l a n s OT H E R AR E AS 2 LAIV AK. 3 OS IK ON. 4 T OR MU A 1.1 Location T h e F i n i s h p a r t s o f H a t t u s c h i s t b e l t l i e s i n t h e r u r a l m u n i c i p a l i t y o f I l o m a n t s i, w h i c h i s t h e m o s t e a s t e r n p a r t o f t h e E u r o p e a n U n i o n. T h e p r o j e c t a r e a i s s e r v i c e d b y a p a v e m e n t r o a d a n d a n e t w o r k o f f o r e s t r y r o a d s. E l e c t r i c i t y i s a v a i l a b l e w i t h i n l e s s t h a n 1 k m. T h e n e a r e s t a i r p o r t i s s i t u a t e d i n J o e n s u u a b o u t k m t o t h e s o u t h w e s t a n d t h e n e a r e s t r a i l w a y i s 4 0 k m t o t h e s o u t h i n I l o m a n t s i. 1 ILOMANTSI 1.2 Land T e nu r e E n d o m i n e s h a s 2 2 e x p l o r a t i o n s l i c e n s e s i n I l o m a n t s i a m o u n t i n g h a. T h e l a n d i s m a i n l y o w n e d b y t h e F i n n i s h S t a t e a n d i s f r e e f r o m n a t i o n a l p a r k s a n d n a t u r e r e s e r v e s. 1.3 G e ol og y T h e g o l d a n o m a l o u s n o r t h e r n p a r t o f t h e H a t t u s c h i s t b e l t ( r e f e r r e d t o a s t h e P a m p a l o z o n e ) i s c h a r a c t e r i s e d b y s e d i m e n t a r y r o c k s, i n t e r m e d i a t e, b a s a l t i c a n d k o m a t i i t i c v o l c a n i c r o c k s. T h e l a t t e r r o c k s a r e u n u s u a l i n t h e s o u t h e r n p a r t o f t h e H a t t u s c h i s t b e l t. T h e P a m p a l o z o n e a l s o i n c l u d e s t o n a l i t i c i n t r u s i o n s, w h i c h s e e m t o b e a l m o s t b a r r e n i n g o l d. F i g u r e 1. Lo c a t i o n o f Il o m a n t s i g o l d p r o j e c t C o m m o n l y t h e g o l d d e p o s i t s a r e h o s t e d b y e x t e n s i v e l y h y d r o t h e r m a l l y a l t e r e d s u p r a c r u s t a l

2 Endomines - Ilomantsi Gold Project Page 2 of 6 r o c k s m a i n l y c o m p o s i n g o f s e r i c i t e, q u a r t z, c h l o r i t e, t a l c, b i o t i t e, a l b i t e a n d t o u r m a l i n e. M o s t g o l d i s s i t u a t e d i n t h e : H i g h l y a l t e r e d r o c k s C o n t a c t s o f r o c k s B r i t t l e s t r u c t u r e s a s s o c i a t e d w i t h h y d r o t h e r m a l q u a r t z Q u a r t s -f e l d s p a r p o r p h y r i e s P e g m a t i t e s ( r a r e l y ) U s u a l l y g o l d e x i s t s a s m i c r o s c o p i c g r a i n s a l o n g w i t h t e l l u r i d e s a n d a s s o c i a t e d w i t h w e a k d i s s e m i n a t i o n s o f i r o n s u l p h i d e s. F i g u r e 2. H a t t u S c h i s t B e l t. G o l d p r o s p e c t s G e o l o g i c a l m a p m o d i f i e d a f t e r G T K T h e P a m p a l o d e p o s i t i s e s t i m a t e d t o c o n t a i n t o n n e o r e g r a d i n g 1 0 g / t g o l d d o w n t o t h e m e t e r s l e v e l a n d w i t h p r o m i s i n g i n t e r s e c t i o n s a t m e t e r s d e p t h. D i s s e m i n a t e d o r e i s p r e s e n t a s s e v e r a l m o d e r a t e l y p l u n g i n g l o d e s w i t h i n a f e l s i c t o i n t e r m e d i a t e v o l c a n o c l a s t i c h o s t r o c k. O u t o k u m p u F i n n m i n e s O y p u r c h a s e d t h e e x p l o r a t i o n r i g h t s f o r t h e a r e a f r o m t h e M i n i s t r y o f T r a d e a n d I n d u s t r y i n , a n d i s c u r r e n t l y d o i n g t e s t m i n i n g a n d f e a s i b i l i t y s t u d i e s o n t h e d e p o s i t. 1.4 E x p l or ation T h e G e o l o g i c a l S u r v e y o f F i n l a n d ( G T K ) p e r f o r m e d a g o l d e x p l o r a t i o n p r o g r a m i n t h e n o r t h e r n p a r t o f t h e l a t e A r c h e a n H a t t u s c h i s t b e l t i n I l o m a n t s i d u r i n g T h e p r o g r a m w a s p r i n c i p a l l y b a s e d o n c h e c k i n g o f g o l d a n o m a l i e s i n t i l l. A l o c a l t i l l g e o c h e m i c a l s u r v e y, c o m p r i s i n g 1 6 s a m p l e s / k m 2, c o v e r s t h e w h o l e a r e a. T h e a n o m a l i e s w e r e o u t l i n e d b y d e e p t i l l s a m p l i n g ( C o b r a, a b o u t s a m p l e s ). G o l d a n o m a l i e s f o r m a n a l m o s t c o h e r e n t 1 2 -k m l o n g z o n e. T h i s z o n e w a s s y s t e m a t i c a l l y m e a s u r e d w i t h

3 H Endomines - Ilomantsi Gold Project Page 3 of 6 g r o u n d g e o p h y s i c s ( m a g n e t i c, S l i n g r a m, I P ). F u r t h e r m o r e, t h e w h o l e r e g i o n w a s s u r v e y e d b y l o w -a l t i t u d e a i r b o r n e g e o p h y s i c s a n d d e t a i l e d g e o l o g i c a l m a p p i n g. E i g h t a n o m a l y t a r g e t s w e r e c h e c k e d b y d i a m o n d c o r e d r i l l i n g, w h i c h c o m p r i s e s h o l e s w i t h a t o t a l l e n g t h o f m e t e r s. S i n c e , w h e n E n d o m i n e s t o o k o v e r t h e m i n e r a l r i g h t s a n d a l l s u r v e y r e s u l t s w i t h i n 5 k m f r o m t h e c l a i m e d a r e a s, t h e c o m p a n y h a s p e r f o r m e d o w n i n v e s t i g a t i o n s. T h e t o t a l l e n g t h o f d r i l l i n g s i s m e t e r s o f w h i c h m e t e r s i s r e a l i s e d b y Ø m m D T H -R C m e t h o d. E n d o m i n e s h a s a l s o e f f e c t e d g e o c h e m i c a l s a m p l i n g, b o u l d e r t r a c i n g a n d g e o l o g i c a l m a p p i n g. T r i p p i n g f o r b u l k s a m p l i n g a n d b e n e f i c a t i o n t e s t h a s b e e n d o n e i n t h e H o s k o a r e a. 1.5 M ine r al R e s ou r ce s R e c e n t e x p l o r a t i o n h a s s h o w n t h a t A r c h e a n g r e e n s t o n e b e l t s i n e a s t e r n F i n l a n d c o n t a i n g o l d m i n e r a l i z a t i o n s i m i l a r t o t h a t i n g r e e n s t o n e b e l t s o n o t h e r c o n t i n e n t s. T h e f i r s t d i s c o v e r i e s w e r e m a d e i n t h e H a t t u s c h i s t b e l t i n t h e e a s t e r n m o s t F i n l a n d. A f t e r G T K k e p t o n e x p l o r a t i o n a c t i v i t i e s o n t h e n o r t h e r n p a r t o f t h e H a t t u s c h i s t b e l t. T h e r e s u l t s o f t h e d i a m o n d d r i l l i n g d e m o n s t r a t e a n i n t e n s i v e c r u s t a l s c a l e m i n e r a l i s i n g p r o c e s s. E n d o m i n e s b o u g h t t h e m i n e r a l r i g h t s t o t h e n o r t h e r n p a r t o f t h e b e l t f r o m t h e C o u n c i l o f S t a t e i n H os k o ( 2 ) and K u iv is to W e s t ( 4 ) o s k o i s t h e p r o s p e c t t h a t E n d o m i n e s h a s b e e n e x p l o r i n g m o s t. T h e d r i l l e d g o l d z o n e i s c o n g r u e n t t o a n I P -a n o m a l y m o r e t h a n 1, 5 k m l o n g. T h e d r i l l i n g i n 5 0 x 5 0 m e t e r s g r i d i n d i c a t e s m i n e r a l r e s o u r c e s m o r e t h a n t o n n e s w i t h 2, 8 3, 7 g / t g o l d. T h e g o l d m i n e r a l i z a t i o n c o n f o r m s t o a n a r g i l l a c e o u s l i t h i c u n i t a n d t h e d i s t r i b u t i o n o f h i g h -g r a d e z o n e s i s s t r u c t u r a l l y c o n t r o l l e d. T h e b e s t i n t e r c e p t i n H o s k o i s 1 2 m e t e r s g r a d i n g g o l d a t 1 1 g / t ( c u t -v a l u e 4 0 g / t ). T h e b e s t i n d i v i d u a l g r a d e i s g / t g o l d i n 1 m e t e r. F i g u r e 3. Lo c a t i o n m a p o f t h e P a m p a l o o r e ( f i l l e d y e l l o w c i r c l e ; P a m ), E n d o m i n e s c l a i m s ( b r i g h t r e d ) a n d n u m b e r e d p r o s p e c t s ( y e l l o w s t a r s ) : 1 Is o -K i v i j är v i 2 H o s k o 3 K i v i p u r o 4 K u i v i s t o W e s t 5 K u i v i s t o E a s t 6 K o r p i l a m p i 7 S i v a k k o 8 K a n s a n a h o 9 P a m p a l o NW G e o l o g i c a l m a p m o d i f i e d a f t e r G T K T h e H o s k o a r e a i s c o v e r e d b y t h i c k o v e r b u r d e n o f t i l l. N o o u t c r o p e x i s t s

4 o Endomines - Ilomantsi Gold Project Page 4 of 6 a l o n g t h e 6 -k m l o n g I P a n o m a l y t o t h e K u i v i s t o W e s t, w h e r e a s i m i l a r g o l d d e p o s i t i s f o u n d i n t w i n t e r c e p t s. E v e n i f t h e a r e a b e t w e e n H o s k o a n d K u i v i s t o W e s t i s n o t t h r o u g h o u t m i n e r a l i s e d t h e p o t e n t i a l t o f i n d m u c h m o r e g o l d t h a n t o d a y r e s o u r c e s a p p r o v e s i s h u g e. F i g u r e 4. H o s k o p r o f i l e 10 0 No r t h. G e n e r a l i s e d v i e w o f g e o l o g y K u iv is to E as t ( 5 ) T h e m e a s u r e d a n d i n d i c a t e d r e s o u r c e s t o d a y a r e t o n n e s c o n t a i n i n g 4 g / t g o l d. T h e d r i l l p a t t e r n i n K u i v i s t o E a s t i s p e r f o r m e d i n a d i s t a n c e o f m e t e r s o n s t r i k e a n d 1 2, m e t e r s o n d i p g r i d. T h e d r i l l i n g s h a v e m a i n l y b e e n p e r f o r m e d b y G T K. T h e g e o l o g y a n d g e o s t a t i s t i c a l c a l c u l a t i o n s i n d i c a t e t h a t t h e d r i l l i n g d i r e c t i o n i s n o t p e r p e n d i c u l a r t o t h e g o l d l o d e s. T h e o r e s t r u c t u r e ( s h a p e & c o m p o s i t i o n? ) s e e m s t o b e v e r y s i m i l a r t o t h e P a m p a l o o r e w i t h h i g h g r a d e p i p e s s u i t a b l e f o r u n d e r g r o u n d m i n i n g O th e r P r os p e cts T h e o t h e r p r o s p e c t s i n H a t t u s c h i s t b e l t b e l o n g i n g t o E n d o m i n e s a r e d r i l l e d m u c h l e s s. S o m e h i g h l i g h t s o f t h e g o l d p r o s p e c t s, d e s c r i b e d f r o m n o r t h t o s o u t h, a r e : Iso-K i v i j är v i ( 1 ) : S e r i c i t e s c h i s t w i t h a r s e n o p y r i t e g r a d i n g 1, 2 g / t g o l d i n 1, 3 5 m e t e r s. K i v i p u r o ( 3 ) : B i o t i t e a l t e r e d a n d e s i t i c r o c k g r a d i n g 0, 5 g / t g o l d i n a 1 5 m e t e r s b r o a d z o n e. K or p i l a m p i ( 6 ) : S u l p h i d i z a t i o n i n t o n a l i t e g r a d i n g 1, 6 9 g / t g o l d i n 0, 8 m e t e r s. A q u a r t z t o u r m a l i n e v e i n i n o u t c r o p s h o w s 6, 2 g / t. S i v a k k o ( 7 ) : Q u a r t z v e i n s i n p o r p h y r y g r a d i n g 3, 9 7 g / t g o l d i n 1, 7 m e t e r s. B i o t i t e a l t e r e d a n d e s i t i c r o c k 4, 2 3 g / t i n 2 m e t e r s. K a n sa n a h o ( 8 ) : G o l d a n o m a l o u s Q u a r t z -t o u r m a l i n e v e i n s. P a m p a l o N W ( 9 ) : B e s t i n t e r c e p t i n q u a r t z v e i n s i s 2 4, 4 g / t g o l d i n 0, 5 m e t e r s. 1.6 O r e T e s ts A b e n e f i c a t i o n r e s e a r c h o n H o s k o G o l d o r e o f E n d o m i n e s w a s e x e c u t e d a t V T T M i n e r a l P r o c e s s i n g T h e g o l d g r a d e i n t h e o r e s a m p l e w a s 2 1, 1 g / t. T h e g o l d r e c o v e r y w a s 9 7, 4 % i n t h e c y a n i d a t i o n t e s t o n t h e o r e, i l l u s t r a t i n g t h e p r o p o r t i o n o f t h e f r e e m i l l i n g g o l d. T h e r e c o v e r y r a n g e s f r o m 6 5 % t o 8 5 % i n t h e b u l k f l o t a t i o n. A c c o r d i n g l y, t h e h i g h e s t r e c o v e r y c a n b e y i e l d e d b y c y a n i d a t i o n. T h e o r e i s a l s o a m e n a b l e f o r g r a v i t y c o n c e n t r a t i o n, b u t i s n o t t e s t e d. 1.7 E nv ir onm e nt

5 O G Endomines - Ilomantsi Gold Project Page 5 of 6 T o d a y t h e a r e a i s i n f o r e s t r y u s e a n d o f f e r t h e b e s t p o s s i b l e s u r r o u n d i n g f o r m i n i n g a c t i v i t i e s. E n d o m i n e s s t a r t e d a m o n i t o r i n g p r o g r a m f o r n a t u r a l w a t e r s i n I n c o o p e r a t i n g w i t h l o c a l a u t h o r i t i e s a d e s c r i p t i o n o f t h e r e c e n t n a t u r a l v a l u e s h a s b e e n d o n e. N o h a z a r d o u s r e s t r i c t i o n s f o r e x p l o i t a t i o n e x i s t. T h i s w i l l c o n s i d e r a b l y r e d u c e t h e t i m e t o o b t a i n t h e m i n i n g l i c e n s e a n d w a t e r p e r m i s s i o n s. T h e o n l y n e g a t i v e e n v i r o n m e n t a l m a t t e r i s t h e s h o r t d i s t a n c e t o t h e R u s s i a n b o r d e r, w h i c h m a y c a u s e s o m e l i m i t a t i o n s i n w a s t e w a t e r e m i s s i o n t o w a r d s R u s s i a. 1.8 P l ans I n t e n s e g o l d e x p l o r a t i o n a c t i v i t i e s w i l l c o n t i n u e o n t h e H o s k o, K u i v i s t o a n d K o r p i c l a i m s t o e x p a n d t h e m i n e r a l r e s o u r c e s a n d c o n v e r t t h e s e i n t o m i n e a b l e r e s e r v e s. T h e f i r s t s t e p i s t o e x p l o r e t h e H o s k o o r e f o r d i r e c t c y a n i d a t i o n. T h i s s u r v e y i s i n c l u d e d i n t h e t e c h n o l o g y r e s e a r c h p r o g r a m i n c o o p e r a t i o n w i t h V T T M i n e r a l p r o c e s s i n g. I f t h e b e n e f i c a t i o n c a n b e d o n e w i t h s u c c e s s, t h e n a b o u t m e t e r s o f f u r t h e r d r i l l i n g i s n e e d e d f o r a f e a s i b i l i t y s t u d y. A d e n s e r d r i l l i n g p r o g r a m i s p l a n n e d o v e r t h e m a i n z o n e, s o t h a t t h e f i n a l o r e e s t i m a t i o n c a n b e a c h i e v e d. T h e g e o p h y s i c a l g r o u n d s u r v e y r e s u l t s a r e g o i n g t o b e r e i n t e r p r e t e d a n d t h e m e a s u r e d a r e a w i l l b e e x p a n d e d t o t h e n o r t h. T h e s u p p o s e d o r e e x t e n s i o n o f K u i v i s t o W e s t w i l l b e e x p l o r e d b y d r i l l i n g s. A t K u i v i s t o E a s t t h e f i r s t s t a g e o p e r a t i o n i s t o e x p o s e t h e o r e b y s t r i p p i n g t h e o v e r b u r d e n. B e f o r e f u r t h e r d r i l l i n g a l l t h e l i t h o l o g i c a l a n d s t r u c t u r a l d a t a w i l l b e i n t e r p r e t e d t o d e t e r m i n e t h e p r o p e r d r i l l i n g d i r e c t i o n. I n t h e o t h e r a r e a s a d d i t i o n a l d r i l l i n g a n d t r e n c h i n g i s p l a n n e d. G e o c h e m i c a l d e e p t i l l a n d b e d r o c k s u r f a c e s u r v e y i n g i s a l s o i n t e n d e d t o d e t e r m i n e t h e l i m i t s o f p o s s i b l e a r e a s f o r d e n s e d r i l l i n g. W i t h t h e s e o p e r a t i o n s m o r e d r i l l i n g p r o s p e c t s s h o u l d b e d i s c o v e r e d. o t o : T o p P r o j e c t s S u m m a r y 1 I l o m a n t s i 2 L a i v a k a n g a s 3 O s i k o n m äk i a n d P i r i l ä 4 T o r m u a r e R e s e r v e s a n d R e s o u r c e s B a c k t o M e n u P a g e

6 Endomines - Ilomantsi Gold Project Page 6 of 6 C o p y r i g h t E n d o m i n e s O y. A l l R i g h t s R e s e r v e d. U p d a t e d

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