Altona Mining drills big results at Kylylahti

THE DRILL SERGEANT: Altona Mining (ASX: AOH) has received results from the first four drillholes of a program designed to test for extensions to the Kylylahti mine, which is part of the company’s Outokumpu project in south-east Finland.

Altona explained that prior drilling at the bottom of the deposit is sparse and resource and reserve tonnes decline quickly below a vertical depth of 650 metres.

The company intimated thie latest drilling had extended resources by 50-100 metres vertically to 850 metres deep, not only extending mineralisation at depth but has the potential to increase the grade, width and confidence in the poorly-defined resource model below 650 metres depth.

Highlights of the drilling include:

KU 902:
108 metres at 2.4 per cent copper, 1 grams per tonne gold, 0.8 per cent zinc, including 58 metres at 4.2 per cent copper, 1.2g/t gold, 1.0 per cent zinc;

KU 901:
107m at 1 per cent copper, 1.4g/t gold, 0.4 per cent zinc, including 34m at 2 per cent copper, 0.7g/t gold, 0.6 per cent zinc;

KU 900:
87m at 1.1 per cent copper, 0.8g/t gold, 0.6 per cent zinc, including 15m at 1.8 per cent copper, 0.4g/t gold, 1.0 per cent zinc; and

KE 1:

102m at 0.8 per cent copper, 1.0g/t gold, 0.2 per cent zinc, including 12m at 2 per cent copper, 2.6g/t gold, 0.7 per cent zinc.

 

Longitudinal projection of the Kylylahti deposit showing the location of the drilling. Source: Company announcement

 

“Kylylahti is a great orebody and it is a delight to report the best drillhole yet from the deposit since its discovery by Outokumpu in 1984,” Altona Mining managing director Dr Alistair Cowden said in the company’s announcement to the Australian Securities Exchange.

“The drilling is spectacular providing a clear demonstration of high grades persisting at depth.

“These results provide the support to consider expanding production to 700,000 tonnes per annum, some 27 per cent higher than the Feasibility Study design.

“Revised guidance will be issued when mine planning is completed and upon receipt of a revised resource and reserve estimate which will be released in conjunction with half year reporting early in 2014.”

Altona described the deposit as structurally complex, however, it also acknowledged mining at the deposit and detailed underground drilling has provided a better understanding of structure, which it expects will result in a reasonable interpretation of geometry at depth.

In addition to the extensional drilling at depth, Altona has also completed extensive definition drilling in the Wombat zone from depths between 410m and 470m below surface.

This has further clarified structure, confirmed continuity of high grade zones and defined gold-rich zones in the hanging wall.

Best results from Wombat include: 33m at 3.2 per cent copper and 1g/t gold and 35m at 2.1 per cent copper and 1.1g/t gold.

Email:
altona@altonamining.com

Website:
www.altonamining.com