Altona Mining updates Outokumpu Resource and Reserve estimates
THE DRILL SERGEANT: Altona Mining (ASX: AOH) has updated the Mineral Resource and Ore Reserve Estimates for the 100 per cent-owned Kylylahti underground mine at the company’s Outokumpu project in Finland.
The December 2012 Resource Estimate for the Kylylahti mine is 7.9 million tonnes at 1.25 per cent copper, 0.69 grams per tonne gold and 0.56 per cent zinc for 99,050 tonnes of copper, 175,750 ounces of gold and 44,250 tonnes of zinc.
Mining depleted the Resource by 0.38 million tonnes at a grade of 1.51 per cent copper.
However, the company explained infill drilling of a new hangingwall parallel and gold-rich zone successfully defined new disseminated resources which have been incorporated into the model.
The December 2012 Ore Reserves Estimate for the Kylylahti mine is 3.6 million tonnes at 1.69 per cent copper, 0.66g/t gold and 0.67 per cent zinc for 60,500 tonnes of copper, 76,100 ounces of gold, 24,000 tonnes of zinc.
A 0.6 million tonnage reduction has resulted due to the 0.38 million tonnes of mining depletion plus a reduction in disseminated tonnes in the upper Wallaby zone.
Ore Reserves for Wallaby have reduced in tonnage but this has been almost completely offset by an improvement in copper grade.
Overall, copper metal in the Wallaby Ore Reserve after mining depletion has decreased by 9 per cent compared to June 2012 estimates.
Longitudinal section of the Kylylahti mine showing the mine plan,
drill drive and zone targeted for additional resources. Source: Company
announcement
“So far, the copper grade of ore produced at the Kylylahti mine has consistently outperformed predictions,” Altona Mining said in its ASX announcement.
“New geological mapping, mining information and underground drilling since the start of production in February 2012, together with prior drilling data demonstrates sufficient geological and grade continuity has permitted the estimation of a new Resource and Reserve Estimate for the upper Wallaby zone, and thus global resources and reserves for the Kylylahti Mine.”
Altona also mentioned the lower Wombat Zone where it indicated mineralisation is open at depth with the deepest drillhole intersecting 72metres at 1.8 per cent copper of typical Outokumpu style of mineralisation.
Altona has commenced underground development to provide a platform to drill test possible extensions of the Kylylahti mine at depth and to infill the upper and central parts of the Wombat orebody.
The company said yypical Wombat geometry at typical Wombat grades would provide an exploration target of approximately 2-3 million tonnes at 1.3-1.5 per cent copper.
The target is inferred from characteristics and continuity demonstrated by other major deposits in the area.