Geology and mineral resources of the Kylylahti Mine asenteella - tuurilla törmäillen; harkiten harmitta Jari Juurela Altona Mining Ltd Geology Manager - Finland 24.04.2014
Disclaimer and JORC Compliance What You Should Know Find out more - This presentation is being used as a presenter s aid with summarised information. See Altona s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au or www.altonamining.com, for more information. Third party information - Altona does not make any representations as to the accuracy or otherwise of third party information, including where projections are given. Forward-looking statements - Within this presentation there may be certain forward-looking statements, opinions and estimates. These are based on assumptions and contingencies which are subject to change without notice and are not guarantees of future performance. Altona assumes no obligation to update such information. Taking action - Please undertake your own evaluation of the information in this presentation and contact your professional advisers if you wish to buy or sell Altona shares. Competent Person Statement The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Jari Juurela MSc, MAusIMM who is a full time employee of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Juurela has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears. Copper Equivalence Copper equivalence refers to production only where total revenues are expressed as copper revenues, ie. Revenue copper price. It does not refer to Resources, Reserves or drill results. 1.
Growing Copper Production and Optionality Outokumpu Project Roseby Project Underground copper-gold mine in Finland Development ready, 40ktpa copper 2.
Outokumpu area copper production Keretti 1914-1989 Luikonlahti 1968-1983 Vuonos 1972-1986 Kylylahti 2012 - Vuonos 9 % Luikonlahti 6 % Kylylahti 8 % Keretti 77 % Historic production+ Kylylahti - 1.2 Mt copper metal
Kylylahti Underground Mine 2013 All infrastructure in place 4.
Kylylahti Mine Key Facts Luikonlahti Mill Interior Status Mine Life of mine average production Mining cost Mine life Reserves Resources 600,000tpa, expansion under consideration 5.5m x 5.5m decline tunnel, longhole open stopes with cemented waste fill Copper: 8,000tpa Gold: 8,400ozpa Zinc: 1,600tpa Copper equiv: 12,000tpa 32/tonne including trucking 7 years 4.2Mt at 1.6% Cu, 0.7g/t Au, 0.6% Zn 8.8Mt at 1.3% Cu, 0.8g/t Au, 0.5% Zn 5.
Kylylahti Mine Mineral Resource Inventory Mineral resource inventory and ore reserve updated bi-annually December 2013 increased tonnes (15%), copper grade (2%) and copper metal (17%) compared to June 2013 inventory Kylylahti Mine has 12% more copper metal than in the feasibility study. Increase of the copper metal is 27% pre-depletion. Grade increasing with the depth. 6
Kylylahti Mine Ore Reserves 90 000 Kylylahti mine - Ore Reserves 1.70 80 000 70 000 60 000 50 000 1.68 1.66 1.64 1.62 1.60 40 000 30 000 20 000 10 000 1.58 1.56 1.54 1.52 1.50 0 Feasibility stydy June 2012 December 2012 June 2013 Ore Reserves Production Depletion Cu (%) 1.48 7
Kylylahti Mine - Resource estimation methodology Estimation method: Ordinary Krieging Block model estimation. Au, Co, Cu, Ni, Zn, S and SG estimated to parent blocks. Estimation constrained by domain code Diamond drilling, face sampling, face and backs mapping and sludge drilling used for domain contact definition Diamond drilling and face sampling, used for grade estimation. Sludge drilling sampling quality not acceptable for estimation purposes due to multiple sources of the bias Resources estimated down to 900 metres below surface 8
Kylylahti Mine - Domaining Copper Domains Two main copper domains Semimassive copper (Cu>1%, Po+Py+Cp massive) and disseminated copper domain (0.4%-1.0% Cu, Po+Cp+Pn+-Co-Pn+-Cbl+-Sp) Domains further subdivided to three subdomains Wallaby, Gap and Wombat Structural and geological discontinuity between subdomains. Base metal fingerprint different between subdomains. Wallaby Gap Wombat 9
Kylylahti S-N longitudinal section Resource model Dec 2013 with the mined decline Copper Legend 10
Kylylahti Mine Key- Domaining Au Domains Two distinct Au-domains Au-Cudissemination and Au-Ni- dissemination Au-Cu dissemination Close proximity to the massive copper domain and typically inside copper disseminated domain Au >1 ppm and Cu>0.4% Host rocks are Outokumpu association skarn and quartz rocks 11m @ 4.4ppm Au Au-Cu 9m @ domains 3.5ppm Au, 1.2% Cu 4m @ 3.0ppm Au, 0.45% Cu Au-Ni dissemination Locates typically further 10.2 g/t in the Au, hanginwall 0.05% Cu, zone 0.08% to so Co, called 0.35% Ni, 0.47% Zn and 3.4% S CoNi-parallel hangingwall zones. Elevated nickel in the domain and especially in the hangingwall contact of the domain or just outside the contact Nuggety coarse grained gold encountered with spotty Au values in the samples up to 155 g/t Host rocks are Outokumpu association skarn and quartz rocks 6m @ 2.7ppm Au Au-Ni domains 11
Kylylahti Mine Key- Domaining Other Domains Cobalt dissemination domain 0.1-0.3% Co and Cu<0.4% Locates directly hanginwall side of the copper dissemination Major domain Zinc zone Zn > 1% and Cu < 1% Two ore shoots locates south of southern terminating structure Main sulphide is sphalerite Minor domains Nickel zone Ni > 0.5% Ni Locates topmost and northernmost part of the Wombat at direct strike extension of the Wombat copper massive Pentlandite + pyrrhotite dissemination Close to Gap/Wombat offsetting structure and in the vicinity of footwall ultramafics Best intersections: KU-406, 12.6m @ 1.7% Ni and 0.5% Cu KU-260, 5.3m @ 1.0% Ni and 0.3% Cu KU-353, 11m @ 0.8% Ni and 1.1% Cu Co% Zn Zone Wombat copper massive Wombat Ni dissemination Cu% South terminating structure Ni Zone KU-406 12
Kylylahti Deposit and Cobalt Recovery Kylylahti ore in-situ value 25 14 41 Copper Gold Zinc 5 15 Cobalt Nickel Cobalt recovery and production of a saleable cobalt-nickel concentrate has been the biggest metallurgical challenge of the Kylylahti deposit +50% of cobalt occurs in the lattice of pyrite
Kylylahti Deep Extensional Drilling 100 metres drill drive developed to 395-level (500 metres below surface) Phase 1 drill program completed with 7 drillholes totalling 2,900 metres Highlight 108m @ 2.4% Cu including 58m @ 4.2% Cu 14
Metal and grade flow Mined inventory Copper metal, ore tonnes and grade increases from ore reserves to actual mill production Significant copper metal upside from reserves to actual mill production Upside in the in-situ metal, geology and resource model has had an important role of the flying start of the Kylylahti mine 15
Luikonlahti mill Copper-gold- and zinc products Annual metal production: Copper 8,000 tonnes Gold 8,400 ounces (260kg) Zinc 1,600 tonnes Crushing Grinding Flotation
Altona&Community I metre Thank you 17.