The results of the core drilling will be included in a new ore reserve estimation of Pampalo which should be ready by the turn of the years 2008/2009.
In February 2008 Endomines started a core drilling programme against the downwards continuing part of the ramp in deposit Pampalo. The aim of this programme was to study the deeper parts of the deposit and thereafter increase the measured and indicated mineral deposits. They will be included in the new estimation of ore reserves that should be ready in the turn of the year. The drilling programme included two phases of which the first was presented in a press release on the 16th June 2008. The second phase began in the middle of May including approx. 4 000 metres of drilling. The results of the first 15 holes from the phase 2 have been presented in a press release on the 25th August.
Figure 1.
Cross-section of the auriferous zones in deposit Pampalo shows the target area for the drilling phase two.
Ore zones are blue. Drilled and planned holes are black.
The results that are now presented include the last 33 holes (2 860 metres) of the second phase (table 1). Altogether in both phases 4 928 metres have been drilled. The final part of the phase two, which is shown here, was directed to the central and northern continuations of the auriferous zones between the levels -360 metres and -450 metres (figure 1). The distance between the holes is approx. 20 metres. Auriferous zones were found in all drill holes except for two. The mineralised core sections are up to 17 metres long (the real size is nevertheless smaller as the holes do not meet the zones in the right angle). Some of the shorter sections in the cores from part of the drill holes have gold contents of over 10 grammes per tonne.
Table 1
Gold contents in mineralised core sections and other drill hole information of deposit Pampalo at the phase 2, in the last phase presented 33 holes were drilled. *
*The drilled holes have core diameter of 61,7 mm. The cores are divided in two equally big parts all the way with a rock saw. The other half is sent to assay and the other goes to archives for later usage. An independent laboratory company Labtium Ab from Finland, accredited according to TO25/M14/2007 of FINAS, has carried out the assay and sample preparation. 50 g FA + AAS method, Labtium code 705A, was used as the assay method. Esa Sandberg, SveMin/FAERI's qualified person, has supervised all the used working phases described on this press release. He is employed by Endomines but does not own any shares of the Company.
"The results of the core drilling so far against the deeper parts of the auriferous zones in deposit Pampalo give a fine base for a new ore reserve calculation. The mineralised zones have gold contents that can be compared to the ones on upper levels. Our aim is that the reserves in Pampalo together with the reserves in the satellite deposits nearby should be enough for at least 7-8 years' production when added to the already mentioned production of the feasibility study (180 kt ore in one year)", says Timo Lindborg, CEO of Endomines AB.
The information in this press release is based on analysis results from the independent accredited laboratory Labtium Ab, and the mineral resource calculations have been carried out by the Australian independent company Runge Ltd. Endomines's technical chief Jaakko Liikanen has compiled the tables and information in this press release. Jaakko Liikanen who owns shares in Endomines AB is approved as "Qualified Person" by SveMin and FAERI.
For further information, please, contact:
Timo Lindborg, Chief Executive Officer
phone: +46-8-611 66 45, mobile: +358-40-50 83 507
Endomines AB (publ) explores and develops mineral deposits in Finland. The Company owns mining permits or claims over all the recognised gold deposits along the Karelian Gold Line, Pampalo mine, among others, wherein the Company aims at starting the operation in 2010. In addition, Endomines has claims for more gold deposits in Finnish Lapland. Besides gold, the Company is focusing on industrial mineral ilmenite which seems to have stable demand growth and price development. These ilmenite deposits exist in central Ostrobothnia.
Endomines applies SveMin's and FAERI's common reporting rules for public mining and exploration companies. Endomines has decided to show the mineral resources according to the internationally accepted JORC or NI 43101 code. Endomines applies International Financial Reporting Standards (IFRS) as the reporting standards for account principles and annual accounts practice. The use of IFRS helps to compare the Company with foreign exploration and mining companies.
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