Endomines exploring the true potential of the Karelian Gold Line. 11th Fennoscandian Exploration and Mining Conference 1 November 2017

Transcription

1 Endomines exploring the true potential of the Karelian Gold Line 11th Fennoscandian Exploration and Mining Conference 1 November 2017

2 Disclaimer Statements in this presentation which are not purely historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance are forward-looking statements. Investors are advised that by their nature as visual aids, presentations provide information in a summary form and are prepared as a presenter s aid and support - not a standalone document. Please note that such forward-looking statements involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in Finland, and lack of appropriate funding, all of which could among other things, prevent any of the forward looking statements in this presentation from coming to fruition or lead to a delay in the development of mining operations. 2

3 Endomines in brief Focus on gold production and exploration along the Karelian Gold Line - 40km of gold prospective greenstone belt Production target 2017: kg gold Strong Social License to operate Quoted on NASDAQ Stockholm and Helsinki New management CEO Saila Miettinen-Lähde, May > General Manager Seppo Tuovinen, Jan > Strategic outlook Increasing focus on regional exploration in Karelia Open to M&A 3 6-Nov-17

4 Endomines operations Pampalo underground mine in operation since ,000tpa processing capacity Permitted tailings sand facility, laboratory, other production facilities Sufficient capacity for satellite mines along the Karelian Gold Line Focus on LEAN and production efficiency Safety Environmental sustainability 4

5 Operational highlights 2017 Production ahead of estimates Recent head grades ca. 3g/t Jan-Sep: 299kg gold FY target increased to kg UG exploration drilling program in deep extension completed Q3 Best intersections > 10g/t gold Average grades likely in slight increase Financial analyses ongoing Production from autumn 2018 onwards if investment in decline pursued Pampalo mine

6 Focus on regional exploration Why Karelian Gold Line? High likelihood (>50%) for 1-2 million oz gold discovery (GTK 2016) Plenty of existing exploration data, yet a clearly under-explored area in large scale Existing data to be utilized to build an extensive 3D mineralogy model of the area Karelian Gold Rush 2015 Global Exploration Challenge Excellent proposals received, results largely unexploited to-date Clear similarities with Kalgoorlie, Western Australia greenstone belts Endomines holds 100% of the exploration rights in the area 6 6-Nov-17

7 Karelian Gold Line >40 km long mineralized Archean greenstone belt in Eastern Finland 23 known gold deposits Pipeline of prospects from grassroots to advanced exploration Endomines controls 100% of the exploration rights Permit Amount Area (ha) Exploration permits 17 3,995 Claims 64 5,073 Mining concessions Total 87 9,487 = 94.9 km Nov-17

8 Exploration data - Till geochemistry Extensive database of deep till samples with multi-element analyses >30,000 samples 400km 2 area covered Sampling grid 250m x 250m and locally more detailed (prospect scale) Collected mainly by GTK in the 1990 s Endomines samples: 2,400 Numerous untested and unsolved gold anomalies 8 6-Nov-17

9 Exploration data - Diamond drilling All the historical (GTK, Outokumpu, Rautaruukki) drill hole data is validated and combined with Endomines drill hole data into a single SQL database Total amount of surface drilling: 77,762 m (Endomines portion 41,000m) >95% of the drill core is still stored, located in Pampalo and Loppi 9 6-Nov-17

10 37 km SkyTEM survey 2011 Hosko Electromagnetic survey made from a helicopter, 40m altitude 150km 2 Includes 3 datasets: TEM (time domain electromagnetic) electrical conductivity Magnetic (magnetic susceptibility) Digital elevation model (DEM) Planned new uses of SkyTEM data: 3D inversions of magnetic data 3D modelling of SkyTEM resistivity data Pampalo Rämepuro Muurinsuo 10 6-Nov-17

11 Karelian Gold Line exploration potential In the Kalgoorlie area (Western Australia) there is a world class deposit on average every 35 km Strike length of the Karelian Gold Line 40 km Geological and structural environment and mineralization systems are similar in both areas Gold Camp Scales 11 6-Nov-17

12 District-scale Geological Exploration Strategy New strategy includes developing district-scale and local scale 3D litho-structural models using data from several disciplines (Geophysics Alteration Structure Geology - Geomechanics) and adding up new geophysical and hyperspectral mineralogy data => 3D predictive exploration model => Prioritized targets for exploration New exploration strategy for the Karelian Gold Line being developed jointly with Model Earth Pty Ltd (Australia) First results expected in the beginning of Nov-17

13 Exploration target area - Central Duplex Domain 5km long, 2km wide area South-East of Pampalo New area for exploration with similarity to Kalgoorlie (Mt. Charlotte-style) Refolded Mafic-Doleritic- Gabbro sill with Felsic Volcanics Untested potential! 13 6-Nov-17

14 Exploration target Northern end of KGL Naarva Granite Kartitsa Granite Exceptionally large sericite alteration cell north of Hosko Outcrop grab samples: g/t Au 2016 boulder: 14.6 g/t Au Least explored area of the KGL HOS-98 (2016) 2.3 g/t Au Hosko mineralization -Strike lenght of 1300m -Shear hosted mineralization style Large sericite alteration cell 2016 Boulder 14.3 g/t Au Hosko 14 6-Nov-17

15 Pampalo near-mine exploration opportunities A litho-structural model for the Pampalo area was prepared by structural geology experts in 2016 Structural controls were better understood and two new near-mine targets were defined (untested) Extending the model will provide more targets for exploration 15 6-Nov-17

16 Drill core scanning Karelian Gold Line Existing drill core to be scanned with a hyperspectral infrared imaging method to develop a 3D mineral system model for the Karelian Gold Line The model will help defining and understanding hydrothermal alteration patterns related to gold systems Combining data with other existing exploration data will provide further targets for exploration Project to be run jointly with GTK 16 6-Nov-17

17 Thank you! 17 6-Nov-17