Kaunisvaara resource update and near term milestonSupplement to my previous posting:
The scooping study for the iron nugget project maybe will be published around or before mid-May, the PEA for Hannukainen around April 30, or within a week later. And the resource update for Hannukainen almost at the same time as the HK PEA, or a few days earlier.
The resource update for Kaunisvaara released Friday in my opinion was a positive surprise with resource expansion compared to the PEA released September 2009. The contained iron volume for the Measured & Indicated resource categories increased almost 20 %. For all 3 resource categories seen altogether (Measured, Indicated and Inferred) the contained iron volume increased almost 40 % compared to the corresponding figures included in last years PEA. The iron grade in situ fell slightly so the total magnetite resource expanded a bit more, i.e. 28 % and 48 % magnetite resource expansion for the M & I and M& I + Inferred categories respectively. The cut-off is 10 % Fe, and maybe the low cut-off has contributed to the magnetite resource expansion and decrease in the average grade of Fe in situ.
As I understand the resource figures for Tapuli and Sahavaara in Friday’s resource update will be included in the Definite Feasibility Study (DFS) which will be released maybe the first week of July for the Kaunisvaara project excluded Pellivuoma. The Pellivuoma DFS is expected at the end of 2010 when more metalurgical testing have been analysed.
A great weekend to all of you!