Endomines AB is pleased to announce that the commissioning phase of the Pampalo Gold Mine Project, located in Ilomantsi, Eastern Finland, has been completed. The mine is now in commercial production, with the first gold concentrates produced at the mine on January and early February 2011. The first truckload of gold concentrate has left the site for the Boliden Harjavalta smelter on Monday 7th February.
The most significant milestones of the Pampalo Gold Mine project are outlined below:
- Underground mine production started in mid-April, 2010, and 1000 meters of underground development drifting has been completed since then. In total, 45 000 tonnes of ore has been mined by drifting and long-hole stoping. Combined with existing ore stockpiles of 22 000 tonnes, this amounts to a total of 67 000 tonnes of ore stockpiled for processing, equaling approximately 4 month's mill feed. Underground production grade has come in as expected, and complies with the ore reserve grade.
- Ventilation raises of approximately 175 meters were drifted during 2010.
- Totally some 5000 meters of infill diamond drilling was carried out during 2010.
- On the surface, a new power line and processing plant were completed mid-November as scheduled. Test runs started immediately, with the plant now approaching its nominal capacity of 230 000 tonnes/annum.
- The crushing plant is operating at its design capacity of 130 tons/hour. Optimization of various operating parameters is ongoing with a view to reaching a steady rate of production flow through the circuit.
- Tailings Storage Facility works were completed in August 2010 as scheduled
- The on-site laboratory is performing as designed and expected.
- All recruitment has been completed, with c. 60-70% of personnel hired locally and trained by Endomines.
- The total Lost Time Injuries for the project, incurred during the construction and commission stage, have resulted in an LTI-frequency rate for own and contractor personnel, of 20.
Markus Ekberg, CEO, expresses his satisfaction: We are certainly very pleased with how the commissioning phase for the Pampalo Gold Mine has progressed. Our supervisory personnel are working diligently to ensure that all the usual start-up challenges are resolved, and the whole project reaches a steady state, design capacity as soon as possible.
Given that the gold concentrate transports to Boliden's Harjavalta smelter has begun, we can expect our first sales revenue within the next few months. This will be the start of early, free cash flow that will be utilized to implement the Company's strategy for corporate growth.
Karl-Axel Waplan, Chairman of the Board of Endomines adds: I would like to take this opportunity to thank the Endomines management and construction teams, together with the contractors assisting in the mine construction, for their hard work, as well as the Finnish Government for their support in helping make the Pampalo Gold Mine a reality. I would like to also thank all Endomines personnel, past and present, and in particular, our directors and shareholders for their continuing support of the Company and its efforts.
The Pampalo Gold Mine is expected to produce approximately 27,000 ounces of payable gold per full year of production at an estimated life of mine cash cost of less than US$550 per ounce of payable gold.
For more information and to view production photos, please visit the Company's website at www.endomines.com
Endomines AB is a gold mining and exploration company with a portfolio comprising the Pampalo Gold Mine, as well as other gold and industrial mineral deposits and exploration properties located in Finland.
During 2009-2010, Endomines has taken several important steps from exploration to full-scale gold production. The company started commercial production at the Pampalo Gold Mine in February 2011, with a projected annualized output of 900-1.000 kg of gold.
Other deposits along the Karelian Gold Line will be exploited subsequently. Endomines has additional claims in Finnish Lappland (gold), Ostrobothnia (ilmenite) and Southern Finland (limestone/wollastonite).
Endomines applies SveMin's & FinnMin's respective rules for reporting (public mining & exploration companies). Endomines has chosen to report mineral resources and ore reserves according to JORC-code, which is the internationally accepted Australasian code for reporting ore reserves and mineral resources. Endomines applies International Financial Reporting Standards (IFRS) as approved by the European Union.
The shares of Endomines AB are quoted on the First North Premier segment in Stockholm under ticker ENDO.ST. Erik Penser Bankaktiebolag acts as Certified Adviser and Liquidity Provider.
Read more about Endomines on www.endomines.com
This news release may contain forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: the availability of funds; the timing and content of work programs; results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles; project cost overruns or unanticipated costs and expenses, fluctuations in metal prices; currency fluctuations; and general market and industry conditions.
Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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(ii) they are solely responsible for the content, accuracy and originality of the
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Source: Endomines AB