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Agnico-Eagle Mines Ltd’s Kittilä mine in northern Finland, which the company owns 100% of, produced its first gold in January 2009. Proven and probable gold reserves total 3.2 million ounces from 21.4 million tonnes with a grading of 4.7 g/t.

The average gold production for the life of the mine is expected to be approximately 150,000 ounces a year through 2023. During the second quarter of 2009, the Kittilä mill achieved commercial production. In June, the mill processed an average of approximately 2,300 tonnes per day. This compares to the expected full production rate of 3,000 tonnes per day. Gold production in the second quarter of 2009 at Kittilä was 13,771 ounces. A scoping study is underway, examining the possibility of significantly increasing the designed production rate at Kittilä.

Talvivaara Mining Company Plc obtained a secondary listing of its shares on the Helsinki Stock Exchange (Nasdaq OMX Helsinki), which increased liquidity of the shares and expanded the shareholder base substantially. The company announces that the decision to expand production capacity to up to 50,000 tonnes of nickel annually in 2012 has been taken and is being funded by a successful equity placing. Talvivaara’s upgraded crushing circuit has been succesfully installed and commissioned. The circuit is capable of a production rate of 60 000 tonnes per day, corresponding to 22 million t/a. Successful nickel and zinc sulphide production campaigns were carried out in the first half of 2009 with subsequent deliveries to Norilsk Nickel Harjavalta Oy and zinc customers.

Dragon Mining announced that the development of the Kujankallio open pit at the Jokisivu Gold Mine in south-western Finland has commenced. Jokisivu is Dragon Mining’s third operating gold mine with ample capacity available at the Vammala Production Centre (located 40 km northeast of Jokisivu) to process the ore. The Jokisivu Mine hosts an indicated and inferred resource totalling 325,000 ounces.

The Sarvisuo resource at the Orivesi Gold Mine in southern Finland has been updated. The measured, indicated and inferred resource of 318,000 tonnes at 6.5 g/t gold (66,200 ounces) between the 130 m and 600 m levels represents an increase, which effectively offsets production over the past six months.

Belvedere Resources Ltd and Jinchuan Group Ltd have signed an agreement for the conversion of debt into preference shares. Jinchuan Group is a fully integrated mining group engaged in mining, smelting and refining. They are the largest nickel and cobalt producer in China and an important copper producer. Belvedere announces that subsequent to the voluntary bankruptcy of FinnNickel (Belvedere’s Nickel production subsidiary) the company has undergone a restructuring and is now solely focused on its gold properties. Belvedere has three principle gold properties in Central Finland; Kiimala, Hirsikangas and Rantasalmi. All projects are open pit targets and sub-crop along strikelengths of 1.5–5 km. The intention is to develop a minimum resource of 500,000 ounces of gold on each property.

Lappland Goldminers’ gold production at the Pahtavaara mine for the first six months of 2009 amounted to 369 kg (11.864 ozt). The production from the underground mine has developed according to plan, and diamond drilling has begun on the surface. The company started a preliminary feasibility study for the Haveri area near Tampere, southern Finland, in order to prepare and plan the exploration and development effort of the project.

Vulcan Resources Ltd and Universal Resources Ltd announced their intention to merge. Should a merger eventuate, it will create a significant copper group with advanced development stage projects in Queensland, Australia and Finland. Vulcan announces an updated resource estimate for the Kylylahti Project. Among the major conclusions is the definition of a high grade resource of 4.2 million tonnes at 1.8% copper, 0.3% cobalt, 0.2% nickel, 0.6% zinc and 0.7 g/t gold within the global resource. The project is fully permitted. As markets failed in 2008, the project was put on hold.Vulcan is now conducting technical work on alternative production and offtake strategies.

Endomines AB announces that it’s wholly owned subsidiary Endomines Oy has started mining activities at Pampalo gold mine in easternmost Finland by ordering gold plant equipment and commencing earthmoving works. By the end of 2010, the company will commence production at the Pampalo Mine, with a prospected output of 900-1,000 kg gold per annum. Further deposits along the Karelian Gold Line will be exploited subsequently.

Nordic Mines’ drilling programme at the Laiva gold deposit in Finland showed that the measured and indicated mineral Resources now amount to a total of 14.4 million tonnes at 2.21 g/t gold, corresponding to 31,800 kilos of gold. Extensive field exploration is ongoing around Laiva. The feasibility study for the Laiva project has reached its final stage.

TEXT Mikko Tontti

GTK EVALUATES THE POTENTIAL OF HIGH-TECH METALS IN FINALAND

High-end technology requires metals which have previously been in rather small volumes and the availability of which may be difficult. GTK’s new project evaluates the potential of high-tech metals; Li, In, Ga, Ge, Nb, Ta, Ti and the rare earth elements in the Finnish bedrock.

- The industry sector requires high-tech metals in increasingly larger volumes, and we already know some interesting areas that we are now reviewing. There are locations from the alkali rocks and weathered rock in Lapland all the way to the rapakivi granite and pegmatite areas in Western and Southern Finland, which have a high Li, Nb, Ta and REE potential, says Olli Sarapää, senior scientist, who works as project manager for the GTK’s project.

In the EU, the availability of high-tech metals relies almost exclusively on imports. Finland is known to have some reserves of high-tech metals, and it is estimated that the bedrock is quite favourable for finding new reserves.

The four-year research project is based on information compiled in databases and obtained from other materials, the results of previous research, as well as samples collected for other purposes. The project develops the finding methods and selects regional research locations where field studies will be conducted. All information about known reserves and finding exploration will be compiled into the final report.

TEXT Harriet Öster