Gold Mining & Exporation Company – Positioned for Responsible Growth - Markus Ekberg, Endomines
Upcoming SlideShare
Loading in...5
×
 

Gold Mining & Exporation Company – Positioned for Responsible Growth - Markus Ekberg, Endomines

on

  • 761 views

Gold Mining & Exporation Company – Positioned for Responsible Growth - Markus Ekberg, CEO, Endomines

Gold Mining & Exporation Company – Positioned for Responsible Growth - Markus Ekberg, CEO, Endomines

Mining On Top: Helsinki
16-17 September 2013 | Helsinki

Statistics

Views

Total Views
761
Views on SlideShare
451
Embed Views
310

Actions

Likes
0
Downloads
7
Comments
0

2 Embeds 310

http://www.miningontop.com 267
http://miningontop.com 43

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Gold Mining & Exporation Company – Positioned for Responsible Growth - Markus Ekberg, Endomines Gold Mining & Exporation Company – Positioned for Responsible Growth - Markus Ekberg, Endomines Presentation Transcript

  • Gold Mining & Exporation Company – Positioned for Responsible Growth Mining on Top Helsinki 17th Sept 2013 CEO Markus Ekberg Gold concentrate at Pampalo flotation circuit
  • 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 commencement of mining operations.
  • Company highlights 3  Pampalo Gold Mine construction completed in December 2010 on schedule and in line with the budget of €20 million  Gold production of 867 kg in 2012 within target of 800-900 kg for the year, with an average head grade of 4.0 g/tonne  The Company focuses on gold production in Pampalo Gold Mine and exploration of satellites along the Karelian Gold Line  All of the Company’s industrial mineral deposits have been divested or are undergoing divestment  The plant in Pampalo is centrally located in the Karelian Gold Line close enough to process ore from all the Company’s satellites in the area  The ore processing capacity has been increased from 270,000 tonnes/annum to 450,000 tonnes/annum in order to be ready to process ore from satellite mines along the Karelian Gold Line  Endomines runs an extensive exploration program along the KGL (~€1.5 million in 2013)  During 2011, the Company made an interesting discovery – the new Korvilansuo gold deposit. 2012 drillings returned unexpectedly good results and Korvilansuo is the main focus for exploration 2013  Exploration update 2013 – 61 holes drilled, 90% returned gold intersections  Endomines is convinced that the current exploration program will increase resources and reserves Operations in line with schedule Strict focus on gold going forward Well located plant with increased capacity Great exploration potential
  • 4 Endomines Group in brief A Swedish mining and exploration company with operations in Finland Listed on NASDAQ OMX Stockholm since 7 November 2012 (IPO on First North in 2007) Secondary listing in Helsinki May 2013 Gold concentrate production in Pampalo since February 2011 Exploration focused on Karelian Gold Line More distinct focus on gold going forward Ilmenite deposits divestment ongoing with Cove Resources Ltd Divestment of calcite deposits completed in November 2012 Gold production of 867 kg in 2012 (616 kg in 2011) in line with target of 800-900 kg Guidance for 2013 is 800-900 kg Proven and probable ore reserves total 1,4 Mt with an average gold grade of 3.9 g/t (5 500kg, 175 000 oz) gold Gold price hedged in December 2009 at €843/oz (~$1,200/oz) 63,400 oz (1,937 kg) remaining up to 2016 Endomines Oy Gold deposits Ilmenite deposits Endomines AB (publ.) Kalvinit Oy 24-Sep-13 Pampalo Karelian Gold Line Helsinki Ilmenite (ongoing divestment) Kivimaa Porkonen Finland Gold Industrial mineral
  • 2006 The Endomines group was founded through consolidation of Endomines Oy and Kalvinit Oy that both had been operating since the middle of the 1990’s SEK 85 million through two share issues 2007 SEK 87 million through share issue IPO on NASDAQ OMX First North 2012 Listing on NASDAQ OMX Stockholm 2009 Decision to start mine construction in October 2010 Pampalo Gold Mine project completed in December - on schedule and in line with budget 2011 Gold production in Pampalo commenced in February 616 kg gold produced 2009 SEK 287 million through rights issue, bank loan and government subsidy Gold production of 867 kg in 2012 in line with guidance of 800- 900 kg – guidance for 2013 is 800- 900 kg Processing capacity increase from 270,000 to 380,000 tonnes per annum – final permit expected during summer 2013 2006 Acquisition of Pampalo mining concession 2010 SEK 30 million through exercised warrants Successful track record 5
  • 7 The Endomines share Share price and trading development August 26, 2009 through August 26, 2013 24-Sep-13 USA 0,2% Endomines OMXSPI Market cap: ~ 500 MSEK, 67 MUSD Company shareholders as of July 31, 2013 *) Shareholder name Number of shares % FÖRSÄKRINGSAKTIEBOLAGET, AVANZA PENSION10 307 601 11,8% SVENSKA HANDELSBANKEN MARKETS 8 470 100 9,7% SUOMEN TEOLLISUUSSIJOITUS OY 6 372 227 7,3% YGGDRASIL AB 6 289 180 7,2% NORDEA BANK FINLAND ABP 4 407 155 5,0% ILMARINEN MUTUAL PENSION INSURANCE COMPANY3 400 000 3,9% NORDNET PENSIONSFÖRSÄKRING AB 2 878 658 3,3% LINDBORG, TIMO 2 340 056 2,7% **) ÅLANDSBANKEN AB, W8IMY 1 734 484 2,0% SKANDINAVISKA ENSKILDA BANKEN S.A., W8IMY 1 275 000 1,5% JPM CHASE NA 1 150 000 1,3% GOLDMAN SACHS INTERNATIONAL LTD, W8IMY 1 139 183 1,3% LIIKANEN, JAAKKO 1 120 892 1,3% **) WIP HAKKAPELIITAT SIJOITUSRAHAS 1 000 000 1,1% STRÖMMAN INTERNATIONAL AB 989 300 1,1% CBLDN-POHJOLA BANK PLC CLIENT A/C 925 556 1,1% SVEA EKONOMI AB 906 660 1,0% RUNESSON, PAULA 646 530 0,7% SEB LIFE INTERNATIONAL, ASS. COMPANY LIMITED 611 868 0.7% FRIENDS PROVIDENT INTERNATIONAL LTD 587 803 0,7% TRUSTOR AB 500 000 0.6% STAFFAN SIMBERG 500 000 0.6% **) CATELLA BANK S A 488 312 0.6% BANQUE CARNEGIE LUXEMBOURG SA 483 298 0.6% 58 523 863 67,0% Other shareholders 28 861 762 33,0% TOTAL 87 385 625 100,0% Extracted from Euroclear-Sweden **) Insiders, including indirect holdings: LINDBORG, TIMO 2 340 056 2,7% LIIKANEN, JAAKKO 1 120 892 1,3% SIMBERG STAFFAN 500 000 0,6% Other insiders 82 380 0,1% TOTAL INSIDER HOLDINGS 4 043 328 4,6% Complete insider list is available on www.fi.se
  • Pampalo in brief 8 Gold mine and processing plant centrally located in the Karelian Gold Line Discovery in 1990 by Geological Survey of Finland Intensive exploration and test mining by Outokumpu Oyj between 1995 and 1999 Endomines acquired Pampalo from Dragon Mining NL (Australia) in 2006 Total investment of €20 million in line with the budget Commercial production commenced in February 2011 as scheduled The plant produces two types of concentrate – gravimetric and flotation Plant capacity expansion has been completed – annualized 380 - 420 000 tpa Currently employing 80 own and 30 contractors – 70 percent locals
  • Pampalo production development 10 All long term strategic plans have been carried out consistently and successfully, on schedule as well as within the budget *) Endomines calculates ”Cash Cost” per ounce figures using the guidance issued by The Gold Institute Production Cost Standard. Direct mining, ore processing and site administration, and off-site smelting and refining costs are included in the ”Cash Cost” calculation, but amortization, stock change, reclamation, capital and exploration costs are excluded. The ”Cash Cost” is calculated per payable ounces Gold produced and Cash Cost Ore mined and processed 0 200 400 600 800 1000 1200 0 50 100 150 200 250 300 Gold production kg Cash Cost Rolling 12 months (USD/oz) *) 0 20 000 40 000 60 000 80 000 100 000 120 000 Mining Processing
  • S-3 depth 755m 2,55m@4,3g/t S-1 depth 570m 6,8m @4,64 g/t P-53 depth 330m 8,95m@3,36g/t R-349 depth 220m 12,5m@7,67g/t Pampalo East Pampalo Gold Mine Pampalo Deeps – exploration potential Decline down to 400 m Area to be explored Area to be explored
  • Pampalo mining principle Backfilling Raise Drifting Charging RC loading Long hole drilling Ore 20 m Diamond drill holes with assays Cross section Blasting rings Horisontal pillar Unconsolidated backfill Cable bolt holes for ground support CRF Longitudinal projection
  • Pampalo processing Feeder Crusher ore stockpile Trucking Grinding mill Classification Gravimetric circuit Gravimetric concentrate 20-50 % Au Flotation concentrate ~4-6 000 t/a; 100-200 g/t Au Coarse fraction Fines Tailings Storage Facility Mine Drainage Water Classification Crusher • No cyanide or acid used • No harmful material in tailings • No Acid Mine Drainage (AMD) • 100 % water recirculation 4th Sept 2012 Flotation
  • 15 Strong focus on Health-Safety-Environment 29-Apr-11 Average LTIFR in Finnish mining industry was 25 for the period 2008-2011 Own personnel 147 accident free days Contactors 530 accident free days 0 10 20 30 40 50 60 LTIFR LTIFR= accident number / 1 000 000 working hour Pampalo safety statistics - LTIFR Endomines Contractors Total
  • Environmental permit end Regional Environmental Impact Assessment 16 Local authorities have informed that Pampalo processing plant capacity increase to 380,000 tonnes/annum has no effect on the current environmental permit Pampalo environmental permit renewal and capacity increase application (up to 450,000 tonnes) was filed in February 2012 Endomines expects a decision on the environmental permit renewal late 2013 Regional Environmental Impact Assessment has been filed in June with a view to start production from satellite deposits along the Karelian Gold Line Rämepuro environmental permit application filed June 2013 Hosko will follow Nett rain water Seepage water Discharge water - max 5% of the receiving watercourse Receiving watercourse Decaying wood area Catchment area Waste rocks to be used as backfilling material – Reforested Reforested 0 5 10 15 20 25 mg/l Solids Actual Limit No discharge 13.2.-12.5.2013
  • 20 Strong Social Licence to operate 29-Apr-11 Several mines have had environmental challenges in Finland during last year / months But not Endomines or Pampalo !!! Clean discharge waters No cyanide, no acids, 75% local employees, 50% trained by Endomines Supporting local community: Pampalo Gold Run Endomines Three year Scholarship for University Geology or Mining Technical studies Supporting local village association Orthodoxian Church Sporting activities etc
  • 21 Strong Social Licence to operate 29-Apr-11 Several mines have had environmental challenges in Finland during last year / months But not Endomines or Pampalo !!! 75% local employees, 50% trained by Endomines Supporting local community: Pampalo Gold Run Endomines Scholarship Supporting local village association
  • Southern CrossKarelian Gold line 20 km Analogous Archean Geology in Karelian Gold Line and Southern Cross Belt Australia Karelian Gold Line compared to Australian Southern Cross Belt 24 Gold exploration and production summary Units Ilomantsi (Karelian Gold Line) Central Southern Cross Belt length km 90 110 Belt width km 0.5–10 0.5–15 Claims coverage % <20 100 Gold exploration since year 1986 1888 Gold produced total oz 40 000 >10,000,000 Gold produced in 2008 oz 0 157 147 Gold mines in production 1 4 Known reserves & resources oz 350 000 >2,000,000 Ilomantsi vs. Southern Cross greenstone belt Data compiled by GSF / Dr P Eilu
  • The Karelian Gold Line 40 km 90 km long belt of gold mineralizations, of which more than 40 km is controlled by Endomines Archean greenstone belt Mineral rights for 132 km2 claims and reservations 23 known gold showings 2 mining concessions granted 5 mining concessions applied Active exploration ongoing The processing plant in Pampalo is within trucking distance from all of Endomines’ deposits along the Karelian Gold Line
  • The Karelian Gold Line – development strategy 1990- 2009 Pampalo Gold Mine Construction Production Capacity expansion Mine site exploration Karelian Gold Line Exploration Satellite deposit core drilling Satellite production Rämepuro Hosko test pit Geophysical helicopter survey Target generation Korvilansuo Areal Exploration drilling Geochemical surveys 2009 2010 2011 2012 2013
  • Exploration plan 2013 Mining 2013 exploration volume will be doubled Core drilling contractors secured Personnel recruited Laboratories “warned” Korvilansuo area main target: Bedrock samples indicate a large scale gold mineralization Possibilities for a large, open pittable deposit Main target for future exploration Mineral rights approved or under application Distance to Pampalo plant 15- 20 km along paved road Textbook example of orogenic gold deposits: Kuittila tonalite Archaen greenstone belt Muurinsuo 1 Mt@1,7 g/t Korvilansuo(Muurinsuo)-area 2013: - 12 000 m core drilling - CONTINUES - Trenching - Metallurgical testwork - COMPLETED - Geochemical sampling Rämepuro 2013: - 2 000 m core drilling - 20 000 t test mining and processing - STARTED Hosko: - 1 000 m core drilling - 500 t test mining and processing - COMPLETED Korvilansuo 0.25 Mt@2g/t Kuittila 0.275 Mt@2,6g/t
  • Pampalo potential Production 3 083kg (99 120 oz) Remaining 990 000 t @ 3,5 g/t 3483 kg (112 000 oz)] Resources 310 000 t @ 1,9 g/t 590 kg (18 900 oz)] Lenses open down dip, lateral exploration potential S-3 depth 755m 2,55m@4,3g/t S-1 depth 570m 6,8m @4,64 g/t P-53 depth 330m 8,95m@3,36g/t R-349 depth 220m 12,5m@7,67g/t Pampalo East Exploration on going Area to be explored
  • Pampalo Gold Bar ENDOMINES – READY FOR RESPONSIBLE GROWTH