Skiftesmyr and Godejord

Accomplishments
Skiftesmyr and Godejord have passed the exploration stage, based on previous work by Outokumpu, NGU, Braddick Resources Ltd., and MetPro. This work included geochemistry, geophysics and diamond drilling. The drilling included 121 holes, covering more than 17,100 meters. The exploration permits expire in 2017. MetPro has reached the stage of updating the reserve estimation, and is just about to enter the stage of mine planning. Due to thorough documentation, the step to enter the stage of mine planning can be accomplished fast.

Skiftesmyr and Godejord are well documented. Firstly, Outokumpu described the geological settings and resources and prepared detailed mining plans in 1992. Secondly, the Braddick pre-feasibility study from 1996 was complete, describing all pertinent information, required in a pre-feasibility study. It included the description of the geological settings with calculated ore resources and reserves. It also described the mining plan, the processing of the ore, costs, financials, conclusions and recommendations.

Project schedule
Important measures at the end of 2010/the beginning of 2011 include an upgrading by Braddick Resources of their pre-feasibility study from 1996. Also, data auditing, according to NI 43-101, is planned for 2010-2011 by external consultants, such as GeoVista. The main objective of the upgrade of the pre-feasibility study is to validate estimated volumes and grades, based on current metal prices and in accordance with NI 43-101.

Furthermore, MetPro aims at increasing the number of exploration permits in Grong. A feasibility study is planned to be completed in the first half of 2012.

The project schedule for 2011-2014, prior to the start of the production in the second half of 2014, reaching full production as of 2015, includes:

• Firstly the compilation of all relevant plans. Exploration, mining and processing, environmental impact assessment, etc.
• Secondly necessary permits have to be obtained:
  • Pilot extraction permit
  • extraction permit
  • environmental/discharge permit
  • building permit
  • operating licence

Furthermore, tests, exploration activities as well as the construction of the mine and the processing plant need to be carried out.

• Pilot processing tests
• Production tests.

Important exploration activities in 2012-2014 include;

• an electromagnetic geophysical helicopter survey, covering an extended area in order to prioritise areas/anomalies prior to additional diamond drilling,
• potential additional drilling after the upgrade of the Braddick pre-feasibility study in order to upgrade the resources from inferred reserves,
• drilling two holes in Skiftesmyr, intersecting the ore horizon 400 meters below surface in order to confirm a potential additional reserve of 700,000 tons, and
• a diamond drilling program, consisting of 1,500 meters of cores in Godejord.

Skiftesmyr and Godejord project schedule to full production in 2015

(Source: Braddick Resources Ltd., 1996. Clickable graphics)

The mining and processing plan will be outlined, based on Braddick’s pre-feasibility study from 1996 and on the mining plan by Outokumpu from 1992. It will include recent development in underground mining methods, technical solutions and equipment.

According to Outokumpu/Grong Gruber’s mining plan, the main adits to the mining areas will be driven as declined access ramps down to the production levels, ranging from 30 meters to 400 meters below surface. At each level, horizontal drifts are planned to be constructed along the strikes to the cut-off end of the mineralization. The ore will, according to plans, be extracted from open stopes and most probably be loaded directly on mining trucks for transport to the coarse crusher, (the first stage of the mill), enabling low-cost mining. Long-hole drilling and blasting will, according to plans, be carried out from sub-level drifts in the ore body.

The process plan of Braddick’s pre-feasibility study, regarding the mill, is expected to be the foundation of a revised process plan, including current technological solutions and equipment. The process, outlined by Braddick, was based on pilot tests of ore from Skiftesmyr and Godejord. The mill will most probably be based on crushing, grinding and flotation.