Copyright © 2019. Inderes Oy. All rights reserved.

Endomines AB, stock exchange release 3 March 2020 at 08:30 CET

Endomines is pleased to announce its 2020 gold resource estimate for its Pampalo mine and the resources along the Karelian Gold Line in Finland, as of 31 December 2019, and the gold resource estimates for its gold projects in Idaho, USA.

Gold resources at the Pampalo mine and resources along the Karelian Gold Line in Finland

The Pampalo mine has been on care and maintenance since October 2018.Therefore mineral resources at Pampalo have remained unchanged. The Pampalo Deep Zone has indicated resource totaling 16,610 ounces gold contained in 101,500 tonnes mineralized material, as well as an additional inferred resource of 20,340 ounces gold contained in 118,125 tonnes mineralized material. The gold price in 2018 did not yet justify the capital investment required to advance the decline to access the resource. Because of the current higher gold price, a possible development of the Deep Zone is being evaluated by the company.

There have been no changes in the reported mineral resources for other deposits along the Karelian Gold Line. An update and validation of the other mineral resource estimates is targeted for 2020. The update will reflect increased geological understanding of the deposits and changes in the current market conditions.

The estimates for the Pampalo mine and the resources along the Karelian Gold Line in Finland have been prepared according to the 2012 Australasian Code for Reporting of Mineral Resources and Ore Reserves (Joint Ore Reserve Committee - JORC-code).

Gold resources in Idaho, USA

During 2019, Endomines continued to improve its understanding of the Idaho gold projects that the Company acquired in February 2018. Endomines is working on further development of its Friday Underground mine and to convert a portion of the estimated measured and indicated resource totaling 97,200 ounces gold contained in 462,000 tonnes mineralized material, as well as an additional inferred resource of 46,700 ounces gold contained in 296,000 tonnes mineralized material.

In 2018, the historic data and information for the Buffalo Gulch project was validated and converted to a measured and indicated mineral resource of 114,700 ounces gold contained in 6.745 million tonnes mineralized material. Similar conversion of the historic resources at Deadwood are also targeted. Additionally, the Company is working toward developing mineral resource estimates for its Kimberly and Rescue projects through exploration programs targeting known high-grade gold and silver vein systems.

The mineral resources currently quoted regarding the Deadwood, Rescue, and Kimberly exploration projects, are per definition historical, made before the introduction of today's disclosure standards. Endomines cautions that while the presented historic resources for Kimberly, Rescue, and Deadwood appear to be in general accordance with those set out in NI 43-101 Sections 1.2 and 1.3, a qualified person has not done sufficient work to classify the historical estimates as current mineral resources, and Endomines is not treating the historical estimates as current or reliable.

The mineral resources reported for the Friday Underground and Buffalo Gulch projects in Idaho, USA, are classified in accordance with standards defined by Canadian Institute of Mining, Metallurgy and Petroleum ("CIM"), "CIM Definition Standards - For Mineral Resources and Mineral Reserves", prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on May 10, 2014.

There have been no changes in the reported mineral resources for other deposits at the Idaho projects. An update and validation of mineral resource estimates is targeted for 2020. The update will reflect increased geological understanding of the deposits and changes in the current market conditions.

Table 1. Mineral resources at Pampalo and the Karelian Gold Line in Finland:

Mineral Resources  
- Karelian Gold
Line, Finland
(status Dec 31,
2019)
Deposit Tonnes Grade Oz kg Classification Prepared by  
Au
g/t
Pampalo Resources                
Pampalo Deep 101 5,1 16 517 Indicated Endomines (1)  
500 610
Pampalo East 229 1,8 12 401 Indicated Endomines (2)  
000 900
Pampalo NW 29 000 2,5 2 28 71 Indicated Endomines (3)  
0
Pampalo Indicated 359 2,8 31 989 Indicated Endomines    
Total 500 790
Pampalo Deep 118 5,36 20 633 Inferred Endomines (1)  
125 340
Pampalo D-zone 164 1,9 9 91 308 Inferred Endomines (1)  
110 0
Pampalo East 62 000 1,4 2 79 87 Inferred Endomines (2)  
0
Pampalonlammit 103 1,8 5 96 185 Inferred Endomines (3)  
000 0
Pampalo Inferred 447 2,7 39 1 21 Inferred Endomines    
Total 235 000 3
Karelian Gold              
Line Resources
Hosko 35 000 4,1 4 56 142 Measured Geoconsulting (4)  
0 Parkkinen
Hosko 675 1,2 25 801 Indicated Geoconsulting (4)  
000 760 Parkkinen
Muurinsuo 354 1,9 22 687 Indicated Endomines (6)  
000 080
Kuivisto East 37 000 3,2 3 81 118 Indicated MAPTEK    
0
Karelian Measured 1 101 1,6 56 1 74 Measured +    
+ Indicated Total 000 210 8 Indicated
Hosko 240 0,8 6 02 187 Inferred Geoconsulting (4)  
000 0 Parkkinen
Rämepuro 136 2,3 9 93 309 Inferred Geoconsulting (5)  
000 0 Parkkinen
Muurinsuo 231 1,4 10 323 Inferred Endomines (6)  
000 400
Kuivisto East 145 1,0 4 66 145 Inferred MAPTEK    
000 0
Kuittila 275 2,6 22 715 Inferred GSF,    
000 990 historical
Korvilansuo 256 2,0 16 512 Inferred Outotec (7)  
000 460 (Finland) Oy
Karelian Inferred 1 283 1,7 70 2 19 Inferred      
Total 000 460 1
 
Mineral resources  
estimated
according the
JORC-code (except
Kuittila), all
figures
independently
rounded.
Mineral Resources  
are reported
inclusive of Ore
Reserves.
 
(1) Cut-off 1,5  
g/t; top cut 10
-20 g/t gold
(2) Cut-off 0,5  
g/t; top cut 7
g/t gold
(3) Cut-off 0,5  
g/t; top cut 10
g/t gold
(4) Cut off 0,5  
g/t; top cut
11g/t (low grade
domain) or 50 g/t
gold (high grade
domain)
(5) Cut-off 0,5  
g/t, top cut 40
g/t gold
(6) Cut-off 0,5  
g/t, top cut 10
g/t gold
(7) Cut-off 0,5  
g/t gold; no top
cut
Troy ounce =  
31,1035 g  
                                     

Table 2. Mineral resources in Idaho, USA

Mineral  
Resources -
Idaho, USA
(status Dec
31, 2019)
Deposit Tonnes Grade Oz Kg Classification Prepared by  
Au
g/t
Friday              
Resources
Measured 245 6,88 54 1 68 Measured Hard Rock (1,2)
000 200 6 Consulting
Indicated 217 6,16 43 1 33 Indicated Hard Rock (1,2)
000 000 7 Consulting
Measured + 462 6,54 97 3 02 M+I Hard Rock (1,2)
Indicated 000 200 3 Consulting
Inferred 296 4,91 46 1 45 Inferred Hard Rock (1,2)
000 700 3 Consulting
Buffalo              
Gulch
Resources
Measured 3 515 0,57 64 2 01 Measured Hard Rock (1,3,4)
000 800 6 Consulting
Indicated 3 230 0,48 49 1 55 Indicated Hard Rock (1,3,4)
000 900 2 Consulting
Measured + 6 745 0,53 114 3 56 M+I Hard Rock (1,3,4)
Indicated 000 700 8 Consulting
Inferred 2 128 0,38 25 799 Inferred Hard Rock (1,3,4)
000 700 Consulting
Historic              
Resources
Rescue 67 000 21,35 45 1 43 Historic Kimberly (5)
980 0 Mines,
(2004)
Kimberly 261 19,18 160 5 00 Historic Laczay, (5)
000 930 5 (2010)
Deadwood 2 375 0,77 58 1 82 Historic BEMA Gold (5)
000 601 3 Corporation
(1989)
Historic 2 703 3,06 265 8 25     (5)
Total 000 511 8
                 

   *Notes:  
(1) Measured, Indicated and Inferred mineral classifications are assigned
according to CIM Definition Standards. Mineral resources, which are not
mineral reserves, do not have demonstrated economic viability and there is no
guarantee that mineral resources will be converted to mineral reserves.
Mineral resource tonnage and contained metal have been rounded to reflect the
accuracy of the estimate, and numbers may not add due to rounding.
 
(2) The mineral resource estimate was prepared by HRC based on data and
information available as of March 1, 2016. The Measured, Indicated and
Inferred mineral resources are reported considering a base case estimate that
applies a cutoff grade of 3.4 g/t Au based on the estimated operating costs,
recoveries, and a $1,300/oz gold price.
 
(3) The mineral resource estimate was prepared by HRC based on data and
information available as of December 10, 2017. The Measured, Indicated and
Inferred mineral resources are reported considering a base case estimate that
applies a cutoff grade of 0.14 g/t Au based on the estimated operating costs,
recoveries, and a $1,300/oz gold price.
 
(4) Mineral Resources captured within the pit shell meet the test of
reasonable prospect for economic extraction and can be declared a Mineral
Resource. Pit optimization is based on assumed gold price of US$1,300/oz. and
mining, processing and G&A costs of US$15.20 per ton processed Metallurgical
recoveries for gold are 90%.
 
(5) Endomines caution that while the historic resources presented appear to be
in general accordance with those set out in NI 43-101 Sections 1.2 and 1.3, a
qualified person has not done sufficient work to classify the historical
estimate as current mineral resources, and Endomines is not treating the
historical estimate as current nor reliable.
 
Troy ounce = 31.103

The announced mineral resource update for the Finnish projects has been reviewed and approved by Eurogeologist Jani Rautio MSc (Geol) acting as a Qualified Person in compliance with the Fennoscandian Association for Metals and Mining Professionals, FAMMP, -standards. Jani Rautio is a full-time employee of Endomines.

The Independent Qualified Person for the mineral resource estimates for the Friday Underground and Buffalo Gulch projects is Zachary Black, SME-RM. Zachary Black is a full-time employee of Endomines. Technical reports for the Friday Underground Project and the Orogrande Open Pit Project were completed December 12, 2017.

 
Contact person
Greg Smith, CEO, +44 7717 880 923, [email protected]

This information is information that Endomines AB is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication through the contact person set out above at 08:30 CET on 3 March 2020.

 
About Endomines
Endomines is a mining and exploration company with its primary focus on Au. The Company operates a Gold mine in Pampalo, has exploration activities along the Karelian Au Line in Eastern Finland and develops mining operations in Idaho, USA. Endomines aims to improve its long-term growth prospects by increasing its exploration activities and through acquisitions. Endomines aims to acquire deposits that are situated in stable jurisdictions and can be brought to production rapidly with limited investments.

The shares trade on Nasdaq Stockholm (ENDO) and Nasdaq Helsinki (ENDOM).

Endomines on kaivos- ja malminetsintäyhtiö, jonka ensisijainen painopiste on kulta. Yhtiö harjoittaa malminetsintää Karjalan kultalinjalla Itä-Suomessa. Lisäksi yhtiö on käynnistämässä kaivostoimintaa Yhdysvaltain Idahossa. Yhtiö pyrkii parantamaan pitkän aikavälin kasvumahdollisuuksiaan tehostamalla malminetsintäänsä sekä yritysostoin. Endominesin tavoitteena on hankkia poliittisesti vakailla alueilla olevia esiintymiä, jotka on mahdollista saada tuotantoon nopeasti ja rajoitetuin investoinnein.