GOTHENBURG, Sweden, July 19, 2005 (PRIMEZONE) -- Riddarhyttan Resources:
-- A new estimate using 2.0 g/t as cut off and parameters from a
variography study shows that the mineral resources in Central
Suurikuusikko (Finland) are:
-- 2.5 Mt (measured category) grading 6.2 grams of gold per
tonne (0.50 million ounces).
-- 9.3 Mt (indicated category) grading 5.1 grams of gold per
tonne (1.53 million ounces).
-- 12.5 Mt (inferred category) grading 4.2 grams of gold per
tonne (1.70 million ounces).
-- New drill holes confirm that the recently discovered high grade
part of the Central Rouravaara Zone is of a significant size.
-- 20.9 m core section (true width approx. 12.5 m) grading 5.0
grams of gold per tonne at a depth of 350 m (drill hole
SUBH 05034).
-- 15.2 m core section (true width approx 9.5 m) grading 6.4 grams
of gold per tonne at a depth of 200 m (drill hole SUBH 05023).
-- New drill holes increase and upgrade the resources in the Main Deposit.
Eastern Zone
-- 9.2 m core section (true width approx. 5.7 m) grading 8.1 grams of gold per tonne at a depth of 380 m (drill hole SUBH 05017). -- 9.4 m core section (true width approx. 6.5 m) grading 7.2 grams of gold per tonne at a depth of 280 m (drill hole SUBH 05022).
Western Zones
-- 11.1 m core section (true width approx. 7.5 m) grading 7.5
grams of gold per tonne at a depth of 600 m (drill hole
05030).
-- 8.8 m core section (true width approx. 6.0 m) grading 7.9
grams of gold per tonne at a depth of 430 m (drill hole SUBH
05010).
-- 14.9 m core section (true width approx. 10.4 m) grading 4.5
grams of gold per tonne at a depth of 450 m (drill hole SUBH
05010).
For figures and tables, please see attached complete press release.
NEW TONNAGE AND GRADE CALCULATION
To elucidate the criteria for classifying tonnage in Central Suurikuusikko in different categories (measured, indicated and inferred respectively) a variography study has been carried out by the external consulting firm Reserva International LLC, USA (press releases 2005-04-18 and 2005-06-01).
The parameters(a) suggested by the variography study have been used for classifying the resources in a new calculation of tonnage and grades carried out by two external consultants(b) (table 1). The results of all drill holes in Central Suurikuusikko up to the beginning of July 2005 are included in the calculation.
Using a cut-off of two grams of gold per tonne, the measured mineral resources are estimated to 2.5 Mt grading 6.2 grams of gold per tonne (0.50 million ounces). Indicated mineral resources amount to 9.3 Mt grading 5.1 grams of gold per tonne (1.53 million ounces) and inferred mineral resources amounts to 12.5 Mt grading 4.2 grams of gold per tonne (1.70 million ounces).
The latest published mineral resource estimation, using previous parameters(c) and a cut off of two grams of gold per tonne, was published in June 1, 2005 (press release 2005-05-01). It showed an indicated tonnage of 10.4 Mt grading 5.8 grams of gold per tonne (1.95 million ounces) and an inferred tonnage of 7.3 Mt grading 4.5 grams of gold per tonne (1.06 million ounces).
If a one gram per tonne cut-off is used in the new calculation, the measured mineral resources are 2.8 Mt grading 5.7 grams of gold per tonne (0.52 million ounces). Indicated mineral resources amount to 11.4 Mt grading 4.4 grams of gold per tonne (1.63 million ounces) and the inferred mineral resources amount to 14.1 Mt grading 3.9 grams gold per tonne (1.78 million ounces).
A calculation using four grams of gold per tonne as cut off has also been carried out. It resulted in 1.6 Mt measured mineral resources grading 8.0 grams of gold per tonne (0.42 million ounces), 4.8 Mt indicated mineral resources grading 7.1 grams of gold per tonne (1.11 million ounces) and 4.8 Mt inferred mineral resources grading 6.3 grams of gold per tonne (0.97 million ounces).
PRELIMINARY FEASIBILITY STUDY
The Board of Riddarhyttan decided in December 2004 to begin the work with a feasibility study (press release 2005-04-18). Heino Alaniska is responsible for the mining part (open pit and underground) of the study while Thomas Lindholm is responsible for the process and water treatment parts. As Riddarhyttan and Agnico-Eagle have signed a technical service agreement, resources from Agnico-Eagle, as well as from several external consulting firms are involved in the study.
The first, preliminary phase of the feasibility study was planned to be ready during the summer. It has, however, been delayed partly because some of the sub-projects (press release 2005-04-18) have taken longer time than expected and partly due to changing geometry (positive results) of the deposit which will result in more drilling to upgrade the resources and require revision of the study. The goal is to have the preliminary feasibility study completed during the 3rd quarter of the year.
The preliminary feasibility study will be based on the resource calculation presented in this report. As inferred resources not are allowed to be included in a feasibility study it should be underlined that only the parts of the measured and indicated resources which are considered to be mineable will be included in the ongoing study.
EXPLORATION RESULTS
The Northern Rouravaara zone, which can be followed from section 7537800 to section 7538500 (700 metres), constitutes a direct continuation of the Central Rouravaara Zone (figure 1). It consists of three sub-zones (A, B, and C). The most significant one is the B sub-zone.
Drill hole SUBH 05033 was drilled in section 7538500 (figure 1) to test the depth extension of the Northern Rouravaara Zone. At a depth of approximately 400 metres it intersected the gold-bearing B sub-zone. The mineralized core section, which is 2.8 metres long (corresponds to approx. 2.2 metres true width), has a gold grade of 7.7 grams per tonne (table 2). The drill hole intersected also the A sub-zone which, at a depth of 440 m, is approx. 2.1 metres wide (core section 2.6 metres) and grades 2.5 grams of gold per tonne.
The Central Rouravaara Zone constitutes the direct continuation of the Kuukkeli Zone wherefrom it can be followed approximately 550 metres northwards to the Northern Rouravaara Zone (figure 1).
Drill hole SUBH 05023 (section 7537605) was drilled to test the extension of the high grade part of the Central Rouravaara Zone towards the surface (figure 1). At a depth of approx. 200 metres it intersected the mineralized zone represented by a 15.2 metres core section (true width approx. 9.5 metres) grading 6.4 grams of gold per tonne (table 2). If adjacent lower grade sections are included the mineralized core section is 19.7 metres (approx. 12.0 metres true width) grading 5.5 grams of gold per tonne.
Drill hole SUBH 05034 was also drilled in section 7537605 to test the high grade part of the Central Rouravaara Zone. At a depth of approximately 350 metres it intersected the mineralized zone which at this position is approx. 12.5 metres wide (20.9 metres core section) and grades 5.0 grams of gold per tonne (figure 1 and table 2). The mineralized core section includes two sub-sections with higher grades: 10.7 metres grading 6.1 grams of gold per tonne and 5.1 metres grading 6.9 grams of gold per tonne respectively. If adjacent low-grade mineralization is included the gold-bearing core section is 55.4 metres (true width approx. 33.0 metres) grading 3.9 grams of gold per tonne.
Drill hole SUBH 05021 (section 7537700) was drilled to test the northern continuation of the higher grade part of the Central Rouravaara Zone. At a depth of approx. 220 metres the drill hole intersected several narrow mineralized zones which probably constitute the northern continuation of the Eastern Zone in the Main Deposit. The widest of these is approx. 2.3 metres (core length 3.8 metres) with a gold grade of 1.5 grams per tonne. At 290 metres depth the drill hole intersected a gold-bearing zone which corresponds to the high grade mineralization further to the south (the Central Rouravaara Zone). At this position (figure 1) it is only 2.0 metres wide and low-grade (3.0 metres core section grading 2.8 grams of gold per tonne). At a depth of approximately 325 metres the drill hole intersected another couple of mineralized zones probably representing a northerly continuation of the Western Zone. The widest of these is approx. 3.5 metres (5.2 metres core length) with a gold grade of 2.2 grams per tonne.
Drill hole SUBH 05031 (section 7537800) was also drilled to test the continuation to the north of the higher grade part of the Central Rouravaara Zone (figure 1). It intersected only a narrow low-grade mineralized zone (0.6 metre core length grading 1.0 grams of gold per tonne).
The Main Deposit has been defined as the gold-bearing zones between section 7535800 and section 7537300. More than 80 percent of the estimated gold-bearing resources are located in these zones which -with minor interruptions- can be followed approximately 1,500 metres in the strike direction. The Main Deposit is characterized by several gold-bearing zones, the following being the largest and richest: the Western Zones, the Central Zone, the Kuukkeli Zone, the Eastern Zone and the Southern Rouravaara Zone.
Drill hole SUBH 05008 was drilled in section 7536020 to test a low grade mineralization south of the higher grade part of the Central Zone (figure 3). At a depth of approximately 180 metres it intersected the Eastern Zone (figure 2) which at this position is approx. 3.0 metres wide (core section 4.0 metres) with a gold grade of 2.7 grams per tonne (table 2). The Central Zone was intersected at a depth of 230 metres (figure 3). It is represented by a 2.9 metres core section (true width approx. 2.0 metres) grading 2.8 grams of gold per tonne. The Western Zone, which was intersected at a depth of 310 metres, is represented by a 0.5-metre core section grading 2.6 grams of gold per tonne (figure 4 and table 2).
Drill hole SUBH 05010 (section 7536545) was drilled to test the mineralized zones in the Main Deposit. At a depth of 180 metres it intersected a narrow (2.0 metres core section) gold-bearing zone grading 5.2 grams of gold per tonne. The Eastern Zone, intersected at a depth of 340 metres, is represented by a 7.1-metre core section (true width approx. 4.5 metres) grading 3.3 grams of gold per tonne (figure 2 and table 2). At a depth of 400 metres the drill hole intersected the Central Zone which, at this position, is approx. 8.9 metres wide (13.5 metres core section) and has a gold grade of 3.2 grams per tonne (figure 3). The drill hole also intersected the Western Zone 2. At a depth of 430 metres in this section it is represented by an 8.8-metre core section (true width approx. 6.0 metres) grading 7.9 grams of gold per tonne. Also the Western Zone was intersected by the drill hole. At a depth of 450 metres it has a width of approx. 10.4 metres (figure 4). The drill core representing the mineralized zone is 14.9 metres grading 4.5 grams of gold per tonne. It includes two sub-intervals with higher grades: 5.0 metres grading 7.3 grams of gold per tonne and 3.7 metres grading 5.9 grams of gold per tonne.
Drill hole SUBH 05017 was drilled in section 7536865 primarily to test the Eastern Zone and the Central Zone. It intersected a narrow mineralized zone (1.5 metre core length grading 6.8 grams of gold per tonne) 330 metres below the surface. At a depth of 380 metres it intersected the Eastern Zone which at this position has a width of approx. 5.7 metres (9.2 metres core length) and a gold grade of 8.1 grams per tonne (figure 2 and table 2). The Central Zone, intersected at a depth of 410 metres, has a width of approx. 7.5 metres (11.8 metres core section) and a gold grade of 4.2 grams per tonne (figure 3). The Western Zone (figure 4) was intersected at a depth of 430 metres at which it is narrow (0.8 metre core section grading 6.7 grams of gold per tonne).
Drill hole SUBH 05022 was drilled in the same section (7536865) to test the Eastern Zone and the Central Zone. It intersected the Eastern Zone (figure 2) at a depth of 280 metres at which it is approx. 6.5 metres wide (9.4 metres core section) with a gold grade of 7.2 grams per tonne. The Central Zone was intersected at 300 metres depth (figure 3). It has a gold grade of 3.3 grams per tonne and a width of approx. 8.2 metres (11.6 metres core length). The Western Zone was not recognized in the drill core.
Drill hole SUBH 05018 was drilled in next section to the south (7536825) to test the Eastern Zone and the Central Zone at deeper levels. At a depth of approx. 400 metres it intersected a narrow mineralized zone (1.2 metre core length grading 5.5 grams of gold per tonne). The Eastern zone, intersected at a depth of approximately 550 metres, consists of several low-grade and narrow sub-zones (figure 2 and table 2). At a depth of 620 metres the drill hole intersected the Central Zone which at this position is approx. 3.2 metres wide (6.2 metres core section) and has a gold grade of 2.6 grams per tonne. The Western Zone was intersected 670 metres below the surface. It consists of several narrow sub-zones. The widest of these is approx. 1.9 metre (3.4 metres core section) with a gold grade of 3.9 grams per tonne (figure 4).
Drill hole SUBH 05030 was drilled to test the depth extension of the mineralized zones in section 7536985. At a depth of 560 metres it intersected the Eastern Zone which at this position is approx. 8.7 metres wide (13.5 metres core section) and has a gold grade of 4.1 grams per tonne (table 2). The Central Zone was intersected at a depth of 580 metres at which it is represented by a 5.3 metres mineralized core section (true width approx. 3.5 metres) grading 5.3 grams of gold per tonne. At a depth of 600 metres the Western Zone was intersected (figure 4). At this position it has a width of approx. 7.5 meters (11.1 metres core section) and a gold grade of 7.5 grams per tonne. If adjacent low-grade mineralization is included the gold-bearing core section is 16.5 meters grading 5.5 grams of gold per tonne. The drill hole also intersected several narrow low-grade mineralized zones at a depth of approx. 625 metres (table 2).
http://hugin.info/86971/R/1002892/153903.pdf
OTHER INFORMATION
The technical basic data in this press release has been compiled by Lars-Goran Ohlsson and Thomas Lindholm (Riddarhyttan Resources AB) who by SveMin, Foreningen for gruvor, mineral och metallproducenter, are registered as "Qualified Persons".
All analyses have been carried out by GTK's laboratory (accreditation code T025).
This document is a translation of the original Press release in Swedish. In case of divergence, the Swedish version shall have precedence.
Riddarhyttan Resources AB is an exploration company with occurrences of precious metals in the Nordic Region of Europe. The primary business idea is, by means of exploration and acquisition acquire new occurrences, which through detailed exploration can be advanced to economic resources. At the Suurikuusikko deposit (Finland), which is Riddarhyttan's most advanced project measured mineral resources are estimated to 2.5 Mt grading 6.2 grams of gold per tonne (0.50 million ounces), indicated mineral resources amount to 9.3 Mt grading 5.1 grams of gold per tonne (1.53 million ounces) and inferred resources are estimated to 12.5 Mt grading 4.2 grams of gold per tonne (1.70 million ounces), (cut off 2 g/t).