Stortjärnhobben mining project

Stortjärnhobben is located 4 km southeast of the village of Grundfors in the municipality of Storuman. The distance to Fäboliden is 65 km on accessible roads. Stortjärnhobben is owned by the fully owned subsidiary Lappland Guldprospektering AB.

The gold mineralization at Stortjärnhobben was discovered in outcrops through boulder tracing in1988. Following this, diamond drilling was carried out from 1997 to 2006 in several phases with a total of 52 drill holes and 5,950 m. The drilling was made more difficult due to inaccessible terrain and strict environmental requirements. The results from the exploration are also difficult to interpret. Drilling has indicated a 750 m long gold mineralized zone with occasional high gold grades. Visible gold appears as small grains in brecciated volcanics with skarn, albite, carbonate and quartz alteration together with arsenopyrite.

On February 12 the company obtained an exploitation concession of 22 hectares for Stortjärnhobben. The permit has been appealed by the Saami Village of Vapsten, and is with the government for review.

The plans for Stortjärnhobben include continued exploration of the gold mineralized zone from underground positions with diamond drilling, to delineate the occurrence of gold and to present mineral resources and reserves. Bench top concentrating trials have been completed on drill cores and indicate a possible gold recovery of 90% at a processing cost of SEK 30-35 per ton of ore.



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