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Rajapalot Gold-Cobalt Project PEA

The Rompas-Rajapalot property consists of five granted exploration permits for 5,725 hectares and eight exploration permit applications for a combined total of 17,989 hectares. The property is located in Lapland, northern Finland, close to the Arctic Circle approximately 35 kilometres west-southwest of the city of Rovaniemi.

Access to site is by standard vehicle on tar sealed roads and well-maintained gravel roads. The topography is gently rolling to almost flat, heavily glaciated and inundated with numerous post-glacial lakes, till, eskers, lacustrine and fluvial deposits with a mean elevation of approximately 170 metres.

2022 October PEA Highlights:

  • Robust economics underscores significant value of current resource base
    • $211 million post-tax NPV5 (real) using $1,700/oz gold and $60,000/t cobalt
    • AISC1 $824/oz Au life of mine (“LoM”)
    • >92 koz AuEq2 steady state average production rate. 9 year life producing ~700 koz Au and ~2800 t Co
  • A significant European mine 
    • If in production today, Rajapalot would be the EU’s third largest cobalt mine and sixth largest gold mine
    • Ethical metals sourcing with majority local support and 100% renewable power
  • 27% post tax IRR, $181 million initial capex 
    • Strong cashflows, with $338 M free cash flow in years 1 to 5, and $101 M in life of mine cobalt by-product revenues
  • 100% owned low-cost project in Tier 1 location
    • Underground only operation, utilising predominately long hole open stoping
    • 95% Au recovery with conventional gravity-CIL
    • Low infrastructure needs
  • PEA underpins project to leverage substantial resource growth potential 
    • Rajapalot deposits are all open at depth, highlighted by the deepest intersection in Palokas of 30.8 m at 5.1 g/t AuEq from 553 m.

18,000 ha land package with undrilled targets between the project area and other significant gold occurrences such as the Rompas discovery (highlight 6 m at 617 g/t Au) 8 km west of Rajapalot.

  1. AISC is a non-IFRS metric. For definition see Technical Background section below.
  2. AuEq production figures calculated using metal prices $1,700/oz Au and $60,000/t Co AuEq = Au oz + (Co t x 35.3). AuEq head grades calculated using the same metals prices, and recoveries of 95% Au and 88.7% Co AuEq = g/t Au + (Co ppm / 988).

Robust economics underscores significant value of current resource base

PEA confirms Rajapalot’s attractiveness

  • Favourable setting for low operating costs
  • Low impact underground only mining
  • Conventional processing with high recoveries
  • A significant asset for Europe

Rajapalot would be Europe’s 6th largest gold producer if in production today.

And Europe’s 3rd largest cobalt mine

  • Access to 100% renewable grid power
  • EU cobalt production source with high environmental credentials
  • Cobalt is critical to the EU’s battery ecosystem, and stated goals for self-sufficiency and the circular economy.

Substantial resource growth potential

High prospectivity between Rajapalot and Rompas discoveries

Rajapalot deposits are all open

  • Among best intersections are the deepest, eg, Palokas 30.8 m at 5.1 g/t AuEq from 553 m
  • Excellent down-plunge continuity.
  • Drill to demonstrate system extends

Simple project design 

Economics underpinned by robust mine design

  • Robust deposit with extraction of 85% of the Au in resources through LHOS and cut & fill.
  • 9 year life, includes ramp up in year 1
  • 1.2 Mt/a production rate, mining 3 deposits at any one time

Mine Schedule

Conventional processing with high recoveries

  • 1.2mt/a dedicated mill with conventional low risk flowsheet
  • 95% gold recovery to doré driven by simple free gold metallurgy
  • Cobalt sulphide flotation to produce marketable cobalt concentrate

Simple Infrastructure Solutions

  • Access to 100% renewable grid power
  • Best practice water management included in project configuration
  • 100% lined plant residues management facility
  • All site infrastructure included for standalone operation
  • No expensive camps, bridges, roads