NORDIC GOLD CORP. (TSX-V: NOR) announced the successful completion of the first pour of gold at its wholly owned Laiva Mine near Raahe in Finland. A total of 1,234 ounces of doré was poured.
On October 11, 2018 Laiva received written approval for startup and mining started on August 5, 2018.
The company acquired Laiva Mine in December 2017 for approximately $25 million in cash and shares. Since that time the company has completed an updated NI-43-101 Resource calculation, completed a PEA, recruited an experienced management team to operate the mine, completed all necessary permitting and approvals to operate. The company has also completed all the necessary plant maintenance and recommissioning.
Michael Hepworth, President and Chief Executive Officer said, “The first pour is a critical but vital step in returning Laiva to commercial production. The last 18 months has been focused on using past production data and learning from this information. Many fixes have been implemented and as we move towards commercial production further improvements will be implemented to ensure appropriate economics and efficiencies. The team at the mine has done an outstanding job of getting back to production in an incredibly short timeframe. From care and maintenance to production in around 11 months is something everyone can be very proud of.”
Nordic’s first pour of gold was livestreamed at 10.20am EST on 30th November 2018. Interested investors can watch video of this first pour at www.nordic.gold
About the Company
Nordic Gold Corp. is a junior mining company with a near production gold mine in Finland. The Laiva Gold Mine is fully built, fully permitted and financed to production via a gold forward sale agreement. Production is scheduled to start in the 4thquarter of 2018.
A recently released PEA was conducted by John T. Boyd Company of Denver, Colorado.
Summary of the PEA results include:
|Model||IRR||NPV 5||Payback (Yrs)|
|After Tax wo/tax losses||36.5%||$68,965,000||2.1|
|After Tax w/tax losses||44.4%||$90,728,000||1.7|
Other Highlights include:
The PEA is preliminary in nature and includes Inferred Mineral Resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that PEA results will be realized. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
As previously announced, when Nordic acquired the Laiva Gold Mine, the Company was granted, €131,716,248in tax loss provisions which may be used to offset future taxes should taxable income be earned in Finland prior to expiration of the tax loss carry forwards. The tax loss provisions expire between 2020 and 2028 (see the Company’s audited financial statements for the year ended January 31, 2018 for detailed disclosure of the expiration schedule).The recognition of the tax loss carry-forwards has a material impact on the economic assessment of the Laiva Gold Mine project and are contingent upon the Company achieving taxable net income per Finnish tax laws.
Nordic Gold’s management has identified several opportunities outside of the scope of the mine plan studied in the PEA, which could further improve the mine plan and the economics of the project. Most important of these being the three additional 100% owned exploration properties close to the mine. Nordic is currently conducting magnetic surveys on all of the company’s properties. All three properties are fully permitted for exploration.
The report also identifies near mine targets for exploration as potentially 3.2 to 5.1 million tonnes grading at 1.25 to 1.45 grams per tonne. This estimate is based on drilling beneath the south and north pits at depths up to 250 m below surface and is open at depth. Further infill and step-out drilling is required to test these targets. Grade estimate is based on assuming the same weighted average grade of the measured, indicated and inferred resources reported in the Boyd report. The report also identifies a target in the eastern extension as potentially 0.85 to 3.2 million tonnes grading 1.25 to 1.45 grams per tonne. This estimate is based on three to five mineralized zones of 200 m to 300 m length, 50 m to 75 m vertical extent and 10 m width. Drilling has identified multiple mineralized zones up to 750 m from the north pit that extend to depths of at least 100 m. Grade estimate is based on intercepts of reconnaissance drilling and the weighted average grade of the measured, indicated and inferred resources reported in the Boyd report. The exploration targets are conceptual in nature as there has been insufficient exploration work to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. The economics of the PEA do not include these exploration opportunities.
Mineral Resources were prepared by JT Boyd (Nordic Press Release August 21, 2017).
Nordic Gold currently has one highly prospective property in British Colombia. The Star Propertyis currently operated under a Joint Venture agreement between Nordic (49%) and Prosper Gold. (TSX-V: PGX) (51%).
The scientific and technical information in this news release has been reviewed and approved by Paul Sarjeant, P.Geo., a Qualified Person under National Instrument 43-101 and a director of the Company.
About Pandion Mine Finance, LP
Pandion Mine Finance, LP is the general partner of PFL Raahe Holdings LP and is a mining-focused investment firm backed by MKS PAMP Group and Ospraie Management, LLC that provides flexible financing solutions to developing mining companies.
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