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Kuivisto East Resource Report

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KUIVISTO EAST Deposit (Finland) Mineral Resources Report

Maptek / KRJA Systems Ltd. 29th June 2009


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JORC Mineral Resources Report

Kuivisto East Gold Deposit

Finland

Maptek KRJA Systems Limited 3 Darnaway Street Edinburgh, EH3 6DW www.maptek.com 26th May 2009 John Boardman Bsc Geologist (Europe), Maptek/KRJA Systems Ltd Geoff Reed Bsc MAusIMM (CP) Competant Geologist, Maptek Associate, Maptek/ KRJA Systems Ltd

Geoffrey Charles Reed B AppSc, MAusIMM CP


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Executive Summary On behalf of Endomines Oy, Maptek KRJA Systems Pty Ltd has produced an ore resource report for the Kuivisto East project. This ore resource report has been compiled with reference to the Australian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code 2004 Edition). Under these guidelines it was found that the report is in accordance with generally accepted industry standards and is suitable for the assessment of Indicated and Inferred mineral resources. Kuivisto is located in the Ilomantsi greenstone belt. It is an Archean orogenic gold deposit comprising of Kuivisto East and Kuivisto West. Both lodes are defined by feldspar and tourmaline – bearing quartz vein networks in an intermediate meta-tuffite, close to the NNW trending Pampalo Shear Zone. The Pampalo zone also includes tonalitic intrusions, which seem to be almost barren in gold. Commonly the gold deposits are hosted be extensively hydrothermally altered supracustal rocks mainly composing of sericite, quartz, chlorite, talc, biotite, albite and tourmaline. Most gold is situated in the Highly altered rocks, contacts of rocks, brittle strucutures associated with hydrothermal quartz, quartz feldspar porphyries and rarely in pegmatites. Usually gold exists as microscopic grains along with tellurides and associated with weak disseminations of iron sulphides. The deposit is located 40km NE of Ilomantsi in Eastern Finland, approximately 500km by road northeast of Helsinki. This resource estimate has been calculated using all information available at the time of writing, most of which comes from the data produced by Endomines and data produced by GTK now Endomines data. There are no operations on site and the property has not been previously mined. The original data supplied by Endomines consisted of a Microsoft Access™ drillhole database containing the mineral resource grades. The mineral resource grades were estimated by Maptek KRJA Systems Pty Ltd. The resource was estimated with no high grade Au cut and reported at 0.5 g/t Au cut-off as well as a 20 g/t grade Au cut and reported at 0.5 g/t Au cut-off. All available data was converted from Microsoft Access™ to Vulcan software format. The Mineral Resource Estimate has been prepared by Maptek/KRJA systems Ltd and is reported according the Australian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code 2004 Edition) Table 1 Kuivisto East mineral resources using Ordinary Kriging (0.5g/t cut-off).

Measured Indicated Inferred Total

Type Tonnes Au Au Tonnes Au Au Tonnes Au Au Tonnes Au Au

g/t Ounces g/t Ounces g/t Ounces g/t Ounces

Kuivisto East OK 20 g/t upper cut-off 0 0 0 36,586 3.2 3,741 145,202 1.0 4,809 181,788 1.5 8,550

The resource estimate was completed using the following parameters: The Kuivisto East resource area extends over a strike length of 400m ( 6992600 mN kkj – 6993000 mN kkj) and includes the 100m vertical from 320mRL to 220mRL


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Drillholes used in the resource estimate included 38 surface diamond drillholes and 8 surface RC drillholes. Holes were drilled at variable spacing but typically at 25m sections for the majority of the deposit. No site visit review was conducted by Maptek or its associates. No site procedures or drill core has been reviewed as part of this report. Diamond core was TT46 (32mm),T-56 (42mm) or WL-66 (50.5mm) size and was sampled to geological boundaries on geological intervals at variable lengths. 8 5.5”RC drilling holes were sampled at even 1m intervals using a riffle splitter. 1996 Endomines RC drilling were sent to Inchape Testing Services, St Helens, UK. All samples collected from Endomines 2007-2008 have been analysed by GTK/Labtium in Kuopio or Rovaniemi. GTK 1993-1995 drilling samples have been analysed by GTK/Labtium in Kuopio or Rovaniemi. QA/QC data was collected for all drilling, with standards, blanks and duplicated routinely sunbmitted as part of the sampling program. The QA/QC results were not reviewed by Maptek. Various database checks were carried out by Maptek. Collars, geology records were not validated against the original records. Original assay certificates have been checked against Endomines drilling database data and found to be correct. Most diamond drill holes have been downhole surveyed. Holes with no downhole survey data are KU-7, KU-9, KU-10 and KU-11 where just the collar has been surveyed. All of the other diamond drill holes have been surveyed at the collar, the end of hole and at regular intervals downhole. All RC holes have been surveyed at the collar and the end of hole. Maptek constructed mineralisation wireframe outlines using a 0.5 g/t Au cut off. These were used to provide the overall geometry to each of the mineralised zones. A minimum downhole length of 1m was used and no edge dilution was applied. The block model used a primary block size of 10m x 10m x 10m with sub blocking of 0.5m x 2.0m x 1.0m. The relatively narrow EW sub block size is indicative of the narrow nature of the mineralisation. An Inverse Distance and Ordinary Kriging models were created for Kuivisto East. An orientated search ellipse was used to select data for interpolation. The ellipse was orientated to match the variography results. A first pass radius of 27 x 10 x 10 was used based on drill hole spacing and variogram range. The search radius was increased to 54 x 20 x 20 for the second pass and then increased to 100 x 40 x 40 for the third pass, until all blocks in the model were filled. Bulk densities values were used according to geological lithological rocktypes including mineralisation. The mineral resource is classified as Indicated where the drill spacing was generally less than 25m x 25m and the grade lode continuity was considered good. This was only found in Pod 10. All other pods and the remainders of pod 10 were classified as Inferred.


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The estimated Mineral Resources were prepared in accordance with 2004 edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code).The information in this report that relates to Mineral Resources was compiled by an independent consultant Mr John Boardman who is employed by Maptek/KRJA systems and reviewed by an independent consultant Mr Geoff Reed MAusIMM (CP) (who is employed by Reed Leyton Consulting Ltd), Maptek associate, whom is a member of the Australasian Institute of Mining and Metallurgy. Mr Reed has sufficient experience which is relevant to the style of mineralisation, the type of deposit under consideration, and the activity that he has undertaken to qualify as a Competent Person as defined by the JORC Code.


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1.0 Introduction and Project Summary ................................................................ 8

2.0 Geology and Mineralisation ......................................................................... 10

3.0 Tenement status .......................................................................................... 11

4.0 Previous Exploration .................................................................................... 11

5.0 Mining Status ............................................................................................... 11

6.0 Previous Resource Estimates ...................................................................... 11

7.0 Drilling Data ................................................................................................. 12

8.0 Drilling recovery ........................................................................................... 14

9.0 Logging ........................................................................................................ 14

10.0 Sample preparation ..................................................................................... 14

11.0 Quality of Assay Data .................................................................................. 16

12.0 Data Verification .......................................................................................... 16

13.0 Geological Interpretation .............................................................................. 17

14.0 Mineral Resource Dimensions ..................................................................... 18

15.0 Mineral Resource Estimation ....................................................................... 18

16.0 Geostatistical Analysis ................................................................................. 19

17.0 Cutoff Parmameters ..................................................................................... 26

18.0 Mining and Metallurgical Factors ................................................................. 26

19.0 Bulk Density ................................................................................................. 27

20.0 Resource Classification ............................................................................... 28

21.0 Disclaimer .................................................................................................... 30

22.0 References .................................................................................................. 31


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Number Title Page No

Figure 1 Location of Kuivisto East Project 8

Figure 2 Kuivisto East Resource Wireframes 9

Figure 3 Hattu Schist Belt. Gold prospects Geological Map modified after GTK 10

Figure 4 Kuivisto East Sample Length of the Drillhole Data 13

Figure 5 Comparison of Gold Contents of Samples Analysed by Atomic Absorption Spectrometer with

Graphite Furnace and by Fire Assay

15

Figure 6 Kuivisto East Logs Probability Plot 20

Figure 7 Kuivisto East Downhole Variography 20

Figure 8 Kuivisto East Directional Variography 21

Figure 9 Using Vulcan Software, The Drift Analyser Tools were used to look at the trends in the xyz

directions

22

Figure 10 Kuivisto East Box Plot Analysis of the Samples and the Estimated Blocks Carried Out 23

Figure 11 Kuivisto East Box Plot Analysis of the Samples and the Estimated Blocks Carried Out 23

Figure 12 Kuivisto East Histograms of Pods which contain more than 10 samples 24

Figure 13 Kuivisto East 200m RL Plan Section of Kuivisto Block Model 25

Figure 14 Kuivisto East Section Profile 6992748mN Block Model and Drilling 25

Figure 15 Kuivisto East Grade Tonnage Distribution 28

Figure 16 Kuivisto East Grade Tonnage Curve 29

Table 1 Kuivisto East Resource Estimate using Ordinary Kriging (0.5 g/t Au cut-off) 3

Table 2 Kuivisto East GTK Historic and Maptek Resource Estimates 11

Table 3 Kuivisto East Drillhole Database 12

Table 4 Kuivisto East Mineral Resources Parameters 18

Table 5 Kuivisto East Composite Sample Data 19

Table 6 Kuivisto East Summary of Variogram Parameters for Au 21

Table 7 Kuivisto East Bulk Densities 27

Table 8 Kuivisto East Mineral Resources (0.5 g/t Au Cut-off) 28


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1.0 Introduction and Project Summary General Maptek/KRJA Systems Ltd (Maptek) was contracted by Endomines Oy (Endomines) to undertake a resource estimate of Kuivisto East gold deposit. The Kuivisto East Deposit is approximately 40 km north East of Ilomantsi and the nearest airport is situated in Joensuu about 100km southwest.

Figure 1 Location of Kuivisto East Project

Data used for the estimate was provided by Endomines and included a Microsoft Access drilling database, laboratory certificates, previous GTK reports and grade control reports. The current resource estimate was carried out in the Maptek Edinburgh office during May 2009. The resource outlines were prepared based on a 0.5 g/t Au cut off grade. Maptek Vulcan software was then used to create the wireframes and all modelling and estimation procedures.


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GEOSYNTHESIS PTY LTD

Projection: Swedish National Grid RT90

Date: 21/6/2006

Author: AB

Office: BRIS

Scale:

Cross Section with Mineralised Ignimbrite Unit

Duobblon Uranium Project

200 metres

Plan Profile

100 metres

49m – 51m: 2m @ 20.7 g/t Au

Kuivisto East Project

EW

Endomines Oy

Figure 2 Kuivisto East Resource Wireframes

Competent Persons and Responsibilities

The estimated Mineral Resources were prepared in accordance with 2004 edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code). The Team of people involved in the preparation of the report is listed as follows: Mr Jaakko Liikanen (Endomines Geologist) responsible for geological data and digital data collection. Mr John Boardman (Maptek Consultant Geologist) responsible for digitising, wireframe construction, statistical analysis and Mineral Resource estimation. Mr Geoff Reed (Maptek Consultant Geologist) responsible for data validation, Mineral Resource Classification and auditing of the Mineral Resource estimation.


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2.0 Geology and Mineralisation Kuivisto is located in the Ilomantsi greenstone belt. It is an Archean orogenic gold deposit comprising of Kuivisto East and Kuivisto West. Both lodes are defined by feldspar and tourmaline – bearing quartz vein networks in an intermediate meta-tuffite, close to the NNW trending Pampalo Shear Zone. The Pampalo zone also includes tonalitic intrusions, which seem to be almost barren in gold. Commonly the gold deposits are hosted be extensively hydrothermally altered supracustal rocks mainly composing of sericite, quartz, chlorite, talc, biotite, albite and tourmaline. Most gold is situated in the highly altered rocks, contacts of rocks, brittle structures associated with hydrothermal quartz, quartz feldspar porphyries and rarely in pegmatites. Usually gold exists as microscopic grains along with tellurides and associated with weak disseminations of iron sulphides.

Figure 3 Hattu Schist Belt. Gold prospects Geological Map modified after GTK.


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3.0 Tenement status Tenement licenses 5210/1,5356/5-6 are currently held by Endomines and have been held since 1993. The Geological Survey of Finland (GTK) held the licenses before 1993. “Prospect” status has been given to the licences.

4.0 Previous Exploration The Discovery was made by GTK in 1993 when they drilled into structurally favourable location within a local geochemical anomaly in till. (Heino et al 1995) GTK conducted Low-altitude airborne and ground magnetic, slingram and IP surveys. Detailed geochemical till sampling 250mx250m over the greenstone belt covering 400 squared km. Follow up as till bedrock interface geochemistry samples collected across the Au anomaly along traverses 100m apart with sampling distances 10-30m. GTK also conducted trenching and diamond drilling. Endomines since 1996 have conducted more diamond drilling in 2007-2008 and ground geophysical surveys.

5.0 Mining Status No previous mining has occurred at the deposit

6.0 Previous Resource Estimates Endomines has not previously contracted any company to complete a resource estimate. A historical GTK resource figure was available.




Kuivisto East GTK 0 0 0 0 0 0 100,000 4.0 100,000 4.0

Kuivisto East Maptek 20 g/t cut-off 0 0 0 36,586 3.2 3,741 145,202 1.0 4,809 181,788 1.5 8,550

Table 2 Kuivisto East GTK Historic and Maptek Resource Estimates.


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7.0 Drilling Data Data An Access database containing all drill holes in the Kuivisto East project was provided by Endomines. Validation against original records was undertaken by Endomines. Some errors in the KU sequence of holes were identified and corrected. The digital data has not been checked randomly or systematically by Maptek.

Drilling

Kuivisto East has been drilled by GTK and Endomines. GTK drilled 31 drillholes between 1993 and 1995. All drillholes have the prefix R* for the 31 drillholes. Suomen Malmi Oy (Smoy) was the drilling contractor for GTK. 9 of the holes were drilled with TT46 equipment giving 32mm core while the other 23 holes were drilled with T-56 giving 42 mm core. In 1996 Endomines drilled 8 5.5” RC holes with the prefix RC*. The drilling contractor was RC-Poraus Ky. Endomines did further drilling in 2007-2008. 7 more diamond drillholes with the prefix KU* were drilled by Geopale Oy, which is part of Jaakko Pöyry group. The equipment used was WL-66/2 which gives 51mm drill core. The drill pattern in Kuivisto East is performed in a distance of 25-50 meters on strike and 12.5 – 50 meters down dip. (Endomines OY – Ilomantsi Gold Project 1999). The database was loaded into Vulcan mining software and reviewed. The full database contained records for 46 drill holes.

Project In Resource

Hole Type Number Metres Drill Holes Intersection

Number Metres Metres

RC 8 644 6 563 14

Diamond 38 2,784 27 1,990 96

Total 46 3,429 33 2,554 110

Table 3: Kuivisto East Drill hole Database Most diamond drill holes have been downhole surveyed. Holes with no downhole survey data are KU-7, KU-9, KU-10 and KU-11 where just the collar has been surveyed. All of the other diamond drill holes have been surveyed at the collar, the end of hole and at 10m intervals downhole. All RC holes have been surveyed at the collar and the end of hole.


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Surveys For the 31 GTK drillholes from 1993-1995, the down dip of each hole was measured by an inclinometer. The hole collar locations were surveyed by a GTK surveyor using a precision DGPS. In 1996 Endomines 8 RC holes were surveyed by Maastomalli Oy with a Tachometer from existing fixed survey points. The 31 R* holes from 1993-1995 were also surveyed. The 2007-2008 Endomines 7 Diamond drillholes were surveyed for both azimuth and dip using downhole maxibor equipment. The hole collar locations were surveyed by MM-Mittaus Oy by precision DGPS. Most drillholes had an azimuth orientation of 270 degrees with a dip between -40 and -60 except for some vertical holes. All holes were logged for a combination of geological and geotechnical attributes by GTK and Endomines employees. Samples The samples taken were from 38 diamond drill holes and 8 RC holes Sample intervals have generally been no smaller than 0.3m and no larger than 2.5m. A summary of sample lengths of the drill hole data is displayed in Figure 4

Figure 4: Kuivisto East Sample Lengths of the drill hole data Holes in the database which were deemed to be well outside of the resource model were excluded. These holes were R584, R593 and R594.


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8.0 Drilling recovery Overall core recovery was in the order of 99.71% of core drilled.

9.0 Logging For the 31 drillholes drilled in 1993-1995, these holes were all logged by GTK staff. Endomines has not re-logged theses holes.

10.0 Sample preparation For the 31 drillholes drilled by GTK between 1993 and 1995, the cutting of the core was carried out by GTK and core was cut into half core for assay. The samples were first scanned with 5g GAAS ( graphite furnace + AAS, method code 521U) in GTK’s own laboratory. The Laboratory is now a private company called Labtium. All the samples having values higher than 1 g/t Au were further checked with 20g FAA (fire assay, Code 704A). Comparison of assay is highlighted in figure 5 below. The 1996 Endomines RC holes had ~3kg/m samples which were sent to Inchape Testing Services Ltd, St Helens UK, for bottle roll cyanide leach. Code 308M. After milling 1kg, the 1kg sample was put through a 16 hour cyanide leach process. The finished product was tested by AAS. The 2007-2008 Endomines diamond drillholes was cut into half core at the Endomines prelab cutting facility before being sent to the Labtium laboratory for assay testing. The method used was:

• Drying the sample at 70 degrees C • Fine crushing (< 70% <2mm) with Mn-steel jaws • Separate splitting of sample • Pulverising in hardened steel bowl (max 4kg) • Lead fire assay preconcentration, 10-15 g subsample • Lead fire assay preconcentration, 50g subsample • Determination of Au sample with FAAS-technique, Code 703A • Determination of Au sample with FAAS-technique, Code 705A


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Figure 5. Comparison of gold contents of samples analysed by atomic absorption spectrometer

with graphite furnace and by fire assay method.


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11.0 Quality of Assay Data Assay quality of 31 GTK holes drilled in 1993-1995 were checked with internal standards at the GTK laboratory. The 8 1996 RC holes were checked with internal standards from the Inchape Testing Services Laboratory. The 7 drillholes drilled by Endomines in 2007-2008 had both internal and external standards used. Every tenth sample had a hidden external sample. For the 2007-2208 Endomines drilling, these internal and external standards can be seen in the original Labtium Laboratory certificate excel files.

12.0 Data Verification No Data validation was completed by Maptek for pre 2007 diamond drilling at Kuivisto East apart from a standard check for incorrect collar and survey information and overlapping intervals. No errors were identified. For Endomines 2007-2008 diamond drillholes the original Labtium assay results have been verified to the Endomines assay database for 4 KU6,7,8,9 drillholes and found to be correct. The 8 1996 RC holes for Endomines have been checked between the original Inchape Testing Services Laboratory results and the Endomines assay database. Drillholes RC 706-713 have been found to be correct.


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13.0 Geological Interpretation Interpretation Maptek constructed mineralisation outlines using a 0.5 g/t Au cut off. These were used to provide the overall geometry to each of the mineralised zones. A minimum downhole length of 1m was used and no edge dilution was applied. Resource outlines were generally extrapolated to a distance of 25m along strike from drillhole intersections unless supported by adjacent drill holes. All resource outlines and wireframes were validated against the 1m composite database to ensure all intercepts greater than 0.5 g/t Au were incorporated within the outlines and wireframes. No intercept greater than 0.5 g/t Au was left out. Wireframes The interpreted sectional outlines were manually triangulated to form solid wireframes. Wireframing of the boundaries were performed by joining digitised section outlines at a 25m spacing. Wireframes were created with a strike of 166 degrees. To form the ends of the wireframes, the end section outline was copied to a position midway to the next section (+/-12.5m). This outline was then adjusted to match the dip, strike and plunge of the zone in question. These wireframes were then validated using Vulcan. All wireframes were checked for crossing, inconsistencies and closure. All Modelled wireframes were checked in plan, cross section and 3D rotated views. Composites Vulcan software was used to create downhole composites of the drill holes. All holes were composited to 1.0m as the raw data was sampled at 1.0m intervals. The wireframes were used to code the samples database to allow identification of the resource intersections. Separate intersections were created for each wireframe. These composites were then checked for spatial correlation with the objects, the location of any rejected composites and zero composite values.

Composites honour the created wireframes. Checking was undertaken by generating an isis

file and visually inspecting the composite results.


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14.0 Mineral Resource Dimensions The geology and geostatistical calculations indicate that the drilling direction is not perpendicular to the gold lodes. The ore structure (shape and composition?) seems to be very similar to the Pampalo ore. (Endomines Oy – Ilomantsi gold Project 1999). A Vulcan block model was constructed to encompass the full extent of the Kuivisto East deposit. The total strike of mineralisation is 400m while the total mineralisation width of all lenses is 100m. The width of each lense varied between 1.0 to 5.0m. The block model used a primary block size of 10m x 10m x 10m xyz with sub blocking of 0.5m x 2.0m x 1.0m. The relatively narrow EW sub block size is indicative of the narrow nature of the mineralisation.

15.0 Mineral Resource Estimation For each of the 24 domains in the deposit, the wireframe for each domain was used as hard boundaries in the interpolation process using a 0.5 g/t cut-off grade from each of the drillholes. This was completed by digitizing section polygons which had points in the polygons snapped to each of the drillholes used within the Mineral Resource Estimation. An oriented search ellipse was used to select data for the block model interpolation. The ellipse was oriented to match the variography results. A first pass radius of 27 x 10 x 10 was used based on drill hole spacing and variogram range. The search radius was increased to 54 x 20 x 20 for the second pass and then increased to 100 x 40 x 40 for the third pass, until all blocks in the block model were calculated. 43% of blocks were calculated in the first pass, 39% were calculated on the second pass and 18% were calculated on the final pass. Parameters used for the uncut Mineral Resource Estimation are below.

Parameter Pass 1 Pass 2 Pass 3

Search Type Ellipsoid

Bearing 166°

Dip 0°

Plunge 1°

Maj -Semi ratio 2.7 2.7 2.5

Maj - Min ratio 2.7 2.7 2.5

Search radius Major 27 54 100

Min Samples 2 2 1

Max Samples 12 12 12

Block Discretisation 2 x 4 x 2

Percentage Blocks Filled 43% 39% 18%

Table 4: Kuivisto East Mineral Resource Parameters


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16.0 Geostatistical Analysis

Deposit Statistics Using the composite sample data, Vulcan was used to calculate and check the Kuivisto East Block model Statistics. Table 5 below outlines the main statistical parameters for each resource domain for Kuivisto East. Only one domain, pod 10 had any grades greater than 20 g/t therefore an uncut and cut analysis for pod 10 was estimated.

Pod Number Samples

Cut Minimum Maximum Mean Median Std Dev Variance

Coeff Var

1 2 0 0.54 0.57 0.56 0.56 0.01 0.00 0.03

2 1 0 1.16 1.16 1.16 1.16 0.00 0.00 0.00

3 1 0 0.63 0.63 0.63 0.63 0.00 0.00 0.00

4 16 0 0.55 5.88 2.25 1.26 1.77 3.15 0.79

5 11 0 0.26 3.49 0.97 0.65 0.85 0.72 0.88

6 3 0 0.67 0.83 0.75 0.75 0.07 0.00 0.09

7 4 0 0.28 0.72 0.51 0.52 0.16 0.02 0.31

8 1 0 0.58 0.58 0.58 0.58 0.00 0.00 0.00

9 3 0 0.69 2.23 0.30 0.98 0.67 0.45 0.51

10 55 0 0.00 43.20 3.62 0.99 7.89 62.23 2.18

10 55 3 0.00 20.00 2.86 0.99 4.72 22.28 1.65

11 1 0 0.77 0.77 0.77 0.77 0.00 0.00 0.00

12 1 0 0.57 0.57 0.57 0.57 0.00 0.00 0.00

13 2 0 0.13 3.66 1.90 1.90 1.77 3.12 0.93

14 4 0 0.41 2.02 1.16 1.10 0.68 0.47 0.59

15 9 0 0.05 2.20 0.87 0.87 0.63 0.40 0.72

16 2 0 0.72 1.47 1.10 1.10 0.38 0.14 0.34

17 14 0 0.05 1.31 0.62 0.57 0.43 0.18 0.69

18 14 0 0.03 3.82 1.02 0.63 1.20 1.44 1.18

19 8 0 0.00 1.37 0.77 0.69 0.42 0.17 0.54

20 2 0 0.54 0.59 0.56 0.56 0.02 0.00 0.04

21 2 0 0.90 1.50 1.20 1.20 0.30 0.09 0.25

22 1 0 2.66 2.66 2.66 2.66 0.00 0.00 0.00

23 1 0 0.75 0.75 0.75 0.75 0.00 0.00 0.00

24 1 0 0.98 0.98 0.98 0.98 0.00 0.00 0.00 Table 5 Kuivisto East Composite Sample Data


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High Grade Cuts To assist in the selection of appropriate high grade cuts, log probability plots were generated from the composite grades in the mapkui.geo.isis database.

Figure 6. Kuivisto East Logs Probability Plot.

One method used is to investigate the log probability plots and look for breaks or inflexions in the distribution. This method was used for the composites of each domain with 20 g/t being chosen as the basis for the cut off grade. The composite data was used to create variograms, using Vulcan.

Variography To determine the nugget, downhole variography was conducted with a 1m lag, reflecting the downhole composite spacing.

Figure 7.Kuivisto East Downhole Variography.


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This resulted in a relatively poor variogram with a nugget variance of around 2%. To determine the directional variogram parameters various variogram fans and ranges were reviewed to determine the direction of best continuity. Directional variograms were derived using 25m lags to reflect the drill hole spacing. The variogram fans and ranges were reviewed to determine the direction of greatest continuity. The major direction was determined to have a bearing of 166° and 1° plunge. This corresponds roughly to the observed strike of the wireframe pods that were created.

Figure 8 Kuivisto East Directional Variography.

Element Var Type Azimuth Plunge Dip Nugget C1 Major Semi Minor

Au Exponential 166 1 0 0.56 23.4 27.29 8.75 8.74 Table 6. Kuivisto East Summary of the Variogram Parameters for Au.


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Model Validation To check that the interpolation of the block model correctly honours the drilling data, validation was carried out by comparing the blocks to the sample composite data

Drift Analysis Swath plots compare the trend of both the sample data and the block model blocks. A check of these to make sure the trends are the same in both samples and blocks was made on pod 10.

Figure 9. Using Vulcan software, the Drift Analyser tools were used to look at the trends in the XYZ directions.

Both the samples and estimated block data show the same trending within the pod.


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Output Vs Input Statistics The resource model should, on average, reflect the typical grades found within the input data, the samples.

Figure 10. Figure 11.Kuivisto East Box Plot Analysis of the Samples and the Estimated Blocks carried out.


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Histograms Histograms were also analysed, between the samples and the estimated blocks. When comparing the histograms we want the block histogram to be a reasonable reflection of the samples histogram with more smoothing.

Figure 12 Kuivisto East Histograms of Pods which contain more than 10 samples. The histograms are quite similar and consistent.


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Viewing in section and plan A check was made of the block model compared to the drillhole and sampling data. This check was made in plan and sectional views and careful analysis was made to ensure the input grades and output grades were reasonable. Particular attention was made to the extrapolation of high grades. Both sectional and plan views showed reasonable extrapolated grades of the blocks compared to the drillholes. Examples can be seen below.



Date: 21/6/2006

Author: AB

Office: BRIS

Scale:



200 metres

Plan Section 200 RL

2.5 metres

49m – 51m: 2m @ 20.7 g/t Au


EW

Endomines Oy

Figure13 200RL Plan section of Kuivisto East



Date: 21/6/2006

Author: AB

Office: BRIS

Scale:



200 metres

Section 6992748 N

10 metres

49m – 51m: 2m @ 20.7 g/t Au


NESW

Endomines Oy

Figure 14.Kuinvisto East Section 6992748 N block model and drilling profile.

LEGEND g/t

LEGEND g/t


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17.0 Cutoff Parmameters In most cases mineralisation limits at a 0.5 g/t Au cut-off where possible, and therefore the limit of sampling in most cases defines the margin of the resource block for GTK drilling.

18.0 Mining and Metallurgical Factors No Mining factors have been used in this report. No minimum width has been applied in the estimation of the Kuivisto East Resource. No assumptions were made as to the future mining methods, dimensions or dilution by Maptek. No assumptions were made as to the metallurgical behaviour of mineralisation.


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19.0 Bulk Density Listed are the various material types and bulk densities used in the Kuivisto East resource estimate

1 2 3 4 5 6 Total

MICAS SERS IV BV FV PG 1 - 6

Number 23 1 16 5 3 10 58

Min 2.74 2.67 2.74 2.85 2.68 2.60

Max 2.85 2.67 2.82 2.95 2.74 2.77

Mean 2.80 2.67 2.78 2.91 2.71 2.65

Median 2.79 2.67 2.78 2.92 2.71 2.64

Table 7 Kuivisto East Bulk Densities

Specific gravity has been measured by Endomines logging geologists. The whole half core (0,5-2 m in core length, 1-4 kg) has been weighted both in air and water. Calculated means are simple means, not weighted by sample lengths. The samples are selected from holes KU-7 and KU-10. The measurements have been made in September 2007. This data has not been checked against new data collected on behalf of Maptek for this technical report but has been used for the resource estimated by Maptek.


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20.0 Resource Classification

Resource Classification The mineral resource is classified as Indicated where the drill spacing was generally less than 25m x 25m and the grade lode continuity was considered good. This was only found in Pod 10. All other pods and the remainders of pod 10 were classified as Inferred. The resource block model has an attribute “class” for all blocks within the resource wireframes. This has been coded “Ind” for Indicated and “Inf” for Inferred. The category of measured was not used in the resource estimation.

Results A summary of the estimate is shown below.




Kuivisto East OK uncut 0 0 0 36,586 4.5 5,247 145,202 1.0 4,809 181,788 1.7 10,056

Kuivisto East ID uncut 0 0 0 36,586 4.4 5,200 145,202 1.0 4,809 181,788 1.7 10,009

Kuivisto East OK 20 g/t upper cut-off 0 0 0 36,586 3.2 3,741 145,202 1.0 4,809 181,788 1.5 8,550

Table 8 Kuivisto East Mineral Resources (0.5 g/t Au cut-off) To show the tonnage and grade distribution throughout the entire deposit, a bench breakdown has also been prepared.

Figure 15 Kuivisto East Grade Tonnage Distribution


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Figure 16 Kuivisto East Grade Tonnage Curve


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21.0 Disclaimer Limited purpose and context of Information The opinions expressed in this document are addressed only to Endomines Oy for its benefit

with respect to this project. Maptek accepts no liability whatsoever for any loss or damage

(including consequential or economic loss or damage) arising as a result of reliance on the

information presented herein for any party other than Endomines Oy.

Responsibility Maptek has exercised reasonable care in accordance with standards normally exercised

within our profession in the completion of this document. Maptek has relied on information

provided by Endomines Oy. Although Maptek has exercised reasonable care in reviewing

this data, Maptek makes no representation or warranty with respect to the accuracy or

veracity of the data that it has relied upon.

Currency of Information This document has been prepared as at the date stated on the cover page. Given the nature

of this document and the opinions expressed within, developments after the date of this

document are likely. This document takes no account of such potential future developments.

Therefore Maptek recommends that Endomines Oy seek advice from Maptek in the future to

ascertain whether any such events have occurred or updated information has become

available and should be considered.


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22.0 References

Clark J, 2008: Mineral Resource Estimate Hosko Gold Deposit, Eastern Finland

1999: Ednomines Oy – Ilomantsi gold Project

Heino, T., Hartikainen, A., Koistinen, E. & Niskanen, M. 1995. Tutkimustyöselostus

Ilomantsin kunnassa valtausalueilla Sivakko 1 (5188/1), Korpilampi 1–2 (5402/1–2), Korpi 1–

4 (5356/1–4), Kuivisto 1 (5210/1), Kuivisto 2–3 (5356/5–6), Pihlajavaara 1–2 (5511/2–3) ja

Valkeasuo 1–2 (4853/1, 5511/1) suoritetuista kultamalmitutkimuksista vuosina 1992–1995

sekä neljältä vireillä olevalta valtaukselta (Sivakko 2–3 ja Valkeasuo 3–4). English summary:

Report on exploration in Ilomantsi in 1992–1995, within claims Sivakko 1 (Mine Register no.

5188/1), Korpilampi 1–2 (5402/1–2), Korpi 1–4 (5356/1–4), Kuivisto 1 (5210/1), Kuivisto 2–3

(5356/5–6), Pihlajavaara 1–2 (5511/2–3) and Valkeasuo 1–2 (4853/1, 5511/1). Geol. Surv.

Finland, Report M06/4333/-95/1/10. 17 p.

kuivisto east report final 14809 - · pdf filetable 2 kuivisto east gtk historic and maptek...

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