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Lappland Goldminers AB Lappland Goldminers AB (publ), listed on First North and the Norwegian OTC list has, as of July 15, resumed production at the Pahtavaara processing plant in Finnish Lapland, after replacement of parts in the mill which routinely wear out.
During August, the operation will gradually increase up to a continuous three shifts, and is expected to produce approx. 25 Kg (800 oz) of gold per month. The production is based on material which has previously been classified as waste rock. The test run indicates that a relatively high percentage of previously mined waste rock has gold grades of a level which makes them profitable to mine, with a low cost. The Company estimates that the plant can be operated at full capacity for at least two years using exclusively such material.
The cost of processing previously mined material is low, and the profits for processing this material alone is estimated at approx. SEK 2 million/month before depreciation and interest. The operations at Pahtavaara were acquired at a price of approx. SEK 30 million, and will be depreciated based on estimated life span of the mine and plant, which - due to the fact that the plant can be profitably operated using previously mined material - will be extended by at least two years.
The plans for the operation is to initiate mining in the actual mine during 2009, and to replace parts of the low grade material with higher grade material from the underground mine. Exploratory drilling is being carried out in the underground mine with the goal of increasing the ore reserves and the life span for the operation.
-Being able to pay for the entire acquisition, of the Pahtavaara mine and processing plant, through running exclusively material previously classified as waste rock is far above anything we could have expected. What now remains is to increase the ore reserves in the mine and to prospect for more ore, within the supply area for the processing plant in Finnish Lappland, so that we can look forward to an operation with high longevity and profit in Pahtavaara. The Pahtavaara area is very promising from a prospecting perspective, and through previous acquisitions the Company possesses several good targets in the area, says Lappland Goldminers CEO Karl-Åke Johansson.
For additional information about our exploration methods, the project and about the Company please visit our web site.
For additional information: Karl-Åke Johansson, CEO Tomas Björklund, Board Member Ph. +46 950-275 01, +46 70-625 22 57 Ph. + 4670-662 35 35 karl-ake.johansson@lgold.se tomas.bjorklund@lgold.se
Also please refer to: www.lapplandgoldminers.com About Mangold Fondkommission: www.mangold.se
Lappland Goldminers AB is an exploration company and, through the acquisition of the gold mine and processing plant Pahtavaara in Finland, also a producing mining company. The operations in Pahtavaara are run out of the wholly owned subsidiary Lappland Goldminers Oy. The company is listed on the market place "First North" under the name GOLD, with Mangold Fondkommission AB as the Certified Adviser, as well as the OTC list of the Oslo exchange. Lappland Goldminers has secured a number of gold deposits along the so-called Guldlinjen ("The Gold Line") in Västerbotten. The Company's strategy is to develop a profitable, producing gold company with a centrally located processing plant in Fäboliden, Sweden, in the Haveri area in Finland, and Pahtavaara in northern Finland, which is supported by ore from one or several mines either through the Company's own exploration or alternatively through acquisitions. Lappland Goldminers is a member of SveMin, the trade association for mines, minerals and metal producers in Sweden and follows SveMin's reporting rules for public mining and exploration companies.
