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REG - Metals One PLC - Results of Drilling at Black Schist Project

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RNS Number : 7046C  Metals One PLC  12 February 2024

 

12 February 2024

Metals One Plc

("Metals One" or the "Company")

 

Results of Drilling at Black Schist Ni-Cu-Co-Zn Project, Finland

 

Significant intersections of mineralised black schists identified at R1 Hook
target

 

Metals One (https://metals-one.com/) (AIM: MET1), which is advancing battery
metal projects at brownfield sites in Finland and Norway, is pleased to report
the laboratory results from its eight diamond drillholes at the R1 Hook
target, located within the Rauta 9-11 licence area at the Black Schist Project
in Finland.

 

Significant intersections of mineralised black schists were identified in all
eight drillholes, whilst drilling has also demonstrated geological continuity
with the Company's existing Resource at R1 which could support future resource
expansion.

 

Highlights

 

·    Hole RAU0002 intercepted 14.7m of mineralised black schists from 50m
(0.18% Ni, 0.01% Cu, 0.01% Co, 0.57% Zn)

·    Hole RAU0003 intercepted 11m of mineralised black schists from 199.5m
(0.22% Ni, 0.01% Cu, 0.01% Co, 0.55% Zn)

·    Established geological continuity between R1 Hook and the existing R1
Resource, supporting future resource expansion

·    Confirmed synformal structure, indicating significant potential to
the east and prompting the Company to extend the current permit area in that
direction

 

R1 Hook Drilling Programme

 

The objectives of the programme were to confirm the structure and its
potential to host Talvivaara-type Ni-Cu-Co-Zn mineralisation. Talvivaara is
one of Europe's largest and lowest-cost producers of critical battery metals,
located 63km to the north of this target.

 

A total of 1,551.2m were drilled along what, according to ground and airborne
geophysical surveys, appeared to be a fold structure to the east of the
Company's R1 Resource.

 

All drillholes intercepted mineralised black schists, with the best thickness
and grades intersected on the eastern limb of the main R1 Hook fold. This
observation, together with confirmation of the synformal nature of the limb,
dipping steeply to the south, suggests significant potential for further
mineralisation to the east, beyond the boundary of the Company's existing
permit. The Company has lodged a reservation to secure this area, known as
Kirkkosuo, with the intention of confirming the extension of the structure and
mineralisation with a limited diamond drill programme to follow in due course.

 

Metals One continues to update its prospectivity model with the valuable
geophysical and petrophysical insights into the nature of mineralised black
schists gathered during this programme.

 

Jonathan Owen, Chief Executive Officer of Metals One, commented:

 

"Leveraging new and historical insights and data, the Metals One team is
pleased to identify this economically important Talvivaara style of
mineralisation. The resulting prospectivity model developed by the team
significantly reduces discovery risk as we continue to target high-quality
critical battery metal resources across the Kainuu Schist Belt.

 

I would like to thank our exploration team for the perfect execution of the
drilling programme, which we delivered on schedule, on budget, and with the
close support of the local Rautavaara community.

 

I look forward with excitement to the further development of our R1 Resource,
and its potential extension to the east through the R1 Hook and beyond."

 

Enquiries:

 

 Metals One Plc                                                     via Vigo Consulting

 Jonathan Owen, Chief Executive Officer                             +44 (0)20 7390 0234

 Daniel Maling, Chief Financial Officer

 Beaumont Cornish Limited (Nominated Adviser)                       +44 (0)20 7628 3396

 James Biddle / Roland Cornish

 www.beaumontcornish.com (http://www.beaumontcornish.com)

 Shard Capital Partners LLP (Joint Broker)                          +44 (0)20 7186 9952

 Damon Heath / Erik Woolgar

 SI Capital Limited (Joint Broker)                                  +44 (0)14 8341 3500

 Nick Emerson

 Fortified Securities (Joint Broker)                                +44 (0)20 3411 7773

 Guy Wheatley, CFA

 www.fortifiedsecurities.com (http://www.fortifiedsecurities.com)

 Vigo Consulting (Investor Relations)                               +44 (0)20 7390 0234

 Ben Simons / Kendall Hill

 metalsone@vigoconsulting.com

 

About Metals One

 

Metals One is developing brownfield battery metals projects in Finland (Black
Schist Project) and Norway (SRH Råna Project), with approximately £9 million
of exploration carry exposure through farm-in agreements. Metals One is aiming
to help meet the significant demand for battery metals by defining resources
on the doorstep of Europe's major electric vehicle OEMs and battery
manufacturers. Metals One's Black Schist Project in Finland, totalling 706
km(2) across three licence areas, has an Inferred Resource of 28.1 Mt
nickel-zinc-cobalt-copper and is located adjacent to Talvivaara, Europe's
largest operating nickel mine. Metals One's fully carried SRH Råna Project in
Norway covers 18.14 km² across three contiguous exploration licences, with
significant opportunity for brownfield exploration of the Råna intrusion, and
proven potential for massive sulphide nickel-cobalt-copper mineralisation.

 

Follow us on social media:

 

LinkedIn: https://www.linkedin.com/company/metals-one-plc/
(https://www.linkedin.com/company/metals-one-plc/)

Twitter: https://twitter.com/metals_one_PLC/
(https://twitter.com/metals_one_PLC/)

 

Subscribe to our news alert service on the Investors page of our website at:
www.metals-one.com (http://www.metals-one.com)

 

Qualified Person Statement

 

Craig Moulton is an Independent Non-Executive Director of the Company and the
Qualified Person who reviewed and approved the technical disclosures in this
news release. Mr Moulton has over 30 years' experience in the mining industry,
having worked for Rio Tinto, Cliffs and Wood Mackenzie, and is a trained
Geologist and Mineral Economist. Mr Moulton holds a BSc (Hons) in Geology and
a MSc in Mineral Economics and is a qualified person under the AIM Rules. Mr
Moulton consents to the inclusion of the technical information in this release
and context in which it appears.

 

Nominated Adviser

 

Beaumont Cornish Limited ("Beaumont Cornish") is the Company's Nominated
Adviser and is authorised and regulated by the FCA. Beaumont Cornish's
responsibilities as the Company's Nominated Adviser, including a
responsibility to advise and guide the Company on its responsibilities under
the AIM Rules for Companies and AIM Rules for Nominated Advisers, are owed
solely to the London Stock Exchange. Beaumont Cornish is not acting for and
will not be responsible to any other persons for providing protections
afforded to customers of Beaumont Cornish nor for advising them in relation to
the proposed arrangements described in this announcement or any matter
referred to in it.

 

Table 1: Significant drill intersections (all depths are from surface)

 

 Hole     From, m  To, m   Int, m  Co%   Cu%   Ni%   Zn%   Cutoff %
 RAU0001  106.50   122.00  15.50   0.01  0.09  0.13  0.36  0.1% Ni

 RAU0002  50.00    64.70   14.70   0.01  0.11  0.18  0.57  0.1% Ni

 RAU0003  199.50   210.50  11.00   0.01  0.10  0.22  0.55  0.1% Ni

 RAU0004  129.13   136.10  6.97    0.01  0.09  0.16  0.42  0.1% Ni

 RAU0005  144.30   148.00  3.70    0.01  0.08  0.13  0.40  0.1% Ni
 RAU0005  156.76   159.50  2.74    0.01  0.06  0.13  0.25  0.1% Ni

 RAU0006  120.00   122.20  2.20    0.01  0.04  0.13  0.03  0.1% Ni
 RAU0006  148.60   151.70  3.10    0.01  0.00  0.18  0.05  0.1% Ni

 RAU0008  108.86   115.50  6.64    0.01  0.07  0.16  0.24  0.1% Ni

Figure 1: Location of the R1 Hook drill target. Red dots indicate locations of
the collars of historical drillholes

 

 

Figure 2: Fold structure of R1 Hook target with locations of historical and
new drillholes. Base: ground magnetic image

 

 

Figure 3: Airborne Electromagnetic image over the R1 Hook area

 

 

 

Glossary

 

 Co                Cobalt

 Cu                Copper

 km                Kilometres

 magnetic survey   Geophysical survey method which identifies magnetic minerals

 massive sulphide  Metal sulphide ore deposit which consists almost entirely of sulphides

 m                 Metres

 Ni                Nickel

 Resource          Metals One's existing Inferred Mineral Resource at the Black Schist Project of
                   28.1 Mt of Talvivaara-style mineralised material at a grade of 0.19% Ni
                   (53,800t), 0.10% Cu (27,900t), 0.01% Co (3,400t) and 0.38% Zn (180,000t).
                   Refer to the Company's admission document here
                   (https://metals-one.com/wp-content/uploads/2023/07/Metals-One-Plc-Final-Admission-Document-25.7.23.pdf)
                   for further information

 Zn                Zinc

 

 

JORC Code, 2012 Edition - Table 1 report template

 

Section 1 Sampling Techniques and Data

 

(Criteria in this section apply to all succeeding sections.)

 

 Criteria                                                 JORC Code explanation                                                            Commentary
 Sampling techniques                                      ·    Nature and quality of sampling (e.g. cut channels, random chips, or         ·    A total of 8 diamond drillholes for 1551,2 m were completed.
                                                          specific specialised industry standard measurement tools appropriate to the

                                                          minerals under investigation, such as down hole gamma sondes, or handheld XRF    ·    Drill core was placed in order in wooden trays, with depth marker
                                                          instruments, etc). These examples should not be taken as limiting the broad      blocks at the drilling location. Trays were transported to Metals One
                                                          meaning of sampling.                                                             Finland's core shed in Outokumpu where they were stored inside the secure shed

                                                                                for geological and geotechnical logging, mark-up for sampling and digital
                                                          ·    Include reference to measures taken to ensure sample representation         photography.
                                                          and the appropriate calibration of any measurement tools or systems used.

                                                                                ·    All samples retrieved are from diamond drill cores that have been cut
                                                          ·    Aspects of the determination of mineralisation that are Material to         longitudinally in half according to lithological and mineralisation intervals
                                                          the Public Report.                                                               and prepared for assaying. The samples are predominantly 1 m in length.

                                                          ·    In cases where 'industry standard' work has been done this would be         ·    All samples were submitted to ALS-Geochemistry Oy in Outokumpu,
                                                          relatively simple (eg 'reverse circulation drilling was used to obtain 1 m       Finland for assaying.
                                                          samples from which 3 kg was pulverised to produce a 30 g charge for fire

                                                          assay'). In other cases, more explanation may be required, such as where there   ·    A prepared sample (0.25 g) was digested with perchloric, nitric,
                                                          is coarse gold that has inherent sampling problems. Unusual commodities or       hydrofluoric, and hydrochloric acids. The residue was leached with dilute
                                                          mineralisation types (eg submarine nodules) may warrant disclosure of detailed   hydrochloric acid and diluted to volume. The resulting solution was analysed
                                                          information.                                                                     by a combination of inductively coupled plasma-atomic emission spectrometry
                                                                                                                                           (ICP-AES) and inductively coupled plasma-mass spectrometry with results
                                                                                                                                           corrected for spectral or isotopic interferences.

                                                                                                                                           ·    Also assaying for gold was made by using Fire Assay Fusion (FA-FUSPG1
                                                                                                                                           & FA-FUSPG2) and Inductively Couple Plasma - Atomic Emission Spectrometry
                                                                                                                                           (ICP-AES)
 Drilling techniques                                      ·    Drill type (e.g. core, reverse circulation, open-hole hammer, rotary        ·    All drilling was made by diamond drilling, angled holes were planned
                                                          air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple    and drilled. All the cores were drilled as WL76 (core 57.5 mm diameter).
                                                          or standard tube, depth of diamond tails, face-sampling bit or other type,

                                                          whether core is oriented and if so, by what method, etc).                        ·    Orientation markings on every core run.
 Drill sample recovery                                    ·    Method of recording and assessing core and chip sample recoveries and       ·    Core recovery was calculated on a per drill-run basis (maximum 3 m).
                                                          results assessed.                                                                Core recovery averaged 95%, ranging from 0% to 100%. Only 96 intervals did not

                                                                                have a recovery of 100%,
                                                          ·    Measures taken to maximise sample recovery and ensure representative
                                                          nature of the samples.

                                                          ·    Whether a relationship exists between sample recovery and grade and
                                                          whether sample bias may have occurred due to preferential loss/gain of
                                                          fine/coarse material.
 Logging                                                  ·    Whether core and chip samples have been geologically and                    ·    Drill core was logged in detail for lithology, alteration,
                                                          geotechnically logged to a level of detail to support appropriate Mineral        mineralisation, geological structure, by geologists, utilising standardised
                                                          Resource estimation, mining studies and metallurgical studies.                   logging codes and data sheets as supervised by the senior geologist.

                                                          ·    Whether logging is qualitative or quantitative in nature. Core (or          ·    Rock Quality Designation (RQD) logs were produced for all core
                                                          costean, channel, etc) photography.                                              drilling for geotechnical purposes. Fracture intensity and fragmentation

                                                                                proportion analysis was also gathered for geotechnical information.
                                                          ·    The total length and percentage of the relevant intersections logged.

                                                                                                                                           ·    Logging was both quantitative and qualitative in nature. All core was
                                                                                                                                           photographed in the core boxes to show the core box number, core run markers
                                                                                                                                           and a scale.
 Sub-sampling techniques and sample preparation           ·    If core, whether cut or sawn and whether quarter, half or all core          ·    Full core was split longitudinally using a rock diamond saw to create
                                                          taken.                                                                           half-core samples that were taken at typically 1 m intervals or to rock

                                                                                contacts if present in the core run for both mineralization and wall rock. The
                                                          ·    If non-core, whether riffled, tube sampled, rotary split, etc and           drill core was rotated prior to cutting to maximise structure to core axis of
                                                          whether sampled wet or dry.                                                      the cut core.

                                                          ·    For all sample types, the nature, quality and appropriateness of the        ·    Half core was taken for sampling for assaying, and one half remains
                                                          sample preparation technique.                                                    in the core box as reference material.

                                                          ·    Quality control procedures adopted for all sub-sampling stages to           ·    Core samples were prepared according to industry best practice, with
                                                          maximise representation of samples.                                              initial geological control of the half core, followed by crushing and grinding

                                                                                at the laboratory sample preparation facility that is routinely managed for
                                                          ·    Measures taken to ensure that the sampling is representative of the         contamination and cleanliness control. Sampling practice is considered as
                                                          in-situ material collected, including for instance results for field             appropriate for Mineral Resource Estimation.
                                                          duplicate/second-half sampling.

                                                                                ·    Blanks, duplicates and certified reference materials were inserted
                                                          ·    Whether sample sizes are appropriate to the grain size of the               into the sample stream at a rate of 1 blank and standard for every 20 samples.
                                                          material being sampled.

                                                                                                                                           ·    Sample sizes are considered appropriate to the grain size of the
                                                                                                                                           rocks and style of mineralization being sampled.
 Quality of assay data and laboratory tests               ·    The nature, quality and appropriateness of the assaying and                 ·    Gold assaying was conducted by ALS-laboratories.
                                                          laboratory procedures used and whether the technique is considered partial or

                                                          total.                                                                           ·    Assaying for Ni, Cu, Co and Zn was conducted by ALS-laboratories.

                                                          ·    For geophysical tools, spectrometers, handheld XRF instruments, etc,        ·    Each sample was geochemically analysed for the following suite of
                                                          the parameters used in determining the analysis including instrument make and    elements: Ag, Al, As, Ba, Be, Bi, Ca, Cd, Ce, Co, Cr, Cs, Cu, Fe, Ga, Ge, Hf,
                                                          model, reading times, calibrations factors applied and their derivation, etc.    In, K, La, Li, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr,

                                                                                Ta, Te, Th, Ti, Tl, U, V, W, Y, Zn, Zr.
                                                          ·    Nature of quality control procedures adopted (e.g. standards, blanks,

                                                          duplicates, external laboratory checks) and whether acceptable levels of         ·    A variety of AMIS CRMs have been used for quality control purposes
                                                          accuracy (i.e. lack of bias) and precision have been established.                for all assaying methods. In addition, blanks and pulp duplicates have been
                                                                                                                                           assayed to assess the accuracy, repeatability, consistency of analytical
                                                                                                                                           methods and machines and for sample contamination.
 Verification of sampling and assaying                    ·    The verification of significant intersections by either independent         ·    Significant intersections were verified by a number of company
                                                          or alternative company personnel.                                                personnel within the management structure of the Exploration team.

                                                                                Intersections were defined by the exploration geologists, and subsequently
                                                          ·    The use of twinned holes.                                                   verified by the Exploration Manager.

                                                          ·    Documentation of primary data, data entry procedures, data                  ·    Metals One Finland uses Leapfrog GEO and Imago software for data
                                                          verification, data storage (physical and electronic) protocols.                  entry, verification, quality control, logging data and core photography. The

                                                                                data is stored on the cloud and is also saved and stored in MS Excel and MS
                                                          ·    Discuss any adjustment to assay data.                                       Access software on Metals One Finland´s internal data drives as a backup and
                                                                                                                                           for use in geological modelling software.

                                                                                                                                           ·    Data entry is supervised by a data manager, and verification and
                                                                                                                                           checking procedures are in place. The format of the data is appropriate for
                                                                                                                                           use in resource estimation
 Location of data points                                  ·    Accuracy and quality of surveys used to locate drill holes (collar          ·    Drillhole collars were laid out using handheld global positioning
                                                          and down-hole surveys), trenches, mine workings and other locations used in      system (GPS). The rigs were aligned with survey control, or by compass.
                                                          Mineral Resource estimation.

                                                                                ·    A gyroscopic survey instrument (Devicore) was utilised by Northdrill
                                                          ·    Specification of the grid system used.                                      Oy during the course of the Rautavaara R1 Hook surface drill programs.

                                                          ·    Quality and adequacy of topographic control.
 Data spacing and distribution                            ·    Data spacing for reporting of Exploration Results.                          ·    Average drillhole density at the Rautavaara R1 Hook target is

                                                                                variably spaced dependent on the exploration target characteristics.
                                                          ·    Whether the data spacing, and distribution is sufficient to establish

                                                          the degree of geological and grade continuity appropriate for the Mineral        ·    No Mineral Resource or Ore Reserve estimations are being reported.
                                                          Resource and Ore Reserve estimation procedure(s) and classifications applied.

                                                          ·    Whether sample compositing has been applied.
 Orientation of data in relation to geological structure  ·    Whether the orientation of sampling achieves unbiased sampling of           ·    Diamond drillholes were oriented, wherever possible, perpendicular to
                                                          possible structures and the extent to which this is known, considering the       the mineralized structures.
                                                          deposit type.

                                                          ·    If the relationship between the drilling orientation and the
                                                          orientation of key mineralised structures is considered to have introduced a
                                                          sampling bias, this should be assessed and reported if material.
 Sample security                                          ·    The measures taken to ensure sample security.                               ·    The drilling site is supervised by a Supervising Geologist, the drill
                                                                                                                                           core is placed into wooden core boxes that are sized specifically for the
                                                                                                                                           drill core diameter. A wooden lid is fixed to the box to ensure no spillage.
                                                                                                                                           Core box number, drill hole number and from/to meters are written on both the
                                                                                                                                           box and the lid. The core is then transported to the core storage area and
                                                                                                                                           logging facility, where it is received and logged into a data sheet. Core
                                                                                                                                           logging, and sampling takes place at the secure core management area. The core
                                                                                                                                           samples are marked with labels both in and on the core boxes, and data
                                                                                                                                           recorded on a sample sheet. The samples are transferred to the laboratory
                                                                                                                                           where they are registered as received, for laboratory sample preparation works
                                                                                                                                           and assaying. Hence, a chain of custody procedure has been followed from core
                                                                                                                                           collection to assaying and storage of pulp/remnant sample material.

                                                                                                                                           ·    All samples received at the core facility are logged and registered
                                                                                                                                           on a certificate sheet. The certificate sheet is signed by core facility
                                                                                                                                           supervisor (responsible person). All core is photographed, geotechnical
                                                                                                                                           logging, geological logging, sample interval determination, bulk density
                                                                                                                                           testing, and sample preparation.

                                                                                                                                           ·    For external assaying, Metals One Finland Oy utilises
                                                                                                                                           ALS-Geochemistry Oy in Outokumpu, Finland.
 Audits or reviews                                        ·    The results of any audits or reviews of sampling techniques and data.       ·    Ther have been no audits of drilling sampling techniques and data.

 

Section 2 Reporting of Exploration Results

 

(Criteria listed in the preceding section also apply to this section.)

 

 Criteria                                                          JORC Code explanation                                                            Commentary
 Mineral tenement and land tenure status                           ·    Type, reference name/number, location and ownership including               ·    Rauta 9-11 (ML2012:0169) are a extension to existing exploration
                                                                   agreements or material issues with third parties such as joint ventures,         permit and the applications have been lodged under Metals One Finland Oy.
                                                                   partnerships, overriding royalties, native title interests, historical sites,

                                                                   wilderness or national park and environmental settings.                          ·    Under Finnish legislation and in relation an Exploration Permit, as

                                                                                stipulated in the permit's conditions, the permit holder has the right to
                                                                   ·    The security of the tenure held at the time of reporting along with         conduct geological surveying and other exploration works necessary for
                                                                   any known impediments to obtaining a licence to operate in the area.             establishing the location, shape, orientation and exploitability of a mineral
                                                                                                                                                    deposit. The extent of measures depends on the permit stipulations imposed by
                                                                                                                                                    the Mining Authority and the measures may be undertaken without the
                                                                                                                                                    landowner's permit, i.e. the exploration permit replaces landowner
                                                                                                                                                    permissions. The permit stipulations may allow invasive drilling or test
                                                                                                                                                    mining. The initial term is a maximum of four years, extensions applicable
                                                                                                                                                    three years at a time to the cap of 15 years (4+3+3+3+2). "Claims" under the
                                                                                                                                                    1965 Mining Act correspond to exploration permits under the 2011 Mining Act
                                                                                                                                                    which was renewed in 2023 (505/2023). The main difference between claims and
                                                                                                                                                    exploration permits is that claims are initially valid for five years instead
                                                                                                                                                    of four. Thus, considering transitional provisions in the 2011 Mining Act,
                                                                                                                                                    claims are valid for 5+3+3+3+1 years. An exploration permit application in
                                                                                                                                                    itself does not entitle the applicant to conduct exploration activities.
                                                                                                                                                    However, exploration can be conducted with a landowner consent already.
 Exploration done by other parties                                 ·    Acknowledgment and appraisal of exploration by other parties.               ·    Two phases of exploratory drilling have been completed at Rautavaara.
                                                                                                                                                    The GTK completed five diamond drillholes in 1979 totalling 879 m, and
                                                                                                                                                    FinnAust Mining Oy has subsequently completed 43 drillholes totalling a
                                                                                                                                                    further 5,425 m.

                                                                                                                                                    ·    Between 2006 and 2008, Magnus Minerals (Magnus), a privately held
                                                                                                                                                    Finnish exploration company, carried out a review and interpretation of
                                                                                                                                                    publicly available airborne geophysics, regional geology and historical
                                                                                                                                                    exploration data, in the Kainuu Schist Belt and Outokumpu-Savonranta Belt,
                                                                                                                                                    central and southern Finland.

                                                                                                                                                    ·    During 2009 and 2010, close-spaced ground magnetic data was acquired,
                                                                                                                                                    and several phases of surface diamond drilling were undertaken with an Onram
                                                                                                                                                    1000/three rubber-tracked rig operated by SMOY. Six diamond holes were drilled
                                                                                                                                                    between September 2009 and January 2010.

 Geology                                                           ·    Deposit type, geological setting and style of mineralisation.               ·    The Kainuu Schist Belt is represented by remnants of rocks deposited
                                                                                                                                                    into an oceanic volcano-sedimentary rift basin which developed from Early to
                                                                                                                                                    Mid-Proterozoic the Archaean crustal Karelian Craton Boundary. It is mostly
                                                                                                                                                    represented by basal siliceous rocks (interpreted as quartzites) and minor
                                                                                                                                                    mafic volcanics, metalliferous black schists, wackes with intercalated
                                                                                                                                                    calcsilicate rocks, ophiolitic ultramafic rocks, and minor serpentinite.

                                                                                                                                                    ·    The Rautavaara Project is hosted within remnants of the southern
                                                                                                                                                    Kainuu Schist Belt (Early Proterozoic) which consists mainly of quartzites,
                                                                                                                                                    mica schists and black schists resting paraconformably on the Archean basement
                                                                                                                                                    gneiss complex. The black schists are variably recrystallized carbon and
                                                                                                                                                    sulphide-rich black metasediments.

                                                                                                                                                    ·    The nickel-zinc-copper-cobalt mineralisation is stratabound, hosted
                                                                                                                                                    within the high-grade metamorphosed and intensely folded black schist. The
                                                                                                                                                    main mineral assemblage in the black schist is quartz, mica, graphite, and
                                                                                                                                                    sulphides.

                                                                                                                                                    ·    The origin of the black schist mineralisation is postulated to be a
                                                                                                                                                    result of metal precipitation under a specific set of local conditions unique
                                                                                                                                                    to that margin at the time of deposition. It is generally accepted that the
                                                                                                                                                    black shales represent organic carbon-rich muds accumulated under anoxic and
                                                                                                                                                    sulphidic conditions, and that the metals were derived by direct precipitation
                                                                                                                                                    from the seawater column, settling out to the ocean floor onto the
                                                                                                                                                    water-sediment interface. It seems that only the very uppermost part of the
                                                                                                                                                    basinal water column was oxygenated.

                                                                                                                                                    ·    Pyrite and pyrrhotite are the dominant sulphide minerals within the
                                                                                                                                                    black schist deposits at Rautavaara, similar to the Talvivaara deposit. The
                                                                                                                                                    sulphidic nickel-zinc-copper-cobalt deposits are hosted by highly
                                                                                                                                                    sulphidic-graphitic muds and turbiditic wackes; which have undergone a high
                                                                                                                                                    degree (amphibolite facies) of metamorphism.
 Drill hole Information                                            ·    A summary of all information material to the understanding of the           ·    The first phase of holes drilled were all angled between 45 and 60
                                                                   exploration results including a tabulation of the following information for      deg.
                                                                   all Material drill holes:

                                                                                ·    All holes drilled, their collar co-ordinates azimuth, dip and final
                                                                   o easting and northing of the drill hole collar                                  depths are tabulated below.

                                                                   o elevation or RL (Reduced Level - elevation above sea level in metres) of the
                                                                   drill hole collar

                                                                   o dip and azimuth of the hole.

                                                                   o down hole length and interception depth

                                                                   o hole length.

                                                                   ·    If the exclusion of this information is justified on the basis that
                                                                   the information is not Material and this exclusion does not detract from the
                                                                   understanding of the report, the Competent Person should clearly explain why
                                                                   this is the case.
 Data aggregation methods                                          ·    In reporting Exploration Results, weighting averaging techniques,           ·    Significant intercepts are reported using a cut off of 0.10% nickel.
                                                                   maximum and/or minimum grade truncations (e.g. cutting of high grades) and
                                                                   cut-off grades are usually Material and should be stated.

                                                                   ·    Where aggregate intercepts incorporate short lengths of high-grade
                                                                   results and longer lengths of low-grade results, the procedure used for such
                                                                   aggregation should be stated and some typical examples of such aggregations
                                                                   should be shown in detail.

                                                                   ·    The assumptions used for any reporting of metal equivalent values
                                                                   should be clearly stated.
 Relationship between mineralisation widths and intercept lengths  ·    These relationships are particularly important in the reporting of          ·    All intercepts are reported as down-hole lengths
                                                                   Exploration Results.

                                                                   ·    If the geometry of the mineralisation with respect to the drill hole
                                                                   angle is known, its nature should be reported.

                                                                   ·    If it is not known and only the down hole lengths are reported, there
                                                                   should be a clear statement to this effect (e.g. 'down hole length, true width
                                                                   not known').
 Diagrams                                                          ·    Appropriate maps and sections (with scales) and tabulations of              ·    Maps and sections are provided in the report
                                                                   intercepts should be included for any significant discovery being reported
                                                                   These should include, but not be limited to a plan view of drill hole collar
                                                                   locations and appropriate sectional views.
 Other substantive exploration data                                ·    Other exploration data, if meaningful and material, should be               ·    A considerable amount of aerial and ground geophysical data has been
                                                                   reported including (but not limited to): geological observations; geophysical    collected.
                                                                   survey results; geochemical survey results; bulk samples - size and method of
                                                                   treatment; metallurgical test results; bulk density, groundwater, geotechnical
                                                                   and rock characteristics; potential deleterious or contaminating substances.

 

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