Mineral resource in Mo i Rana significantly larger than expected
A qualified external evaluator has carried out a mineral resource estimate of the Mofjell project in Mo i Rana. The inferred mineral resource is 8.9 million tons at a zinc equivalent of 3.8% Zn, compared to a potential of 5 million tons when Mahvie Minerals began work in 2022. In addition, there are additional exploration targets and significant areas of high geological prospectivity that have not yet been explored. The mineral resource estimate and the geological model on which it is based establish the Mofjell project as a very robust project with clear potential for modern mining production. Based on the updated analysis, the Company intends to bring forward the next financing round in order to accelerate further work.
Mahvie Minerals AB (publ.), “Mahvie Minerals” or the “Company” has received a first modern mineral resource estimate for the Mofjell project in Mo i Rana, Norway. The resource comprises 8.9 million tons at 3.8% zinc equivalent (individual grades: Zn: 2.55%, Cu: 0.28%, Pb: 0.46%), reported at a cut-off of 2.5% zinc equivalent. In estimating zinc equivalents, analyses for gold and silver have also been included, where available. Only about 7.5% of the historical cores have been previously analyzed for gold and about 14.5% have been analyzed for silver. Based on older production reports, the Company can also assume with high probability that precious metals such as gold and silver are also present in the older drill cores that have not been analyzed, which further strengthens the Mofjell project. In addition to the mineral resource, there is an exploration target of between 0.6 and 0.7 million tons at grades between 3.5% and 4.3% zinc equivalent. Zinc equivalents mean that all valuable metals are converted to zinc content by using input metal content and the current market price. In the immediate vicinity of the mineralization, there are also large areas that have been little explored but have great geological potential. The appendix contains a figure showing the mineralization and the areas that have not yet been explored.
The mineralization also contains both bismuth and antimony in the ore. This is also known in the past and is supported by older production reports. These elements have significant values and both elements are on the EU list of critical metals. However, the elements have not been used in the mineral resource estimate as the uncertainty of the grades is still too great. At a later stage, when enrichment trials are carried out, these can make valuable contributions to the value of the mineral resource.
The estimation of mineral resources has been carried out by mining engineer Thomas Lindholm who has been accepted by the Fennoscandian Association for Metals and Minerals Professionals as a Competent Person to report on mineral resources and exploration results.
The result of the assessment significantly exceeds the potential of approximately 5 million tons of ore previously communicated by the Company and what was previously expected at the start of the studies. A next step in the Mofjell project is increased drilling to increase awareness of the potential clearly expressed by the mineral resource. In parallel, the company can now also start work on technical studies, environmental studies and economic assessments. The company is also exploring, given the positive results, the possibility of bringing forward future financing to accelerate the pace of project development.
“The result of the resource estimate is significantly better than we expected. We knew that the Mofjell project had a good potential and today’s mineral resource estimate clarifies this and shows that the project has the potential to find the mineralization required to start a mine with good profitability. In this context, I would also like to thank all our owners who have supported us in the process and all participants in the project for a very good job.” comments Mahvie Minerals’ CEO Per Storm.
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