New Potential Copper Discovery, Hammaslahti

RNS Number : 6636F

FinnAust Mining PLC

29 April 2014

 



FinnAust Mining plc / EPIC: FAM / Market: AIM / Sector: Mining

29 April 2014

FinnAust Mining plc ('FinnAust' or 'the Company')

New Potential Copper Discovery at Hammaslahti Target, Southern Finland

FinnAust, the AIM listed exploration company with a portfolio of copper, zinc and nickel projects in Finland and Austria, is pleased to report a new area of copper mineralisation discovered as part of the on-going exploration programme currently taking place around the previously mined Hammaslahti copper, zinc and gold mine in southern Finland.

Highlights

·   Hole R317 -     Upper zone 5.5m @ 1.46% copper ("Cu") from 166m.

Lower zone 11.0m @ 1.24% Cu from 176m

·    Both zones contained within a very large mineralised envelope of 20.45m at 1.12% copper

·    Drill hole R318, circa 100m south of R317 and down plunge, has intercepted a large copper mineralised envelope - assays pending

·    Drill hole R319, drilled 100m North of R317, intercepted approximately 40m un-mined zinc ('Zn') and copper mineralisation before being terminated early due to a technical issue, short of the primary target - assays are pending for this shortened hole

FinnAust Executive Director Alastair Clayton said, "This is an excellent drill result and we believe the follow up holes will extend the known mineralised zone to the south. We are exploring for high-grade copper mineralisation and the >1% grades and large widths reported from the first hole placed near to the historical mine are a really strong start.  The Company will now continue drilling to increase the dimensions of the mineralised envelope and to seek areas with remobilised metal sulphides that have the highest grades for both copper, zinc and gold."

Additional Information

Drill hole R317 was the first hole drilled as part of the 2014 programme to explore the area nearest to the previously operating Hammaslahti copper, zinc and gold mine in southern Finland.  Drilling undertaken by the Company prior to this has focussed on regional geophysical targets to take advantage of preferred winter access on frozen ground.

Importantly, two further drill holes, R318 and R319, have been completed and appear to extend the zone of known mineralisation substantially, terminating at the old zinc/gold open pit up-dip and are potentially open at depth and laterally.  Assays for these holes are pending.

The Company is encouraged by the fact the mineralisation discovered as part of the programme is relatively shallow and proximal to the historic pit and underground drives. Company geologists believe this mineralisation is part of a relatively continuous north to south plunging lode transitioning from shallow zinc and gold in the north to copper as it deepens in the south.

Company geologists also believe this new lode sits en-echelon (slightly to the north and just beneath) the main Hammaslahti copper lode mined until the 1980s.

The Company has already proved the main Hammaslahti copper lode continues at depth when it intercepted the lode in 2012 yielding 3.4m @ 11.5% copper and 3 grams per tonne gold.

Hammaslahti Target

The Hammaslahti Copper Project is located in southern Finland and includes a previously mined copper-gold-zinc ore body interpreted to be a part re-mobilised volcanogenic massive sulphide ('VMS') type deposit.  Historically, mining initially commenced at several shallow open pits, followed by an underground mine to a depth of approximately 450m.  Mining ceased in the mid-1980s due to depressed metals prices.

In mid-December 2013, FinnAust commenced drilling regional targets near Hammaslahti.  This forms part of its 10,300m 11 month rolling drilling campaign focussed across its three high-priority copper-gold and nickel-copper-platinum group element projects, Hammaslahti, Outokumpu and Enonkoski.

Competent Person's Statement

The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Urpo Kuronen, who is a Member of The Australasian Institute of Mining and Metallurgy.

Mr Kuronen has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'.   Mr Kuronen has reviewed this announcement and consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

**ENDS**

For further information please visit www.finnaustmining.com or contact:

Alastair Clayton	FinnAust Mining plc	+ 44 (0) 20 3326 1729
Ewan Leggat	SP Angel Corporate Finance LLP Nominated Adviser and Joint Broker	[phone]
Laura Harrison	SP Angel Corporate Finance LLP	[phone]
Lindsay Mair	Sanlam Securities UK Joint Broker	[phone]
Catherine Miles	Sanlam Securities UK	[phone]
Elisabeth Cowell	St Brides Media and Finance Ltd	[phone]
Charlotte Heap	St Brides Media and Finance Ltd	[phone]

Notes

FinnAust Mining is an AIM listed exploration company focused on copper and base metals in Finland and Austria.  Its proven management team, with its track record of exploring, discovering, financing, constructing and safely operating mines globally, has established a portfolio of highly prospective projects at various stages of development.  Finland is rated the number one mining destination worldwide in the Fraser Institute Global Mining Survey Results 2012/2013.

The Company's primary focus of exploration is a portfolio of assets in Finland.  Three high-priority target areas have already been identified, Hammaslahti, Outokumpu and Enonkoski, which are prospective for Volcanogenic Massive Sulphide ('VMS'), high-grade magmatic sulphide nickel-copper and Outokumpu type copper deposits.  The assets are located in one of the world's most prolific geological belts, which hosts multiple high grade mines including the world famous Outokumpu copper mine, which reportedly produced a total of approximately 34.4 million tonnes of ore at average grades of 3.6% copper, 1.2% zinc, 0.22% cobalt and 0.1% nickel between 1914 and 1988.

FinnAust Mining also holds an 80% interest in the previously producing 33 km sq Mitterberg Copper Project in Austria, which the Company are currently evaluating in order to determine the best plan for future development. 

 

END

 

 

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