Mineral Deposit Report Page 1 OF 17 19.06.2017 Kuuhkamo Occurence type: occurrence Commodity Rank Total Total production Total resource Importance measure zinc 1 6000 t 6000 t Occurrence silver 3 lead 3 copper 3 gold 3 Easting EUREF: 411540.386 Easting YKJ: 3411677 Northing EUREF: 7140060.279 Northing YKJ: 7143051 Discovery year: 1985 Province: Vihanti-Pyhäsalmi (Zn, Cu) District: Vihanti (Zn, Cu) References: 9, 13, 15, 21, 28 Mineral deposit type Group: Metallogenic deposit Main type: VMS (mixed hydrothermal) Sub type 1: Bimodal-felsic Comments: Subvolcanic hydrothermal mineralising system related to the intrusion of the quartz porphyry. Early NW- and NE-trending shear and fault zones, located near the margins of the gabbros in the region, may have behaved as conduits for mineralising fluids and, even, magmas. Epigenetic, subvolcanic felsic intrusive-activity related mineralisation. References: 10, 11, 12, 17, 22 Dimension Expression: Form: Shape: Length (m): 100 Width (m): 70 Thickness (m): 5 Depth (m): Area (ha): Dip azim: Dip: Plunge azim: Plunge dip: Orientation method: Holder history Previous holders: Company Years Holding type Comments FinnAust Mining Oy 2012 Reservation Magnus Minerals Oy 2008-2013 Claim (old law) Oy SES Finland Ltd 2006 Outokumpu Oy 1984-1989 Claim (old law) 1
Mineral Deposit Report Page 2 OF 17 19.06.2017 EXPLORATION ACTIVITY Years Activity type Geologist Exploration result Ref 2005-2005 core drilling Jarmo Nikander 18 Core drilling (reconnaissance drilling): two diamond-drill holes, total 982.70 m. Intersections HoleID R578 From-To 285-288.2 Length 3.2m zinc 5.5% lead 0.2% copper 0.09% silver 13ppm gold 0.76ppm 2002-2005 detailed geophysics Jarmo Nikander 1, 2, 3, 4, 6, 17, 18 2002-2005 geological interpretation Jarmo Nikander 1, 2, 3, 4, 6, 17, 18 2002-2005 regional geophysics Jarmo Nikander 1, 2, 3, 4, 6, 17, 18 2002-2005 regional geochemistry Jarmo Nikander 1, 6 Only a low-contrast, incoherent, areally restricted Zn-Pb-Cu anomaly in till; rather, the Zn anomalies in till reflect the locations of granitic rocks in the region. Outokumpu Oy Years Activity type Geologist Exploration result Ref 1985-1989 core drilling Lauri Pekkarinen, Urpo Kuronen 19, 20, 21 Low-altitude airborne geophysical surveys guided diamond drilling into a potentially significant magnetic anomaly and the deposit was hit by drilling; 31 diamond-drill holes, total 11519 m. Intersections HoleID From-To Length 4m zinc 9% silver 16ppm HoleID From-To Length 6m zinc 4.5% silver 9ppm HoleID From-To Length 1.6m zinc 9.5% 2
Mineral Deposit Report Page 3 OF 17 19.06.2017 HoleID From-To Length 16.7m zinc 3.9% silver 9ppm HoleID From-To Length 11.2m zinc 4.5% HoleID From-To Length 16m zinc 5% 1984-1990 detailed geophysics Lauri Pekkarinen, Urpo Kuronen 20, 21 A low-altitude airborne magnetic anomaly: the entire hosting sequence is magnetic and defines this anomaly. Compared to the hosting sequence, the Zn lodes do not define anomalies by susceptibility, resistance or radiation. 1984-1990 detailed geology Lauri Pekkarinen, Urpo Kuronen 1984-1990 percussion drilling Lauri Pekkarinen, Urpo Kuronen 11, 17, 19, 20, 21 11, 17, 19, 20, 21 Years Activity type Geologist Exploration result Ref 1983-1983 regional geophysics key geological features 1, 2, 3, 4, 6, 17, 18 Low-altitude airborne magnetic, electromagnetic and radiometric survey 1973-1977 regional geochemistry Outokumpu Oy Years Activity type Geologist Exploration result Ref 1955-1960 detailed geophysics 20, 21 1955-1960 detailed geology 11, 17, 19, 20, 21 1955-1960 core drilling 11, 17, 19, 20, 21 1955-1960 percussion drilling 11, 17, 19, 20, 21 Years Activity type Geologist Exploration result Ref 1946-1950 regional geophysics 5, 14, 24, 25 3
Mineral Deposit Report Page 4 OF 17 19.06.2017 1946-1950 regional geochemistry 5, 14, 24, 25 1946-1950 detailed geology 5, 14, 24, 25 1946-1950 detailed geophysics 5, 14, 24, 25 Figures Secondary anomaly: 4
Mineral Deposit Report Page 5 OF 17 19.06.2017 Secondary anomaly: 5
Mineral Deposit Report Page 6 OF 17 19.06.2017 RESOURCES AND RESERVES Most recent Type: Company: Year: Calc Method: Reference: Resource Outokumpu Oy 1989 Non-compliant resource estimate 21 Category: Poorly estimated mineral resource, poorly documented Tonnage: 0.15 Mt zinc 4 % Cutoff: 6
Mineral Deposit Report Page 7 OF 17 19.06.2017 GEOLOGY Host rock: Cordierite Gneiss, Diopside Skarn Cordierite Gneiss (Host rock) Rock type: Host rock Proportion: minor Grain size: Color: References: 7, 12, 17, 18, 23, 27 Metamorphic description: Other minerals: Mineral Proportion Mineral texture Cordierite present Alteration product Type: Facies: Degree: Relation to mineralization: Min P- Max P (kbar) MIn T- Max T ( C) Regional amphibolite metamorphic facies medium metamorphic grade Comments: Peak regional metamorphism at about 1876±2 Ma. Peak metamorphism is related to the intrusion of synorogenic, 1.89-1.87 Ga, granitoids. Geological age: Geological era: Paleoproterozoic (2500-1600 Ma) Max age - Minage Inferred age (Ma): Age of mineralization: (Ma): 1600-2500 N Diopside Skarn (Host rock) Rock type: Host rock Proportion: major Grain size: Color: References: 5, 7, 12, 17, 20, 21, 23, 27 Comments: The deposit is in the contact zone between skarn and the porphyry. Ore minerals: Mineral Proportion Mineral texture Sphalerite major Vein, Breccia Other minerals: Mineral Proportion Mineral texture Diopside present Alteration product Quartz present Alteration product Sericite present Alteration product 7
Mineral Deposit Report Page 8 OF 17 19.06.2017 Structures Breccia Veined Alteration: Distribution: Degree: Relation to mineralization: sericitic alteration Moderate silicification Veins Strong Metamorphic description: Type: Facies: Degree: Relation to mineralization: Min P- Max P (kbar) MIn T- Max T ( C) Regional amphibolite metamorphic facies medium metamorphic grade Comments: Peak regional metamorphism at about 1876±2 Ma. Peak metamorphism is related to the intrusion of synorogenic, 1.89-1.87 Ga, granitoids. Geological age: Geological era: Max age - Minage Inferred age (Ma): Age of mineralization: (Ma): Paleoproterozoic (2500-1600 Ma) 1922-1922 1922 Y Comments: Mineralisation took place between 1910 and 1930 Ma. Radiometric age: Method: Age: Error (Ma): Mineral: Reference: U-Pb 1922 6 Zircon 8, 16, 26 Figures 8
Mineral Deposit Report Page 9 OF 17 19.06.2017 Schematic modelling: 9
Mineral Deposit Report Page 10 OF 17 19.06.2017 Regional geology: Local geology: 10
Mineral Deposit Report Page 11 OF 17 19.06.2017 11
Mineral Deposit Report Page 12 OF 17 19.06.2017 Local geology: Local geology: 12
Mineral Deposit Report Page 13 OF 17 19.06.2017 Regional geology: 13
Mineral Deposit Report Page 14 OF 17 19.06.2017 14
Mineral Deposit Report Page 15 OF 17 19.06.2017 REFERENCES 1. Iisalo, E. 1995. Vihannin karttalehden 2434 vanhan moreeniaineiston uudelleen analysointi ICP:llä, tulosten vertailu ja anomaliat., Report S/41/2434/95/1. 16 p. (in Finnish) http://tupa.gtk.fi/raportti/arkisto/s41_2434_95_1.pdf 2. Iisalo, E. 2004. Geokemialliset malmiviitteet Vihannin alueella, Länsi-Suomessa. Geological Survey of Finland, Report M10.4/2004/2. 90-108 p. (in Finnish) http://tupa.gtk.fi/raportti/arkisto/m10_4_2004_2.pdf 3. Iisalo, E. 2004. Moreeni-, rapakallio- ja kallionäytteiden geokemialliset erikoispiirteet Vihannin alueella, Länsi-Suomessa., Report M10.4/2004/2. 73-89 p. (in Finnish) http://tupa.gtk.fi/raportti/arkisto/m10_4_2004_2.pdf 4. Iisalo, E. 2004. Moreenin stratigrafia ja geokemia Raahe-Laatokka -vyöhykkeen luoteisosassa, Länsi-Suomessa., Report M10.4/2004/2. 61-72 p. (in Finnish) http://tupa.gtk.fi/raportti/arkisto/m10_4_2004_2.pdf 5. Kahma, A. 1950. Yhteenveto geologisen tutkimuslaitoksen suorittamista tutkimuksista Lampinsaaren sinkkiesiintymällä Vihannissa., Report M17/Vti-50/3. 9 p. (in Finnish) 6. Kauranne, L-M. 1979. Vihannin karttalehtialueen geokemiallisen kartoituksen tulokset. Summary: The results of the geochemical survey in the Vihanti map-sheet area. Explanation for geochemical maps, Sheet 2434.. 55 p. http://tupa.gtk.fi/kartta/geokemiallinen_karttaselitys/gks_2434_s.pdf 7. Korsman, K. (ed.) & Glebovitsky, V. (ed.) 1999. Raahe-Ladoga Zone structure-lithology, metamorphism and metallogeny: a Finnish-Russian cooperation project 1996-1999. Map 2: Metamorphism of the Raahe-Ladoga Zone 1:1000000.. 8. Kousa, J. (2001) Personal communication 21/11/2001. 9. Kousa, J., Huhma, H. & Vaasjoki, M. 2004. U-Pb -ajoitukset eräistä magmasyntyisistä kivistä Pohjois-Pohjanmaalta, Raahe-Laatokka -vyöhykkeen luoteisosasta., Report M10.4/2004/2. 127-141. (in Finnish)http://tupa.gtk.fi/raportti/arkisto/m10_4_2004_2.pdf 10. Kousa, J., Luukas, J., Mäki, T., Ekdahl, E., Pelkonen, K., Papunen, H., Isomäki, O.-P., Penttilä, V.-J. & Nurmi, P. 1997. Geology and mineral deposits of the central Ostrobothnia. Geological Survey of Finland. Guide 41, 43-67.http://tupa.gtk.fi/julkaisu/opas/op_041_pages_043_067.pdf 11. Kuronen, U. 1988. Ajatuksia vuosina 1984-1987 Vihannin alueella suoritetuista tutkimuksista. Outokumpu Oy Exploration, Report 020/2434/UOK/88. (in Finnish) http://tupa.gtk.fi/raportti/arkisto/020_2434_uok_88.pdf 12. Loukola-Ruskeeniemi, K., Kuronen, U. & Arkimaa, H. 1997. Geochemical comparison of metamorphosed black shales associated with the Vihanti zinc deposit and prospects in western Finland., Special Paper 23, 5-13. http://tupa.gtk.fi/julkaisu/specialpaper/sp_023_pages_005_013.pdf 13. Luukas, J., Kousa, J., Nikander, J. & Ruotsalainen, A. 2004. Raahe-Laatokka vyöhykkeen luoteisosan kallioperä Länsi-Suomessa., Report M10.4/2004/2. 6 37. 15
Mineral Deposit Report Page 16 OF 17 19.06.2017 http://tupa.gtk.fi/raportti/arkisto/m10_4_2004_2.pdf 14. Mikkola, A. 1949. Vihannista lähetetyt kansannäytteet. 2 p., Report M17/Vti-49/2. (in Finnish) 15. Mäki, T., Kousa, J. & Luukas, J. 2015. The Vihanti-Pyhäsalmi VMS belt. In: Maier, W.D., Lahtinen, R. & O'Brien, H. (eds) Mineral deposits of Finland. Amsterdam: Elsevier, 507-530. http://www.sciencedirect.com/science/article/pii/b9780124104389000200 16. Nikander, J. & Luukas, J., Ruotsalainen, A. & Kousa, J. 2002. Kallioperä- ja malmitutkimukset Vihannin Vilmingon ja Rantsilan Pelkoperän välisellä alueella vuosina 1993 2002. Geological Survey of Finland, Report M 19/2434, 3412/2002/1/10. 71 p. (in Finnish) http://tupa.gtk.fi/raportti/arkisto/m19_2434_3412_2002_1_10.pdf 17. Nikander, J., Luukas, J. & Ruotsalainen, A. 2004. Vihannin alueen massiivisten sulfidimalmiesiintymien geologia ja malminmuodostus Raahe-Laatokka vyöhykkeellä Länsi- Suomessa., Report M10.4/2004/2. 38 60. (in Finnish) http://tupa.gtk.fi/raportti/arkisto/m10_4_2004_2.pdf 18. Nikander, J., Luukas, J. & Ruotsalainen, A. 2005. Vihannin Lampinsaaren ympäristön ja Kuuhkamon kairaukset karttalehdellä 2434 05 vuosina 2005 2005. Summary: Drillings in the Lampinsaari area and in Kuuhkamo in Vihanti on the map sheet 2434 05, during the years 2004 2005., Report M19/2434/2005/2/10. 14 p. http://tupa.gtk.fi/raportti/arkisto/m19_2434_2005_2_10.pdf 19. Outokumpu Oy malminetsintä 1986. XXXVII vuosikertomus 1986. Outokumpu Oy, Espoo. 111 p. (in Finnish) 20. Pekkarinen, L. & Rekola, T. 1990. Vihanti, Kuuhkamon tutkimukset vuonna 1989. Outokumpu Oy Mining Industries Report 001/243405/LP, TRP/89. 6 p. (in Finnish) http://tupa.gtk.fi/karttasovellus/mdae/references/526_kuuhkamo/001_2434_05_lp_tpr_89.pdf 21. Pekkarinen, L. 1990. Kaivoslain 19 :n mukainen selvitys, Vihanti, Kuuhkamo, kaivosrekisteri nro 3648/1-2. Outokumpu Oy Finnmines Report 080/2434 05/LP/90. 2 p. (in Finnish) http://tupa.gtk.fi/raportti/arkisto/080_2434_05_lp_90.pdf 22. Rauhamäki, E. 1979. Vihannin kaivoksen uraani-fosforimineralisaatio. In: Parkkinen, M. (ed.) Uraaniraaka-ainesymposiumi (1979). Vuorimiesyhdistys. Sarja B 27, 65-79. (in Finnish) 23. Rouhunkoski, P. 1968. On the geology and geochemistry of the Vihanti zinc ore deposit. Bulletin de la Commission Geologique de Finlande 236. 121 p.http://tupa.gtk.fi/julkaisu/bulletin/bt_236.pdf 24. Salli, I. 1958. Vihanti. Geological Map of Finland 1:100000. Pre-Quaternary Rocks, Sheet 2434..http://tupa.gtk.fi/kartta/kallioperakartta100/kp_2434.pdf 25. Salli, I. 1965. Pre-Quaternary Rocks of the Pyhäjoki and Vihanti Map-Sheet areas. Geological Map of Finland 1:100000. Explanation to the Maps of Pre-Quaternary Rocks, Sheets 2432-2434. Geological Survey of Finland. 52 p.http://tupa.gtk.fi/kartta/kallioperakartta100/kps_2432_2434.pdf 26. Vaasjoki, M. & Sakko, M. 1988. The evolution of the Raahe-Ladoga zone in Finland: isotopic constraints., Bulletin 343, 7-32. http://tupa.gtk.fi/julkaisu/bulletin/bt_343_pages_007_032.pdf 16
Mineral Deposit Report Page 17 OF 17 19.06.2017 27. Vaasjoki, M., Äikäs, O. & Rehtijärvi, P. 1980. The age of mid-proterozoic phosphatic metasediments in Finland as indicated by radiometric U-Pb dates. Lithos 13, 257-262. 28. Weihed, P. & Eilu, P. 2005. Fennoscandian Shield - Proterozoic VMS deposits. Ore Geology Reviews 27, 324-325. 17