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Fly-through of the Kylylahti Project 

Fly-through of the Kuhmo Project

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Kuhmo - Hietaharju

The Hietaharju prospect is associated with a north-northeast trending talc-carbonate altered ultramafic cumulate body with associated multiple, discontinuous zones of chlorite-amphibole rocks. The ultramafic body is approximately one kilometre long and up to 100 metres thick, dipping between 70º east and vertical. The ultramafic is located within a sequence of near vertical to overturned quartzo-feldspathic schists in the east and pyritic schists within komatiitic basalts in the stratigraphic hangingwall in the west.




The deposit occurs as lenses of massive sulphide breccia and fine-grained disseminated sulphide hosted by a talc-carbonate rock and chlorite-amphibole rock unit within the footwall contact. Massive sulphides comprise pyrrhotite and pentlandite with some chalcopyrite. The southern part of the deposit usually occurs within chlorite-amphibole rock and close to the eastern (footwall) contact of the ultramafic unit. The northern part of the deposit is more commonly within talc-carbonate rock and further away from the interpreted footwall contact. The deposit is approximately 200 metres long and the thickness varies from less than 0.5 metre thick massive sulphide veins up to 10 metre thick units of disseminated talc-carbonate rock and massive sulphide veins. An aspect of the Hietaharju deposit that may be of significant economic value is the high platinum group element values reported in Vulcan’s drilling results. Diagrams on the Hietaharju assays indicative for the tenor of the deposit are presented in, Section 3.2.2. Nickel tenor is 2-5% and platinum+palladium is 0.5 – 5ppm. The Ni:Cu ratio of 2 is indicative of a more mafic host than a typical high MgO komatiite.

Previous Exploration

First exploration phase at Hietaharju area was initiated by prospector samples of massive nickel and copper bearing sulphides in the beginning of the 1960`s. Outokumpu completed an exploration program in 1961-63 covering the Kiannanniemi area. This programme led to the discoveries of the Hietaharju and Peura-aho nickel-copper deposits. At Hietaharju this phase of exploration included 22 drill holes totalling over 4000 metres of core.

Outokumpu carried out both a resource estimate in 1970. The conventional polygonal resource estimate on cross sections, quotes 238,000 tonnes at 0.86% nickel, 0.43% copper, 0.05% cobalt and 8.5% sulphur.

Significant Intercepts in previous drilling at the Hietaharju Prospect

Hole	From (m	To (m	Interval (m	Ni (%	Cu (%
H-12	209.07	211.30	2.23	1.14	0.47
H-4	16.15	18.15	2.00	1.19	0.46
H-4	42.22	42.76	0.54	1.68	0.27
H-5	31.67	31.91	0.24	1.22	0.24
H-6	53.95	55.07	1.12	2.82	0.83
H-7	47.78	48.57	0.79	2.18	2.24
SMS-20	185.40	186.35	0.95	1.88	0.62
SMS-20	189.35	192.90	3.55	1.76	0.69
SMS-23	76.17	78.67	2.50	1.16	0.65
SMS-25	97.10	98.65	1.55	1.13	0.70
SMS-25	118.50	120.20	1.70	1.23	0.55
SMS-26	77.20	79.70	2.50	1.96	0.40
SMS-27	63.92	65.60	1.67	2.88	1.70
SMS-27	86.50	87.60	1.10	1.13	3.10
SMS-28	146.20	147.50	1.30	1.93	1.00
SMS-32	49.65	50.20	0.55	1.04	0.55
SMS-33	59.35	60.45	1.10	1.50	0.55

Summary of results on Vulcan Hietaharju diamond drilling

Hole	From (m)	Interval (m)	Ni (%)	Cu (%)	Co (%)	Pd (g/t)	Pt (g/t)	Pd_Pt (g/t)
SMS/HIE-7	62.90	17.85	1.33	0.61	0.09	1.39	0.68	2.08
incl.	70.71	2.09	1.57	1.27	0.10	2.11	0.83	2.95
SMS/HIE-9	107.30	7.12	0.68	0.24	0.04	0.73	0.54	1.27
SMS/HIE-11	130.14	1.73	0.64	0.38	0.04	0.15	0.36	0.51
SMS/HIE-12	88.00	8.95	1.41	0.36	0.08	0.87	0.39	1.26
incl.	89.33	1.24	2.49	0.42	0.14	1.96	0.67	2.63
incl.	92.77	1.85	2.36	0.64	0.12	0.99	0.47	1.46
incl.	95.32	1.63	2.05	0.38	0.11	1.44	0.62	2.06
	101.51	3.86	1.51	0.89	0.15	2.01	0.52	2.53
incl.	104.41	0.96	2.62	0.69	0.34	4.51	0.95	5.46
SMS/HIE-13	52.00	1.00	0.29	0.11	0.02
SMS/HIE-14	101.45	2.52	1.09	0.90	0.10	1.39	0.48	1.87
	125.80	3.18	1.98	1.01	0.09	0.93	0.48	1.40
	131.77	3.71	1.01	0.47	0.08	1.36	0.35	1.72
SMS/HIE-15	51.88	3.39	0.52	0.40	0.02	0.37	0.36	0.73
SMS/HIE-16	84.20	2.04	0.61	0.43	0.02	0.18	0.63	0.80
SMS/HIE-18	109.60	3.49	1.50	0.98	0.10	0.97	0.25	1.22
	136.30	1.34	1.06	1.00	0.07	0.72	0.45	1.17
incl.	137.07	0.57	1.88	0.67	0.13	1.07	0.79	1.85
SMS/HIE-21	37.00	0.10	1.68	0.52	0.13	0.60	0.82	1.42
SMS/HIE-22	10.80	0.30	1.59	0.24	0.12	1.84	0.75	2.59
SMS/HIE-22	28.20	11.70	1.09	0.52	0.07	0.98	0.43	1.40
SMS/HIE-23	38.30	8.80	0.95	0.34	0.06	0.68	0.38	1.06
SMS/HIE-24	10.90	5.20	2.49	1.44	0.13	4.02	2.41	6.43
SMS/HIE-24	21.40	1.70	2.37	1.31	0.13	2.86	1.77	4.64
SMS/HIE-25	1.80	3.20	2.45	1.39	0.14	4.30	2.58	6.88
SMS/HIE-25	29.10	1.00	2.18	0.98	0.12	2.74	1.41	4.21
SMS/HIE-25	33.20	2.10	2.46	0.97	0.13	2.11	1.81	3.91
SMS/HIE-26	29.10	17.80	0.87	0.52	0.05	1.00	0.52	1.52
incl.	41.40	5.50	1.12	0.76	0.06	1.08	0.53	1.62
SMS/HIE-27	15.50	1.20	1.56	0.66	0.12	4.26	0.63	4.89
SMS/HIE-28	24.60	5.00	2.11	1.52	0.11	3.65	2.68	6.33

Seven samples from Hietaharju were submitted for nickel sulphide fire assay (NiS-FA) full suite platinum group element analysis.

Results of full suite PGE analysis via NiS-FA by Kuhmo Metals (HIE sample id's) and Outokumpu (SMS sample id's)
   

Sample	Mineralisation Type	Ni ppm	Cu ppm	S %	Au ppm	Ir ppm	Os ppm	Pd ppm	Pt ppm	Rh ppm	Ru ppm
HIE-7_70.71-70.87	Massive	25962	82980	32.00	254	83	37	2099	525	174	259
HIE-7_72.00-72.72	Massive	15775	4043	22.40	32	47	21	2472	587	114	137
HIE-7_73.36-74.07	Massive	26938	16612	34.60	41	166	81	1002	496	336	563
HIE-7_74.85-75.80	Semi-massive	11643	5174	13.60	66	33	16	1569	1105	97	103
HIE-9_113.30-114.30	Disseminated	9699	2582	9.50	19	58	30	989	1123	104	210
HIE-12_104.41-105.37	Massive	26222	6919	32.20	780	73	39	4623	954	163	229
HIE-14_126.80-127.80	Massive	19404	10787	28.20	216	108	53	1760	726	336	390
SMS-28_143.95-144.10	Massive	28300	1500	31.80	34	200	60	1400	430	490	1300
SMS-28_147.20-147.35	Massive	31800	4400	35.80	180	260	55	2100	1100	910	3400
SMS-25_136.14-136.29	Disseminated	1800	1000	8.91	120	51	9	2400	1900	350	950
SMS-25_98.52-98.65	Massive	16900	3800	32.60	100	120	24	1600	640	290	740
SMS-25_119.15-119.29	Breccia	22500	9100	23.10	66	51	17	820	570	84	180
SMS-20_191.97-192.13	Breccia	22300	15600	30.70	130.	90	21	1300	820	190	36