IRW-News: Altona Mining Ltd.: Altona Mining Limited: Reserven weiter gestiegen auf der Kylylahti Mine, Finnland

IRW-PRESS: Altona Mining Ltd.: Altona Mining Limited: Reserven weiter gestiegen auf der Kylylahti Mine, Finnland

RESERVEN WEITER GESTIEGEN AUF DER KYLYLAHTI MINE, FINNLAND

· Enthaltenes Kupfer um 13% und enthaltenes Gold um 25% gestiegen

· Kupfermetallreserven übersteigen Vorabbaureserven deutlich

· Zweiter erfolgreicher Anstieg der Reserven

· Geschlussfolgerte Ressourcen in der Tiefe stehen für zukünftiges Reservenwachstum zur Verfügung

· Minenbetriebsdauer von 7,5 Jahren mit Zielproduktion von 650.000 t p.a.

7. Mai 2014

ASX: AOH, FSE: A2O

Altona Mining Limited (Altona oder das Unternehmen) freut sich über die Bekanntgabe eines Anstieges der Erzreservenschätzung für die zu 100% im Eigentum befindliche Kylylahti Untertagemine auf ihrem Outokumpu Kupferprojekt in Finnland. Dieser Anstieg folgt der aufgestuften Ressourcenschätzung wie schon an der ASX am 26. März 2014 bekannt gegeben.

Die Erzreservenschätzung für die Kylylahti Mine bereinigt um den bisherigen Abbau per 31. Dezember 2013 (siehe Tabelle 1 im Vergleich) liegt bei:

4,55 Mio. Tonnen mit 1,66% Kupfer, 0,83g/t Gold und 0,62% Zink mit enthaltenen:

75.651 Tonnen Kupfer, 121.915 Unzen Gold und 28.032 Tonnen Zink

Zusätzlich konnten 0,2 Mio. Tonnen geplante Produktion abgeleitet aus den Geschlussfolgerten Ressourcen als Abbaulagerbestand klassifiziert werden.

Unter Benutzung des Nettoschmelzertrages für die Konzentrat Verkäufe und dem enthaltenen Kupferäquivalent entspricht dies nun 97.400 Tonnen mit einem Grad von 2,14% Kupferäquivalent. Diese Schätzung ist höher in der Tonnage, den Graden und dem enthaltenen Metall gegenüber Schätzung vom August 2010 für die Vorproduktionsreserve (siehe Abb. 3 Ressourcenwachstum).

Altona Managing Director Dr. Alistair Cowden sagte: Dies ist der zweite folgende Anstieg in den Reserven. Wir erwarten, dass die Ausfachungs- und Erweiterungsbohrungen den Trend des Ersatzes oder weiter wachsender Ressourcen bestätigen werden. Der Anstieg der Beiproduktgrade im Gold und der enthaltenen Unzen Gold auf 122.000 hat uns sehr gefreut.

Altona plant nun einen Anstieg der Produktionsrate auf 650.000 Tonnen p.a. und einen abbaufähigen Lagerbestand von insgesamt 4,75 Mio. Tonnen der eine Produktion von mindestens 7,5 Jahren ermöglichen wird.

Interview Commodity-TV mit Dr. Alistair Cowden über den Kupfermarkt: http://bit.ly/1il6Z0o

Den Minenplan sehen Sie in Abbildung 1.

http://www.irw-press.at/prcom/images/messages/2014/5208/Altona_070514_prcom_deutsch.001.jpeg

Abb. 1: Längsschnitt der Kylylahti Mine und Minenplan

http://www.irw-press.at/prcom/images/messages/2014/5208/Altona_070514_prcom_deutsch.002.jpeg

Abb. 2: Produktionsbohrungen auf der Kylylahti Mine

http://www.irw-press.com/dokumente/Altona_070514_prcom_deutsch.pdf

Abb. 3: Kupfermetall in den Reserven

Tabelle 1: Kylylahti Erzreservenschätzung Dezember 2013

Tonnen Cu Au Zn Cu Au

(Mio.) (%) (g/t) (%) (t) (Unzen)

Bewiesene 0,57 1,43 0,66 0,66 8.151 12.000

Erzreserven

Mögliche 3,98 1,70 0,86 0,61 66.068 110.000

Erzreserven

Total Reserven4,55 1,66 0,83 0,62 75.651 122.000

Abbau 0,2 1,75 0,54 0,63 4.475 4.415

Lagerbestand

Bemerkung: Gesamtzahlen können durch Rundungen abweichen.

Diese Schätzung ist höher als die vom 30. Juni 2013 Schätzung mit 4,2 Mio. tonnen mit 1,60% Kupfer, 0,73g/t Gold und 0,63% Zink (siehe ASX Bekanntmachung vom 29. August 2013). Das enthaltene Kupfer stieg um 13% an als Ergebnis eines Anstieges von 9% in der Erztonnage und um 4% in den Kupfergraden.

Tabelle 2: Kylylahti Erzreservenschätzung, Juni 2013 (Zahlen werden ersetzt, gilt nur für Vergleichszwecke)

Tonnen Cu Au Zn Cu Au

(Mio.) (%) (g/t) (%) (t) (Unzen)

Bewiesene 0,6 1,51 0,75 0,66 9.600 14.500

Erzreserven

Mögliche 3,5 1,62 0,73 0,62 56.700 82.200

Erzreserven

Total Reserven4,2 1,60 0,73 0,63 66.700 97.700

Bemerkung: Gesamtzahlen können durch Rundungen abweichen.

Für Fragen wenden Sie sich bitte an:

Alistair Cowden James Harris Jochen Staiger

Managing Director Professional Public Relations Swiss Resource Capital AG

Altona Mining Limited Perth Tel: +41 71 354 8501

Tel: +61 8 9485 2929 Tel: +61 8 9388 0944 info@resource-capital.ch

altona@altonamining.com james.harris@ppr.com.au

Es gilt ausschließlich das Englische Original dieser Pressemitteilung

Über Altona Mining Ltd.

Altona Mining Limited ist ein Kupferproduzent in Finnland und besitzt ein großes Kupferentwicklungsprojekt in Australien.

Das Outokumpu Projekt des Unternehmens im Südosten Finnlands nahm die Produktion Anfang 2012 auf. Das Projekt schließt die Kylylahti-Untertagemine mit einer Jahreskapazität von 600.000 t und die Luikonlahti-Mühle ein. Die durchschnittliche Jahresproduktion liegt bei 9.000 t Kupfer, 9.000 Unzen Gold und 1.600 t Zink mit der Möglichkeit einer Produktionserweiterung. Die regionalen Ressourcen sind in zwei stillgelegten Minen und 4 noch nicht abgebauten Ressourcen innerhalb von 30 km der Luikonlahti-Mühle beherbergt. Finnland ist Mitglied der Eurozone und hat eine lange Bergbauhistorie, eine stabile Steuergesetzgebung (20 %) und keine weiteren Abgaben.

Altonas weiteres Herzstück ist das Roseby-Kupferprojekt nahe Mt. Isa in Queensland und eines der größten noch nicht entwickelten Kupferprojekte Australiens. Das erste angestrebte Entwicklungsziel mit 7 Mio. t pro Jahr ist die Kupfer-Gold-Tagebaumine und Aufbereitungsanlage Little Eva. Little Evas angestrebte Jahresproduktion1 soll bei 38.800 t Kupfer und 17.000 Unzen Gold für mindestens 11 Jahre Produktionsdauer liegen. Es konnte eine endgültige Machbarkeitsstudie abgeschlossen werden und das Projekt ist voll genehmigt. Altona ist derzeit in Verhandlungen mit potenziellen Partnern, um die Finanzierung dieses Großprojektes ermöglichen zu können.

Altona Mining ist an der Australian Securities Exchange und der Börse Frankfurt notiert.

1Siehe ASX-Pressemitteilung Cost review Delivers Major Upgrade to Little Eva vom 13. März 2014, die die Informationen hinsichtlich dieses Produktionsziels und die auf diesem Produktionsziel basierenden Finanzprognosen skizziert. Diese Pressemitteilung ist bei www.altonamining.com oder www.asx.com.au zu finden. Das Unternehmen bestätigt, dass alle wesentlichen Annahmen, die das Produktionsziel unterstützen und die auf diesem Produktionsziel basierenden Finanzprognosen, die in der oben genannten Pressemitteilung erwähnt werden, weiterhin gültig sind und sich nicht wesentlich geändert haben. Es gilt ausschließlich das Englische Original dieser Pressemitteilung.

Aussage der kompetenten Person

Die Informationen in dieser ASX-Pressemitteilung, die sich auf Explorationsergebnisse, Mineralressourcen oder Erzvorräte beziehen, basieren auf Informationen, die von Dr. Alistair Cowden BSc (Hons), PhD, MAusIMM, MAIG, Managing Director von Altona zusammengestellt wurden. Er ist Mitarbeiter des Unternehmens und verfügt über ausreichendes Wissen und Erfahrung über diesen hier vorliegenden Vererzungs- und Lagerstättentyp. Seine Tätigkeiten qualifizieren ihn als kompetente Person gemäß den Regeln des 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr. Alister Cowden stimmt den hier eingefügten Informationen, die auf seinen Informationen basieren, in Form und Kontext je nach Auftreten zu.

Weiter geht es in Englisch mit dem technischen Anhang.

JORC 2012

The Company has reported Reserves according to the 2012 update of the JORC Code and a full Table 1 is appended. Kylylahti is an operating mine with extensive prior disclosure. The estimates herein reflect Altonas bi-annual reserve review.

Competent Persons Statement

1. Ore Reserve Estimates: The Kylylahti Ore Reserve Estimates that are reported in this ASX Release were undertaken by Mr Antti Sorsa MSc, MAusIMM, Mine Planning Manager at the Kylylahti mine and who is a full time employee of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are 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 Sorsa consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

2. Responsibility for entire release: Information in this ASX Release that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Alistair Cowden, BSc (Hons), PhD, MAusIMM, MAIG and Dr Iain Scott PhD Min. Processing, BSc Met. (Hons) who are both full time employee of the Company and who have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are 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. Dr Alistair Cowden and Dr Iain Scott consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

3. Production target: An insignificant proportion of the estimated mine life, being less than 4.5% of the life of mine production target is based on inferred mineral resources. These inferred resources are scheduled for mining at the end of mine life and are located at the lower limit of the resource. These tonnes will be defined by infill drilling as mine development progresses deeper. Refer to ASX release of 26 March 2014 for further information on the Resource estimates for the Kylylahti Mine.

4. Copper Equivalence: When used, copper equivalence refers to copper in concentrate, not resources or reserves, or drill results. The copper equivalent grade is calculated by factoring the copper grade by Revenue from all products (Cu, Au, Zn, Ag)/ Revenue from copper.

JORC Table 1

The table below is a description of the assessment and reporting criteria used in the Kylylahti Reserve Estimation that reflects those presented in Table 1 of The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2012).

Criteria Commentary

Estimation and Reporting of Ore Reserves

Mineral · The Kylylahti resource model (December

Resource 2013) was used for conversion to Ore

Estimate Reserves.

for

conversion · The Mineral Resource is inclusive of Ore

to Ore Reserves.

Reserves

Site visits · The Competent Person works at the mine and

is actively involved in the planning

process on a daily

basis.

Study status· The mine is in production and feasibility

studies have been

superseded.

· The surface level at the mine is +92

metres above sea level. The reference level

for the levels is sea level so it should be

noticed that the level values represent the

depth below the sea level not depth from

surface.

· The Ore Reserves above level 380 reflect

an operating underground mine. The Ore

Reserve for this area has been updated

based on the experience gained from

production.

· Ore Reserves below the 380 level are based

on the mine plan by the mine planning team

which includes transverse

stoping as the main mining method in that

area. The plan for transverse

stoping has been updated for this reserve

estimate utilising the experiences gained

from production in upper level longitudinal

stopes when applicable.

Cut-off para· The ore cut-off grade is based upon a Net

meters Smelter Return (NSR) value, which is

derived from copper, gold and zinc grades,

recoveries and

payabilities. Payabilities and recoveries

vary with grade and concentrate quality but

on average recoveries are copper 92%, gold

75% and zinc 49%.

Payabilities are copper 96.5%, gold subject

to 1g/t

deducti

on from gold in concentrate and zinc 50%.

· The following approach has been to take

determining NSR values to be used as

cut-off parameters in different mining

situations in the

mine:

· NSR of 15.66/t for development material

that has to be hauled to surface.

This approximates a copper grade of 0.39%.

· NSR of 28.27/t for stope boundaries where

the ore can be extracted without additional

stope preparation work. This approximates a c

opper

grade of 0.63%.

· Below level 300 a depth increment of

0.25/t is added to the NSR cut-off for

each 30m level interval representing the

change in ore haulage distance.

· At the 590 level an additional depth

increment of 2.75/t is added to the NSR

cut-off representing the overall change in

backfill haulage distance.

· Below level 590 a depth increment of

0.25/t is added to the NSR cut-off for

each 30 metre level interval representing

the change in backfill haulage distance.

· The NSR cut-off value between levels

300-750 varies from 28.27/t to 36.52/t.

This approximates a copper grade of

0.65-0.81%.

· An NSR of 52.19/t for the minimum grade

of an entire

stoping panel. This approximates a copper gr

ade

of 1.09%.

Mining The following is relevant for stoping design

factors or above level

assumptions 380:

for levels

above

level · The mining method used is longitudinal

380 open

stoping with cemented rock fill (CRF) and/or

waste rock fill. Parts of the

orebody, however, will be mined using upward

stoping

without backfill. The stopes vary in

dimension as follows: Heights between 8

metres and 30 metres, lengths between 20

metres and 50 metres and width in average

between 4 metres and 12

metres.

· A 5.5 x 5.5 metre decline is used for ore

transportation and access to development

drives. Level spacing is 25-30 metres

vertical, and development drives are

connected to the decline by access drives.

In the upper parts of the mine (levels 50

to 150) access drives are located at the

southern end of the

orebody, in the middle parts (levels 180 to

300) access

drives enter the orebody in the middle, and

development drives extend to the north and

south. In the lower parts (levels 325 and

350) the decline moves around the

orebody from the footwall to hangingwall side

, and accesses the

orebody from the northern end. On level 380

the access is again at the southern end of

the

orebody.

· Stoping generally proceeds from the

northern and southern ends of the

orebody, with mining upwards from the

bottom. Due to the

orebody plunging approximately ~25° to the

south-west, the northernmost

stopes on each level can be mined as a

bottom level

stope.

· In areas where stopes can be accessed from

above, the front end of the

stopes will be filled with CRF. The next stop

e

opening will then be blasted so that no

pillar will be left against the CRF wall,

thus maximising ore

recovery.

· Stope designs generally include dilution

to ensure that the shapes are practical and

can be mined and extracted. This dilution

is included in the

stope tonnes and grades as planned dilution.

In addition,

overbreak is assumed as unplanned dilution.

The unplanned dilution factor applied is

dependent upon the

stope width and shape. It is assumed that

approximately 0.5 metres of

overbreak will occur on both sidewalls of

the

stope. Therefore dilution varies between 5%

in wide

stopes (>20 metres) and 25% in narrow stopes

(4 metres). When

stope shape and stope location is seen as

being exceptionally difficult an additional

dilution factor of 2 to 10% is used.

· Unplanned dilution is anticipated to come

from footwall and

hangingwall in a 50/50 ratio. The diluting

material carries metal grades. The dilution

grades that are used are calculated average

resource model values for both Wallaby and

Wombat

orebodies assuming a 0.5 m thick layer on

both sides of the

stope.

· The definition of dilution here is assumed

to be the ratio of dilution tonnes /

in-situ ore tonnes (before ore loss is

applied).

· The recovery from planned stopes is

assumed to be 90% for open

stoping and 85% for upward stoping.

Additional ore losses are expected in

potentially difficult

stopes, based on their location or shape.

The unrecovered ore

(

ore loss) is assumed to result from underbrea

k

and over size material.

· The mine is using a cavity measurement

surveying (CMS) device for measuring the

actual

stope volumes. Stope recovery and dilution

of each

stope is analysed from the CMS-results and

this information is used to continuously

improve the planning and production

processes.

· The minimum stope width used is 4 metres.

· The infrastructure for mining above level

380 has been completed. Infrastructure

includes the decline, access tunnels,

development drives, ventilation

headings/rises and support headings (such

as water sumps). Electricity, water,

ventilation and water discharge systems are

also in place.

· Reserves have only been derived from

Measured and Indicated Resource

categories.

Mining · The following is relevant for stoping below

factors or level

assumptions 380.

for levels

below · The main mining method to be used between

level the 380 and 750 levels is transverse open

380

stoping with cemented rock fill (CRF) and/or

waste rock fill. Longitudinal open

stoping with cemented rock fill (CRF) and/or

waste rock fill will be used when it is

applicable due to

orebody geometry. Parts of these

longitudinal areas will be mined using

longitudinal upward

stoping without backfill. The stope height

in transverse

stoping is planned to be 30 metres, the

length between 8 metres and 45 metres. The

width in primary

stopes will be 10 metres and in secondary sto

pes

15 metres.

· The decline is used for ore transportation

and access to development drives. Level

spacing is 30 metres and development drives

are connected

to the decline with access drives.

· Access development is driven in the hanging

wall

waste rock parallel with the orebody. From

there, transverse ore drives enter the

orebody every 12.5 meters. At the northern

and southern ends of the

orebody, where transverse stoping is not

feasible, longitudinal ore drives are built

along the

orebody and the ore is mined using

longitudinal open

stoping.

· Transverse stopes may be mined in two

stages; the first stage will exploit

high-grade massive sulphides on the

footwall (east) of the deposit and the

second stage will retreat to mine largely

disseminated ore in the

hangingwall.

· Longitudinal stoping will start from the

northern end of the

orebody, and proceed upwards from the lowest

level. Transverse

stoping will start with primary stopes in

the middle of the

orebody at the bottom level, or in the

northern end when

stopes below the transverse stope have been

mined. Once primary

stopes have been filled with CRF, secondary s

topes

will be mined. Secondary stopes generally

lie between cemented primary

stopes and are filled with waste rock. Level

440 is planned to be used as a starting

level, and ore below this is planned to be

mined working below a ~5m thick ore crown

pillar which is planned to be recovered

when retreating from the production area.

More starting levels will be used where

necessary to ensure enough workable

stoping locations for steady production.

· In longitudinal stopes the front end of

the

stopes will be filled with CRF. The next stop

e

opening will then be blasted so that no

pillar will be left against the CRF wall,

thus maximising ore recovery. In transverse

stoping, primary stopes will be filled with

CRF to allow maximum recovery for the

secondary

stopes. When a secondary transverse stope is

being mined in two parts, the front end of

the first part will be filled with CRF to

allow the recovery of the second

part.

· Stope designs generally include dilution

to ensure that

stope shapes are practical and can be mined.

This dilution is included in

stope tonnes and grades as planned dilution.

In addition,

overbreak is assumed to result in unplanned

dilution. In longitudinal

stoping, the dilution factor is dependent

upon the

stope width and shape. It is assumed that

approximately 0.5 metres of

overbreak will occur on both sidewalls of

the

stopes. Therefore dilution varies between

5% in wide

stopes (>20 metres) and 25% in narrow stopes

(4 metres). When

stope shape and stope location is seen

exceptionally difficult an additional

dilution factor 2 to 10% is

used.

· In the primary stopes of transverse stoping

, both sidewalls are in ore and therefore no

waste rock dilution comes from them. The

footwall and

hangingwall ends of the stope are in waste

rock and 5-15% dilution is expected from

them. In secondary

stopes both sidewalls are made of CRF, and

5% of zero grade CRF dilution (which

approximates a 56cm layer of CRF and bogged

waste from the filled

stope below) is assumed to come from them.

The

stope ends are in waste rock similarly to

primary

stopes, and 5-15% waste rock dilution is

expected from them.

· Unplanned waste rock dilution is expected

to come from footwall and

hangingwall in a 50/50 ratio. The diluting

material carries metal grades. The dilution

grades that are used are calculated average

values for the Wombat

orebody assuming a 0.5 m thick layer on both

ends of the

stope.

· The definition for dilution here is

assumed to be the ratio dilution tonnes /

in-situ ore tonnes (before ore

loss).

· The recovery from planned stopes is

assumed to be 90% for longitudinal and 85%

for upwards

stoping. The planned recovery for primary

transverse

stopes is assumed to be 92% and for

secondary

stopes 85%. The unrecovered ore is assumed

to result mainly from failed blasts that

fail to loosen the ore or from oversize

boulders that prevent full clean-up of the

stopes.

· The mine is using a cavity measurement

surveying (CMS) device for measuring the

actual

stope volumes. Stope recovery and dilution

of each

stope is analysed based on the CMS results

and this information is used to

continuously improve the planning and

production

processes.

· The minimum stope width used in

longitudinal

stoping is 4 metres. Transverse stopes have

fixed widths of 10 metres (primary

stopes) and 15 metres (secondary stopes).

· The development work of infrastructure for

mining below level 380 is under way.

Infrastructure will include the decline,

access drives, development drives,

ventilation headings/rises and support

headings (such as water sumps).

Electricity, water, ventilation and water

discharge systems are also under

construction. At the moment (May 2014) the

decline is proceeding at level 470 and

level development at levels 350 and 380

will soon be finished. Main areas for level

development at May 2014 are the 410 and 440

levels.

· Reserves are derived only from Measured

and Indicated Resource

categories.

Metallurgica· The Kylylahti mine and Luikonlahti mill

l have been operating since early 2012

factors or processing

assumptions

Kylylahti ore as designed in the 2010

Definitive Feasibility Study; extensive

detail is given in the ASX release dated

23/10/2010.

· The metallurgical process is well

established; 3 stage crushing, rod mill and

pebble mill followed by flotation to

produce copper-gold concentrate and a zinc

concentrate for sale, together with a

low-grade cobalt-nickel concentrate for

storage and a sulphur concentrate for

disposal. The

flowsheet is virtually identical to that

employed at the plant in the past for 15

years of treating similar

ore.

· Metallurgical recoveries are well

established and vary slightly with head

grade on average the recoveries

are:

Copper 92.1%

Gold 74.9%

Zinc 49.0%

· Extensive metallurgical testwork representa

tive of the ore body has been completed over

the 20 years between discovery and

production. Metallurgical domains reflect

the geological domain with massive and

disseminated sulphides.

· There are no deleterious elements.

· Bulk sampling is not applicable, as the

mine is in production.

· The saleable product is a concentrate, not

a mineral.

Environmenta· Mined waste rock will be used in stope back

l fill. Before

stoping and backfilling commenced,

development waste rock has been stored in a

constructed waste rock pile on the surface.

Rain and seepage waters are collected and

treated before being drained into the

environment. When mining advances, the

waste rock pile will be transported

underground into

stope fill.

· Mined ore is trucked 43 kilometres to the L

uikonlahti

mill for processing. Copper-gold and zinc

concentrates are produced for sale and

Co-Ni and Sulphur concentrates are stored

in lined dams for possible sale or further

processing in the future. The final

tailings are non-acid forming and are

stored in the tailings storage facility.

All rain, process and seepage waters are

collected and treated before being drained

to the environment. The exception is a

small amount of leakage from an old pit at

Luikonlahti which is permitted under licence

conditions.

Altona is investigating collection of these w

aters

.

· Both Mine and Mill operate under granted

Environmental

Permits.

Infrastructu· All required infrastructure is in place

re and has been used since production started

at early

2012.

· The processing plant is located 43

kilometres from the

mine.

· Power, water and transportation is

available and already in

use.

· The centre of the municipality of Polvijärv

i

(~5,000 inhabitants) is located only 2

kilometres from the

Kylylahti mine. Additionally the town of Outo

kumpu

and the city of Joensuu are located 20

kilometres and 40 kilometres away from the

mine respectively. Accommodation is readily

available in all these places. The mine has

currently all the workforce needed for full

operation.

· The centre of the village Luikonlahti (~500

inhabitants) is located ~3 kilometres from

the

Luikonlahti mill and the centre of the

municipality of

Kaavi (~3000 inhabitants) is located ~15

kilometres from the processing plant.

Additionally the town of

Outokumpu and the city of Kuopio are located

40 kilometres and 75 kilometres away from

the processing plant respectively.

Accommodation is readily available in these

places. The processing plant has currently

all the workforce needed for full

operation.

Costs · The Kylylahti mine and Luikonlahti mill

have been operating almost two years since

early 2012, processing

Kylylahti ore as designed in the feasibility

study. The experience from production is

used for estimating the capital and

operating

costs.

· Allowances made for the content of

deleterious elements in concentrate

(currently there are no deleterious

elements in the copper-gold concentrates

but cobalt and iron penalties in zinc

concentrates) are based on the agreements

made with the current

customer.

· The long term metal prices used for Ore

Reserve estimation are based on the

companys forecasts and are as

follows:

Copper: 3.00 US$/lb

Gold: 1300 US$/oz

Zinc: 0.85 US$/lb

· The exchange rate used in the study is

based on the companys

forecasts

and is as follows:

Euro/USD: 1.25

· The transportation charges used are based

on the current

contracts.

· The treatment and refining charges and

also penalties (currently none applicable)

are based on the agreements made with the

current

customer.

· The allowances made for royalties payable

(government/private) are based on Finnish

mining legislation. There is no government

royalty payable and only small compensation

payments are made to landowners. Most of

the operations are situated on land owned

by the

company.

Revenue fact· Kylylahti mine and Luikonlahti mill have

ors been operating since early 2012 processing

Kylylahti ore as designed in the feasibility

study. The operating experience and current

agreements with customers are used to

estimate the revenue

factors.

· The metal prices used are based on LME

pricing less various standard deductions

and charges for treatment and refining as

per the agreements made with the current

customer.

Market asses· Altona regularly reviews supply and demand

sment characteristics for copper metal. At the

forward prices assumed,

Altona believes resources are economic.

· Copper is a freely traded commodity on

world

markets.

· Regular copper supply and demand analysis

is available from a variety of sources

(

eg. Merchant banks, trading houses, brokers e

tc

).

· Copper is not an industrial mineral.

Economic · Kylylahti is an operating mine. Operating

costs are based on actual data, not

assumptions.

· Reserves are estimated on the basis of the

net smelter return using long term copper

prices and actual operating cost

data.

Social · The Kylylahti mine and Luikonlahti Mill

are fully permitted and operating

according to those permits. The Company

undertakes various community engagement

activities and sponsorships with local

municipalities.

Other · Risks are those typical of underground

copper mines.

· All necessary legal agreements are in

place and in order.

· All necessary governmental agreements and

licencing requirements are in place and in

order.

Classificati· Reserves have been classified as Proved

on Ore Reserves and Probable Ore Reserves.

Proved Ore Reserves have been derived from

the Measured Resource category and Probable

Ore Reserves from the Indicated Resource

category.

· The Proved Ore Reserves category comprises

Ore Reserves in the Wallaby, Gap and Wombat

orebodies between levels 70 and 380

excluding 180 and 210 level

hangingwall gold rich stopes and

development, 270 and 300 level

hangingwall gold rich stopes and

development, which are included in the

Probable Ore Reserves

category.

· The Probable Ore Reserve category includes

Ore Reserves from level 380 downwards

including also those areas described in the

previous point. Also remaining reserves at

50-level are included in the Probable Ore

Reserves.

· Results appropriately reflect the

Competent Person`s view of the

deposit.

· No Probable Ore Reserves have been derived

from Measured Mineral

Resources.

Audits or re· An external review of the procedures used

views for reserve estimation has been carried out

by

Optiro.

· Above 300 metre level mining

reconciliation information is available

which is constantly internally

reviewed.

· The mine plan on which the reserves are

based on is internally reviewed.

· An external geotechnical study concerning

the transverse

stoping and mine infrastructure in the

Wombat

orebody is currently ongoing.

Discussion · No relative accuracy and confidence level

of work has been

relative done.

accuracy/

confidence · Underground mining information with grade

control data and mill reconciliation data

exists and has been used which increases

the confidence of the reserve

estimates.

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