Endomines Finland Oyj: Inside information: Endomines reports high gold grades from Kuittila, Southern Gold Line, and explores the production potential of tungsten, a critical raw material listed by the EU

Endomines Finland Plc - Inside information - 19/12/2024, at 13:00 EET

Inside information: Endomines reports high gold grades from Kuittila, Southern Gold Line, and explores the production potential of tungsten, a critical raw material listed by the EU

Endomines reports the results from a drilling program carried out in August-October at Kuittila, in the Southern part of the Karelian Gold Line. The program consisted of 30 drill holes with a total length of 5189 meters. The aim of the program was to increase the company's gold resources in the Southern Gold Line by filling gaps in the drilling pattern within the existing resource area and testing the possible extensions of the mineralization towards west and north.

Based on the results, the known mineralized zones have been significantly extended towards west and deeper into the ground. Additionally, a drilling profile approximately 250 meters north of the current resource area returned significant intercepts, indicating the area's still unexplored potential.

In addition to gold resources, the drilling program aimed to explore the area's potential for tungsten and molybdenum production. Elevated concentrations of the metals were identified in every drill hole of the program.

Highlighted drill results from the central part of the Kuittila deposit include:

• Drill hole KT-022 intersected 17.90 meters at 3.03 g/t gold from 206.00 m
  • Including 1.10 meters at 26.40 g/t gold from 212.95 m
  • Including 2.55 meters at 8.99 g/t gold from 222.80 m
• Drill hole KT-056 intersected 6.25 meters at 2.06 g/t gold from 92.35 m
  • Including 2.00 meters at 5.03 g/t gold from 92.35 m
• Drill hole KT-067 intersected 8.60 meters at 1.84 g/t gold from 74.60 m
  • Including 2.70 meters at 3.86 g/t gold from 79.45 m

Highlighted drill results from the western extension of the Kuittila deposit include:

• Drill hole KT-059 intersected 20.35 meters at 2.37 g/t gold from 103.70 m
  • Including 7.75 meters at 4.74 g/t gold from 103.70 m
    • Including 2.20 meters at 11.73 g/t gold from 109.25
• Drill hole KT-072 intersected 10.90 meters at 2.20 g/t gold from 80.05 m
  • Including 2.85 meters at 6.56 g/t gold from 88.10
    • Including 0.95 meter at 15.70 g/t gold from 89.05 m

Highlighted drill results from the northern extension of the Kuittila deposit include:

• Drill hole KT-061 intersected 4.60 meters at 2.77 g/t gold from 165.55 m
• Drill hole KT-075 intersected 2.10 meters at 4.52 g/t gold from 106.10 m

"The drilling results from the Southern Gold Line confirm the high gold potential of the Kuittila area. Our goal in Kuittila is to increase our gold resources, which is why we focused on drilling near our main deposit. Due to the highly promising base of till samples, we also investigated the continuation of the deposit in west and in north. Based on the base of till samples, there are also several other promising areas along the Southern Gold Line that we will continue exploring in 2025 and beyond," states the company's CEO Kari Vyhtinen

Endomines is planning to open a new mine on the Southern Gold Line, and the permitting process for the mining project is currently on-going. The area's environmental surveys have already been completed, and the environmental impact assessment program will be completed at the beginning of 2025.

The intersections from the drilling program at Kuittila are presented in Appendix 1, and the locations of the new drill holes are shown on the map in Appendix 2.

Also other valuable raw materials found in Kuittila

In all the drill holes of drilling program carried out in Kuittila, elevated levels of tungsten and molybdenum were detected outside the gold-bearing zone. Tungsten is a critical raw material listed by the European Union, and molybdenum is an important raw material for the steel industry. The highest molybdenum and tungsten grades in the recent results were 1.43 percent molybdenum over 0.85 meters in drill hole K-074 and 0.59 percent tungsten over 1.05 meters in drill hole KT-052. Endomines reports molybdenum and tungsten grades alongside gold, and the intersections are calculated based on gold.

"Our preliminary production plans for the Southern Gold Line mining project include tungsten and molybdenum in addition to gold. China controls about 80 percent of the world's tungsten production, and Russia is the second-largest producer of this critical raw material. We see tungsten and molybdenum as highly potential by-products of gold production in Kuittila, and we are currently examining their economic significance," says Vyhtinen.

Continuation of exploration in the Kuittila area

The next step of exploration in Southern Gold Line in 2025 will be further testing geochemical gold anomalies in the base of till (BOT) sampling around the Kuittila deposit. Further exploration drilling will also test the continuity of the gold bearing structures in north of the current resource.

Geology of Kuittila

The Kuittila gold deposit is located 25 km south of Pampalo and was discovered originally by GTK in 1984 while exploring for molybdenum and tungsten in the area. The highest-grade gold intersection from Kuittila to date is in the drill hole KT-015 that has an intersection of 9.75 m at 17.4 g/t gold and was drilled by Endomines in 2023 (press release 13/9/2023). Kuittila has a JORC compliant mineral resource of 814 700 tonnes at 1.88 g/t gold, totalling 49 170 oz in inferred category.

Drilling technology and quality assurance

All surface drilling has been carried out by KDC Oy, using WL-66 tubes, resulting in a core of 50.5 mm in diameter. Drill hole locations have been surveyed by using mine survey equipment. A downhole survey of bearing and dip deviations has been completed with the SPT GyroMaster survey tool. All cores have been oriented with SPT CoreMaster equipment.

The drill cores have been logged by Endomines own personnel. The drill cores have been cut in half by Palsatech Oy in Kemi prior to the shipping to CRS' laboratory in Kempele. Samples were sent to CRS' laboratory in Kempele for preparation (code PRP-929) and then sent to MS Analytical laboratory in Langley, Canada, where samples were analyzed by methods FAS-111 (Gold), and IMS-230 (multi element). Gold over 10 g/t was re-analysed with FAS-415.

Normal QA/QC (Quality Assurance/Quality Control) procedures have been adhered to on all the samples, with standards, blanks and duplicates routinely submitted as part of the sampling program. The quality of sample preparation, security integrity and chemical assays was equal to, or exceeded, current industrial standards and the requirements of the JORC-code.

This statement has been controlled by Eurogeologist Jani Rautio MSc (Geol) acting as a Qualified Person in compliance with the Fennoscandian Association for Metals and Mining Professionals, FAMMP, -standards. Jani Rautio is a full-time employee of Endomines and owns 2,000 shares in Endomines.

Further information:

Kari Vyhtinen
CEO
[e-mail]
[phone]

Jani Rautio
Chief Geologist
[e-mail]
[phone]

Endomines Finland Plc is a Finnish forerunner in sustainable mining. Our mining operations in Pampalo, Ilomantsi region, focus on gold mining and processing, as well as exploration in the Karelian gold line, in Eastern Finland. We also own the rights to seven gold deposits in the US. We produce gold for the jewellery and electronics industries and create value by transforming natural resources into wealth, an investment that withstands the volatility of global politics. We are a growing mining company that embraces new ways of thinking; we want to leave a positive footprint where we operate, which is why our goal is to grow the Karelian gold line into a significant, sustainable gold-producing region. Endomines is listed on the main list of OMX Helsinki (PAMPALO). www.endomines.com.

The Karelian Gold Line is 40 kilometers long, a gold prospective portion of the Ilomantsi greenstone belt located in Eastern Finland approximately 500 kilometers northeast of Helsinki. The area hosts several gold deposits, the largest known being Pampalo. The Pampalo mine has produced 200,000 ounces of gold at an average grade of 3.6 g/t. Endomines controls extensively exploration rights across the Karelian Gold Line.