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Rupert Resources says strong drill results may expand the Ikkari gold project in northern Finland.
The Toronto-based company plans to further upgrade areas of inferred resources this year at Ikkari, which is in Lapland about 900 km north of Helsinki, it said on Tuesday. A potential open-pit mine could produce 200,000 oz. of gold a year, according to a preliminary economic assessment (PEA) in November.
Highlights of recent drilling include hole 122190, which cut 52.6 metres grading 2.3 grams gold per tonne from 515 metres depth in the east, adding confidence to the inferred resources at this depth, Rupert said in a release.
Drill hole 122206 cut 25.3 metres grading 3.2 grams gold from 291 metres depth and 141 metres of 3.6 grams gold from 322 metres in the central portion of the deposit. “The intercept extends to 100 metres below the open pit considered by the PEA, confirming the continuity of high-grade mineralization,” Rupert said.
“Initial results confirm the exceptional continuity of the Ikkari resource and the potential for resource expansions in the west and at depth,” Rupert CEO James Withall said in the release. “We have also identified further mineralization 7 km east from Ikkari along the main regional structure on our land package at Koppelo.”
Results from limited drilling so far at Koppelo have yielded 3.1 metres grading 5.3 grams gold from 21 metres in hole 122161 and 3 metres of 3.3 grams gold in hole 122162, the company said.
“Rupert continues to tag high-grade material outside the block model at depth, pointing to the potential for incremental growth in the next resource update,” Canaccord Genuity mining analyst Michael Fairbairn wrote in a note on Tuesday. “The ongoing infill and expansion drill programs will help de-risk and optimize the deposit’s economics, which may see the PEA pit shell pushed down to capture more ounces in the open pit.”
The latest indicated resource estimate filed in January shows Ikkari holds 46.4 million tonnes grading 2.5 grams gold per tonne for 3.7 million oz. contained metal. The first resource, delivered in 2021, was 49 million inferred tonnes grading 2.5 grams gold per tonne for 4 million oz. gold.
Ikkari could be built for $405 million to operate as an open-pit mine for 11 years, moving underground in the 10th year for 24 years total, the PEA showed. Sustaining capital costs would be $395 million. After-tax net present value would be $1.6 billion with a 5% discount to produce an internal rate of return of 46% and payback after two years, assuming a gold price of $1,650 per ounce.
Rupert is working on prefeasibility study for Ikkari and intends to have all its permits by the end of 2025, Withall said in a presentation this month. He emphasized the project’s short payback period, consistent long-term cash flow, and how its ratios for net present value to capital cost and net present value to production ounces compare favourably with peers.
Ikkari’s all-in sustaining costs would be $759 per oz. over the life of the mine, and $596 per oz. during the open-pit operation, according to the PEA.
Of the project’s current 72,800-metre drilling program, about 30,000 metres has been allocated to Ikkari infill and project drilling with the balance divided equally between Ikkari extension, potential satellites and regional exploration across the company’s 634-sqkm property.
“Rupert is currently focused on near-term resource additions at Ikkari to ensure these can be included in future economic and environmental assessments and the eventual permitting application for the project,” the company said.
Separate to Ikkari, Rupert said Tuesday it’s considering appealing the requirement by local authorities to increase its environmental bond on the nearby Pahtavaara mine to 14.2 million euros (C$21 million) from C$6.2 million. Rupert says it’s testing a less expensive alternative than covering the site’s waste areas with up to 80 cm of moraine material.
Shares in Rupert Resources gained 2% to C$4.80 each in Toronto on Tuesday afternoon, valuing the company at C$971 million.
