An update of the Dannemora Mineral Reserve was concluded December 23. 2011. The new estimate of the Mineral Reserve shows an increase with 6.9 million tonnes to a total of 35.1 million tonnes, while the iron content in the crude ore has decreased with 0.94 percent. The entire Mineral Reserve is classified as probable.

The basis for this estimate is the updated Mineral Resource which was reported in August 2011 and includes the recently core drilled mineralization Norrnäs 3 and a change of the cut-off grade to 20 percent iron. The former estimate was based on a cut-off grade of 30 percent iron.

The lower cut-off grade affects the amount of waste rock and consequently the iron content.

The reported tonnage and waste rock dilution are a function of the chosen mining method, sublevel caving. The wallrock in Dannemora is generally very stable. In the estimated mineral reserve it is assumed that, in most cases, one meter of wallrock will dilute the ore. This wallrock is assumed to contain five percent iron.
The reported Mineral Reserve includes 14 different mineralizations distributed along the total length of the ore field, 3 kilometers. In order to achieve an even quality of products, the feed of crude ore into the sorting plant must be blended from different ore bodies. The crude ore will be treated in a dry magnetic process (under construction) that is designed to produce 60 % lump ore and 40 % fines. The lump ore will contain 50 percent iron and the fines 55 percent iron.

Read full ress Release below
Press Release 12 januari 2012:
http://hugin.info/137553/R/1577025/491586.pdf


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Source: Dannemora Mineral AB via Thomson Reuters ONE
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