Nordic Resources Adds Fourth Finnish Gold Project With 43.7g/t Surface Hits for EUR100K

Nordic Resources acquires fourth gold project in Central Finland

Nordic Resources (ASX: NNL) has entered an agreement with Timalfi Partners Ay, a Finnish general partnership, to acquire a 100% interest in the Jukulainen gold project in the Middle Ostrobothnia Gold Belt (MOGB). Rock chip assays from the project returned up to 43.7g/t Au, with visible gold in outcrop.

Jukulainen is the company’s fourth gold project in the MOGB and sits close to its three existing gold projects. It adds earlier-stage exploration upside to a more advanced resource base, in line with the stated strategy to build a “district-scale gold producer”.

Robert Wrixon, Managing Director

“…it is clear that the gold endowment of this district is considerably greater than historical estimates have suggested and the region remains substantially underexplored…”

Jukulainen surface results show consistent high-grade gold

Surface sampling is the first clue a project may be worth drilling. Here is what the Jukulainen data shows, and what it does not.

Sampling highlights

• 25 verified rock chip samples, of which 19 returned significant gold. The announcement defines the six that failed as returning less than 0.1g/t Au.
• Top results of 43.7g/t Au and 25.5g/t Au came from the same location, with 11.3g/t Au recorded about 30m further north.
• The 19 significant samples averaged 6.3g/t Au, with a median of 2.2g/t Au.
• Mineralisation sits over a sampled strike length of approximately 80m, coincident with a known shear zone.
• The project area covers 4km of strike over this shear zone, as identified by regional magnetic surveys.

The sampling is historical, with programmes dating back to 2001, and no drilling has yet been conducted within the project area. Samples were taken by several parties, and the announcement states no independent verification has been made. Magnus Minerals partly re-sampled most of the same outcrops and confirmed the highly anomalous gold.

That means this is a promising surface signal, not a discovery. The top three results are below.

The 43.7g/t result was assayed at the Pyhasalmi Mine laboratory.

Project setting

Jukulainen is one exploration licence application covering 532 hectares, located 10km from Ylivieska, a rail transport hub. The licence is an application and has not yet been granted.

The documented Kurula gold-cobalt occurrence lies 8km southeast on the same trend, outside the tenement area. The project is 23km west of the company’s Kiimala Trend project.

Understanding exploration-stage gold projects and what the deal terms mean

Rock chip sampling involves breaking pieces of rock from surface outcrops and testing them for gold. It shows gold is present, but not how much of it exists underground.

Drilling is what defines a resource, because it tests the rock at depth and across distance. Jukulainen has no resource yet.

For you as an investor, the entry price matters. When the upfront cost is small relative to the potential value of a discovery, the capital at risk is limited, though the outcome still depends on future exploration results.

The main terms of the acquisition agreement are:

1. Initial consideration of EUR15,000 to the vendor.
2. Minimum work commitment: NNL to complete a minimum of 200m of drilling within twelve months of final licence grant.
3. Deferred consideration of EUR85,000 due within 15 months following final grant of a legally valid Jukulainen licence, otherwise the project reverts to the vendor.
4. A 0.75% net smelter return (NSR) royalty to the vendor, assuming NNL retains the project after 15 months from issuance of the legally valid licence. NNL retains a buy-back option for 50% of the royalty and a right of first refusal on any sale to a third party.

The two cash payments sum to EUR100,000. The announcement does not disclose any share issuance.

Building on a 1.93Moz AuEq resource base

NNL’s total resources in the district stand at 55.2Mt @ 1.09g/t AuEq for 1.93Moz AuEq. That comprises 1.59Moz of contained gold, 71kt of contained copper and 3.5Moz of contained silver, with 80% in the Measured and Indicated categories.

AuEq means gold equivalent, a way of expressing copper and silver as an equivalent amount of gold. The flagship Kopsa resource is a pit-constrained 44.0Mt @ 1.07g/t AuEq for 1.52Moz AuEq.

The Kopsa gold resource upgrade lifted the flagship estimate by 86% on under 10,000m of drilling, with a higher-grade Measured core starting from surface and a Scoping Study now in sight.

AuEq figures were calculated using US$3,500/oz gold, US$14,000/t copper and US$60/oz silver. Jukulainen does not yet carry a resource.

Two processing plants sit in the region. The 1.4Mtpa Pyhasalmi plant, owned by First Quantum Minerals Ltd, remains in reduced operation and is 40km east of Kopsa. The Laiva plant, designed for 2.2Mtpa, is on care and maintenance and is 120km northwest.

Both plants, or a standalone plant at Kopsa, would be potentially accessible by road or road/rail from any of the four project areas. That is potential access only.

Next steps

NNL intends to conduct mapping and geophysics at Jukulainen in the coming year, followed by drilling once targets have been prioritised. A ground magnetic survey and additional bedrock sampling are planned to identify priority drilling targets. No drilling dates or resource targets are disclosed.

Having assessed numerous third-party gold projects within the MOGB over the past 18 months, the company considers Jukulainen the most prospective and the most likely to add immediate exploration upside to its more advanced gold portfolio.

For investors, the picture is a low entry cost, a defined work commitment and a growing district footprint.

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