LONDON (Alliance News) - FinnAust Mining PLC, the Finnish metals miner that listed on AIM last December, Tuesday said it had started drilling an ice lake on its Outokumpu copper project to take advantage of good ice conditions, shifting its drilling rig from its Hammaslathi Copper Project.
In a portfolio update, the company said it has now started an on-ice lake drilling programme at Lake Juojärvi at the Outokumpu copper project to test what it describes as a very large geophysical and geological area proximal to the old Outokumpu Copper Mines.
It said it is planning at least six holes as it explores for what it hopes is massive copper and polymetalic mineralisation on an untested section covering more than five kilometres in the area known as the Outokumpu Belt.
At its Hammaslahti project, FinnAust is planning to follow up on what it hopes is a massive sulphide mineralisation potentially discovered in its 2012 deep drill programme. The programme has been put on hold so that the company can capitalise on favourable ice conditions to conduct the ice lake drilling programme at Lake Juojärvi. It said it will re-start drilling at Hammaslahti once the Lake Juojärvi ice drilling complete in late March.
The drilling at Hammaslahti has so far targeted areas east and south east of the open pits at the site.
"Whilst no lengthy massive sulphide mineralisation has been intersected to date at these outlying targets, FinnAust's geologists believe the minor mineralisation visible in these holes indicates that massive sulphide mineralisation may exist in greater quantities to the east of the open pits - drilling will test this later in the programme," it said in a statement.
"With conditions now suitable to conduct an on-ice lake drilling programme at Lake Juojärvi near Outokumpu, one of three FinnAust projects located in a highly prolific geological belt, we have moved the drill rig from Hammaslahti to test this previously unexplored 5km long geophysical target," FinnAust Executive Director Alastair Clayton said in a statement.
"On completion of this on-ice drill campaign, our high impact shallow regional and deep drilling programme at Hammaslahti will recommence to test extensions to and structural repeats of the Hammaslahti mine sequence," Clayton added.
"With our most highly ranked targets yet to be drilled, we believe that 2014 will continue to be a busy and exciting year for the company," he added.
FinnAust shares were flat at 4.25 pence Tuesday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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