Latitude 66’s ongoing scoping study has identified the K2 deposit as an ideal source of high-grade ore to kick off a standalone mine and generate early cashflows at its flagship Kuusamo Schist Belt Project (KSB) gold-cobalt project in northern Finland.
The study is designed to provide a pathway to development and is slated for release by March. It is already supported by an initial resource of 650,000 ounces of gold grading 2.7 grams per tonne (g/t) and 5840 tonnes of cobalt running at 0.08 per cent.
Perth Mining Consultants identified the high-grade K2 deposit as an ideal starter pit based on some exceptionally strong earlier drill hits including 5.1m grading 78.36g/t gold and 0.10 per cent cobalt, 4.5m running at 57.90g/t gold and 0.06 per cent cobalt and 27.35m with grades of 30.56g/t gold and 0.6 per cent cobalt.
The decision to choose K2 as the starting point of a development was further boosted due to its suitable shape and structural makeup for an open pit. The sedimentary-hosted and cigar-shaped deposit has a 330-metre strike that is almost 60m wide and a continuing dip downwards for up to 80m.
With its low strip ratio and solid grade of 3.1g/t for 105,000 ounces of gold and 550t of cobalt at 0.05 per cent, K2 offers the best opportunity to boost early cash flow and deliver strong returns on investment, the company says.
The South Perth-based Perth Mining Consultants has now finalised pit optimisation, mine designs and scheduling for a new development.
Como Engineering has delivered a process flowsheet using a newly completed metallurgical study to fine-tune the conceptual layout of a processing plant and associated mine infrastructure along with the costing estimates for the upfront capital and operating costs.
Consultant structural geologist Model Earth has also been brought in to complete a structural assessment of the immediate area surrounding K2 to identify new exploration targets and expand the resource. Management says new targets are showing strong potential.
Armed with updated plans, Latitude is working with a leading Finnish mining contractor to secure pricing for future earthmoving activities.
Latitude 66 managing director Grant Coyle said: “I’m pleased with the excellent progress made on the scoping study for our flagship KSB project. Optimisation work completed to date as part of the study has helped further define a clear development pathway with the high-grade nature of the K2 deposit emerging as a prominent starter pit option.”
As the company moves towards a March wrap-up for the study, Latitude has outlined several tasks that need to be ticked off, including ironing out the capital and operating cost estimates, finishing conceptual designs for the processing plant and infrastructure and building a financial model to ensure the project delivers the best bang for its buck. The company is also keen to get stuck into some new drilling – when the winter season recedes - to target extensions of known resource at K2.
Latitude is also exploring for gold and copper at its Peräpohja Schist Belt project (PSB), 200 kilometres west of KSB and 15km west of Rovaniemi – the capital of Lapland. Recent rock chip findings - including one running at a mouth-watering 137.7g/t gold, 10.6 per cent copper and 73g/t silver - have encouraged the company to do more detailed work at PSB.
Drill rigs are expected to move onsite when the summer season starts and after the geochemical and geophysical testing identified some new targets.
In Australia, the company holds a 17.5 per cent free-carried stake in Carnaby Resources' Greater Duchess project, a 280,000t copper equivalent resource strategically positioned in Queensland's prolific Mt Isa copper district.
With the resource base steadily expanding under Carnaby’s operatorship, the implied value of Latitude’s holding continues to rise. Down the line, the company could consider leveraging and potentially selling the asset to fund its flagship Finland operations, if they start to stack up.
With a strong tailwind coming from a rampant price of the yellow metal currently trading at US$2697 (A$4344) per ounce and a high-grade gold project on the starting blocks, Latitude looks as if it is in the right commodity, in the right place and at the right time for a promising 2025.
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By James Pearson
