Arctic Gold AB / The Bidjovagge project in Norway

Download presentation here: Bidjovagge Mine Project_Presentation 2019-06-10

General Information and History

The main project in earlier years has been the Bidjovagge gold-copper project in Northern Norway. Bidjovagge is located in Finnmark, roughly 40 km NW of the city center of Kautokeino, with approx. 3,000 inhabitants.

Through its subsidiary company, Arctic Gold AB, Arctic Minerals owns the mineral rights in the area of the closed Bidjovagge copper-gold mine in Norway. The mine was last operated by Outokumpu Mining Oy from 1985 to 1991, when depleted ore reserves and low metal prices forced its closure. During these years Outkumpu processed a total of 1.9 million tons of ore grading 3.92 grams/ton gold and 1.32% copper. The processing plant and other buildings are demolished. The production history of Bidjovagge mine is shown in Table 1 below.

Arctic Minerals has held the mineral rights at Bidjovagge since 2010. A scoping study was made in that year by the Finnish consulting company, Outotec Oy. Outotec updated the mineral resource in 2012. Indicated resources were estimated at 2.06 million tons with 1.6 grams per ton gold and 1.15 % copper. A further 0.24 million tons were identified in the “inferred resources” category with 2.6 grams per ton gold and 0.9 % copper. In addition, there are 0.3 million tons of stockpiled ore with 1.79 grams per ton gold and 0.6% copper. The updated mineral resources in 2012 shows that the feasibility of the mine project has improved, compared to the mineral resources in the scoping study. Before a possible decision on re-start of the mine more detailed feasibility studies are needed and further permits must be applied for. Applications for such permits have not yet been filed. The company believes that there is good potential to increase mineral resources with continued exploration. However, since 2012 the development of the project has been hampered by local political opposition. The company is hopeful about the possibilities of finding a solution that can lead to the successful development of the mine project.

 

Important Events and Situation in early 2019

In December 2018 the Directorate of Mineral Management (DMF), the Norwegian authority which administers the mineral law in Norway, granted Arctic Minerals four new extraction (mining) permits at Bidjovagge copper-gold project. The new permits cover a total of 2.3 km2. The company previously held five extraction permits and therefore now has a total of nine extraction permits totaling 7.16 km2 at Bidjovagge, as well as an exploration permit covering 1 km2. As a consequence of these new mineral rights, Arctic Minerals now possess the mineral rights to all known gold-copper deposits, as well as the ore potential in the highly potential Bidjovagge ore zone.

Arctic Gold AB attended an important seminar in Oslo 13 February, 2019. Prior to this seminar, a letter was directed to the Norwegian Government and the Minister in charge of exploration and mining, where the difficult situation caused by the decision by the Kautokeino municipality was discussed.

At the seminar the minister was informed about the situation – that the municipality has rejected the application for a “plan program” and impact assessment – without motivation. The Minister and the Government is now updated. The minister in charge of mining in May, 2019 sent an answer to the letter sent by Arctic Minerals.

A next (municipality) election will take place in September 2019. There may be changes in the attitude towards re-start of mining, as a result of the election. Company has sent letter to the Government, pointing out the conflict between two different law packages, and the minister in charge of exploration and mining is now updated on the situation.

For latest news on advance in Norway, see company website on

www.arcticminerals.se