Positive Results From Further Metallurgical Testwork At Ikkari

TORONTO - Rupert Resources Ltd has received results from its Ikkari prospect, the focus of its ongoing 60,000m exploration program at the 100% owned Pahtavaara Project in the Central Lapland Greenstone Belt, Finland. The mineralized strike length at Ikkari is at least 650m in total with mineralization on all sections intersected to a depth of at least 300 to 500m.

James Withall, CEO, said, “We continue to de-risk the Ikkari discovery both from a geological and engineering perspective as we work towards a maiden resource this summer. These new drill results from near-surface infill sections indicate good continuity of the high-grade core at Ikkari, with the new intercept from 121019 over double the average grade at Ikkari. The new metallurgical testwork received confirms Ikkari is non-refractory with processing to final product achievable using an extremely simple flowsheet with minimal environmental impact. Located <5km from 220kV transmission, we expect Ikkari to have access to a 100% renewable low-cost power source with the potential for extremely low carbon emissions.”

Holes 121016 and 121019 are drilled on the first infill section at Ikkari, reducing the section spacing to 40m across the main mineralized zone. Previous drilling on 80m-spaced sections identified broad thicknesses of gold mineralization with a high-grade component and these infill holes confirm both the extent of the broad mineralized halo as well as the high-grade mineralized zone in the near-surface environment. Multiple high-grade intercepts from both holes demonstrate the high-grade component along the length of the down-hole mineralized zone, with twenty-three individual meter intercepts over 10g/t Au in hole 121019 (full assay log of this intercept in table 4). Further infill holes that have been drilled on this section will progressively track the mineralized zone to depth (results pending) where the zone remains open.

Further flowsheet optimization has been undertaken on a composite sample taken from representative holes across the Ikkari prospect by Grinding Solutions Ltd, Truro, United Kingdom. Comminution testing has shown that the submitted sample is of average hardness of 15.5kwh/t Bond Ball Index and the Bond Ai test produced an abrasion value of 0.59. Gravity recoverable gold (“GRG”) testing showed that the sample contained a GRG content of 65.22 % achieved to a mass pull of 2.19 %. This indicates that the use of a gravity recovery effort within the grinding circuit is worth further investigation. Testing of whole ore cyanidation showed that high gold extractions were seen for all grind sizes tested. Gold recovery ranged between 94.79 % to 98.79 % for the tests conducted at grind sizes between 106 microns and 38 microns, showing the material to be non-refractory. Flotation testing showed that high gold recoveries can be achieved to concentrate at a primary grind size of 125 microns. The performance of a bulk flotation test using the selected primary grind size saw a gold recovery of 99.70 % to a rougher concentrate with a mass pull of 5.97%, yielding a gold grade to the concentrate of 60.0 g/t Au.

The re-grinding of this rougher concentrate and intensive cyanide leaching saw overall gold recoveries (taking account of flotation performance) of between 98.45 % and 99.40 %. The intensive cyanidation tests showed that leaching could be conducted effectively at grind sizes up to 45 microns which was the coarsest re-grind size tested. The bulk flotation tailings along with a number of various waste rock samples were shown to be acid neutralizing. Initial solid liquid separation testing has shown that the bulk flotation tailings responded well to flocculation and settling.

Based on testwork undertaken to date the currently envisaged flowsheet would include a gravity recovery stage within a milling circuit followed by flotation at a primary grind size of 125 microns. At this point, the flotation concentrate may form a saleable product, however testing has shown the viability of an option to cyanide leach the flotation concentrate to allow on-site dore production. Further testwork will continue to be undertaken as more bulk samples are collected to define the most effective and efficient process flowsheet for the project.

Mineralization at Ikkari is characterized by intense alteration and deformation. Gold is associated with fine-grained disseminated pyrite within planar quartz-carbonate veins and / or disseminated in the host rocks, commonly as fine-grained visible gold. Mineralization is hosted by sedimentary rocks overprinted by albite-sericite alteration, and strongly foliated chlorite-altered mafic-ultramafic rocks. A broader, variably mineralized alteration zone comprising magnetite ± hematite ± tourmaline ± K-feldspar ± fuchsite is also present. Holes demonstrate strong foliation, shearing, and veining that is predominantly parallel to the dominant structural fabric and gold appears to be concentrated in sedimentary intercalations associated with zones of structural disruption at lithological boundaries, represented by irregular, cross-cutting vein associations and brittle fracture in albite-altered rocks. The regional structural data collected so far suggest a subvertical, broad and linear structure, within which cross-cutting fractures and variably dipping lithologies, as well as possibly folded bedding, appear to have controlled the introduction of gold-bearing fluids and associated alteration zones. In general, alteration and structure appear to be sub-vertical, with lithologies generally dipping ~70 degrees north.