Mineral resources and ore reserves

The first indications of spodumene (LiAlSi2O6), a mineral rich in lithium, were discovered in the bedrock of Kaustinen in the village of Nikula in 1959. As a result of the discovery, Suomen Mineraali Oy launched an ore exploration program in the area, which resulted in locating the lithium deposits of Emmes, Jänislampi and Länttä.

Since then, Kaustinen and its surroundings have been explored in a number of stages in the past decades. There are more than ten known lithium deposits in the Central Ostrobothnia Lithium Province, an area covering over 500 km². The most significant ones are the deposits of Syväjärvi, Rapasaari, Länttä, Emmes, Outovesi and Leviäkangas possessed by Keliber.

The Central Ostrobothnia lithium province is located in the municipalities of Kaustinen, Kokkola, Halsua, Kruunupyy and Toholampi, and its lithium reserves have been estimated to be among the most significant in Europe.

Mineral resources

Keliber’s JORC 2012 compliant measured and indicated mineral resources amount to 11.767 million tonnes, using a 0.50% Li₂O cut-off grade. Including the inferred mineral resources category, the mineral resources of the company amount to 14.194 million tonnes. The Li₂O grade of the mineral resources is 1.08%.

JORC 2012

JORC 2012 is a professional code of practice for the Australian, New Zealand and New Guinean market, setting minimum standards for public reporting of ore exploration results, mineral resources and ore reserves. The current edition of the JORC Code was published in 2012, and it is used widely in the ore prospecting industry and the mining industry across the globe. More information is available at www.jorc.org.

The table below summarizes Keliber’s JORC 2012 compliant mineral resource estimate.

Mineral resource estimate (JORC 2012)

Syväjärvi

Rapasaari

Länttä

Outovesi

Emmes

Leviäkangas

Total

Mt

Li₂O%

Mt

Li₂O%

Mt

Li₂O%

Mt

Li₂O%

Mt

Li₂O%

Mt

Li₂O%

Mt

Li₂O%

Measured

1.542

1.33

2.011

1.13

0.422

1.09

3.975

1.20

Indicated

1.167

1.07

4.172

0.97

0.906

1.02

0.281

1.43

1.076

1.22

0.190

1.14

7.792

1.05

Total

2.709

1.22

6.183

1.02

1.328

1.04

0.281

1.43

1.076

1.22

0.190

1.14

11.767

1.10

Inferred

0.118

0.79

2.031

1.00

0.278

0.90

2.427

0.98

Total

2.827

1.20

8.214

1.02

1.328

1.04

0.281

1.43

1.076

1.22

0.468

1.00

14.194

1.08

Mineral resources include ore reserves.

Syväjärvi and Rapasaari mineral resources have been estimated and reported by Payne Geological Services Pty Ltd. The mineral resource estimates for the other deposits (Länttä, Outovesi, Emmes and Leviäkangas) have been prepared by Markku Meriläinen (MAusIMM) and Pekka Loven (MAusIMM). All estimates have been prepared and reported in accordance with the guidelines of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves (JORC Code 2012).

Ore Reserves

The total JORC 2012 compliant proven and probable ore reserves for the company, using a cut-off grade of 0.40% Li₂O for the open pit ore reserves and a cut-off grade of 0.40–0.70% Li₂O for the underground ore reserves, amount to 9.372 million tonnes with an average grade of 0.98% Li₂O.

The table below summarizes Keliber’s JORC 2012 compliant ore reserve estimates.

Ore Reserves Keliber Oy (JORC 2012)

Syväjärvi

Rapasaari

Länttä

Outovesi

Emmes

Total

Open pit

Mt

Li₂O%

Mt

Li₂O%

Mt

Li₂O%

Mt

Li₂O%

Mt

Li₂O%

Mt

Li₂O%

Proven

1.433

1.18

1.440

1.07

0.168

1.09

3.041

1.12

Probable

0.491

0.97

2.730

0.90

0.096

0.93

0.222

1.06

3.539

0.92

Open pit total

1.924

1.13

4.170

0.96

0.263

1.03

0.222

1.06

6.579

1.01

Underground

Mt

Li₂O%

Mt

Li₂O%

Mt

Li₂O%

Mt

Li₂O%

Mt

Li₂O%

Mt

Li₂O%

Proven

0.340

0.89

0.243

0.83

0.583

0.86

Probable

0.770

0.86

0.583

0.85

0.856

1.01

2.209

0.92

Underground total

1.110

0.87

0.826

0.85

0.856

1.01

2.792

0.90

Ore reserves total

Mt

Li₂O%

Mt

Li₂O%

Mt

Li₂O%

Mt

Li₂O%

Mt

Li₂O%

Mt

Li₂O%

Proven

1.433

1.18

1.780

1.04

0.411

0.94

3.624

1.08

Probable

0.491

0.97

3.500

0.89

0.679

0.86

0.222

1.06

0.856

1.01

5.748

0.92

Total

1.924

1.13

5.280

0.94

1.090

0.89

0.222

1.06

0.856

1.01

9.372

0.98

A cut-off grade of 0.70% Li₂O has been applied for the underground Ore Reserve estimates of the Rapasaari deposit. A cut-off grade of 0.70% Li₂O has been applied for the underground Ore Reserve estimates of Länttä and Emmes deposits. Ore Reserve figures in the tables may not sum to equal totals due to rounding.

The Ore Reserve estimates have been prepared by AFRY / Pöyry Finland Oy by competent persons under the supervision of Ville-Matti Seppä MSc (Geology), who has an EurGeol qualification. The estimate was prepared and reported in accordance with the JORC Code (2012) (the 2012 edition of the Australian Code for Mineral Resources and Ore Reserves).