Nordic Resources Boosts Gold Resources to Over 1 Million Ounces
Nordic Resources Limited (ASX: NNL) has significantly enhanced its gold portfolio with a new resource estimate at its Hirsikangas project in Finland, bringing the company's total gold equivalent resources to an impressive 1.23 million ounces.
Major Resource Upgrade Strengthens Regional Gold Strategy
The new JORC (2012) compliant Mineral Resource Estimate (MRE) for the Hirsikangas gold project has delivered 264,000 ounces of gold, significantly bolstering Nordic's combined gold resource inventory. This addition represents a 34% increase to the company's overall gold resources, which now stand at over 1 million ounces of contained gold. This strategic expansion of Finland gold mining projects demonstrates the company's commitment to growing its presence in the region.
The Hirsikangas deposit hosts a near-surface resource of 7.29Mt @ 1.13g/t Au, with approximately 38% classified in the higher-confidence Indicated category. The resource is comprised of:
- 2.69Mt @ 1.17g/t Au for 101,000oz in the Indicated category
- 4.60Mt @ 1.10g/t Au for 163,000oz in the Inferred category
Importantly, the Hirsikangas project represents the third of three recently acquired gold projects in Finland's prospective Middle Ostrobothnia Gold Belt, joining the Kopsa gold-copper project and the Kiimala Trend project.
Impressive Near-Surface Gold Mineralisation with Expansion Potential
The drilling results at Hirsikangas reveal significant near-surface gold zones with substantial width, including impressive intersections such as:
- 71.3m @ 1.12g/t Au from just 7.3m depth
- 44.2m @ 1.45g/t Au from 12.7m depth
- 61.2m @ 1.28g/t Au from 37.8m depth
The deposit also demonstrates strong continuity at depth with high-grade intersections including 80.2m @ 1.71g/t Au from 110.6m and 74.8m @ 1.00g/t Au from 89.5m. These results are reminiscent of recent high-grade gold discoveries at Music Well, though in a different geographical context.
Perhaps most compelling is the exploration upside—the drilled resource area covers just 2.5km of a 10km prospective trend, suggesting significant potential for Nordic Resources gold resource expansion along strike.
Understanding Orogenic Gold Deposits
Hirsikangas, like Nordic's other Finnish gold projects, is classified as a Paleoproterozoic orogenic gold deposit. These deposits form along major structural features during mountain-building events and are characterised by their predictable structural controls.
Orogenic gold deposits are particularly significant for investors because they:
- Often occur in clusters along major structural corridors
- Frequently display excellent depth continuity
- Can be mined using conventional open-pit methods where near-surface
- Typically yield good metallurgical recoveries
At Hirsikangas, metallurgical testing has already demonstrated an impressive 93% average gold recovery using conventional cyanide leaching, highlighting the project's economic potential. Similar promising gold results extending mineralisation have been seen in other jurisdictions like Côte d'Ivoire, showing the global nature of this type of opportunity.
"Hirsikangas was somewhat of unknown in this transaction, with the Company's focus firmly on the Kopsa. However, just like Kopsa and Angesneva, the gold resource at Hirsikangas essentially starts from surface and is far more substantial than previously understood by NNL, with obvious exploration upside," said Executive Director Robert Wrixon.
Strategic Regional Position with Processing Options
Nordic's three gold projects are strategically positioned within 75km of each other in central Finland, creating potential operational synergies. The region benefits from excellent infrastructure including existing processing facilities:
- The 1.4Mtpa Pyhasalmi copper-zinc-pyrite processing plant (40km from Kopsa)
- The Laiva gold plant (120km northwest) designed to process 2.2Mtpa
This regional consolidation provides Nordic Resources with multiple development pathways, including standalone development or potential toll-processing arrangements, further supporting the company's gold resource expansion strategy.
Combined Resources Approaching Tier-2 Status
With the addition of Hirsikangas, Nordic's total resource inventory now stands at:
| Project | Category | Tonnes (Mt) | Grade | Contained Metal |
|---|---|---|---|---|
| Combined | Measured | 7.44 | 1.18g/t AuEq | 280,000oz AuEq |
| Combined | Indicated | 15.5 | 1.06g/t AuEq | 530,000oz AuEq |
| Combined | Inferred | 11.3 | 1.14g/t AuEq | 420,000oz AuEq |
| TOTAL | All Categories | 34.3 | 1.11g/t AuEq | 1.23Moz AuEq |
Importantly, 66% of the resources are in the higher-confidence Measured and Indicated categories, providing a solid foundation for future economic studies.
Management Commentary
Executive Director Robert Wrixon elaborated on the significance of the resource upgrade:
"The addition of Hirsikangas brings the total gold equivalent resource inventory to 1.23Moz AuEq, with 66% in the Measured and Indicated categories. The Company's 'gold only' resources have also increased to over 1Moz. Hirsikangas and Angesneva, with their proximity to Kopsa, add significant value to the regional development options currently under consideration."
Next Steps: Accelerating Regional Exploration
Nordic Resources is maintaining momentum with a drill rig mobilisation to the Kopsa gold-copper project scheduled within two weeks. The company is advancing its regional gold strategy while also continuing discussions regarding its extensive Pulju nickel-copper sulphide exploration project. This approach mirrors other successful gold project acquisitions that have created significant value for investors.
Why Investors Should Follow Nordic Resources
Nordic Resources presents a compelling investment case based on several key factors:
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Resource Growth Trajectory: A 34% increase in gold resources demonstrates the company's ability to rapidly add value through strategic acquisitions and resource development.
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Near-Surface Mineralisation: The shallow nature of the gold resources suggests potential for favourable economics in future mining scenarios.
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Significant Exploration Upside: With only 25% of the prospective trend drilled at Hirsikangas, substantial Nordic Resources gold resource expansion potential remains.
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Metallurgical Advantages: Early metallurgical testing showing 93% gold recovery indicates favourable processing characteristics.
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Regional Consolidation: The strategic clustering of three gold projects creates operational flexibility and potential development synergies.
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Infrastructure Access: Proximity to existing processing facilities could significantly reduce capital requirements for future development.
As Nordic Resources advances its Finnish gold projects while maintaining optionality on its nickel-copper assets, the company is positioned to benefit from growing investor interest in both precious metals and battery metals in stable European jurisdictions. Companies that strike gold during drilling programs often see significant share price appreciation, making this an opportune time to monitor Nordic's progress.
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