Latitude66 KSB Gold Cobalt Project in Finland Showcases Exceptional Economics
Latitude66 has released a compelling Scoping Study for its KSB gold cobalt project in Finland, revealing a highly economic standalone operation with exceptional financial metrics. The study confirms the project's potential to deliver US$310 million in after-tax NPV (at an 8% discount rate) with a remarkable 74% IRR, positioning it as one of the most attractive emerging precious metals developments in Europe.
The project boasts a modest capital expenditure requirement of US$101 million against an impressively short 16-month payback period, highlighting the efficient economics driving this development. With projected annual production of 65,000oz of gold and 465 tonnes of cobalt, the KSB gold cobalt project in Finland demonstrates strong fundamentals in a region strategically important for European mineral security.
At current spot gold prices of US$3,000/oz, the project's economics become even more compelling with NPV rising to US$433 million and IRR to 98%, while payback accelerates to just 12 months.
Strategic Significance: Finland's Growing Role in Critical Minerals
The KSB gold cobalt project in Finland represents a significant development in European resource security, hosting the third largest undeveloped cobalt resource in the European Union. This positions Latitude66 strategically in Finland, which already stands as the largest refiner of cobalt outside China.
Cobalt has been classified as a Strategic Mineral under the Critical Raw Materials Act (CRMA) and as a Critical Mineral by NATO, underscoring its importance in batteries, defence, and aerospace applications. The KSB Project's annual cobalt production would account for approximately 25% of extracted cobalt from within the EU, bolstering European supply chain resilience.
Robust Resource Base with High Confidence
The project is underpinned by a substantial JORC Mineral Resource comprising 650,000oz of gold and 5,840 tonnes of cobalt across the K1, K2, and K3 deposits. Importantly, over 85% of the resource sits in the higher-confidence Indicated category, providing strong foundations for development planning.
The mining schedule leverages this high-confidence resource base with 90% of the mine plan derived from Indicated resources, rising to 97% during the critical payback period. This approach significantly de-risks the project's early years when financial returns are most crucial.
Understanding Gravity Gold Recovery: Why It Matters for Investors
For investors new to mining terminology, "gravity gold recovery" refers to the process of separating gold from ore using the natural difference in density between gold and other materials. The Latitude66 KSB gold cobalt project in Finland features exceptionally high gravity gold recovery rates – 53.8% to 66.6% depending on the deposit zone.
This high gravity recovery is significant for investors for several reasons:
• Lower processing costs: Gravity recovery is typically less expensive than chemical extraction methods
• Environmental benefits: Reduced chemical usage compared to projects with lower gravity recovery
• Processing efficiency: Higher overall gold recovery rates (94-95% combining gravity and cyanidation)
• Operational simplicity: Less complex processing infrastructure required
These factors contribute to the project's attractive all-in sustaining cost (AISC) of US$1,038/oz gold, positioning it in the first quartile of global gold production costs.
Conventional Mining with Environmental Advantages
The KSB Project is designed as a conventional open-pit mining operation across three closely-spaced deposits, starting with the K2 pit to optimise the mining schedule. The processing flowsheet combines proven gravity concentration, carbon-in-leach (CIL) for gold extraction, and simple flotation to recover cobalt concentrate.
The project benefits from excellent infrastructure fundamentals:
• Access via Finland's established national sealed road network
• Connection to the country's existing power grid
• Operational services available from nearby towns
• Proximity to an international all-weather airport
The proposed processing plant location in Kuusamo Municipality offers significant environmental and operational advantages, including access to the national electricity grid predominantly powered by non-fossil fuel sources, enhancing the project's potential to develop as a low-carbon operation.
Expansion Potential and Future Opportunities
Investors should note the substantial upside potential beyond the current Scoping Study parameters:
1. Near-mine exploration upside: Both K1 pit expansion and the nearby K6E and K6W prospects offer opportunities to grow the resource base
2. Low-capital expansion options: Plant capacity could be increased from the base case 0.75Mtpa to:
- 1.00Mtpa for US$114 million (just US$13M additional)
- 1.25Mtpa for US$127 million
- 1.50Mtpa for US$140 million
3. Underground potential: The upcoming Pre-Feasibility Study will evaluate underground mining trade-offs to potentially enhance project economics
4. Environmental optimisation: Latitude66 will explore carbon neutrality opportunities by leveraging Finland's non-fossil fuel power network
Community Benefits and Regional Development
The Latitude66 KSB gold cobalt project in Finland is projected to create approximately 200 direct high-paying jobs in the Kuusamo region, with an additional 200-400 indirect employment opportunities expected based on data from other Finnish mining operations. This would provide significant economic stimulus to the local community.
Financial benefits to the region include:
• Corporate tax averaging €18 million annually to Finland
• Mining royalties of approximately €1 million per year
• Local property lease income and property tax revenue
• Municipality tax from employees
These factors position the project as an important catalyst for regional development.
Why Investors Should Track Latitude66
Latitude66 presents a compelling investment proposition with the KSB Project demonstrating exceptional economic fundamentals alongside significant expansion potential. Furthermore, key factors for investors to consider include:
1. First-quartile operating costs: AISC of US$1,038/oz positions the project among the lowest-cost gold producers globally
2. Rapid payback: The 16-month payback period (or just 12 months at current gold prices) significantly reduces investment risk
3. Strategic mineral exposure: The cobalt component provides diversification and exposure to the battery metals and critical minerals sectors
4. Location advantage: Finland offers political stability, excellent infrastructure, and supportive mining regulations
5. Strong exploration upside: Significant potential to expand resources and extend mine life
6. Environmental credentials: Opportunities to develop as a low-carbon operation leveraging Finland's clean energy grid
With a clear development pathway and multiple near-term catalysts including resource extension drilling, environmental permitting progress, and potential strategic partnerships, Latitude66 is well-positioned to advance this highly economic gold-cobalt project toward production.
Looking for A Low-Risk Gold & Cobalt Investment in Europe?
Latitude66 offers a compelling investment opportunity with its KSB Project in Finland, featuring exceptional economics with US$310M NPV, 74% IRR and a rapid 16-month payback period. As the third largest undeveloped cobalt resource in the EU and a robust gold producer, this project combines strategic mineral exposure with first-quartile operating costs. To discover how you can participate in this high-potential, strategically located precious metals development with significant expansion opportunities, visit Lat66.com today.
