GOTHENBURG, Sweden, Nov. 5, 2002 (PRIMEZONE) -- Riddarhyttan Resources AB (Stockholm:RHYT):
-- New positive exploration results from drill holes at the Main Zone in the Suurikuusikko Trend The Western Bzone (5.5 m core section containing 9.8 grams of gold per ton) The Western Bzone (12.7 m core section containing 5.4 grams of gold per ton) The Kukkeli zone (12.3 m core section containing 8.6 grams of gold per ton) -- Impressive drill intercept encountered from the Etela Zone in the southern part of the Suurikuusikko Trend The Etela zone (10.4 m core section containing 8.0 grams of gold per ton) -- New highly prospective goldbearing zones discovered in the northern part of the Suurikuusikko Trend Central Rouravaara (4.2 m core section containing 8.7 grams of gold per ton) Central Rouravaara (5.1 m core section containing 5.6 grams of gold per ton) -- The goldbearing shear zone, hosting the Suurikuusikko gold deposits, can now be traced in a continuous manner over a total distance of 4.1 km.
During the autumn exploration within the Suurikuusikko Trend was primarily targeted at drill testing deeper sections of the Main Zones and on shallow sections of the of the goldbearing shear zone between the N. Rouravaara and S. Rouravaara zones ("Central Rouravaara"). In addition, less extensive drilling was completed in the southern part of the Suurikuusikko shear zone (Ketola and Etela) and along the southern strike extension of the SE. Zone.
Deeper Sections of the Main Zones
Deeper exploration of the Main Zones was focused on their expected northerly plunge and strike extension (successively deeper towards the north). Drilling undertaken during the autumn has resulted in expansions of the previously known zones at depth.
The extension of the Western Bzone was tested at depth in two drill holes:
-- The mineralised zone was targeted at a depth of approximately 230 metres producing a 5.5 meters mineralised intercept grading 9.8 g/t of gold. The result was a positive surprise in that the anticipated width of the Bzone in the given section and depth was thought to be thinner. -- In another profile the western Bzone was intersected at a depth of 320 meters by a drill hole returning a value of 5.4 g/t of gold over 12.7 meters. If a larger mineralised envelope of lowgrade mineralistion is included in this section, this intercept reports an average grade of 3.5 g/t of gold over 23.2 meters.
The northern extension of the Main Zone (the "Kuukkeli Zone") was tested at depth in four drill holes. One of these intersected the central wide part of the zone while the other three intersected the upper respectively lower parts of the zone.
-- The central part of the mineralised zone was intersected at a depth of 220 meters by a drill hole reporting an intercept grading 5.5 g/t of gold over 21.1 meters. This section hosts a highergrade part grading 8.6 g/t over 12.3 meters.
The Etela Zone
Three holes were drilled during the autumn in order to test the strike and depth extensions of the Etela Zone.
-- One of the holes hole targeted the zone at a depth of 100 meters and successfully intersected the goldbearing horizon at its expected location, reporting an interval grading 8.0 g/t over 10.4 meters. When lower grade adjacent portions of mineralisation are included, the coresection measures 12.9 meters, grading 6.7 g/t.
To date, this is the most impressive drill intercept encountered from the Etelaarea exploration. This intercept serves to further highlight the fact that near surface narrow and lowgrade zones can grow wider and higher in grade at depth (in the dominantly northern plunge direction).
The Ketola Zones
Only one new hole was completed along the extensions of the Ketola zone. It intersects two mineralised zones (A and B) at a depth of 140 meters. The first mineralised intercept belonging to the Azone, reported a 3.3 metre wide interval grading 6.8 g/t. Given the close spatial relationship between the A and B zones in this setting, a larger lower grade intercept encompassing both zones is calculated to be 3.3 g/t over 8.5 meters.
Central Rouravaara
The northern strike extension of the goldbearing shear zone situated between S. Rouravaara and N. Rouravaara was tested in a series of eight shallow drill holes completed on 50 meters centres. The goal of this drill program was to highlight the possibility of new near surface gold mineralisation in the area, which is also slated to be the future mill site location (and possibly necessitating an alternate location).
All of the drill holes successfully intersected several mineralised horizons, which in general are narrow and low in grade. However, two of the holes intersect promising gold grades.
-- At a vertical depth of 60 meters, one of the holes intersected a highly prospective goldbearing zone reporting an average grade of 3.1 g/t over 15.8 metres. Included within this intercept is a highergrade interval assaying 5.6 g/t over 5.6 meters. -- A hole, drilled 100 meters north of the previous, also provided some promising results, yielding an intersection at a depth of 50 meters averaging 8.7 g/t over a width of 4.2 meters.
In conclusion, it can now be stated that the goldbearing shear zone hosting the Suurikuusikko gold deposits can be traced in a continuous manner from the southernmost drill hole at Ketola to an area north of N. Rouravaara, covering a total distance of 4.1 km. As such, the goldbearing structure has now shown itself to be of such a considerable size as to make it highly probable that further gold resources will be discovered and delineated through continuous systematic exploration.
Riddarhyttan Investigates Financing Alternatives
Riddarhyttan was granted its environmental permit on November 1, with the necessary mining permits to follow as the final permitting in permitting the project. The company regards this final permit as a routine initiative and expects receipt of the permits by yearend.
The company recently announced that it is currently studying financing alternatives for its Suurikkuusikko gold project, though an exact time frame for completion of this initiative has not been set. In light of the added momentum borne by the fulfillment of its strategic objectives identified in April of this year (broadened share holder base, positive exploration results, environmental permits, etc), the prospects of a successfully completed financing arrangement are stronger than ever.
Gold exploration projects such as Suurikuusikko typically have long lead times, averaging between 5 and 7 years from exploration to mine development. Riddarhyttan is situated in the latter stages of that cycle and given a positive decision by the board to initiate mine development, actual mine production could follow within a 12 to 14 month period thereafter.
"I am pleased that, onebyone, the company is fulfilling the objectives communicated during our annual shareholder's meeting this past spring. Receipt of the environmental permits for Suurikuusikko was an essential milestone for the company, paving the way for us to successfully secure project financing," commented chairman of the board Jaan Kaber.
LarsGoran Ohlsson, who is registered as a "qualified person" by the Swedish Mining Association, compiled the technical foundation for this report. All analyses have been performed by GTK's laboratory (accreditation code T025).
Riddarhyttan Resources AB is an exploration company concentrating on deposits of precious metals in the Scandinavian countries. The company's primary business concept is to acquire, either by means of exploration or acquisition, new mineral deposits that, through detailed exploration, can be enhanced into minable ore. At the Suurikuusikko deposit (Finland), which is Riddarhyttan's most advanced project, the tonnage (59% "indicated" and 41% "inferred resources") amounts to 8.3 million tons, with 6.1 grams of gold per ton (approx.1.6 million ounces of gold). Tonnage calculations made by Micon Int. Ltd. In March 2001.