Project OverviewThe Penikat Project is a high-grade PGE-nickel-copper-gold deposit located in western Finland.
- Mineralisation is hosted in three outcropping parallel reefs with a combined strike length of 25 kilometres within a layered intrusion. Based on historical rock sampling and 4,158 meters of drilling in 95 holes with an average depth of only 43 meters, the deposit displays continuous high-grade over several kilometres of strike and mineralisation is open to depth.
- Thick high-grade ‘ballrooms’ of disseminated sulphide been identified and represent an important exploration target, historical drill holes include:
- 8 metres at 10.9 g/t PdEq (8.0 g/t Pd, 2.4 g/t Pt, 0.4 g/t Au, 0.4 % Cu, 0.2 % Ni) from surface (SI/KI-34)
- 38.6 metres at 4.9 g/t PdEq (3.7 g/t Pd, 1.0 g/t Pt, 0.2 g/t Au, 0.2 % Cu, 0.1 % Ni) from surface (SI/KI-33)
- Outside of the ballrooms each reef is typically 0.5 to 2 metres thick, historical drill holes include:
- 4 metres at 22.5 g/t PdEq (11.3 g/t Pd, 7.8 g/t Pt, 0.1 g/t Au, 0.9 g/t Rh) from 7.9 metres (SJ Reef, Hole SI/KI-93)
- 6 metres at 11.4 g/t PdEq (4.6 g/t Pd, 7.2 g/t Pt, 1.1 g/t Au, 0.9 % Cu, 0.2 % Ni) from 10.3 metres (PV Reef, SI/KI-51)
- Mineralisation is analogous to the Bushveld Complex in South Africa, where mineralised reefs can be traced over multiple kilometres along strike and more than one kilometre down dip.
Penikat project scenery
Penikat is located in southwestern Lapland, Finland, 15 kilometres east of the operating Kemi chrome mine. The project comprises a 36.87 square kilometre exploration reservation (“Penikat Reservation”), which is 100% held by Andrew Dacey, director of E-46. Three new exploration licence applications will be submitted before 14 November 2021 for areas within the Penikat Reservation (“Applications”) by Kingsrose Exploration Oy, a wholly owned Finnish subsidiary of Kingsrose. An additional two exploration reservations (“Keski-Penikat Reservations”) have been claimed by Kingsrose Exploration Oy immediately north of the Penikat Reservation, securing exploration rights over an additional eight kilometres strike length (10.6 square kilometres) of the Penikat intrusion.
The target area is overlain by a Natura 2000 and Mire conservation area, and an environmental impact assessment (“Natura Assessment”) is required to accompany the Applications. A Natura Assessment has been prepared by specialist consultancy Golder Associates for one of the three Applications to be submitted during 2021. The Company intends to complete Natura Assessments for the remaining two Applications during the summer of 2022 following completion of detailed habitat and protected species surveys. The Company anticipates approval of the Applications will take 12 to 24 months from submission of the Natura Assessments. Once approved, the exploration licences will be valid for four years and extendable for a total of 15 years, granting extensive exploration drilling rights. Several precedents exist for exploration licence approval and operating within Natura 2000 areas, incl. Anglo American’s Sakatti project. The Company will implement best-practice measures to mitigate exploration impact on local habitats, flora and fauna.
Penikat is a magmatic reef-style PGE-Ni-Cu deposit, hosted by the early Proterozoic age Penikat intrusion, one of at least 20 intrusions that form the 300 kilometre-long Tornio-Näränkävaara Belt of intrusions within the Fennoscandian Shield. Penikat is a fault-bounded, 23 kilometre long by 1-3.5 kilometre wide and at least three kilometre thick mafic-ultramafic layered intrusion, dipping at 40 – 70° to the northwest. The intrusion contains three main mineralised reefs termed the Sompujärvi (SJ), Alu-Penikka (AP), and Paasivaara (PV) reefs. The intrusion and its mineralised layers formed due to magmatic processes similar to the South African Bushveld Complex, the world’s leading source of Platinum Group Elements, and the similar-scale Stillwater Complex, Montana, USA. The Penikat reefs outcrop along the entire 23-kilometre intrusion exposure, whereas most mines within the Bushveld Complex are now operating at depths in excess of 500 metres.
The PGE mineralised layers were discovered during 1981 by Outokumpu Oy, who undertook extensive field mapping, geophysics, and diamond drilling of the shallow part of the intrusion. This work was accompanied by academic research and extensive petrographic and mineralogical study of the PGE speciation and associations. Foreign historic resource estimations (non-JORC compliant) were undertaken for localised parts of the intrusion. The intrusion was also briefly explored, and diamond drilled by Gold Fields during 2003.
The Geological Survey of Finland (“GTK”) database includes 95 historic diamond drill holes for 4,157.63 metres within the Penikat and Keski-Penikat Reservations. The historic drilling was completed along a significant strike length of each reef to shallow depth, averaging 43 metres with a maximum of 298 metres. This drilling and surface sampling consistently located the target reef horizons and confirmed their high-grade PGE and associated base metal mineralisation.
Assay data from 68 historical diamond drillholes from the Penikat Reservation, after applying a 2.5 g/t Pd + Pt + Au cut-off to mineralised intervals, indicate mean Pd + Pt + Au grades of 6.0 g/t (AP Reef), 7.6 g/t (PV Reef) and 11.2 g/t (SJ Reef). Nickel and copper were sporadically sampled for and were not included in these calculations yet are known to be present in addition to these Pd + Pt + Au grades. These grades are comparable to or above those currently mined within other intrusions (Bushveld Complex, Great Dyke, Stillwater Complex).
Kingsrose considers the down dip exploration potential to be excellent based on the consistent nature of the shallowly defined mineralisation, and analogies to the Bushveld Complex in South Africa where the mineralised reefs are narrow (1-2 metres thick), consistently mineralised tabular layers which extend over several hundred kilometres of strike with down dip extent in excess of five kilometres.
Penikat Reservation and applications, geology, historic drill collars overlain by Natura 2000 area.
Thematic historic surface samples showing PdEq distribution and select highlight drill intercepts, overlain on geology, Penikat Project.
AP Ballroom with historical drill collar locations and resampling results (Modified after Halkoaho 1989).