The Penikat Project is a high-grade PGE-nickel-copper deposit located in North-West Finland.
The project includes a multi-million ounce Exploration Target prepared in accordance with the JORC Code and represents an opportunity to define a significant resource of Platinum Group Elements which are defined as a critical resource within the EU.
It is our goal to define a low-impact, modern and sustainable project delivering Platinum Group Elements to the EU. The high-grade and narrow nature of the mineralisation could make the project well suited to becoming a low impact underground project, utilising brownfield industrial sites in the area.
Penikat is one of the world's highest grade Platinum Group Element (PGE) exploration projects outside of South Africa and Russia. Mineralisation occurs as palladium, platinum and contains significant rhodium and iridium with elevated nickel and copper concentrations.
Mineralisation occurs from surface as three tabular reefs within the Penikat layered intrusion, analogous to mineralisation in the Bushveld Complex, South Africa and Stillwater Complex, Montana USA.
Historical exploration has shown mineralisation to occur over a cumulative strike length of 23 kilometres within Kingsrose's mineral tenure, however the average depth of historical drilling is only 43 metres.
Analogous deposits extend to >1 kilometre down dip. At Penikat, rare deeper historical holes and historical seismic data indicate mineralisation extends to at least 1 kilometre below surface.
An Exploration Target in accordance with the JORC Code was estimated by Kingsrose following extensive relogging and resampling, yielding a range of 21 to 32 Mt at 4.0 to 7.4 g/t 6E (the sum of platinum, palladium, gold, rhodium, iridium and ruthenium) for 2.8 to 7.7 Moz 6E. The potential quantity and grade of the PGE mineralisation at Penikat is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
The Company is in the process of applying for exploration licences to permit drilling.
Location and Property Description
The project is located:
- 25 kilometres east of the town of Kemi and associated port with rail connections. The port is used to export nickel and copper concentrates from other Finnish operations.
- 15 kilometres east of the underground Kemi chrome mine with abandoned open pit and surface mineral processing infrastructure.
- Close proximity to large windfarm developments and main roads.
- Access is via paved main roads and unpaved forest roads into the centre of the project areas.
- Uninhabited area but located within the western part of the Martimoaapa-Lumiaapa-Penikat Natura 2000 conservation and mire reserve area.
Mineral Tenure and Permits
Overview of the Mineral Tenure and Permits
The Penikat Project comprises three exploration permit applications and two reservation notifications totalling 2012.5 hectares. Kingsrose owns 100% of the project through its subsidiary Kingsrose Exploration Oy. The project is subject to a 1% NSR royalty payable to Mr Andrew Dacey (the project vendor).
Kingsrose is in the process of applying for Exploration Licences to permit drilling on the project. As the project area is located partially within a Natura 2000 network area and a mire conservation area, an exploration licence application must be accompanied by a Natura 2000 Assessment Report, which will facilitate a statement from the local Environmental Regulatory Body (ELY) to support the issuance of an Exploration Licence by the licencing authority TUKES, as well as a derogation permit issued by the Ministry of the Environment for operation within a mire conservation area.
The European Union aims to halt the loss of biodiversity in its member countries. One of the most important means to achieve this goal is the Natura 2000 network. In Finland, the network covers an area of around five million hectares.
In August 2023 Kingsrose submitted a Natura Assessment Report for the Ala-Penikka area (Area 1), and it is anticipated that the Natura 2000 Assessment Report for areas 2-5 will be submitted early 2024.
- Regional environmental authority, ELY, has reviewed the Natura 2000 Assessment prepared by Kingsrose for Area 1 of the Penikat project and determined that the proposed exploration drilling will not have a negative impact on the integrity of the Natura 2000 area.
- This Statement represents the primary environmental review in the process to obtain a permit for exploration drilling and is therefore an important and positive milestone.
The Natura 2000 Assessment Report integrated detailed exploration planning, mitigation measures, and multiple seasons of comprehensive studies to assess habitat communities and individual species protected under both national and European Union legislation, including the following:
- Detailed project description and mitigation measures for impacts of exploration activities.
- Owl and other bird of prey surveys, including GPS tracking to establish habitat use throughout the year.
- Protected species surveys.
- Capercallie (Wood Grouse) surveys.
- Flora surveys.
- Impact assessment.
Through mapping the endangered and protected vulnerable species, Kingsrose was able to adjust drill access routes and drill pad locations, in combination with the following leading practice commitments, to conclude that potential impacts of proposed exploration activities were either not present or insignificant and localised:
- Annual flora surveys of the proposed drill pads and access routes.
- Annual bird of prey surveys to assess use of nesting areas.
- Drilling only conducted in winter, and where necessary utilising artificial snow, to compact snow over access routes and drill pads, protecting the vegetation, soil, and rock below.
- Use of drilling equipment with closed water circulation and recovery of drill cuttings, with equipment conveyed on wide rubber tracked vehicles.
- Buffer zones have been established around occurrences of the plant species and bird of prey nesting sites that are the basis for protection, within which no work be carried out.
- The most sensitive and wet areas of the terrain will be secured with protective mats or nets to strengthen the protection and effect of the snow cover.
- Once drilling is complete, annual surveys to monitor and evidence any impacts and regeneration will be conducted.
Kingsrose has designed the proposed drill access routes and pads to include sufficient drill density for mineral resource definition based on review of the historical drilling results as part of the Exploration Target estimation. Drilling will progress in stages, initially on a wide spacing to verify the Exploration Target thesis, provide evidence for large scale continuity of the mineralised reefs to depth and along strike from near surface historical drilling, and provide material for metallurgical testwork. Further drilling campaigns will be aimed at resource definition and continued expansion.
Through mapping of the permitting regime, Kingsrose has been able to identify milestones and associated timeframes to develop an increased level of clarity in the permitting process. Kingsrose has submitted the Report for Area 1 to ELY, commencing the up to six-month review process by ELY. It is expected that the report for Areas 2 to 5 will be submitted in early 2024.
Details of the permitting process and associated timeframes are summarized in the permitting roadmap provided in the Figure below:
1 The quality of the Natura 2000 Assessment Report and strength of a positive ELY statement may reduce timeframes.
2 There is not a prescribed timeframe for a decision by the Ministry of Environment, however a positive statement by ELY and proactive engagement by TUKES is believed to support a six month timeframe.
3 An appeal to the Administrative Court is likely, but not certain.
4 An appeal to the Supreme Administrative Court is unlikely due to the quality of the Natura report and the anticipated positive statement from ELY and endorsement by TUKES.
Geology and Mineralisation
Penikat is a mafic-ultramafic intrusion hosted PGE-nickel-copper deposit.
The Penikat intrusion is >20 kilometres long and 1 to 3 kilometres thick, and is part of the larger 300-kilometre-long Tornio-Narankavaara belt which contains >20 mafic-ultramafic intrusions.
The Penikat intrusion has been divided into five layered megacyclic units (MCU-I to MCU-V), composed of alternating sequences of bronzite, pyroxenite, gabbronorite, gabbro and anorthosite cumulates. The intrusion dips between 45° and 60°
Mineralisation occurs in three sub-parallel reefs, all of which are hosted in MCU-IV and are each spatially and temporally related to compositional reversals.
Within the Penikat project area, the mineralised reefs have been mapped historically over a cumulative strike length of approximately 25 kilometres, and average 1.5 metres thick, composed of disseminated sulphide (pyrrhotite, pentlandite, chalcopyrite and bornite) mineralisation hosted in websterite, gabbronorite and anorthosite. Chromite and silicate type PGE mineralisation is also observed.
The reefs are termed, from the lowermost to uppermost, as the SJ, AP and PV reefs. The SJ and AP reefs are typically 450 metres apart, and the AP and PV reefs are typically 850 metres apart. Locally the reefs may pinch and swell, with the AP reef recording >20 metre thickness over <100 metres strike at the colloquially termed ‘AP Ballroom’ structure.
The Exploration Target announced on 28 June 2022 Target ranks Penikat as one of the highest grade PGE exploration projects globally.
The Exploration Target was prepared by Jeremy Witley, Head of Department – Mineral Resources, The MSA Group (Pty) Ltd (South Africa). Mr Witley has 33 years’ experience in Mineral Resource estimation, exploration and mine geology on PGE deposits hosted in the Bushveld (South Africa) and Great Dyke (Zimbabwe) intrusions, which are layered intrusions characterised by strong continuity of mineralisation, similar to Penikat. Previous clients include major PGE producers Anglo American Platinum, Implats, Northam Platinum, Zimplats and Lonmin.
Mineralisation occurs from surface and estimation of the Exploration Target was limited to 500 metres depth, whereas regional seismic data and geological interpretations suggest potential to at least 1 kilometre depth as is commonly seen in similar deposits worldwide.
Exploration Target estimation was limited to the SJ and PV Reefs which are exposed over a strike of 10 and 3.6 kilometres respectively on Kingsrose tenure. The AP Reef was not included due to insufficient distribution of historical drilling. However, the AP Reef is exposed over approximately 8 kilometres of strike and includes the “ballroom” feature where drill hole resampling returned 8.8 metres at 8.1 g/t Pd, 2.3 g/t Pt, 0.2 g/t Rh, 0.5 g/t Au, 0.5 % Cu and 0.2 % Ni from surface (ASX Announcement dated 5 May 2022).
Competent Person’s Statement
The information in this website that relates to the Exploration Results at the Penikat Project was first reported by the Company in compliance with the 2012 edition of the JORC Code in ASX announcements: 28 June 2022, 5 May 2022 and 23 November 2021.
The Company confirms that it is not aware of any new information or data that materially affects the information included in the ASX releases referred to above and it further confirms that all material assumptions and technical parameters underpinning the exploration results and exploration target continue to apply and have not materially changed.
The information in this website that relates to Exploration Results is based on information compiled under the supervision of Andrew Tunningley, who is a Member and Chartered Professional (Geology) of the Australasian Institute of Mining and Metallurgy and is Head of Exploration for Kingsrose Mining Limited. Mr Tunningley has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves.” Mr Tunningley consents to the inclusion in this website of the matter based on his information in the form and context in which it appears.
The Exploration Target estimate has been prepared by Mr. J.C. Witley (BSc Hons, MSc (Eng.)) who is a geologist with 33 years’ experience in base and precious metals exploration and mining as well as Mineral Resource evaluation and reporting. He is a Principal Resource Consultant for The MSA Group (an independent consulting company), is registered with the South African Council for Natural Scientific Professions (“SACNASP”) and is a Fellow of the Geological Society of South Africa (“GSSA”). Mr. Witley has the appropriate relevant qualifications and experience to be considered a “Competent Person” for the style and type of mineralisation and activity being undertaken as defined by the 2012 Edition of the JORC Code. Mr Witley consents to the inclusion in this website of the matter based on his information in the form and context in which it appears.