DANNEMORA MINERAL 2009 ANNUAL REPORT DANNEMORA ANNUAL REPORT ANNUAL REPORT ANNUAL REPORT Group offi ce Dannemora Mineral AB 09 Visiting address: Svärdvägen 7 09 Postal address: Box 627 09 SE - 182 16 Danderyd Tel +46 (0)295-244 400 CONTENTS Fax +46 (0)8-753 43 90 E-mail [email protected] Mine Offi ce 2009 Highlights 5 Dannemora Mineral AB Dannemora Mineral in brief 6 Visiting and postal address: Storrymningsvägen 5 CEO's report 8 SE - 748 30 Österbybruk Corporate governance 10 Tel +46 (0)295-244 400 Risk analysis 11 Fax +46 (0)295-244 404 E-mail [email protected] The Dannemora share & ownership 12 Five-year overview 14 Key fi nancial ratios 15 Board, management and auditor 16 DANNEMORA IRON ORE MINE 20 Due diligence 22 Trial deliveries 23 ANNUAL GENERAL MEETING Products 24 will be held at 4 p.m. on The steel and iron ore markets 26 3 May 2010, at Wenströmsalen, Our market 31 IVA Conference Centre, Geology and iron ore deposits 32 Grev Turegatan 16, Stockholm. Mineral resources and ore reserves 34 Investment activities in 2009 36 Planned investment activities 39 REPORTS Sustainability report 40 INTERIM REPORT OTHER ACTIVITIES January - March 2010 Wednesday 28 April, 2010. Exploration/Riddarhyttan fi eld 42 Other exploration permits 44 INTERIM REPORT January - June 2010 Other base and precious metal projects 45 Wednesday 25 August, 2010. Property management 46 FINANCIAL REPORTS - CONTENTS 49 INTERIM REPORT January - September, 2010 History 75 Wednesday 27 October, 2010. Glossary 76 www.dannemoramineral.se photos Mikael Eriksson & Tommy Persson (unless otherwise indicated) backcover cover photo photo Jens JensAndersson, Andersson, Bergteamet Bergteamet 3 production Crussell & Company, text Anne Crussell, design Peter Widell printed by Mixi Print THE YEAR IN PICTURES 09 GLOSSARY ̇ JORC Probable ore reserve Code for Reporting of Exploration Results, Mineral Resources The calculated quantity and grade of the probable mineral and Ore Reserves. resources for which economic profi tability has been shown (by means of adequate technical, economic and legal studies) with The maintenance workshop was put in The Ströms ramp placement got Knebelite suffi cient reliability to justify investment. underway in late January/early February. Skarn mineral with the chemical composition (FeMn) SiO . order in early February in conjunction 2 4 Proven ore reserve with ramp placement. Limestone The part of the measured mineral resources for which quantity, Rock consisting mainly of the mineral calcite, with the chemical grade, and technical, legal and economic factors are known with the highest grade of certainty. composition CaCO3. Lump ore Ramp In this annual report, a product measuring between 5 and 16 mm Tunnel for descending into/ascending from a mine. Often in a and containing approx. 50 percent iron. spiral. Also called an inclined drift. The fi rst ore is loaded and leaves for Magnetic separation Screening Hargshamn on 7 October. Method of separating minerals from waste rock magnetically. Separation of grain size fractions. Magnetite Shaft Vertical or near-vertical passage. Mineral with the chemical composition Fe3O4. Mined for extrac- tion of iron. Silicate Magnetometry Mineral containing silicon (Si) and oxygen (O). In the last week of September, processing of ore for Method of mapping magnetic variations in the bedrock. the trial deliveries started. Skarn The picture shows primary crushing of crude ore. Measured mineral resources Silicate minerals which often accompany iron and sulphide A mineralised tonnage with a stated grade estimated from very mineralisations. reliable information from observations in outcrops, drill holes, trenches and mining activities which clearly show the continuity Skip of the grade and the form and extent of the mineralisation. Lift cage for transporting ore in the shaft. On 30 January the large drilling rig The fi rst trial delivery leaves Hargshamn on Mine head frame Sorting was transported down into the mine. 30 November for Voestalpine's steelworks in Linz. Tower for bring up ore from the mine. One of the purposes of the Dry ore processing method which includes magnetic separation tower is to obtain a drop for the hoisted up ore. and screening. Mineralisation Sub-level caving Concentration of potentially interesting minerals in the bedrock. Mining method often used for steeply positioned ores. Mining Supracrustal rock Extraction of rock or ore. Can be surface or underground mining Rocks formed on the earth’s surface. Ore Synclinal Mineralisation which can be exploited with economic benefi ts. A fold structure in a sequence of rock layers that are progres- sively younger towards the centre of the fold. Ore chute A chute into which the ore is tipped before being unloaded at a Tectonics main level. Branch of geology dealing with deformation of the bedrock. In autumn the crude ore was processed. Pitting Waste rock Small mining attempt. Valueless non-metalliferous rock in the mine. Precious metals Metals such as gold, silver and platinum. The 360-metre level was reached on 23 September. February 2010 saw the start of drilling Pumping of the mine began on 26 May, for an opening slot in the The fi rst ore transportation passes Hamburg in 77 starting at the 310-metre level. development drift at 162 metres. Capital markets day in Stockholm on 10 December early December. THE YEAR IN PICTURES 09 GLOSSARY ̇ JORC Probable ore reserve Code for Reporting of Exploration Results, Mineral Resources The calculated quantity and grade of the probable mineral and Ore Reserves. resources for which economic profi tability has been shown (by means of adequate technical, economic and legal studies) with The maintenance workshop was put in The Ströms ramp placement got Knebelite suffi cient reliability to justify investment. underway in late January/early February. Skarn mineral with the chemical composition (FeMn) SiO . order in early February in conjunction 2 4 Proven ore reserve with ramp placement. Limestone The part of the measured mineral resources for which quantity, Rock consisting mainly of the mineral calcite, with the chemical grade, and technical, legal and economic factors are known with the highest grade of certainty. composition CaCO3. Lump ore Ramp In this annual report, a product measuring between 5 and 16 mm Tunnel for descending into/ascending from a mine. Often in a and containing approx. 50 percent iron. spiral. Also called an inclined drift. The fi rst ore is loaded and leaves for Magnetic separation Screening Hargshamn on 7 October. Method of separating minerals from waste rock magnetically. Separation of grain size fractions. Magnetite Shaft Vertical or near-vertical passage. Mineral with the chemical composition Fe3O4. Mined for extrac- tion of iron. Silicate Magnetometry Mineral containing silicon (Si) and oxygen (O). In the last week of September, processing of ore for Method of mapping magnetic variations in the bedrock. the trial deliveries started. Skarn The picture shows primary crushing of crude ore. Measured mineral resources Silicate minerals which often accompany iron and sulphide A mineralised tonnage with a stated grade estimated from very mineralisations. reliable information from observations in outcrops, drill holes, trenches and mining activities which clearly show the continuity Skip of the grade and the form and extent of the mineralisation. Lift cage for transporting ore in the shaft. On 30 January the large drilling rig The fi rst trial delivery leaves Hargshamn on Mine head frame Sorting was transported down into the mine. 30 November for Voestalpine's steelworks in Linz. Tower for bring up ore from the mine. One of the purposes of the Dry ore processing method which includes magnetic separation tower is to obtain a drop for the hoisted up ore. and screening. Mineralisation Sub-level caving Concentration of potentially interesting minerals in the bedrock. Mining method often used for steeply positioned ores. Mining Supracrustal rock Extraction of rock or ore. Can be surface or underground mining Rocks formed on the earth’s surface. Ore Synclinal Mineralisation which can be exploited with economic benefi ts. A fold structure in a sequence of rock layers that are progres- sively younger towards the centre of the fold. Ore chute A chute into which the ore is tipped before being unloaded at a Tectonics main level. Branch of geology dealing with deformation of the bedrock. In autumn the crude ore was processed. Pitting Waste rock Small mining attempt. Valueless non-metalliferous rock in the mine. Precious metals Metals such as gold, silver and platinum. The 360-metre level was reached on 23 September. February 2010 saw the start of drilling Pumping of the mine began on 26 May, for an opening slot in the The fi rst ore transportation passes Hamburg in 77 starting at the 310-metre level. development drift at 162 metres. Capital markets day in Stockholm on 10 December early December. DANNEMORA MINERAL 2009 ANNUAL REPORT DANNEMORA ANNUAL REPORT ANNUAL REPORT ANNUAL REPORT Group offi ce Dannemora Mineral AB 09 Visiting address: Svärdvägen 7 09 Postal address: Box 627 09 SE - 182 16 Danderyd Tel +46 (0)295-244 400 CONTENTS Fax +46 (0)8-753 43 90 E-mail [email protected] Mine Offi ce 2009 Highlights 5 Dannemora Mineral AB Dannemora Mineral in brief 6 Visiting and postal address: Storrymningsvägen 5 CEO's report 8 SE - 748 30 Österbybruk Corporate governance 10 Tel +46 (0)295-244 400 Risk analysis 11 Fax +46 (0)295-244 404 E-mail [email protected] The Dannemora share & ownership 12 Five-year overview 14 Key fi nancial ratios 15 Board, management and auditor 16 DANNEMORA IRON ORE MINE 20 Due diligence 22 Trial deliveries 23 ANNUAL GENERAL MEETING Products 24 will be held at 4 p.m. on The steel and iron ore markets 26 3 May 2010, at Wenströmsalen, Our market 31 IVA Conference Centre, Geology and iron ore deposits 32 Grev Turegatan 16, Stockholm.