Scandinavia experiences exploration boom

Exploration expenditures in Scandinavia reached record levels in 1994, and the trend continued into 1995.

According to Scandinavian Mining and Exploration Annual Review 1995, published by Raw Materials Group, the increase in applications took the Swedish mining inspectors and the mining law legislators by surprise.

The spending levels were partly caused by improvements to the Scandinavian economies, as well as the improved financial performance of the mining sector.

Expenditures in Scandinavia by large international mining companies and by junior companies from Australia and Canada is concentrated on gold and diamonds.

Exploration in Greenland also increased, largely as a result of strong interest in the potential for Voisey’s Bay-type deposits.

Exploration for diamonds was triggered by the discovery of high-quality stones found in northern Finland by a subsidiary of Ashton Mining. Since then, large tracts of ground were claimed in Finland, Sweden and Norway.

According to Raw Materials Group’s study, the kimberlites found in Finland are “potentially economic” and occur in two unnamed areas. The surface area is described as being between 1 and 4 hectares. Age determinations have given ages of 440-509 million years, and the grades of the samples are reported to be between 14 and 27 carats per 100 tonnes.

An increase in exploration activity in Greenland followed the release of geophysical maps over the Inglefield Land. And in northeastern Greenland, a zinc-lead-bearing zone called Citronen Fjord is being investigated.

On the production front, two small gold mines opened recently in Scandinavia. Unfortunately, one of them, called Harnas, closed after only 11 months of operation. Outokumpu’s Oriversi mine is expected to operate for at least another three years.

The study notes that the Fennoscandian Shield has never been an important gold producer, although considerable amounts of the yellow metal are being extracted as byproducts from massive sulphide deposits, such as the Boliden mine in Sweden and the Outokumpu mine in Finland. Two gold deposits were discovered fairly recently in the Skellefte district and mines were brought into production.

The report also reviews the economic, legal and social conditions that foreign companies experience while exploring and developing projects in Scandinavia. Raw Materials Group is a metals and minerals consulting firm based in Stockholm, Sweden.