Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Gungnir Resources plans to expand its exploration projects at Lappvattnet and Rormyrberget nickel-copper-cobalt-(PGE) deposits located east of Knaften in northern Sweden. The company had commissioned an assessment to estimate mineral resource and the viability of these deposits to review mining methods. 


These deposits are significant nickel resources in Sweden and have the potential for further expansion, said Jari Paakki, Gungnir’s CEO, in a company release. Amid are very positive estimates with up-side potential, the company plans to step-up its expenditures on these projects, including fresh drilling in 2021. Gungir also plans to incorporate platinum group elements (PGEs) in the estimates.


2020 resources highlights

Rormyrberget: Resource of 36.8mn mt with grading 0.19pc nickel for 154mn lb of nickel; historic: 48.7mn lb of nickel in 6.4mn mt @ 0.35pc nickel.

Lappvattnet: Resource of 780,000 tonnes with grading 1.35pc nickel for 23.1mn lbs of nickel; historic: 22.9mn lb of nickel in 1.14mn mt @ 0.91pc nickel.


The company believes there is potential to improve nickel grades within the Rormyrberget resource and to expand higher-grade zones including 2.33pc nickel over 12.50m. At Lappvattnet, there is also potential for significant PGEs including 50.91 g/t PGE’s with 2.13pc nickel over 0.45m. The company also estimates a potential to improve on the 65pc nickel recovery which used in the current resource estimates.


Contained nickel estimates mentioned in the Rormyrberget resource update is three times higher than the most recent historical estimate for the property which dates from 2009. The increase in the estimate is due to higher tonnage incorporated in 2020 attributable to lower cut-off grades used which are equivalent to estimates for similar open pit low grade Ni-Cu deposits in Sweden and Canada. Contained nickel estimates in the new Lappvattnet mineral resource update is similar to 2009 estimates.

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