FinnAust Mining Finland Oy is a mineral exploration company and does not own or operate any mines. The main target of mineral exploration and the associated research is to discover and map out new mineralisations and/or to study if a known mineralisation is economically profitable for its grade and size. Most of the work is conducted at the office with the help of computer modelling while the amount of fieldwork is seasonal and varies along different projects.
In Finland, mineral exploration operations are based on permits granted and regulated by the Finnish Safety and Chemicals Agency, or Tukes (Finnish: Turvallisuus- ja kemikaalivirasto). The regulations stated in the permits apply only to the exploration companies and do not limit the usage of the property or the rights of its owner. The permits concerning mineral exploration are the reservation notifications and the exploration permits. A reservation is made on an area that shows interesting geological properties that a company, after research, might explore with an exploration permit. The only purpose of a reservation is to give the applicant a right to later apply for an exploration permit without the interference of other exploration or mining companies. The areas covered by the reservations are usually large, but exploration permits are applied on significantly smaller areas.
A valid exploration permit gives the exploration company the right to study the area defined by the permit and find out more about the bedrock and its geological structures. The type of exploration methods and when they are allowed to be conducted are stated in the exploration permit in addition to regulations concerning machinery and construction linked to exploration activities. The exploration permit is valid for four years at a time, after which an extension can be applied for three years at a time up to a maximum of 15 years. The exploration permit gives the company the priority right to, after extensive research, apply for a mining permit in case it becomes relevant. In other cases, the company will withdraw from the area. Typically, the research ceases in an earlier stage due to reasons such as the lack of ore potential or insufficient grade in the discovered mineralisations. For the same reason, the exploration permit areas are defined and reduced as the research advances. An exploration permit does not give a right to mine a mineralisation or to benefit from it.
Generally, in exploration, the reservations and the exploration permit areas are large, especially in the early stages of the research, as the studied geological phenomena that are behind the formation of the mineralisations are massive in size. The studied anomalies in the bedrock are typically the result of volcanic activity or forming of mountains dating back billions of years. For this reason, multiple methods of research on a large area are needed to understand the local geology of a smaller area. For targeting the research and for its continuity, it is important to gain a sufficient knowledge of the bedrock of the area and the history of its evolution.
The exploration methods used by FinnAust Mining Finland include, but are not limited to, bedrock mapping, top of bedrock sampling with light machinery, deep diamond drilling and different geophysical surveys. Bedrock mapping implies visually identifying local rock types and according to need collecting of small grab samples from the bedrock or boulders in the area. Bedrock sampling is done during snowless seasons. During the mapping the geologists move in the terrain by foot, using a map, compass, geological hammer and a notebook.
For sampling of the bedrock with machinery or for deep diamond drilling, the company always use experienced contractors. The size of these machines operated by professionals can be compared to something between a small tractor and a forestry machine. The purpose for this kind of research is to observe and analyse the bedrock in places where it is not visible and to find out the different layers of the bedrock and its structures. In top of bedrock sampling a couple of metres of bedrock is drilled while in deep drilling the depth of the holes reaches hundreds of metres, even kilometres. The drill hole itself, and the rock brought up from the hole for analysis, are typically under 10cm in diameter. Drilling projects can generally be conducted in any season of the year, and in the initial exploration phase the projects usually last from some weeks to a few months. Usually during the same project, different targets in the permit area are drilled, where the drill rig stays at the same location from a couple of days to a couple of weeks.
For geophysical surveys the company only hires experienced professionals. The purpose of the surveys is to collect information of for example electrical conductivity of the bedrock, its magnetic properties, and structures. Geophysical surveys can be performed with the help of a small aircraft or a drone. More extensive surveys can be conducted with a helicopter or a fixed-wing aircraft. The appliances used in the aircrafts or drones do not photograph or take video material of the research area, but only collect the desired information about the geological properties of the bedrock.
Most geophysical surveys are carried out on ground level, where the surveyors use handheld devices that are moved around by foot. If needed and with a permit from the landowner, an ATV or snowmobile can be used to move the devices. Geophysical surveys typically last from weeks to a few months.
The annual exploration compensations for the property owners stated by the law are determined by the valid exploration permit. The amount of the compensation is 20 euros per hectare for the first four years, 30 euros per hectare up until the seventh year of the permit, 40 euros per hectare up till the tenth year of the valid permit and, after that, 50 euros per hectare. The compensations are paid according to how large part of the property is inside the exploration permit area. In addition to the exploration compensations stated by the law, the company also reimburses the exploration permit property owner for any damage resulting from the exploration activities, such as damaged and/or cut trees from the path of the drill rig. The reimbursement is based on the assessment of the local forest management association, or an assessment made by the landowner together with a representative from the company.
Additional information about mineral exploration can be found from the exploration guide published in 2021 by the Finnish Mining Association (in Finnish)
More about the Finnish Mining Association (in English)