Altona Mining has exposed the Kylylahti orebody at the Outokumpu Project, an important milestone on Altona’s path to copper production in Finland.

First concentrate production from Outokumpu is expected in the March quarter of 2012. The initial development comprises an underground mine at the 8.4 million tonne Kylylahti copper, gold and zinc deposit.

Decline tunneling at the Kylylahti mine began in early January 2011. The decline development exposed low grade ore on the plus-50 meter level at the edge of the deposit and exposed the Kylylahti orebody for the first time at a vertical depth of 150 meters.

Development along the ore zone is beginning and Altona has started infill drilling of the upper levels of the mine to help plan first production. Stoping is expected to start in the June quarter of 2012 with production ramp up at the mine and the continued ramp up of concentrate production at the mill.

The mine is expected to reach full production of 550,000 tonnes per annum and positive cash flow in the second half of 2012. Ore will be trucked 43 kilometers to Altona’s Luikonlahti regional processing hub. Altona has commenced refurbishment of the existing plant which treated Outokumpu-style base metal ores for more than 15 years.

Altona’s Outokumpu Project, 400 kilometers north east of Helsinki, lies within Finland’s premier mining district. The project has declared resources of 15.9 million tonnes of copper dominant polymetallic base metal mineralization, containing 156,200 tonnes of copper and 32,300 tonnes of nickel, over the Kylylahti, Saramäki, Vuonos, Hautalampi and Riihilampi deposits.