BONANZA GRADE INTERSECTION AT TAIVALJÄRVI SILVER MINE

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Sotkamo Silver is pleased to announce a bonanza grade drill intersection from Taivaljärvi infill drilling including 6 meters at 575 g/t silver, 2.6 g/t gold, 1.5 % zinc and 0.7 % lead (T-27). This intersection is located inside the planned open pit area and in close proximity to planned underground development. This intersection confirms the existence of high-grade area inside the mineralization, which is supported by closeby drill holes, building up the mineable high-grade area inside the deposit.

Other intersections in this infill drilling show high silver- and gold-grades in significant widths, too.

Assay results from the latest infill drill holes:

  • 574 gram/ton silver and 2.6 gram/ton gold, 1.5 % zinc (6 metres, hole T-27)
  • 993 gram/ton silver and 1.7 gram/ton gold, 1.3 % lead (1 metres, hole T-45)
  • 128 gram/ton silver and 0.3 gram/ton gold, 0.4 % zinc (1 metres, hole T-45)
  • 119 gram/ton silver and 0.8 gram/ton gold, 1.1 % zinc (6 metres, hole T-46)
  • 158 gram/ton silver and 0.3 gram/ton gold, 1.9 % zinc (2 metres, hole T-39)
  • 101 gram/ton silver and 0.3 gram/ton gold, 0.3 % zinc (5 metres, hole T-39)

 

” I am very pleased with the results from this infill drilling. All results in this infill drilling program highlight the potential of the planned open pit area.” comments Timo Lindborg, CEO of Sotkamo Silver AB.

(For table, see attached file)

 

For calculation of the silver and gold equivalents we have used a silver price of 22 USD/ounce, gold price of 1,200 USD/ounce, zinc price of 2,100 USD/t, and lead price of 2,000 USD/t. In addition, we have used the 70% recovery and payment reduction for zinc and lead price, but no reduction for gold and silver. Equivalents cannot be aggregated and should be considered separately.

Drilling program has been performed with dimension of T-66, 50.5 mm core diameter for surface drilling. Core drilling was carried out on the surface. The distance between drill sections are about 15-20 meters. Mineralised sections were found in every hole except two. In some holes the mineralised core-sections have significant widths and silver grades. Labtium Oy, which has made assaying, is a FINAS-accredited testing laboratory T025 and T60, meeting the requirements of standard SFS-EN ISO/IEC 17025:2005. All assay results from 2011 drilling program and infill drilling program has now been published.

The information in this press release is based on the assay-results from the independent accredited laboratory Labtium Oy. Sotkamo Silver’s Chief Technical Director Mr. Jouko Jylänki has compiled the tables and the information in this press release. Mr. Jylänki owns shares in Sotkamo Silver AB. Independent consultant Mr. Jyrki Parkkinen, doctor in geology, EURGEO. Qualified Person status by The European Federation of Geologists (EFG), has supervised the drilling and the reporting of this press release. He is not employed by Sotkamo Silver or its affiliates and he doesn’t own any shares in the Company

 

Stockholm, 26th October 2011

Timo Lindborg, CEO

 

About Sotkamo Silver AB:

Sotkamo Silver AB´s business concept is to exploit mineral deposits in the Nordic countries with regards to human society and environment. Sotkamo Silver owns, through its subsidiary mineral deposits, which contains silver and gold in Finland. The Company’s main development project is the

Taivaljärvi Silver Mine.

Sotkamo Silver applies SveMin’s & FinnMin’s respective rules of reporting for public mining & exploration companies. Sotkamo Silver has chosen to report mineral resources and ore reserves according to the internationally accepted JORC or NI 43-101-code. The company applies International Financial Reporting Standards (IFRS) as approved by the European Union.

The shares are traded at the Burgundy market place and NGM Equity in Stockholm. The ticker symbol is SOSI.

ISIN-code for Sotkamo Silver shares is SE0001057910.

 

Read more about Sotkamo Silver on www.sotkamosilver.com or www.silver.fi

For further information: Timo Lindborg, CEO, tel. +358 40 508 3 507