SIGNIFICANTLY EXPANDED MINERAL RESOURCES AT TAIVALJÄRVI SILVER MINE
(NGM:SOSI)
Sotkamo Silver is pleased to announce an update of the mineral-resources in Taivaljärvi Silver Mine. The update is based on the last autumn´s completed core-drilling. The updated mineral-resources have been done according to the requirements of NI 43 101 -code.
The amount of indicated resources have increased by 68% and the inferred resources with 555%, in terms of tonnage, or 40% and 500% in terms of amount of silver-equivalents. The updated estimate extends 550 meters below the ground. The deposit is open at depth and the geological formation continues towards depth below - 550 meter.
The table below shows the updated mineral resources (NI 43-101). For calculation of the silver 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 used the 70% recovery and payment reduction for zinc and lead price, but no reduction for gold and silver.
(For table see attached file)
A summary report will be published on Sotkamo Silvers AB's website before the end of February.
“We are very pleased with these excellent results. The significant increase of the mineral- resources means that Taivaljärvi Silvermine's planned production span can be extended. The increase means that the mine is even more robust than earlier. After the commenced drilling-program is finnished, it is expected that Taivaljärvi Silvermine's mineral-resources will further increase and a new ore-reserve calculation will be performed." says Timo Lindborg, CEO of Sotkamo Silver AB.
The independent consultant Dr. Jyrki Parkkinen, doctor in geology, EURGEOn and with Qualified Person status by The European Federation of Geologists (EFG) has done the mineral-resource estimation. Dr. Parkkinen is completely independent from the Company and he does not hold any shares in Sotkamo Silver.
(For image see attached file)
The picture above shows the mineral resources in the longitudinal and cross direction about 55•0 meters below the ground surface. Colours: red = Indicated and yellow = inferred. Green lines = planned drilling. The deposit is open towards depth.
Stockholm, February 14, 2011
SOTKAMO SILVER AB (publ.)
Timo Lindborg, CEO
About Sotkamo Silver AB:
Sotkamo Silver AB´s business concept is to exploit mineral deposits in the Nordic countries with regard 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.
ISIN-code for Sotkamo Silver shares is SE0001057910. The ticker symbol is SOSI.
ISIN-code for Sotkamo Silver warrants is SE0003299718. The ticker symbol is SOSI. TO2
Read more about Sotkamo Silver on www.sotkamosilver.com or www.silver.fi.
For further information: Mr. Timo Lindborg, CEO, phone: +358 40 508 35 07