SILVERCONTENT OF THE ORE-RESERVES HAVE INCREASED BY 22%
Sotkamo Silver is pleased to announce an update of the ore-reserves at the Silver Mine. The update is based on the test-results that have been made with ore-sorting and its effects on the mining plan.
The mining-plan has been updated and ore-sorter will be inserted into an ore-preparation process. Feasibility study will be updated during the year according to these encouraging results.
Ore-reserves in the category Proved and Probable are totally 2.76 million tons with a silver grade of 124 g/t Ag (JORC code 2012).
In comparison with the previous ore-reserve estimate, the average content of silver in Proven and Probable reserves have increased with 22 %. The amount of ore-reserve tonnage have been reduced by ore-sorting with 17%, which reduce the treatment cost at the concentrator further more per produced ounce.
The silver-content in the ore at the first four planned years of production is between 144-124 g/t silver and gold-content is about 0.45 to 0.40 g/t in fte mill-feed. During the third planned production-year capacity increase from 350 000 tons to 450 000 tons ore per year. Planned production with currently known ore-reserves are about 7 years.
Chart. Silver mine's ore reserves, January 2016
Ore-reserve estimate follows the Australian JORC Code. The calculations are done with a "net smelter return cut-off" at 30 €/ton ore for underground-mining and 60 €/ton for ore-feed to the mill. A waste-rock dilution of 15% at underground mining and 10% at open pit hasv beeb applied.
Jouni Kankkunen MSc (Mining), MAusIMM has conducted the ore-reserve estimate. Outotec (Finland) Oy has carried out a review of the ore-reserve estimate and the mine-technical part of the forthcoming update of the Silver Mine´s Bankable Feasibility Study. The review was conducted by Pekka Loven, MSc (Mining), MAusIMM (CP) of Outotec (Finland) Oy. He holds a Qualified Person status, according to JORC, 2012. The updated ore-reserves are based both on information from test-results and an update of the Bankable Feasibility Study, as well as information from Sotkamo Silver.
Sotkamo Silver has commissioned an update of the previously prepared Bankable Feasibiity study from CTS Engtec Oy, where the calculations are based on this new information, today's costs, the new mining-plan and the latest tenders from suppliers, mining and construction companies. The results will be published in March 2016.
"I am very pleased with the increase of the average content of the sorted ore-reserves and the new mining-plan. These latest results have once again confirmed that the Silver Mine project and the continued work are well motivated. I am convinced that these actions and continuous improvements are the key to our success, which will provide a viable future, "says Timo Lindborg, CEO
Stockholm February 8th 2016
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 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 Silver Mine project in the municipality of Sotkamo.
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 ticker symbol is SOSI in NGM and SOSI1 in NASDAQ OMX Helsinki.
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
The official Stock Exchange Release is given in Swedish and there may be slight differences in the translated versions.
