CCNMATTHEWS
Scandinavian Minerals Limited
April 17, 2007 - 08:00:29 AM
Scandinavian Minerals Commences Bankable Feasibility Study for Kevitsa
Nickel-Copper-PGE Property
TORONTO, ONTARIO--(CCNMatthews - April 17, 2007) - Scandinavian Minerals
Limited (TSX:SGL) today announced that it has commenced the Bankable
Feasibility Study for its 100%-owned Kevitsa nickel-copper-PGE property,
located in Finland. This follows the positive Pre-Feasibility Study released
last July (see Press Release dated July 18, 2006) and the recent completion of
infill drilling and environmental work.
The Feasibility Study will be coordinated by St Barbara LLP (formerly St
Barbara Consultancy Services) of London, UK. St Barbara will also be
responsible for ensuring that the Study complies with Canadian National
Instrument 43-101. Technical work, including geology, mining, metallurgy and
environmental studies, will be performed by leading Finnish engineering and
technical consultants. The Study is expected to take approximately 12 months
to complete.
Mr. Peter Walker, President & CEO of Scandinavian Minerals, commented "The
start of the Bankable Feasibility Study represents a major milestone in
advancing Kevitsa towards production. We have put together an excellent
technical team in Finland with many years experience in mine construction and
operation. This familiarity with local conditions will be invaluable in
ensuring the successful development of one of the world's largest un-mined
nickel sulphide orebodies."
The commencement of the Bankable Feasibility Study follows a number of major
steps forward for the Kevitsa project in recent months:
- Positive Pre-Feasibility Study completed (July, 2006)
- Environmental Impact Assessment submitted (September, 2006)
- Mining Permit Application submitted (December, 2006)
- Infill Drilling results received (March, 2007)
In addition, the Company expects to complete the ongoing Pilot Plant
metallurgical program at the end of this month, the results of which will be
included in the Bankable Feasibility Study. The Company also plans to submit
the Environmental Permit Application to the Finnish authorities within the
next few weeks.
Detailed planning is continuing for the project infrastructure, including the
upgrading of the present forest road, which connects Kevitsa to the main
north-south highway in Northern Finland, located 7 km to the west of the
property. Planning is also under way for the power and water supply to the
project. Power will be sourced from the existing 21 MW Kitinen River
hydroelectric plant, 6 km west of Kevitsa, which is integrated into the
Finnish National Grid. The water supply will also be drawn from the Kitinen
River.
The Kevitsa project - an overview
Kevitsa, situated in northern Finland, is one of the world's major undeveloped
sulphide nickel deposits and one of the largest mineral discoveries in
Finland's history, with a measured and indicated resource of 141 million tons
and an inferred resource of 291 million tons (both at 0.2% Ni cutoff). This
equates to contained metal of 930 million pounds nickel and 1.3 billion pounds
copper (measured + indicated), and 1.9 billion pounds nickel and 2.9 billion
pounds copper (inferred). The Kevitsa deposit is easily accessible by road.
On 18 July 2006, Scandinavian Minerals announced the results of a positive
pre-feasibility study for the Kevitsa project (filed on SEDAR July 17, 2006).
The pre-feasibility study, which was also undertaken by St Barbara, was based
on an initial open pit mining operation producing 4.5 million tons of ore per
year, with production of separate nickel and copper concentrates for sale to
smelters in Finland or abroad. The study assumes contract mining, which is
standard practice in Finland. Proven and probable reserves in the proposed
open pit total 66.8 million tons to 400 metres depth, giving a mine life of 15
years at an average strip ratio of 2.34. The study shows attractive economics
at conservative long-term metal prices.
--------------------------------------------------
Pre-Feasibility Study: Open Pit Mineral Reserve to 400 metres
--------------------------------------------------
% grams/tonne
Ni Cut- tonnes ----------------------------------------------
off (%) Ni Cu Co Au Pd Pt
--------------------------------------------------
Proven 0.18% 56.2 Mt 0.295 0.415 0.014 0.141 0.201 0.310
--------------------------------------------------
Probable 0.18% 10.6 Mt 0.295 0.492 0.015 0.142 0.171 0.267
--------------------------------------------------
Total 0.18% 66.8 Mt 0.295 0.427 0.014 0.141 0.196 0.303
--------------------------------------------------
The results from the recently completed infill drilling program are not
included in the above reserve estimate.
The Pre-Feasibility Study envisages average annual production in
concentrate as follows:
Nickel 19 million pounds (8,692 tons)
Copper 31 million pounds (14,227 tons)
Cobalt 906,000 pounds (411 tons)
Platinum 15,542 ounces
Palladium 9,474 ounces
Gold 7,916 ounces
About Scandinavian Minerals
Scandinavian Minerals Limited is a Canadian company focused on mineral
development and exploration in Scandinavia and Finland. The Company is
currently developing its 100%-owned Kevitsa nickel-copper-PGE project in
Finland, one of the largest undeveloped nickel sulphide deposits in the world.
Scandinavian Minerals believes that the Nordic region offers excellent
potential for large-scale discoveries in under-explored terrain, combined with
favourable mining laws, clear security of title, extensive mining experience
and long-established political and economic stability.
At February 28, 2007 the Company held cash of approximately $14 million and
has 17.8 million outstanding common shares which trade on the Toronto Stock
Exchange under the symbol SGL.
FOR FURTHER INFORMATION PLEASE CONTACT:
Scandinavian Minerals Limited Peter Walker President & CEO 011-44-7717-223909
Scandinavian Minerals Limited John Kearney Chairman (416) 203-6128 (416)
368-5344 (FAX) Email: info@scandinavianminerals.com Website:
www.scandinavianminerals.com
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