Ceo Comments

2018-11-15

CEO Comments

We have been successful in our contractor choices. The co-operation has been smooth, and the project is progressing well. The construction site had a staff of about 120 people during the equipment installation phase in September.

The device and process equipment installation continues in the concentrating plant and the mining site, and the installation of grinding mills and process automation has started. We presume that setup tests preparations and test runs can be initiated according to schedule at the beginning of 2019, after the completion of device and equipment installations which is currently underway. The plan is to start up the production at the end of the March and to establish the commercial production of Silver Mine after that.

The warm weather has had a positive impact on infrastructure and construction works. The reliable and competent main contractors as E. Hartikainen Oy and Kaitos Oy have accomplished the essential works of the dams and settling ponds. Their long-term and extensive experience of construction work, and pond constructions have been for significant benefit to the project.

The experienced companies which have specialised in construction works, the mining and metal production and circulation economy are our partners with the significant knowledge and experience in the mining industry and treatment of concentrates. The high technological expertise of Tapojärvi Oy gives a solid base to our co-operation in mining production and mining contract work with the versatile supply chain model. We worked together already in the project phase and continue now in the mining supply chain. We will deliver the concentrates of our battery metals silver, lead and zinc to the Boliden smelters in Kokkola and Rönnskär, which are the closest smelters to Silver Mine in Sotkamo. Deliveries will bring logistical and economic benefits to us and decrease the carbon footprint in transports. We are delighted that Sotkamo Silver has been selected to deliver the concentrates to the sustainable and responsible operating smelters.

We have completed our management team for Silver Mine. The management team brings strong competence in various aspects of mining production and development of mining operations. Their appointment into the Company has strengthened the ability to take Silver Mine into production phase on schedule and further develop the Company.

CEO Timo Lindborg

2018-11-15