Taivaljärvi - Current Work and Next Step

Environmental Studies

Sotkamo Silver Oy started environmental baseline studies in the Taivaljärvi region in 2006. These studies were conducted by Pöyry Environment Oy from Oulu, Finland. The purpose of the environmental baseline study is to give the Company and authorities detailed information regarding the environmental conditions in the Taivaljärvi region before the actual start of mining.

The environmental baseline study did not identify any issues that would impede or impact the development of a mine operation at Taivaljärvi. Sotkamo Silver continued the environmental studies with Pöyry during 2007 and 2008. These additional studies included some more detailed mapping of the fauna and flora and also water and sediment sampling in the nearby lakes and rivers. Silver Resources needs the environmental studies in the environmental permit application process. This permit is vital for the mining operations and will be applied during the year 2011.

The first report of the environmental studies can be downloaded as a pdf-file from here: Environmental Baseline Study 2006 (Pdf)

Second environmental baseline study report was received from Pöyry Environment Oy in 2008. This report is only available in Finnish and can be downloaded as a pdf-file from here: Environmental Baseline Study 2008 (Pdf)

Processing Update

Sotkamo Silver ordered a processing update regarding the planned Taivaljärvi silver mine early in 2007 from Geological Survey of Finland. This work was sponsored by TEKES and was performed by GTK's Mineral Processing unit in the town of Outokumpu.

This processing update is heavily based on the work done by the Taivalhopea JV and VTT (State Technical Research Centre) in the 1980's and early 1990's. All earlier works was analyzed and modern views, current processing practices and new discoveries made during the last years were implemented into this update. The processing update was made for two separate capacities, namely 250,000 tpa and 450,000 tpa. The processing update gives a short description of the following items:

Flow sheet
Equipment list
Layout of the processing plant
Estimate of investments that has to be made
Estimate of operating expenses
Estimate of total cost
Recommendations

One of the key issues mentioned in the recommendations is the need of a proper pilot plant test for the Taivaljärvi ore. The recommended test was completed 2011.

Next Step

Complementary Surface Drilling and Underground Drilling - done 2011
Complementary Environmental Studies and Environmental Licence Application - done 2011
Finalisation of Mining Concession - done 2011
Exploration and Development Work at The Mine Site - done 2011
Environmental Permit Process
Technical Mine Planning
Financing Negotiations
Final Mine Construction Decision
Constructing of The Mine
Start of Production