Silver Mine Deposit - Current Work and Next Step

Environmental Studies

Sotkamo Silver Oy started environmental baseline studies in the region in 2006 for the Silver Mine project. 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 region before the start of mining.

The environmental baseline study did not identify any issues that would impede or impact the development of the Silver Mine operation. 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 needed the environmental studies for the environmental permit application process. This permit is vital for mining operations and was granted 2013.

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 Silver Mine early 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 give 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 Silver Mine  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 received - done 2013
  • Technical Mine Planning- ongoing
  • Financing Negotiations - ongoing
  • Final Mine Construction Decision
  • Constructing of The Mine
  • Start of Production