Projects in Brief

Process Description and Development Phases of the Sotkamo Silver AB's Silver Mine.

 Phase Exploration Deposit development Exploitation
 Stage 1 2 3 4 5 6 7 8 9 10
 Description Regional survey Anomaly exploration Anomaly, Showing verification Discovery, Delimitation Deposit definition Project engineering Project economics Feasibility Studies
update
Mine develop- ment Mine exploitation
 Evaluation
 methods
Regional survey, geological, geo-
chemical, geophysical surveys and inventories
Ground surveys, staking, geology, exploration, geo- chemistry, geophysics Staking, detailed surveys, trenching Stripping, trenching, sampling, drilling Detailed mapping, sampling, drilling on surface or under-ground Engineering studies, Pilot tests, mine and political constrains Extraction policy. Market, price and cost surveys. Social and political constrains Review of geological, engineering, economic, legal, financial and site data. Evaluation and decision Construct. of mine/mill infra-structures; pit/mine develop- ment Mine planing, develop- ment. Exploitation sales.
 Evaluation
 objectives
Find regional or sector anomalies Locate and confirm anomalies Property acquisition. Anomaly and showings verifi-cations. Discowery, confirma- tion and first delimitation of a mineral deposit Etablish limits, distribution, mineralogy, grade and controls of minerali-sation Engineering planing and environ- ment protection Establish parameters of economic evalution Complete and appropriate project review. Net present value. Risk factors Prepare commercial exploitation

Efficient manage- ment, profibality, company development;
growth

 Margin of
 error
100 % 100 % 100 % 40 % 30 % 20 % 15 % 10-15 % 10 % 10 %
   
 Silver Mine Kajaani Oy Kajaani Oy Kajaani Oy Kajaani and Outokumpu Kajaani and Outokumpu Sotkamo Silver
2010
Sotkamo Silver
2011
Sotkamo Silver
2016
Sotkamo Silver
2016
Sotkamo Silver
2017

 

Approximately 15 million euros have been spent on exploration of the Taivaljärvi Silver Mine Project; it was originally discovered in 1980 by university researchers, who identified several silver-lead-zinc-gold anomalous glacial boulders one kilometre down in the ice from outlined mineralisation.

Kajaani Oy, a Finnish exploration company, followed up these initial boulder indications by percussion drilling, bedrock-moraine interface sampling and a small boulder rock chip sampling program. Results from the percussion drilling led to the identification of the sub-crop mineralisation. Followed-up diamond drilling intersected mineralisation in 1981.

Further work by Kajaani, which consisted of mapping, geochemical till sampling and the completion of several geophysical studies, resulted in the definition of silver-lead-zinc-gold mineralisation of over a 400 by 100 metre surface area, to a depth of approximately 500 metres, with a strike length of nearly 550 metres. The quantity of mineralized rock in this area was estimated to be approximately 10 million tonnes.

In 1986, Kajaani entered into an agreement with Outokumpu Oy, resulting in the formation of the 50:50 Taivalhopea Joint Venture in 1988. The objective of the joint venture was to develop underground access to the identified mineralisation and to investigate the further potential of the Taivaljärvi Silver Mine Project.

In 1991, Outokumpu Oy conducted a feasibility study to the exploitation of the Taivaljärvi Silver Mine Project. Metallurgical tests were completed as a part of the feasibility study. The tests generally demonstrated that the mineralisation was amenable to concentration with standard floatation techniques. Outokumpu Oy concluded at that time that due to weak metal prices, development of the Project was not financially feasible.

Combined 526 drill holes of about 58,500 metres have been drilled on the Silver Mine Project and its immediate surrounding area, with the completion of over 8,500 assays for silver, zinc, lead and gold on samples collected from the area. Selected results include 721 grams of silver, 1.2 grams of gold, 0.4% zinc and 0.6% lead per ton over 7.8 metres, 1.531 grams of silver, 1.0 grams of gold, 1.8% zinc and 0.5% lead per tonne over 8.1 metres and 575 grams of silver, 1.7 grams of gold, 1.9% zinc and 1.6% lead over 4.1 metres.

Sotkamo Silver has continued the exploration and development of the Silver Mine Project inclusive completion of an environmental baseline study of the Project area in 2006 and preparation of a first  NI-43-101 compliant resource in May 2007. Environment licence was granted 2013. The first measured and indicated resources were estimated at 1.2 million tonnes grading 153 grams of silver, 0.9% zinc and 0.5% lead per tonne, with inferred resources of 617.000 tonnes grading 130 grams of silver, 0.8% zinc and 0.4% lead per tonnes. The historical average gold grade was 0.7 grams of gold per tonne.

Sotkamo Silver has during 2014 received the latest independent estimate of the mineral resources for Silver Mine deposit. Total measured and indicated resources were 6 million tonnes grading 83,4 grams of silver/tonne, and inferred resources of 1.3 million tonnes grading 75,5 grams of silver equivalents/tonne.

Other work has included preparation of a proposed mine plan based on the assumption that approximately 3.3 million tonnes which are financially viable ore. Outotec (Finland) Oyj has reviewed the mining section inclusive mine planning and ore reserve estimates for the updated Bankable Feasibility Study. The updated ore reserves are based on information both from completed Bankable Feasibility Study and information from Sotkamo Silver.
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