SOTKAMO SILVER AB: SILVER MINE DRILLING RESULTS FOR 2022 PUBLISHED – RESULTS ARE GOOD AND SUPPORT THE TARGET OF INCREASING THE SILVER PRODUCTION

Press release: Stockholm, December 14, 2022 11:25 CET

 

Sotkamo Silver reports drill results from drilling programs carried out in Q4/2021–Q3/2022 at the Silver Mine in Sotkamo. In the drilling programs underground drilling was concentrated in the production areas for the coming years and surface drilling to the known lower part of the mineralization and areas open beside it, reaching a depth of about 700 meters.

 

The results of underground drilling support the previous positive view of higher concentrations in the next planned production area between production levels 360 - 420. Additionally, now reported results of the drilling program confirm that concentrations and mineralization widths continue below level 420.

 

Surface drilling was particularly targeted at levels in depth of 500–700 meters, and their results support the mineral resource and ore reserve update published in June 2022. In addition, surface drilling achieved a separate promising intersection outside the existing known mineralization.

 

Mikko Jalasto, CEO of Sotkamo Silver, comments "I am very pleased with the results of the drilling programs. The results of underground drilling confirm our previous view that during 2023 we will be able to return to the mine's earlier years metal grade levels. The results are encouraging above the 420 level, where the decline tunnel has already been extended during 2022, and below it, where production will gradually move during 2024–2025.  

 

The results of surface drilling support the previous understanding of the continuation of the mineralization deeper and will guide drilling programs in these areas in the coming years. Future drilling is supporting detailing the mine's ore reserves and enable their cost-effective production planning and execution.

 

A particularly interesting object of further exploration drilling is the mineralization intersected by the P-01 borehole at a depth of 700 meters beside the existing ore lenses. This is a potential target area for future drilling and a potential to increase the life of the mine from the previously communicated year 2030."

 

Details of the drilling program and the most significant results

 

The drilling program for Q4/2021 consisted of surface drilling covering a total of 3,801 meters. The drilling in 2022 consisted of both surface and underground drilling. In 2022, a total of 3,999 meters of surface and 3,328 meters of underground drillholes have been drilled. A total of 7,327 meters have been drilled in 2022.

 

Surface drill holes were targeted at the known lower part of the mineralization and open areas beside it, reaching a depth of about 700 meters. The underground holes were drilled from levels 340 to 420 and their deepest intersections reached between 470 and 550 m.

 

Figure 1 and Appendix 1 show the drilled holes and their most significant results. Figure 2 specifies the location of the underground boreholes with respect to the decline tunnel. Figure 3 shows the cross-section of the mine, as well as the promising separate intersection of the P-01 hole and the potential research area indicated by it.

 

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Figure 1. Drilling programs holes and the most significant results in mine longitudinal section -view

The results of underground drilling support the previous positive view of the ore grades in the next planned production area on mining levels 360 – 420. The ore silver grades are expected to rise during 2023 to the level of previous operating years 2020-2021. In practice, this means an average silver content of about 90-110 g/t in the mined ore.

The details of underground drilling and the most significant results are shown in the cross-section of the mine (Figure 2.) The figure also shows the extension of the decline tunnel mined during 2022.

 

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Figure 2. Sectional view on underground drill holes

 

Surface drilling was particularly targeted at levels of 500–700 meters and it’s results support the mineral resource and ore reserve update published in the June 2022. The results provide a good starting point for further drilling of the P700 project and exploration of deeper areas of the mine.

 

The intersections of the P-01 borehole at a depth of about 700–750 m and about 200 m west of the current orebody in production are very interesting. The intersections are located clearly on the side of the now known mineralization and the ore lenses that are being mined. Close to the surface (at a level of about 100 m) there is an old exploration hole drilled by Kajaani Oy

with similar assay results of intersections. The dip and the direction correspond to the dip and direction of the ore lenses currently mined. Figure 3 shows a potential research area showing the intersections of a P-01 hole and a previously drilled hole at a level of about 100 m.  These two drilling results and the existing mining infrastructure provide good starting points for research drilling in this potential area.

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Figure 3. Bore age P-01 piercing and potential research area

 

Drilling technology and quality assurance

 

The underground drilling was carried out by Geovisor Oy. The equipment used was the NQ piping, which generates a core with a diameter of 48 mm. Tapojärvi Oy's mining measuring equipment was used to measure the location, direction, and dip of boreholes. The lateral and angular changes of the boreholes were measured with Geovisor's equipment, and the core was directed with the Reflex ACT-device. The surface drilling was carried out by RE Drilling Oy using NQ piping. The DeviAligner device was used to measure the direction and dip of the borehole. Lateral and angular changes were measured with the Reflex Gyro measuring device.

The drill cores were reported by Sotkamo Silver's own staff and Palsatech Oy. The drill core sawing was carried out by Palsatech Oy and the chemical analyses by CRS Laboratories Oy. The samples were analyzed using the FAAS method for gold and IPC-OES for other metals.

Standard QA/QC (quality assurance and quality control) methods have been used for all samples, including the analysis of standards, "blanks" and duplicate samples as part of the sampling program. Sample preparation, safety and chemical analysis meet or exceed current industry standards and the requirements of the JORC code.

 

Stockholm, December 14, 2022

Sotkamo Silver AB

Mikko Jalasto, CEO

 

Contact person

Mikko Jalasto, CEO, tel. +358 50 482 1689

 

This information is information that Sotkamo Silver AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above on December 14, 2022, at 11:25 CET.

The official Stock Exchange Releases are given in Swedish and there may be differences in the translated versions.

 

 

About Sotkamo Silver AB

Sotkamo Silver´s business concept is to develop mineral deposits with regards to human society and environment. The Company owns the Silver Mine in Sotkamo which started production in March 2019. In addition, the Company holds mining and exploration rights to precious and base metal deposits in Finland.

The company applies International Financial Reporting Standards (IFRS) as approved by the European Union.

The ticker symbol is SOSI on NGM Main Regulated Equity in Stockholm and SOSI1 on Nasdaq Helsinki.

ISIN-code for Sotkamo Silver shares is SE0001057910.

Legal Entity Identifier (LEI): 213800R2TQW1OZGYDX93

Read more about Sotkamo Silver on www.silver.fi

The Company's press releases, and financial reports are distributed via Cision Sverige and are available on www.silver.fi

 

Appendix 1. Most significant results                      

Table 1. The most significant drilling intersections

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Sotkamo Silver in Sweden

Sotkamo Silver AB
Nybrogatan 34/Box 5216
SE-102 45 Stockholm


Sotkamo Silver in Finland
Sotkamo Silver Oy
Hopeatie 20
FI-88600 SOTKAMO

Telephone +358 44 733 2355

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