Updated feasibility study completed for the silvermine
Sotkamo Silver (NGM: SOSI) has completed an updated Bankable Feasibility Study for the company's Silver Mine-project in Sotkamo, Finland. The updated study has been prepared, compiled, evaluated and approved by the independent consultant-group, CTS Engtec Oy.
The study shows acceptable profitability, even at silver-prices under current levels. Production is expected to start late 2015 or early 2016. Calculations are based on new information of ore-reserves, present costs, new mining-schedule and on latest quotes from suppliers and construction- and entrepreneurial-companies.
According to cash flow forecast, which is based on an average silver- price of $ 21.5 / Oz between the years 2016-2025, the Mine´s project IRR is estimated to 35% and NPV to 30 million (@ 8%). Pay-back period from production-start is estimated to be less than 3 years.
Ore reserves are total 3.36 million tons with an average silver-content of 102 g/ton. The silver-content during the first four planned production-years will be between 120-130 g/ton and the gold-content will be about 0.4 g/ton. During the third production-year capacity will be increased from 350,000 to 450,000 tons per annum in conjunction with the updated environmental-permit.
Jouni Kankkunen MSc (Mining), MAusIMM, has compiled the mining plan and ore-reserve estimate. Outotec (Finland) Oyj has, carried out a review on the mine-technology, the Silver Mine’s mine-plan and the mineral-reserve estimates for the Feasibility Study. This review was performed by Pekka Loven, MSc (Mining), MAusIMM (CP) at Outotec (Finland) Oyj. He is a Competent Person under the Joint Ore Reserves Committee (JORC, 2012). The updated mineral reserves (ore) are based on information from the completed Bankable Feasibility Study and information from Sotkamo Silver.
Further information: Pekka Veisto, Project manager, CTS Engtec. Mob +358 40 5073 518 or by e-mail: firstname.lastname@example.org
About Sotkamo Silver AB:
Sotkamo Silver AB´s business concept is to exploit mineral deposits in the Nordic countries with regards to human society and environment. Sotkamo Silver owns, through its subsidiary mineral deposits, which contains silver and gold in Finland. The Company’s main development project is the Silver Mine project in the municipality of Sotkamo.
Sotkamo Silver applies SveMin’s & FinnMin’s respective rules of reporting for public mining & exploration companies. Sotkamo Silver has chosen to report mineral resources and ore reserves according to the internationally accepted JORC or NI 43-101-code. The company applies International Financial Reporting Standards (IFRS) as approved by the European Union.
www.sotkamosilver.com or www.silver.fi