Scandinavian Minerals Limited

Scandinavian Minerals Limited

October 25, 2007 07:00 ET

Scandinavian Minerals Announces Major Equipment Order for Kevitsa Nickel-Copper-PGE Project

TORONTO, ONTARIO--(Marketwire - Oct. 25, 2007) - Scandinavian Minerals Ltd. (TSX:SGL)(FRANKFURT:W3M) today announces the ordering of the grinding mills for the Company's 100%-owned Kevitsa nickel-copper-PGE project in Finland. The mills have been ordered from Outotec Oyj and are scheduled to be delivered in the first quarter of 2010. The value of the order is in excess of EUR 20 million (Euro).

Outotec Oyj (formerly Outokumpu Technology Oyj), headquartered in Finland, is one of the world's largest providers of process solutions, technologies and services for the mining and metallurgical industries and is a leading supplier of mineral processing equipment. In June, 2007 Outotec was retained by Scandinavian Minerals to carry out engineering work for the Kevitsa project, including the design of the planned processing plant.

The grinding mills will be designed to process approximately 5 million tons of ore per annum and will be fully autogenous. They have been ordered following comminution test work in Australia at Orway Mineral Consultants (WA) Pty Ltd.

Mr. Peter Walker, President & CEO of Scandinavian Minerals, commented "The ordering of the mills is a major step forward for the Kevitsa project. Current long lead times for mineral processing equipment, especially grinding mills, highlight the importance of ordering such equipment as soon as the design criteria are sufficiently clear. In addition, we are very pleased to continue our cooperation with Outotec, who are already playing an important role in the ongoing Feasibility Study for Kevitsa."

The Kevitsa project - an overview

Kevitsa, situated in northern Finland, is one of the world's major undeveloped sulphide nickel deposits and one of the largest mineral discoveries in Finland's history. The Kevitsa deposit is easily accessible by road. Water and hydroelectric power are available nearby.

In April 2007 Scandinavian Minerals commenced the Feasibility Study for the Kevitsa project. The Study is being coordinated by St Barbara LLP (formerly St Barbara Consultancy Services) of London, UK. The metallurgical process has been developed by the Mineral Processing Laboratory of the Geological Survey of Finland. Plant engineering and design is being performed by Outotec Oyj. The Feasibility Study is expected to be completed in the second quarter of 2008.

The Study is based on an open pit operation mining approximately 5 million tons per year of ore, with production of nickel and copper concentrates for sale to local or overseas smelters.

About Scandinavian Minerals

Scandinavian Minerals Limited is a Canadian public company listed on the Toronto Stock Exchange under the symbol "SGL" and on the Frankfurt Freiverkehr market under the symbol W3M. The Company's current focus is the development of its 100%-owned Kevitsa nickel-copper-PGE project in northern Finland.

Forward-Looking Statements

Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

Contact Information

  • Scandinavian Minerals Ltd.
    John Kearney
    (416) 203-6128
    (416) 368-5344 (FAX)
    Scandinavian Minerals Ltd.
    Chris de Saint-Rome
    Corporate Development Advisor
    (514) 802-3377
    Scandinavian Minerals Ltd.
    Peter Walker
    President & CEO
    (+44) 7717-223909
    Studer Consulting AG
    Marlies Studer
    (+41) 44 215 2803