Belvedere Resources Limited

March 19, 2008 17:35 ET

Belvedere Commences Underground Production at Sarkiniemi West Nickel Mine- Infill Drilling Completed on the Sarkiniemi East Orebody

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 19, 2008) - Belvedere Resources Ltd. (TSX VENTURE:BEL) ("Belvedere") is pleased to announce that it has begun ore shipments from the underground development at Sarkiniemi to Belvedere's Hitura Nickel Mine for processing. The Sarkiniemi ore is now being produced entirely from underground operations after the successful mining of the open pit portion of the deposit.

David Pym (CEO) comments "Management is delighted with the rapid progress made with the underground development at Sarkiniemi, enabling production to start ahead of schedule. The infill drilling results from Sarkiniemi East have now been received and a resource study is currently underway. An underground development tunnel is being extended to the Sarkiniemi East ore. This will enable mining activities to continue at Sarkiniemi into 2009."

Sarkiniemi Nickel Mine: at its 100% owned Sarkiniemi Nickel Mine, in eastern Finland. The open pit phase of mining was completed in December, 2007, with the ore stockpile being fully processed by the end of February, 2008. In total Belvedere has mined and processed 61,361 t @ 0.94 % Ni from the open pit phase for a total production of 371.9 t of nickel in concentrate. The Sarkiniemi West orebody had a pre-mining Indicated Resource of 116,000 @ 1.17 % Ni and 0.53 % Cu. The underground operation on the higher-grade deeper portions of the western ore body is expected to mine approximately 32,000 tonnes of ore. This will be transported to Hitura at an expected 8,000 - 9,000 tonnes per month.

Sarkiniemi East Drilling: The infill drilling at the Sarkiniemi East orebody, approximately 200 m east of the open pit has now been completed. The true thicknesses of these intersections are approximately 80 % of the reported intersections.

Hole From (m) To (m) Interval (m) Ni % Cu % Co %
LEP/SN-19 20.10 24.10 4.00 0.41 0.39 0.03
SAR_07_SN27 64.75 74.75 10.00 0.67 0.62 0.05
SAR_07_SN28 38.85 57.15 18.30 0.77 0.41 0.06
SAR_07_SN29 26.85 28.30 1.45 1.18 0.15 0.09
SAR_07_SN31 12.00 14.60 2.60 0.63 0.40 0.04
SAR_07_SN47 68.90 71.40 2.50 0.88 0.31 0.06
SAR_08_SN49 40.40 52.60 12.20 0.73 0.49 0.05
SAR_08_SN50 55.55 71.80 16.25 1.14 0.49 0.08
SAR_07_SN51 57.55 62.20 4.65 0.75 0.33 0.05
SAR_08_SN53 78.55 83.75 5.20 1.68 0.28 0.12
SAR_08_SN54 20.25 45.35 25.10 0.98 0.46 0.07
SAR_08_SN55 32.55 42.75 10.20 0.40 0.40 0.03
SAR_08_SN55 45.05 47.10 2.05 1.47 0.51 0.11

Table 1: Assay results from infill drilling at Sarkiniemi East

The drilling and surveying of holes has been contracted to Suomen Malmi Oy (SMOY). Drilling provides 42 mm diameter core. Due to the short hole lengths, only downhole dip deviations are surveyed, with no azimuthal variation being surveyed. A company geologist logs the core, and marks the sample intervals based on sulphide mineralisation and lithology. Sample lengths are typically between 0.10 metres and 2.70 metres in length. Core samples are sawn in half on site, with half being sent to the Labtium Oy Laboratory (ex Geological Survey of Finland) in Kuopio for sample preparation and assay. The remaining half core is retained for verification and reference purposes. At the Labtium Oy laboratory half-core samples are crushed and split into sub-samples by riffle splitter. A sub-sample is then milled and assayed by utilizing an aqua regia digestion of a 15 g sub sample, followed by analysis by ICP-AES. The Labtium laboratory has been accredited since 1994 according to the SFS-EN ISO/IEC 17025 standard to perform chemical analyses of geological samples. The quality system of the laboratory complies with the requirements of the Standards Council of Canada (CAN-P-1579) "Guidelines for Accreditation of Mineral Analysis Testing Laboratories". The quality assurance-quality control (QAQC) program of Labtium Oy inserts into every batch of 50 samples, two standards, one blank and three laboratory duplicates. Standards, blanks and duplicates make up approximately 12% of the samples assayed.

About Belvedere:

Belvedere Resources Ltd. is a publicly-listed resource company engaged in the business of nickel production and exploring, discovering and developing mineral wealth in Finland. Belvedere currently produces 2,400 tonnes annually of payable nickel metal in concentrate from its 100% owned Hitura Nickel Mine in Western Finland.

Forward Looking Statement:

Some of the statements contained herein may be forward-looking statement, which involve known and unknown risks and uncertainties. Without limitation, statements regarding future mining rates, delivery rates, potential mineralisation and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. It is important to note that the Company's actual results could differ materially from those in such forward-looking statements.

This statement is prepared by Dr. Toby Strauss, who is acting as Qualified Person in compliance with National Instrument 43-101 with respect to this release.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the contents of this news release

Contact Information

  • Belvedere Resources Limited
    David Pym
    (604) 844-2838
    Belvedere Resources Limited
    Toby Strauss
    (604) 844-2838
    Belvedere Resources Limited
    Suite #404, Vancouver World Trade Centre
    999 Canada Place, Vancouver, BC.
    V6C 3E2, Canada