Kola Mining Corporation

Kola Mining Corporation

August 05, 2009 10:27 ET

Kola Mining Updates Progress on Russian Feasibility Study at Souker

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 5, 2009) - Kola Mining Corporation ("Kola Mining, The Company") (TSX VENTURE:KM)(FRANKFURT:C8M) is pleased to announce that the Russian feasibility study (TEO Konditsiy) currently underway for the Souker project on the Kola Peninsula, Russia is progressing well and that as per the license agreement should be completed by the end of 2009.

The study will include an update to the current NI 43-101 compliant resource of 103,000,000 tonnes at a grade of 0.26% Ni and 0.06% Cu classified as Indicated Mineral Resources and an additional 261,000,000 tonnes at a grade of 0.24% Ni and 0.06% Cu classified as Inferred Mineral Resources, containing 268,000 tonnes (590,000,000 pounds) of indicated and 630,000 tonnes (1,390,000,000 pounds) of inferred resource of nickel metal (see Kola Mining Press Release dated June 11th, 2008).

The company anticipates that the global average grade of the deposit that will be submitted to the Russian Federation for registration may exceed the average grade indicated in the recent NI 43-101 technical report due to the inclusion of internal waste zones in the previous work in which the current study anticipates removal during mining. The company also anticipates the delineation of locally higher grade zones for the same reason.

The updated resource estimate will include cobalt which is estimated to be 0.02 - 0.03%. The inclusion of cobalt will raise the equivalent grade of the deposit and the company envisions recovering it in processing.

The Company is also completing additional metallurgical tests with the hope of improving the quality of the concentrate to be produced making it more desirable for the majority of buyers of nickel concentrate. This includes the use of hydro-metallurgy, pressure leach and others.

Metallurgical tests will be conducted in Russia by the Technological University "Moscow Institute of Steel and Alloys", one of the oldest and most regarded educational and research institutions of nonferrous metallurgy in the Russian Federation and validated by Kola Mining's QPs.

"We are encouraged by the recent developments in the world economy and nickel price performance. We believe that nickel prices will continue to rise. We are making excellent progress, and are on schedule to register the Souker deposit with the Russian State Committee on Resources (GKZ)," commented Mikhail Yuryev, Kola Mining Chairman of the Board.

Brian McEwen is the qualified person (QP) for the Souker Project as defined by the guidelines under NI 43-101. He has reviewed and approved the contents of this news release.

On behalf of the Board of Directors of KOLA MINING CORP.

Victor Tskhovrebov, President & C.E.O.

Forward Looking Statements

This Company Press Release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Kola Mining Corporation
    Victor Tskhovrebov
    President & C.E.O.