Scandinavian Minerals Limited

Scandinavian Minerals Limited

May 24, 2005 07:00 ET

Scandinavian Gold, Keivitsa Nickel-Copper-PGE Property: Mini-Pilot Tests Successfully Completed and Samples Shipped To Major Companies

TORONTO, ONTARIO--(CCNMatthews - May 24, 2005) - Scandinavian Gold Limited (TSX:SGL) is pleased to announce that the mini-pilot program for its Keivitsa, Finland nickel-copper-PGE property has been successfully completed. The aim of the program was to produce sufficient bulk concentrate for testing in various pressure acid leach ("PAL") processes.

Samples of this concentrate have now been despatched to 3 major companies for testing in their respective PAL processes. One of these processes, although not in current operation, has successfully operated on a commercial scale in the past. The other two processes are at the demonstration plant stage.

Scandinavian Gold's management believes that the PAL process considered in the original Pre-Feasibility Study for Keivitsa has been superseded by other processes developed by the companies referred to above. Results of testing by these companies should be available in July.

During the mini-pilot program, a total of 820 kilograms of drill core was processed to produce 41 kilograms of concentrate. The concentrate with highest recoveries contained 7.4% copper at a recovery of 94%, 4.0% nickel at a recovery of 77 % and 6.1 g/t PGE + gold at a recovery of 71%. A total of 13 test runs was made using different processing parameters. The average grade/recovery for the 13 runs was 8.1% copper at a recovery of 94%, 3.8% nickel at a recovery of 69% and 6.9 g/t PGE+gold at a recovery of 67%. Management believes that further work has the potential to improve nickel and PGE recoveries.

The program used drill core taken from the higher-grade portion of the Keivitsa orebody. This comprises 2 zones enriched in copper and nickel, with grades in excess of 50% higher than those found in the 120 million tonne probable reserve. A separate resource estimate for this higher-grade portion is under way and results are expected to be available later this summer.

In addition, a 4-hole, 700-metre diamond drill program is now under way at Keivitsa in order to provide additional material for metallurgical testing and further data for resource calculation. The results of this drill program are expected to be available in July.

In order to maximise commercial flexibility for the development of Keivitsa, management is pursuing 2 paths in parallel: the first involves the production of a bulk nickel-copper-PGE concentrate suitable for PAL treatment; the recent mini-pilot program constitutes part of this scenario. The second scenario involves production of separate nickel and copper concentrates suitable for sale to a smelter; bench-scale metallurgical tests for the smelter scenario are expected to be complete in June.

Keivitsa is situated in Finland, a country that offers long-established political and economic stability. The Keivitsa deposit is easily accessible by road and both power and water are available nearby.

Keivitsa is one of the largest mineral discoveries in Finland's history, hosting a probable reserve of 120 million tonnes within an indicated resource of 150 million tonnes and an inferred resource of 315 million tonnes. As such, it constitutes one of the world's major undeveloped sulphide nickel deposits.

All metallurgical test work was conducted in Finland by GTK Mineral Processing (the Geological Survey of Finland). Mr. John Pedersen, M.Sc., P.Geo., acts as the Company's Qualified Person.

About Scandinavian Gold

Scandinavian Gold is a Canadian company exploring for precious and base metals in Scandinavia, with emphasis on Finland. Scandinavian is currently developing one of Finland's largest mineral discoveries to date, the 100%-owned Keivitsa nickel-copper-PGE project. The Company believes that Finland offers excellent potential for large-scale discoveries in under-explored terrain, combined with a favourable, well-administered mining law, clear security of title and long-established political and economic stability. Scandinavian Gold's 11.3 million common shares trade on the Toronto Stock Exchange under the symbol SGL.

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