Scandinavian Minerals Limited

Scandinavian Minerals Limited

October 03, 2005 11:56 ET

Scandinavian Gold Limited: New Pre-Feasibility Study Commenced on Keivitsa Nickel-Copper-PGE Property

TORONTO, ONTARIO--(CCNMatthews - Oct. 3, 2005) - Scandinavian Gold Limited (TSX:SGL) today announced that it has commenced a new pre-feasibility study for its 100%-owned Keivitsa, Finland, nickel-copper-PGE property.

The study will be undertaken by St Barbara Consultancy Services of London, U.K. Input on operating and capital costs, as well as metallurgical design, will be contributed by specialist personnel at the Geological Survey of Finland. St Barbara is an independent consulting firm with a worldwide reputation for services to the mining and metals industries. The firm has undertaken numerous project feasibility studies for international mining companies for a wide range of metals and minerals.

The new pre-feasibility study will be based on open-pit mining of up to 4 million tons of ore per year, with production of separate nickel and copper concentrates for sale to smelters. The Study is scheduled for completion in February, 2006. It follows this summer's successful mini-pilot tests, which demonstrated that separate, smelter-grade nickel and copper concentrates could be produced.

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

Keivitsa is one of the world's major undeveloped sulphide nickel deposits and one of the largest mineral discoveries in Finland's history. It hosts a probable reserve of 120 million tonnes grading 0.21% nickel, 0.3% copper, 0.012% cobalt and 0.52 grams/tonne PGE + gold, amounting to 252,000 tonnes contained nickel and 360,000 tonnes contained copper. The probable reserve is contained within an indicated resource of 150 million tonnes 0.18% nickel, 0.27% copper, 0.011% cobalt and 0.47 grams/tonne PGE + gold and an inferred resource of 315 million tonnes 0.18% nickel, 0.29% copper, 0.012% cobalt and 0.4 grams/tonne PGE + gold.

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. The Company is currently developing one of Finland's largest mineral discoveries, the 100%-owned Keivitsa nickel-copper-PGE project. Scandinavian Gold 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. The Company's 11.3 million common shares trade on the Toronto Stock Exchange under the symbol SGL.

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