Scandinavian Minerals Limited
TSX : SGL

Scandinavian Minerals Limited

March 01, 2007 08:00 ET

Scandinavian Minerals Announces Further Positive Drill Results From Kevitsa, Finland Nickel-Copper-PGE Property

TORONTO, ONTARIO--(CCNMatthews - Feb. 28, 2007) - Scandinavian Minerals Limited (TSX:SGL) today announced remaining results from last year's infill drilling program at its 100%-owned Kevitsa, Finland nickel-copper-PGE property. This second and final batch of results follows the interim results released last November (see Press Release dated November 15, 2006).

The drill program totalled 11,450 metres and was carried out in the summer of 2006. It comprised 33 holes, consisting of 26 new holes and 7 extensions of previous holes. As with the interim results, the results of the remaining holes closely match results from previous drilling and indicate higher grades with increasing depth in some areas. Many holes recorded multiple intercepts. Notable intercepts not previously reported include:

- KV34: 124 metres at 0.39% nickel, 0.83% copper, 0.018% cobalt and 0.91 g/t Pt+Pd+Au

- KV36: 164 metres at 0.35% nickel, 0.50% copper, 0.015% cobalt and 0.57 g/t Pt+Pd+Au

- KV47: 118 metres at 0.44% nickel, 0.30% copper, 0.017% cobalt and 1.02 g/t Pt+Pd+Au

- KV48: 70 metres at 0.43% nickel, 0.35% copper, 0.017% cobalt and 0.94 g/t Pt+Pd+Au

- KV50: 144 metres at 0.38% nickel, 0.33% copper, 0.015% cobalt and 0.90 g/t Pt+Pd+Au


Mr. Peter Walker, President & CEO of Scandinavian Minerals, commented "We are delighted with these excellent results. As with earlier holes in this program, the results correlate closely with previous drilling and a number of holes show significantly higher grades over extended intervals than those assumed in the pre-feasibility study. In addition, the two most northerly holes encountered mineralization beyond the currently planned pit limits."

The length-weighted averages for all contiguous sections are 0.35 % nickel, 0.42 % copper, 0.016% cobalt and 0.72 grams/ton Pt+Pd+Au. This correlates well with the proven and probable reserve grades of 0.295% Ni, 0.427% Cu, 0.014% Co and 0.64 grams/ton Pt+Pd+Au as determined in the Pre-Feasibility Study of July 2006.

Holes KV47 and KV50 both encountered mineralization outside the northern limit of the planned open pit. This clearly indicates the potential for more resources beyond the currently defined pit limits. This possibility will be tested by further drilling in the coming months, as soon as a drill contractor becomes available.

The complete data set will be fed into the existing resource and open pit model as part of the Company's full bankable feasibility study, planned to commence in the second quarter of 2007.

The drilling was a multi-purpose program aimed at the following:

- Collecting additional data from the fringes of the known ore reserve in order to upgrade inferred resources and obtain better data for pit modelling.

- Acquiring additional data for the southeast continuation of the ore body at the southeast side of the bottom of the proposed open pit.

- Collection of geotechnical data for open pit design.

Results in the table below represent assays received for the final 15 holes, totalling 4,693 metres.



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Hole From To Length Co % Cu % Ni % S % Au g/t Pd g/t Pt g/t
(m) (m) (m)
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KV17B 240.2 294 53.8 0.012 0.29 0.42 1.39 0.15 0.50 0.78
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KV19B 202 308 106 0.016 0.36 0.25 2.26 0.13 0.17 0.26
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KV20B 359 411 52 0.016 0.53 0.29 2.11 0.08 0.07 0.10
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481 504.6 23.6 0.020 0.52 0.33 2.55 0.11 0.05 0.08
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KV25B 105 109 4 0.020 0.53 0.40 2.32 0.24 0.36 0.48
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KV26 230 238 8 0.014 0.58 0.30 1.88 0.15 0.16 0.25
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KV27 200 212 12 0.012 0.19 0.20 0.95 0.06 0.06 0.08
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272 356 84 0.015 0.62 0.31 1.87 0.19 0.23 0.33
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KV34 137 261 124 0.018 0.83 0.39 2.48 0.27 0.24 0.40
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KV35 313 400 87 0.018 0.65 0.42 2.32 0.15 0.20 0.28
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KV36 74 122 48 0.009 0.02 0.42 0.29 0.05 0.36 0.42
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138 146 8 0.011 0.01 0.48 0.72 0.02 1.30 1.60
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240 404 164 0.015 0.50 0.35 1.89 0.13 0.18 0.26
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420 440 20 0.015 0.40 0.29 2.17 0.10 0.06 0.12
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KV37 221 275 54 0.014 0.55 0.31 1.90 0.17 0.23 0.34
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99 165 66 0.013 0.31 0.21 1.20 0.13 0.12 0.22
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181 207 26 0.014 0.51 0.26 1.58 0.15 0.16 0.26
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KV39 145 155 10 0.014 0.48 0.26 1.60 0.20 0.26 0.38
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KV47 48 72 24 0.034 0.27 0.30 5.40 0.04 0.14 0.15
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144 162 18 0.019 0.24 0.23 2.80 0.09 0.13 0.25
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174 292 118 0.017 0.30 0.44 2.11 0.15 0.34 0.53
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352 392 40 0.012 0.22 0.30 0.94 0.14 0.30 0.44
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KV48 25 95 70 0.017 0.35 0.43 2.05 0.19 0.31 0.44
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111 147 36 0.018 0.29 0.27 2.28 0.16 0.19 0.32
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167 241 74 0.010 0.23 0.29 1.12 0.11 0.31 0.64
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KV50 96 240 144 0.015 0.33 0.38 1.71 0.16 0.30 0.44
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KV51 55 119 64 0.018 0.35 0.42 1.70 0.14 0.26 0.35
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261 321 60 0.015 0.40 0.37 1.81 0.10 0.12 0.19
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349 389 40 0.017 0.43 0.34 2.41 0.07 0.08 0.12
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445 461 16 0.017 0.15 0.27 2.00 0.04 0.06 0.08
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Average 0.016 0.42 0.35 1.91 0.14 0.23 0.35
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"B" denotes extensions of previous holes


Mineralised sections are calculated as contiguous sections at a cut-off of 0.18 % nickel, which is also the cut-off used in calculating ore reserves.

Sample preparation and chemical analysis were carried out by the Geological Survey of Finland. Base metals were determined by ICP-AES after hot aqua regia extraction. Precious metals were determined by lead fire assay with ICP-AES finish. Mr. John Pedersen, M.Sc., P.Geo., a director of the Company, supervised the drill program and acts as the Company's Qualified Person.

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.

On 18 July 2006, Scandinavian Minerals announced the results of a positive pre-feasibility study for the Kevitsa project (filed on SEDAR 17 July 2006). The pre-feasibility study was based on an open pit mining operation producing 4.5 million tons ore per year, with production of separate nickel and copper concentrates for sale to smelters in Finland or abroad. The study assumed contract mining, which is standard practice in Finland. Proven and probable reserves total 66.8 million tons to 400 metres depth, giving a mine life of 15 years at an average strip ratio of 2.34. The study showed attractive economics at conservative long-term metal prices.



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Pre-Feasibility Study: Mineral Reserve to 400 metres
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% grams/tonne
Ni Cut- -----------------------------------------------
off (%) tonnes Ni Cu Co Au Pd Pt
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Proven 0.18% 56.2 Mt 0.295 0.415 0.014 0.141 0.201 0.310
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Probable 0.18% 10.6 Mt 0.295 0.492 0.015 0.142 0.171 0.267
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Total 0.18% 66.8 Mt 0.295 0.427 0.014 0.141 0.196 0.303
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About Scandinavian Minerals

Scandinavian Minerals Limited is a Canadian company exploring for precious and base metals in Scandinavia and Finland. The Company is currently developing one of Finland's largest mineral discoveries, the 100%-owned Kevitsa nickel-copper-PGE project. Scandinavian Minerals believes that the Nordic region offers excellent potential for large-scale discoveries in under-explored terrain, combined with a favourable mining law, clear security of title and long-established political and economic stability. The Company's 17.7 million outstanding common shares trade on the Toronto Stock Exchange under the symbol SGL.

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