Scandinavian Minerals Limited
TSX : SGL

Scandinavian Minerals Limited

November 15, 2006 07:00 ET

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

TORONTO, ONTARIO--(CCNMatthews - Nov. 15, 2006) - Scandinavian Minerals Limited (TSX:SGL) today announced interim results from the recent infill drilling program at its 100%-owned Kevitsa, Finland nickel-copper-PGE property.

The program totalled 11,450 metres and was carried out this summer. It comprised 33 holes, consisting of 26 new holes and 7 extensions of previous holes. Results of the program closely match results from previous drilling and indicate higher grades with increasing depth in some areas. Many holes recorded multiple intercepts. Notable intercepts include:

- KV33: 102 metres at 0.43% nickel, 0.73% copper, 0.019% cobalt and 1.05 g/t PGE

- KV49: 66 metres at 0.42% nickel, 0.52% copper, 0.020% cobalt and 1.02 g/t PGE

- KV45: 290 metres at 0.36% nickel, 0.38% copper, 0.15% cobalt and 0.99 g/t PGE


As soon as the remaining results are received, 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 early in 2007.

Mr. Peter Walker, President & CEO of Scandinavian Minerals, commented "We are very pleased with the results of the drilling so far, which correlate very closely with previous drilling. This confirms and further increases the level of confidence in the known ore reserve and resource figures. In addition, a number of holes show noticeably higher grades over extended intervals."

The length-weighted averages for all contiguous sections are 0.31 % nickel, 0.45 % copper, 0.016% cobalt and 0.61 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. Furthermore, the average grades for nickel and copper from the latest drilling are some 5% higher than those determined in the pre-feasibility study.

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.

- Plus a single hole, KV28, to determine the base of the Kevitsa intrusion.



Results in the table below represent assays received for the first 18
holes, totalling 6,757 metres. Remaining assays are expected in January.

--------------------------------------------------------------------
From To Length
Hole (m) (m) (m) Co % Cu % Ni % S % Au Pd Pt
g/t g/t g/t
--------------------------------------------------------------------

--------------------------------------------------------------------
KV22B(1) 204 296 92 0.013 0.54 0.29 1.81 0.16 0.20 0.28
--------------------------------------------------------------------
346 374 28 0.013 0.43 0.25 2.02 0.11 0.14 0.18
--------------------------------------------------------------------
210 410 200 0.013 0.53 0.26 1.91 0.13 0.13 0.17
--------------------------------------------------------------------
KV24B(1) 200 220 20 0.017 0.46 0.32 2.04 0.17 0.21 0.27
--------------------------------------------------------------------
306 348 42 0.014 0.53 0.24 2.25 0.11 0.09 0.14
--------------------------------------------------------------------
404 442 38 0.014 0.55 0.27 1.94 0.14 0.16 0.24
--------------------------------------------------------------------
KV28 333 349 16 0.012 0.22 0.33 1.20 0.05 0.07 0.10
--------------------------------------------------------------------
425 509 84 0.017 0.41 0.25 2.17 0.06 0.04 0.07
--------------------------------------------------------------------
521 659 138 0.015 0.37 0.22 2.02 0.06 0.03 0.06
--------------------------------------------------------------------
KV29 96 124 28 0.012 0.45 0.24 1.43 0.16 0.23 0.34
--------------------------------------------------------------------
164 182 18 0.013 0.44 0.24 1.26 0.15 0.09 0.20
--------------------------------------------------------------------
212 276 64 0.015 0.29 0.26 1.51 0.12 0.16 0.27
--------------------------------------------------------------------
316 454 138 0.015 0.33 0.29 1.74 0.07 0.07 0.11
--------------------------------------------------------------------
467 500 33 0.014 0.24 0.28 1.72 0.03 0.02 0.04
--------------------------------------------------------------------
KV30 150 190 40 0.017 0.49 0.32 2.13 0.14 0.13 0.19
--------------------------------------------------------------------
286 300 14 0.015 0.57 0.27 2.06 0.16 0.16 0.24
--------------------------------------------------------------------
KV31 205 213 8 0.014 0.59 0.28 1.93 0.10 0.06 0.10
--------------------------------------------------------------------
KV32 66 74 8 0.018 0.08 0.25 1.78 0.02 0.10 0.16
--------------------------------------------------------------------
KV33 46 56 10 0.016 0.44 0.29 1.71 0.21 0.32 0.45
--------------------------------------------------------------------
134 170 36 0.016 0.60 0.33 1.85 0.20 0.17 0.30
--------------------------------------------------------------------
196 298 102 0.019 0.73 0.43 2.62 0.25 0.30 0.50
--------------------------------------------------------------------
KV38 55 79 24 0.014 0.24 0.23 1.20 0.10 0.18 0.23
--------------------------------------------------------------------
KV40 173 253 80 0.013 0.43 0.27 1.62 0.18 0.21 0.32
--------------------------------------------------------------------
485 497 12 0.017 0.48 0.29 2.35 0.17 0.19 0.27
--------------------------------------------------------------------
KV41 211 259 48 0.014 0.54 0.31 1.88 0.18 0.21 0.32
--------------------------------------------------------------------
KV42 3.2 45 42 0.019 0.60 0.40 2.52 0.25 0.44 0.47
--------------------------------------------------------------------
163 183 20 0.018 0.08 0.28 2.25 0.03 0.27 0.36
--------------------------------------------------------------------
221 245 24 0.019 0.56 0.37 2.87 0.21 0.27 0.46
--------------------------------------------------------------------
341 481 140 0.018 0.55 0.35 2.34 0.10 0.08 0.10
--------------------------------------------------------------------
KV43 2.65 31 28 0.016 0.65 0.34 2.11 0.22 0.25 0.33
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45 115 70 0.015 0.46 0.27 1.71 0.15 0.14 0.22
--------------------------------------------------------------------
163 177 14 0.018 0.48 0.33 1.89 0.18 0.24 0.34
--------------------------------------------------------------------
KV44 10 30 20 0.019 0.25 0.28 2.52 0.11 0.26 0.34
--------------------------------------------------------------------
178 244 66 0.019 0.48 0.36 2.45 0.18 0.24 0.39
--------------------------------------------------------------------
288 424 136 0.017 0.35 0.36 1.61 0.14 0.27 0.39
--------------------------------------------------------------------
KV45 42 332 290 0.015 0.38 0.36 1.81 0.16 0.34 0.49
--------------------------------------------------------------------
KV46 197 203 6 0.018 0.06 0.94 1.67 0.04 1.70 2.00
--------------------------------------------------------------------
KV49 5 71 66 0.020 0.52 0.42 2.64 0.25 0.31 0.46
--------------------------------------------------------------------
99 115 16 0.016 0.24 0.28 1.14 0.18 0.25 0.33
--------------------------------------------------------------------
167 239 72 0.018 0.33 0.31 2.31 0.15 0.22 0.41
--------------------------------------------------------------------

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Average 0.016 0.45 0.31 1.97 0.14 0.19 0.28
--------------------------------------------------------------------
(1) asterisks denote 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., 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 July 17, 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 330 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.



--------------------------------------------------------------------
Pre-Feasibility Study: Mineral Reserve
--------------------------------------------------------------------
Ni Cut- % grams/tonne
off (%) tonnes -----------------------------------------
Ni Cu Co Au Pd Pt
--------------------------------------------------------------------
Proven 0.18% 56.2 Mt 0.295 0.415 0.014 0.141 0.201 0.310
--------------------------------------------------------------------
Probable 0.18% 10.6 Mt 0.295 0.492 0.015 0.142 0.171 0.267
--------------------------------------------------------------------
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 17.6 million outstanding common shares trade on the Toronto Stock Exchange under the symbol SGL.

For further information, please visit www.scandinavianminerals.com or contact:

Contact Information

  • Scandinavian Minerals Limited
    Peter Walker
    President & CEO
    011-44-7717-223909
    or
    Scandinavian Minerals Limited
    Roderick Chisholm
    CFO
    (416) 203-6128
    Email: info@scanmin.com
    Website: www.scandinavianminerals.com
    or
    Harbour Financial Inc.
    Brian Barbour
    (403) 813-5832
    or
    Harbour Financial Inc.
    Tom Hart
    (403) 701-4278
    or
    Studer Consulting AG
    Marlies Studer
    (+41) 44 215 2803