Scandinavian Minerals Limited
TSX : SGL

Scandinavian Minerals Limited

April 06, 2006 08:05 ET

Scandinavian Minerals Limited: New drilling at Keivitsa nickel-copper-PGE property

TORONTO, ONTARIO--(CCNMatthews - April 6, 2006) -

10,000 metre drill program commenced

Scandinavian Minerals Limited (TSX:SGL) today announced that it has commenced a new drilling program at its 100%-owned Keivitsa, Finland, nickel-copper-PGE property. The primary purpose of the program is infill drilling of the known orebody. In addition, the program will provide additional material for metallurgical testing, as well as geotechnical data and orientated drill cores.

The planned size of the program is approximately 10,000 metres. Two rigs are already on the property, to be joined by a third at a later stage. The program is expected to take four months to complete. The Company expects to have interim results available approximately half way through the program, with final results following completion.

The pre-feasibility study for Keivitsa, which has been underway since last September, is nearing completion and is expected to be published at the end of April.

The Keivitsa project - an overview

Keivitsa, 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 Keivitsa deposit is easily accessible by road. Water and hydroelectric power are available nearby.

In September 2005, the Company announced a major breakthrough in metallurgy: mini-pilot tests had confirmed the results of earlier bench testing to demonstrate that, with the application of new flotation reagents, smelter-grade concentrates can be successfully produced by conventional flotation methods.

Following the metallurgical breakthrough, Scandinavian Minerals commenced a pre-feasibility study for Keivitsa, based on open pit mining of 3.5 million tonnes of ore per annum. Separate, smelter-grade nickel and copper concentrates would be produced for sale to smelters. The study is expected to be complete towards the end of April 2006.

Environmental studies for the Keivitsa project are largely complete and it is expected that the applications for the environmental and mining permits will be submitted in the second quarter of 2006.

Further details regarding the Keivitsa project can be found under the Company's profile at www.sedar.com

Mr. John Pedersen, M.Sc., P.Geo., is a director of Scandinavian Minerals Limited, and also a Qualified Person, and has approved this press release.

About Scandinavian Minerals

Scandinavian Minerals Limited 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 Minerals 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 13.7 million common shares trade on the Toronto Stock Exchange under the symbol "SGL". At February 28, 2006, the Company had cash of $4.5 million.

Contact Information

  • Scandinavian Minerals Limited
    Roderick Chisholm
    CFO
    (416) 203-6128
    or
    Scandinavian Minerals Limited
    Peter Walker
    President & CEO
    011-44-7717-223909
    info@scanmin.com
    www.scandinavianminerals.com
    or
    Harbour Financial Inc.
    Brian Barbour
    (403) 813-5832
    or
    Harbour Financial Inc.
    Tom Hart
    (403) 701-4278