Scandinavian Minerals Limited

Scandinavian Minerals Limited

February 20, 2008 09:00 ET

Scandinavian Minerals Starts Infrastructure Construction at Kevitsa Project

New senior mine management appointments

TORONTO, ONTARIO--(Marketwire - Feb. 20, 2008) - Scandinavian Minerals Limited (TSX:SGL)(FRANKFURT:W3M) is pleased to announce the signing of important agreements relating to construction at its 100%-owned Kevitsa nickel-copper-PGE (platinum group elements) project in northern Finland, as well as new senior mine management appointments.

Contract for Road and Bridge Construction

A contract has been awarded to Veljekset Karjalainen Oy, a respected Finnish construction company, as contractor for construction of the 7 kilometre road to connect the Kevitsa property with the main highway, as well as a new, larger (200 metre) bridge over the Kitinen river. Approval has been obtained from the Finnish Road Administration Authority for northern Finland to permit construction of the road and bridge. The value of the contract is approximately EUR 4.0 million and construction will start immediately.

New Appointments

Scandinavian Minerals is also pleased to announce three new appointments to the senior management team that will take the Kevitsa Project into production.

Chief Geologist: Markku Lappalainen

Mr. Lappalainen graduated from Oulu University with a Master's degree in Geology and also holds an MBA from the same university. He has wide experience as a field and mine geologist in Finland, Sweden, Ivory Coast and, latterly, Panama with companies including Outokumpu Mining Oyj, North Ltd. and Inmet Mining Corporation. Mr. Lappalainen was most recently employed as Field Technical Manager in Panama for Minera Petaquilla SA, a subsidiary of Inmet Mining Corporation. Mr. Lappalainen will be responsible for all aspects of mine and exploration geology for the Kevitsa project and will take up his position in April, 2008.

Mill Superintendent: Janne Seppala

Mr. Seppala for the past four years, worked as Processing Engineer at the Pahtavaara gold mine in northern Finland. He will hold overall responsibility for the operation of the processing plant at Kevitsa and will take up his position immediately.

Financial Manager: Riikka Saari

Ms. Riikka Saari has been appointed Financial Manager of Kevitsa Mining Oy, a wholly-owned subsidiary of Scandinavian Minerals Ltd. Ms. Saari graduated in 1993 from the University of Vaasa with a Master's degree in Economics. She has held financial management positions at a number of well known industrial companies in Finland. Ms. Saari will be responsible for all aspects of administration and finance for the Company's operations in Finland.

Mr. Peter Walker, President & CEO of Scandinavian Minerals, said, "We are delighted to announce the start of infrastructure construction at Kevitsa and the continued build-up in our management team. The recruitment of skilled technical personnel is critical for successful mine development and all of our new appointments bring excellent skills and experience to the Company."

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.

In April 2007 Scandinavian Minerals commenced the Feasibility Study for the Kevitsa project. The Study is being coordinated by St Barbara LLP (formerly St Barbara Consultancy Services) of London, UK. The metallurgical process has been developed by the Mineral Processing Laboratory of the Geological Survey of Finland. Plant engineering and design is being performed by Outotec Oyj. The Feasibility Study is expected to be completed by the end of the second quarter of calendar 2008.

About Scandinavian Minerals

Scandinavian Minerals Limited is a Canadian public company listed on the Toronto Stock Exchange under the symbol "SGL" and on the Frankfurt Freiverkehr market under the symbol W3M. The Company's current focus is the development of its 100%-owned Kevitsa nickel-copper-PGE project in northern Finland.

Forward-Looking Statements

Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

Contact Information

  • Scandinavian Minerals Limited
    John Kearney
    (416) 203-6128
    (416) 368-5344 (FAX)
    Scandinavian Minerals Limited
    Peter Walker
    President & CEO
    (+44) 7717-223909
    Scandinavian Minerals Limited
    Chris de Saint-Rome
    Corporate Development Advisor
    (514) 802-3377
    Studer Consulting AG
    Marlies Studer
    (+41) 44 215 2803