Sotkamo Silver updates its Silver Mine Ore Reserve estimate; the estimated ore reserves will secure mining in the coming years
Sotkamo Silver AB | Stock Exchange Release | December 27, 2023 at 13:00:00 EET
Sotkamo Silver AB stock exchange release: Stockholm 27 December 2023, at 13.00 EET (12.00 CET)
Sotkamo Silver updates its Silver Mine Ore Reserve estimate; the estimated ore reserves will secure mining in the coming years
Sotkamo Silver, according to its Ore Reserve estimate updated in December 2023, has assessed that the Ore Reserve of its Silver Mine amounts to a total of 1.45 million tons. The update of the Ore Reserve estimate does not change Sotkamo Silver's guidance or its 2023 production forecast.
The company believes that the amount of Ore Reserve and currently known Mineral Resources are sufficient for about 7-8 years of mining and they will be increased with infill and exploration drilling planned for 2024 and 2025. Mineral Resources are upgraded to Ore Reserve with infill drilling. Exploration drilling increases the amount of known Mineral Resources in the area of the current mine.
In the next few years, Sotkamo Silver will invest not only in the current mine, but also in the exploration and development of ore-critical areas in its vicinity.
CEO Mikko Jalasto:
"The result of the update was in line with our expectations. The estimated Ore Reserve will secure mining in the coming years. We will continue to upgrade Mineral Resources to Ore Reserve with repeated infill drilling."
Silver Mine Ore Reserve
The Ore Reserve represents the portion of the Mineral Resources where production is concentrated in the short term. In this area, detailed infill drilling is carried out to ensure an optimised mine design. Sotkamo Silver is also striving to ensure with infill drilling that the Ore Reserve increases by at least one year's worth of production annually. The management of Sotkamo Silver also believes that with constant infill drilling, the company will be able to ensure that the Ore Reserve will be continuously available in sufficient quantities to enable three year’s worth of production.
Silver Mine Ore Reserve estimate
| Reserve | Mass | Ag | Au | Pb | Zn | AgEq |
| classification | (kt) | g/t | g/t | % | % | g/t |
| Proved | 944 | 96 | 0,17 | 0,25 | 0,58 | 133 |
| Probable | 511 | 91 | 0,25 | 0,21 | 0,48 | 130 |
| Grand total | 1455 | 94 | 0,20 | 0,23 | 0,55 | 132 |
Extending the Life of Mine and new ore prospecting areas
Sotkamo Silver's management and the Board of Directors estimate that a significant portion of the current Mineral Resources, which is not yet included in the Ore Reserve, can be included in the Ore Reserve in the future with continuous infill drilling.
Mineral Resources represent assets that are fairly well known but have not yet been drilled in detail. These resources form the basis of the estimated Life of Mine, which currently extends to 2030.
Areas located outside the current Mineral Resources offer additional opportunities for the expansion of the Silver Mine. By the end of 2025, Sotkamo Silver's goal is to extend the Life of Mine to 2035. In addition to Silver Mine development projects, Sotkamo Silver is also both developing and searching for future growth paths in accordance with its strategy. Sotkamo Silver plans research programs for the company's ore exploration areas and is currently modeling and refining its exploration operations for the coming years.
Notes and assumptions
1) The Ore Reserve estimate is based on the 2022 estimate and the ore mining that took place after that, as well as the results of the drilling completed in the autumn of 2023. The Ore Reserve estimate for 2023 was prepared internally and the principles of the JORC 2012 code were followed in its preparation. 2) The Ore Reserve estimate has not been verified by an external competent person in accordance with the JORC code ("competent person"). 3) Mass and grade estimates include both anticipated ore loss of 10% and dilution of 15%. Used diluting grade has been zero. 4) Exchange rate used: USD/EUR = 1.05. 5). Cut-off grade of the net smelter return (NSR) has been 45 EUR/ton. NSR has been derived from the AgEq grade (silver equivalent). 6) Following metal prices have been used in the AgEq calculation; Ag=25.6 USD/oz, Au=1952 USD/oz, Pb=2107 USD/t, Zn=2529 USD/t. 7) Silver equivalent calculation; AgEq = Ag-content + 0.00256*Pb-content + 0.00307*Zn-content + 76.25*Au-content.
More detailed information about the Silver Mine and its operations is available on the company's website at www.silver.fi.
CONTACT INFORMATION
Mikko Jalasto,
CEO, Sotkamo Silver
mikko.jalasto@silver.fi
+358 50 482 1689
Sotkamo Silver in brief
Sotkamo Silver is a mining and ore prospecting company that develops and utilises mineral deposits in the Kainuu region in Finland. Sotkamo Silver supports the global development towards green transition technologies and produces the metals needed responsibly and by taking local stakeholders into account. Sotkamo Silver’s main project is a silver mine located in Sotkamo, Finland. In addition to silver, the mine produces gold, zinc and lead. The company also has mining and ore prospecting rights for mineral deposits in the vicinity of the silver mine in Kainuu. Sotkamo Silver Group consists of the parent company Sotkamo Silver AB and its wholly owned Finnish subsidiary (Sotkamo Silver Oy). Sotkamo Silver is listed at NGM Main Regulated in Stockholm (SOSI), Nasdaq Helsinki (SOSI1), and Börse Berlin.
Read more about Sotkamo Silver on www.silver.fi/en/