Increase in Resources
December 04 2007 - 2:03AM
UK Regulatory
RNS Number:0806J
Talvivaara Mining Company Ltd
04 December 2007
04 December 2007
Talvivaara announces significant increase in Mineral Resource
Talvivaara Mining Company Ltd ("Talvivaara" or "the Company"), the Finnish
mining company with a primary focus on nickel and zinc, is pleased to announce a
26% increase (76 million tonnes) in Measured and Indicated Mineral Resources, as
defined by the JORC code, and a 23% increase (77 million tonnes) in Measured,
Indicated and Inferred Resources, as defined by the JORC code, in the Kuusilampi
and Kolmisoppi deposits in Sotkamo, Finland. The 26% addition now takes the
Measured and Indicated Resources to a total of 336 million tonnes and the total
Mineral Resource up to 414 million tonnes. The increased resources contain 1.1
million tonnes (up from 0.89 million tonnes) of nickel metal and 2.2 million
tonnes of zinc metal (up from 1.6 million tonnes), reaffirming Talvivaara's
position as one of the top nickel mines globally and as an internationally
significant zinc producer.
The resource increase is within the existing known resource body and excludes
any additional resources Talvivaara may identify in adjacent areas or between
the deposits. It results from a drilling campaign focused on ore boundary
definition at the Kuusilampi orebody. The Kuusilampi Mineral Resource now totals
248 million tonnes in Measured and Indicated Categories and 304 million tonnes
with Inferred Resource included. The Kuusilampi orebody is still open at north,
east, south and at depth.
Mineral Resources at the Kolmisoppi deposit remain at their previous levels, as
the in-fill drilling campaign only covered the Kuusilampi deposit in
anticipation of the planned production start-up in 2008.
Talvivaara is currently evaluating its options with regard to this significant
increase. As part of this, Talvivaara has commenced a study to maximise
shareholder benefits through production expansion. The study is expected to
continue through the coming year and have emphasis on economic, technical and
environmental permitting aspects. It will continue in conjunction with the
planned project development and will have no impact on the timing of scheduled
production to commence in late 2008.
Pekka Pera, CEO of Talvivaara, commented: "We are extremely pleased that this
notable increase in resources has arisen from the Kuusilampi in-fill drilling,
and that this leaves the significant exploration potential we possess still
completely untouched. The Kuusilampi deposit alone now offers Measured and
Indicated Resources that are equal to the two deposits previously combined. This
should give rise to significant cost savings even with the planned capacity due
to decreased waste mining. In addition, on average, the newly defined resources
are also closer to surface, which reduces vertical transportation costs."
The updated and previously published Mineral Resource tables based on 0.15%
nickel cut-off grade are presented below. For reference, the Mineral Resource
estimates are also presented as calculated with 0.07% nickel cut-off. The lower
cut-off is based largely on raised consensus long term metal prices. The new
mine production plan under preparation will apply the 0.07% cut-off.
Table 1: Kuusilampi and Kolmisoppi Resources as of 4 December 2007 (at 0.15% nickel cut-off)
Tonnage Grade / Product
Mineral Resource (Mt) (Ni %) (Mt Ni) (Co %) (Mt Co) (Cu %) (Mt Cu) (Zn %) (Mt Zn)
Measured 199.3 0.27 0.54 0.02 0.04 0.14 0.28 0.54 1.08
Kuusilampi 156.6 0.27 0.42 0.02 0.03 0.14 0.22 0.54 0.85
Kolmisoppi 42.7 0.28 0.12 0.02 0.01 0.15 0.06 0.56 0.24
Indicated 136.8 0.27 0.37 0.02 0.03 0.14 0.19 0.56 0.77
Kuusilampi 91.5 0.27 0.25 0.02 0.02 0.14 0.13 0.57 0.52
Kolmisoppi 45.3 0.26 0.12 0.02 0.01 0.14 0.06 0.54 0.24
Measured
+ Indicated 336.1 0.27 0.91 0.02 0.07 0.14 0.47 0.55 1.84
Inferred 77.7 0.24 0.19 0.02 0.02 0.14 0.11 0.49 0.38
Kuusilampi 54.3 0.24 0.13 0.02 0.01 0.14 0.08 0.50 0.27
Kolmisoppi 23.4 0.23 0.05 0.02 0.00 0.13 0.03 0.48 0.11
Total 413.8 0.26 1.09 0.02 0.08 0.14 0.58 0.54 2.22
Table 2: Kuusilampi and Kolmisoppi Resources as of 4 December 2007 (at 0.07% nickel cut-off).
Tonnage Grade / Product
Mineral Resource (Mt) (Ni %) (Mt Ni) (Co %) (Mt Co) (Cu %) (Mt Cu) (Zn %) (Mt Zn)
Measured 263.2 0.25 0.65 0.02 0.05 0.14 0.36 0.52 1.37
Kuusilampi 201.3 0.25 0.50 0.02 0.04 0.14 0.28 0.52 1.04
Kolmisoppi 61.9 0.25 0.15 0.02 0.01 0.14 0.09 0.52 0.32
Indicated 189.5 0.23 0.43 0.02 0.04 0.13 0.25 0.51 0.97
Kuusilampi 114.9 0.23 0.26 0.02 0.02 0.13 0.15 0.53 0.61
Kolmisoppi 74.5 0.22 0.16 0.02 0.01 0.13 0.10 0.49 0.37
Measured
+ Indicated 452.7 0.24 1.08 0.02 0.09 0.13 0.61 0.52 2.34
Inferred 116.6 0.20 0.24 0.02 0.02 0.12 0.15 0.47 0.55
Kuusilampi 75.3 0.20 0.15 0.02 0.01 0.13 0.09 0.47 0.36
Kolmisoppi 41.3 0.20 0.08 0.02 0.01 0.12 0.05 0.47 0.19
Total 569.4 0.23 1.32 0.02 0.11 0.13 0.76 0.51 2.89
Table 3: Kuusilampi and Kolmisoppi Resources as published in the Talvivaara
Mining Company Prospectus dated 30 May 2007 (at 0.15% nickel cut-off).
Tonnage Grade / Product
Mineral Resource (Mt) (Ni %) (Mt Ni) (Co %) (Mt Co) (Cu %) (Mt Cu) (Zn %) (Mt Zn)
Measured 124,0 0.27 0.33 0.02 0.02 0.15 0.19 0.55 0.68
Kuusilampi 81.3 0.27 0.22 0.02 0.02 0.15 0.12 0.55 0.45
Kolmisoppi 42.7 0.28 0.12 0.02 0.01 0.15 0.06 0.56 0.24
Indicated 142.3 0.27 0.38 0.02 0.03 0.14 0.20 0.55 0.78
Kuusilampi 97.0 0.27 0.26 0.02 0.02 0.14 0.14 0.55 0.53
Kolmisoppi 45.3 0.26 0.12 0.02 0.01 0.14 0.06 0.54 0.24
Measured
+ Indicated 266.3 0.27 0.72 0.02 0.05 0.15 0.39 0.55 1.46
Inferred 70.8 0.24 0.17 0.02 0.01 0.13 0.09 0.49 0.35
Kuusilampi 47.4 0.24 0.11 0.02 0.01 0.13 0.06 0.50 0.24
Kolmisoppi 23.4 0.23 0.05 0.02 0.00 0.13 0.03 0.48 0.11
Total 337.1 0.26 0.89 0.02 0.07 0.14 0.48 0.54 1.81
The information released referring to the Mineral Resources and Exploration
results have been audited by SRK Consulting UK Ltd. The Competent Person, as
defined by the JORC Code, responsible for auditing the Mineral Resource estimate
is Dr. Mike Armitage. For further enquires and additional information regarding
compiled details and figures please contact:
SRK Consulting UK Ltd. Tel + 44 (029) 2034 8150
ENQUIRIES
Talvivaara Mining Company Ltd Tel: +358 20 7129 800
Pekka Pera
Saila Miettinen-Lahde Tel: +358 40 548 3695
Merlin Tel: +44 207 653 6620
David Simonson
Tom Randell
Anca Spiridon
NOTES TO EDITORS
Company Overview
* Talvivaara aims to become an internationally significant base metals
producer with its primary focus on nickel and zinc using a technology known
as bioheapleaching to extract metal out of low grade ore
* The Company's main activity is the development and exploitation of two
polymetallic deposits, Kuusilampi and Kolmisoppi, in Sotkamo, Finland
(together, the "Talvivaara deposits") using bioheapleaching technology (the
"Talvivaara Project")
- The Talvivaara deposits comprise one of the largest known sulphide
nickel resources in Europe
- Production is expected to start in late 2008, with an expected
annual nickel output of approximately 33,000 tonnes; the Company
has the potential to provide approximately 2.3% of the world's
current annual production of nickel by 2010 (based on previous
resource estimates)
- As by-products of the process, the mine is also expected to produce
zinc (approximately 60,000 tpa), copper (approximately 10,000 tpa)
and cobalt (approximately 1,200 tpa)
- The mine site is situated close to existing energy and transportation
infrastructure
* The Group plans to develop the Talvivaara deposits using bioheapleaching
technology
- Bioheapleaching harnesses locally occurring, live bacteria for the
extraction of metals from ore
- This technology is already widely used for other metals, notably
copper and gold
- During the last two years, the Group has demonstrated the viability
of using bioheapleaching technology for the extraction of nickel in
large on-site pilot trials
* The Talvivaara orebody is well-suited for open pit mining due to the thin
overburden, favourable resource geometry and a low waste to ore ratio
* The ore is well-suited to bioheapleaching due to both its high sulphide content
and its low pH, which enables rapid leaching with reduced need for chemical catalysis
* The Company has secured a 10-year off-take agreement for 100 per cent of its
main output of nickel and cobalt to Norilsk Nickel
* With good infrastructure, progressive mining laws and economically and politically
stable operating environment and readily available mining expertise, Finland
provides a favourable environment for operating a mine
This announcement includes statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements can be identified
by the use of forward-looking terminology, including the terms "believes",
"estimates", "plans", "projects", "anticipates", "expects", "intends", "may",
"will", or "should" or, in each case, their negative or other variations or
comparable terminology, or by discussions of strategy, plans, objectives, goals,
future events or intentions. These forward-looking statements include all
matters that are not historical facts. They include, but are not limited to,
statements regarding the Group's intentions, beliefs or current expectations
concerning, amongst other things, the results of operations, financial position,
liquidity, prospects, growth, strategies and the mining industry.
By their nature, forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances. Forward-looking statements are
not guarantees of future performance and the actual results of the Group's
operations, financial position and liquidity, and the development of the markets
and the industry in which the Group operates, may differ materially from those
described in, or suggested by, the forward-looking statements contained in this
announcement. A number of factors could cause results and developments to differ
materially from those expressed or implied by the forward-looking statements,
including, without limitation, expectations regarding the commencement of
commercial mining operations at the Talvivaara Project area, expectations
regarding the Group's planned capital expenditure and financial commitments, the
Group's ability to finance the planned Talvivaara Project and manage
expenditure, expectations regarding the Group's ability to generate revenue,
expectations regarding the use of the bioheapleaching and metal recovery
technology in large-scale production, general economic and business conditions,
industry trends and competition, expectations regarding commodity prices,
changes in regulation, and fluctuations in interest and exchange rates. The
Company does not intend and does not assume any obligation to update any
forward-looking statements contained herein unless required by applicable
legislation. As a result of these factors, prospective investors are cautioned
not to rely on any forward-looking statement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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