Sotkamo Silver AB
Sotkamo Silver is a mining company which intends to exploit mineral deposits in the Nordic countries and was created in its current form in March 2010 and the share is listed on NGM Equity and NASDAQ OMX Helsinki as well as traded on Börse Berlin, Open Market, Germany.
The company aims to be a leading developer of Nordic mineral deposits and the goal is to increase mineral resources and ore reserves by exploration, deposit development and acquisitions or partnerships.
Sotkamo Silver owns through its wholly owned subsidiary a Silver Mine deposit in Sotkamo, Finland, and a gold deposit in Hopeavuori in the Tampere region, Finland. In addition, there is one gold deposit, Harnäs, which is a former small scale gold mining site in Sweden. There is also a zinc, silver and gold deposit in Mo i Rana, Norway, acquired in 2013.
The company’s main project is the Silver Mine project in the municipality of Sotkamo in eastern Finland. The silver deposit was discovered in 1980 but no mining has been done due to low silver prices in the late 80ths/early 90ths. The mining concessions were acquired by Sotkamo Silver in 2010 and since then, the company has invested in dewatering and ventilation as well as power lines and resource estimates. In March 2014, the latest Bankable Feasibility Study (BFS) was presented and it showed an expected life of the mine of 8 years.
The Bankable Feasibility Study shows good profitability, even at silver-prices under current levels. Production is expected to start late 2015 or early 2016. Calculations are based on new information of ore-reserves, present costs, new mining-schedule and on latest quotes from suppliers and construction- and entrepreneurial-companies. Ore reserves are total 3.36 million tons with an average silver-content of 102 g/ton. The silver-content during the first four planned production-years will be between 120-130 g/ton and the gold-content will be about 0.4 g/ton. During the third production-year capacity will be increased from 350,000 to 450,000 tons per annum in conjunction with the updated environmental-permit.
An comparison with the previous mineral-reserve estimate total, amount of silver in proven and probable mineral-reserves have increased by 33 percent to 10,940,026 troy ounce silver, which means 12 % increase in tonnage and 18 % in silver-content. The silver- content during the planned first four production-years will be between 120-130 g/ton and the gold-content will be about 0.4 g/ton. During the third production-year capacity will be increased to 450 000 tons per year in conjunction with the updated environmental-permit.
CEO Timo Lindborg has a genuine background in the mining industry and a doctor’s degree in technology and a bachelor of science in geology. He is the former CEO of the gold company Endomines.
The three largest owners have around 40% ownership of the company which creates a strong ownership base. The CEO owns 10%. The Company has several other mineral deposit close by the Silver Mine area, which can be later possible satellite mines to the Silver Mine.
The Silver Mine is located in the municipality of Sotkamo in eastern Finland, 475 kilometers from Helsinki, and was discovered in 1980 by university researchers. The geology in the area consists of siliceous quartz porphyritic rocks interpreted as felsic volcanic rocks as well as metamorphosed to felsic volcaniclastic rocks, including volcanic breccias; banded quartz-sericite-biotite schist and quartz-phyric crystal tuffs.
In March 2014, Sotkamo Silver presented an updated Bankable Feasibility Study (BFS) for the Silver Mine. In addition to the ore reserves of 3,3 million tonne silver ore with 102 g/ton silver, there are earlier published mineral resources of 1.33 Mt inferred resources with 75 g/ton silver and about 0.5 Mt containing more than 100 g/ton silver. A substantial portion of these resources are expected to be converted to ore reserves in a cost-effective way, with reasonable amount of drilling from existing decline.
Sotkamo Silver has conducted an additional geophysical survey at its Silver Mine-deposit. The conductive zone, which is an extension of the deposit, can be defined as an Exploration Target (JORC 2012), because it forms a liable extension of the Silver Mine-Deposit, both as to shape and position and in accordance with known geological structures. The zone has been penetrated by six drill-holes which contain the same type of cores as in Silver Mine´s intersections.
The volume of the Exploration Target is more than 20 Mt mineral-resources and the grade 60 g/t Ag at the cut- off grade of 30 g/t Ag, which increase the target substantially.
Sotkamo Silver applies SveMin’s & FinnMin’s respective rules of reporting for public mining & exploration companies. Sotkamo Silver has chosen to report mineral resources and ore reserves according to the internationally accepted JORC or NI 43-101-code. The company applies International Financial Reporting Standards (IFRS) as approved by the European Union.
Our aim is to undertake our activities responsible, with due consideration to the environment, the communities in which we operate and the safety of our workforce. In order to ensure that we meet this objective, we will implement effective structures, policies and practices based on good management principles. We believe that through responsible business, we can contribute towards sustainable development in the regions where we operate.
Silver (Ag) is the most common of the precious metals. It has the highest electrical conductivity of all elements and the highest thermal conductivity of all metals.
Although silver is best known as a material for jewelry and ornaments, industrial use constitutes over half of all consumption. A quarter of the consumption is electrical or electronic use for example in keyboards, cables, or silver oxide batteries. Other industrial uses of silver are for example as catalyst in chemical reactions or for optical uses as reflecting materials in mirrors or solar panels. Silver is also used in some applications due to its antibacterial qualities. In pace with the digital camera development, the demand for silver in the film industry has halved over the past ten years, which has been balanced by stronger demand from other uses.
Much of the increased demand comes from jewelry market in the BRIC countries, where the silver jewelry is much cheaper and often more modern than gold jewelry. An additional element of demand that has increased strongly since the end of 2003 is investments in silver.