SOTKAMO SILVER HAS ACQUIRED MINING-RIGHTS IN MO I RANA, NORWAY
| Source:Sotkamo Silver AB
On November the 27th Sotkamo Silver AB acquired all remaining mining- and
mineral-rights from Gexco Norge AS, which the company had in Mo i Rana, Norway.
The agreement means that Sotkamo Silver, as payment for those rights, have set
their entire claim on Gexco Norge AS, which amounts to approximately SEK 48
million inclusive accrued interest, according to the particular loan-agreement
between the parties. This loan-agreement was set up in connection with the
takeover of Gexco AB. These rights have also been pledged for under a special
pledge-agreement. Through this deal, these loan and pledge-agreements have
“Through the acquisition of these mining- and mineral-rights which have a
significant ore-geological potential, the company has acquired a good starting
point to be able to participate in the development of Norway's
mineral-potential, which has been significantly activated during last years. We
have also secured the value of our loan through this deal”, comments CEO Timo
Target area Mofjell and surroundings was covered by a co-operation exploration
project by NGU (Norwegian Geological Survey), county administration of Nordland
and GEXCO Norge AS. Project commenced in 2008 and most fieldwork was done in
2008 and 2009, investigations of collected material and reporting have been
completed after this field work.
Project area covered Mofjellet and eastern part of Plurdalen, an area with high
potential for economic sulfide deposits containing zinc, copper, lead, silver
and guld. Earlier studies have focused in the geological setting of Mofjell
Group and its relation to ore formation, main goal has been to assess potential
for economic sulfide deposits in the area, including enrichment of precious
metals. The work has included air-borne, high resolution geophysics as a basis
for follow-up field work on anomalies, including sampling and diamond drilling.
On the basis of lithological and geochemical observations Mofjell Group
consists of bimodal volcanic-sedimentary association with higher amount of
felsic volcanic rocks than earlier described. This kind of geological
environment with bimodal volcanic association is favorable for rich and large
massive sulfide deposits, called VMS (Volcanic-hosted Massive Sulfides). On
the basis of investigations there are nine several kilometres long
sulfide-mineralized zones which have been subject to folding and other
post-mineralization tectonic processes causing discontinuity of sulfide zones
or even accumulation of sulfides.
In the study area there are more than 200 mines, prospects or showings with
sulfide concentrations. Most remarkable is the Mofjell mine which has produced
4,35 Million tons of ore with 3,61% zinc (Zn), 0,71% lead (Pb) and 0,31% copper
(Cu), average silver (Ag) content was 10 g/ton and that of gold (Au) 0,3 g/ton.
Post-mining resource estimate gives total remaining resource to be ca 3,55
Million tons mostly inferred resource, grades correspond to mined ore. In the
sulfide-disseminated parts of the deposit there are gold values 5 to 10 ppm;
anyhow they have not been investigated in detail but offer a promising target
for future work. Other promising target in this highly prospective area is
Solvberget (Silver Mountain) with occasionally high silver-contents up to
100-300 g/ton associated with galena-rich veins. The Company has totally 20
exploration licenses in the area.
Bimodal volcanic association containing basalts and felsic volcanic rocks as
well as occasionally high gold and silver values are a common feature with
companys main target Sotkamo Silver Mine in Finland.
The official Stock Exchange Releases are given in Swedish and there may be
slight differences in the translated versions.
Sotkamo Silver AB
Stockholm, 27th November 2013
Timo Lindborg, CEO
About Sotkamo Silver AB:
Sotkamo Silver AB´s business concept is to exploit mineral deposits in the
Nordic countries with regards to human society and environment. Sotkamo Silver
owns, through its subsidiary mineral deposits, which contains silver and gold
in Finland. The Company’s main development project is the Taivaljärvi Silver
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.
The ticker symbol is SOSI in NGM and SOSI1 in NASDAQ OMX Helsinki.
ISIN-code for Sotkamo Silver shares is SE0001057910 and for warrants
Sotkamo Silver AB discloses the information provided herein pursuant to the
Swedish Securities Markets Act and/or the Swedish Financial Instruments Trading
Company's press releases and financial reports are distributed via NGM and are
available on www.silver.fi
Read more about Sotkamo Silver on www.sotkamosilver.com or www.silver.fi
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