Keivitsa results prove promising

Scandinavian Gold (SGL-T) has received promising results from metallurgical work conducted on core from its Keivitsa nickel/copper/platinum-group-element deposit in northern Finalnd.

A 50-kg sample from higher-grade material at the centre of the deposit was used. The highest-grade concentrate, 15.7% nickel and 58.7 grams total precious metals per tonne, resulted in respective recovery rates of 74.2% and 72.8%. A lower-grade concentrate contained 12.2% nickel at a recovery of 80.5% and 34.9 grams total precious metals with a 75.6% recovery (total precious metals include platinum group elements plus gold).

The results provide an idea of the range of concentrate that could be produced using conventional flotation. “These two tests represent the best compromise (between concentrate grade and metal recovery) of the 20 test-runs that were completed,” said Scandinavian Gold President Peter Walker.

A prefeasibility study by SRK Consulting in 2003 resulted in an indicated resource of 150 million tonnes grading 0.18% nickel, 0.27% copper and 0.01% cobalt, plus 0.09 gram gold, 0.23 gram platinum, 0.15 gram palladium, and an inferred resource of 315 million tonnes grading 0.18% nickel, 0.29% copper, 0.012% cobalt, 0.08 gram gold, 0.2 gram platinum and 0.12 gram palladium. The estimate is based on a cutoff grade of 0.1% nickel-equivalent and a maximum depth of 500 metres. The study suggests the probable reserve of 120 million tonnes could be mined by open-pit methods at the rate of 15 million tonnes per year.

Last year, infill drilling at 25-metre spacing in the centre of the deposit intersected higher-grade zones of up to 1.01% nickel, 1.49 grams platinum and 1.39 grams palladium over 29 metres. The mineralization is in vertical pipe-like structures trending north. A scoping study is investigating the possibility of selectively mining the high-grade portion of the deposit prior to full-scale production.

GTK Mineral Processing (a branch of the Geological Survey of Finland) is conducting metallurgical tests. In October, results are expected from a sample taken from the large lower-grade resource.

The Keivitsa property is 142 km northeast of Rovaniemi, Lapland’s capital.