TALV.L Regulatory News (TALV)

8 Nov 2007 07:02

Talvivaara Mining Company Ltd08 November 2007 Talvivaara Mining Company Operational Update 08 November 2007 Talvivaara Mining Company Ltd ("Talvivaara" or "the Company"), the Finnishmining company with a primary focus on nickel and zinc, is pleased to update itsshareholders on progress with the development programme at its project inSotkamo, Eastern Finland. Construction works have reached the scheduled levelfor before the winter season. The removal of the overburden at Kuusilampi minebegan on schedule at the end of October. Highlights include: - The construction of the heap, waste dump and other foundations reached in September the level scheduled for before the winter season. - A water management system and earth works necessary to contain contaminated water have been completed, allowing the removal of the overburden at the Kuusilampi mine to begin on schedule at the end of October. - All major equipment for the operational phase of the project has now been ordered, is being manufactured and is expected to be delivered well on time. - Costs remain within budget, but have seen some escalation within planned contingencies. - Recent industrial action elsewhere in Finland has not affected the Talvivaara operations and the Company's recruitment programme has continued to be successful, with a number of training courses targeted towards the local community already in operation. - Mining is planned to start on schedule during April, with first leaching planned to follow in July 2008, and planned production in the fourth quarter of 2008. Pekka Pera, Talvivaara CEO, commented: "I am very pleased with the progress ofour development programme so far, which now puts Talvivaara well on the way tostart production on time, during the last quarter of 2008. Nonetheless, workwill continue at our operations throughout the winter season. The beginning ofremoval of the overburden in particular is a significant operational landmark,which makes us confident that we can continue to deliver on our operationaltimetable on time and within budget." ENQUIRIES Talvivaara Mining Company Ltd Tel: +358 20 7129 800Pekka Pera Tel: +358 40 548 3695Saila Miettinen-Lahde Merlin Tel: +44 207 653 6620David SimonsonTom RandellAnca Spiridon NOTES TO EDITORSCompany Overview • Talvivaara and its subsidiary Talvivaara Project Ltd 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 with 266 million tonnes of ore in measured and indicated resources Resources are sufficient to support anticipated production for a minimum of 24 years, 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 In addition to the mining of nickel, 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 has a nickel content of 0.27 per cent. and 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 information is provided by RNS The company news service from the London Stock Exchange