Kiviniemi property previously identified for scandium and explored by the Geological Survey of Finland ("GTK"),
Property is a high iron content, medium grade scandium target, located on surface, with on-site upgrade potential,
Early resource upgrade work done for GTK promising, confirmed by SCY,
Property is all-weather accessible, close to infrastructure, and
Finland location is mining-friendly and ideally suited to EU customer markets.
The Kiviniemi property addresses an SCY objective to find a potentially significant scandium production source in Europe that we believe will be welcomed by European markets. This property benefits from high quality, well documented grass roots exploration work done by GTK, which gives us a faster start in our search for that European production asset. Equally important, we see positive early potential to address mineral grade concerns with low cost, on-site, effective upgrade techniques, which we intend to pursue with test work and our scandium processing know how.
The Kiviniemi property represents a medium grade scandium resource target that has remained unrecognized and overlooked by exploration work, largely due to the absence of the more commonly sought-after minerals in the region, specifically copper, nickel and cobalt. The target has benefited significantly from valuable early exploration work by the GTK, which has advanced the property to a stage where successful metallurgical investigations may prove value that offsets grade concerns. SCY estimates roughly US$2M of work value has been directed at this property to date, including field work, drilling programs, assay work, overheads, and metallurgical upgrade studies, but firm numbers are not available.
We intend to first secure our exploration license, then plan a limited drill program to augment the existing GTK data, and provide more sample material for metallurgical test work programs to define economic site upgrade possibilities on the scandium mineralization observed to date.
Property/Location. The Kiviniemi property is located in the municipality of Rautalampi, Eastern Finland Province, approximately 350km northeast of Helsinki, by road. The closest major city/airport is Kuopio (pop. 110,000), approximately 70km to the northeast of the property. The exploration target is located on a small portion of a family farm, partially cleared for farming. Most of the property is wooded, including the area where the mineralization has been located.
SCY Mineral Reservation. In June 2017, SCY's wholly-owned subsidiary company, Scandium International Mining Corp., Norway AS, was granted a reservation on an Exploration License for the property from the Finnish regulatory body governing mineral exploration and mining in Finland.
The reserved exploration area is approximately 24.6 hectares (0.25 square kilometer), identical to the historic GTK exploration license on the property, which expired in 2015. The mineralized area, as defined on GTK resource modeling maps, is approximately 25% of the total reservation. This reservation grants SCY a first position right to apply for an exploration license on the property (protected through 2018). The Company is preparing the application, which is a straightforward process.