Nordic Mines: Encouraging early results from sorting test work

The English text is an unofficial translation of the Swedish original, and in the event of any discrepancies between the Swedish text and the English translation the Swedish text shall take precedence.

PRESS RELEASE, 26 September 2016

Nordic Mines ("The Company") is pleased to announce that it has successfully completed a 70-ton sorting test at the Björkdal mine, Sweden. The company was able to use the same sorting equipment and facilities that the Björkdal mine used in their 60,000-ton test on lower grade ore. During testing we confirmed that the laser sorting technique consistently detects Laiva's gold bearing quartzveins and is therefore the appropriate technology for sorting the Laiva gold ore. 

This 70-ton test allowed the company to run the sorting machine at full speed and together with the data from the tests completed previously, provide a similar level of feedback as from a much larger test. 

Upon visual inspection, the sorting tests have shown very encouraging results. Sorted waste contained only minor amounts of visible ore particles. The sorted ore product has been clearly upgraded with quartz material. Around 60-70% of the sorted sample has been rejected as waste.

The tests were designed to test all main ore bearing rock types of the Laiva deposit with gold contents of 0,6 g/t (low grade), 0,9 g/t (medium grade) and 1,2 g/t (high grade) and over a range of particle sizes. The sorting equipment consists of two opposing laser beam sets that scan each rock fragment fed through the system before it goes to the processing plant. The scattering of the beam on the surface of each rock is analysed and instantly sorted as ore or waste according to predefined thresholds of surface quartz levels detected.

Part of the continuous process is to optimise this so that waste material contains as little ore as possible. This will be confirmed via laboratory assays of the waste and ore piles. Management expects to have all sample assaying completed by November from which grade upgrades can be calculated. This information will be used in the creation of new bulk mining pit designs and together with an infill drilling program, will lead to a recalculation of mineable ore reserves.  

Andrew Malim, Head of Laiva Mine Development comments." This Björkdal program was the culmination of 2 years intensive study by the Laiva management team of ore sorting as a means of commercially upgrading lower grade ores, lowering cut off grades and mining costs. More importantly, it allows for a bulk mining approach which is the best fit model for the Laiva style of mineralisation and the existing AG plant.

Although magnetic and colour sorting systems have been widely used in other industries such as scrap steels and foodstuffs since the 1930's, optical sorting in mining (colour, laser, XRT and XRF) is now coming of age. Various versions are today used in over 50 mines worldwide and we predict will be in even more common usage in the near future. We confidently expect the assay results from the current test, due in November, to reflect results from our earlier tests where we saw a minimum 35% ore upgrade across the board.

For additional information, please contact:
D. Saradhi Rajan, CEO: +44 743 271 1564

For more information about Nordic Mines, please visit; www.nordicmines.com

The information above has been made public in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published at 3:30 p.m. (CET) on September 26, 2016.

Nordic Mines is a Nordic mining and exploration company. The Laiva mine in Finland produced gold between 2011 and 2014. The deposit is among the largest in the Nordic region. Nordic Mines is a member of SveMin and applies its reporting regulations for public mining and exploration companies. The Nordic Mines share has been admitted for trading on Nasdaq Stockholm's Small Cap list. Also refer to www.nordicmines.com

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