Northland Releases Tapuli, Sahavaara and Pellivuoma Mineral Resource Updates In Support of Kaunisvaara Definitive Feasibility Study
16.04.2010 | Globenewswire Europe
Luxembourg, April 16, 2010: Mr. Karl-Axel Waplan, President and CEO ofNorthland Resources S.A. (Northland) is pleased to report that three NI 43-101
compliant updated mineral resource estimates have been completed for the Tapuli,
Sahavaara and Pellivuoma iron ore deposits in northern Sweden.
"We have achieved another important milestone in the preparation of the
Definitive Feasibility Study on our flagship Kaunisvaara Iron Concentrate
Project. We are on schedule to complete the study at the end of the second
quarter of 2010," said Mr. Waplan.
The Kaunisvaara Project contemplates the staged development of the Tapuli,
Sahavaara and Pellivuoma deposits, which would provide feed to a single,
multi-line processing facility in Sweden, producing one high-grade, high-quality
magnetite iron concentrate. On September 7, 2009, Northland released positive
results from the Kaunisvaara PEA.
The Tapuli and Sahavaara resource estimates issued by SRK Consulting (UK) Ltd
represent two assets which form the basis of the Kaunisvaara Definitive
Feasibility Study (DFS) commissioned by Northland. The lead author of the DFS
is Aker Solutions with input from various consultants for specialized
engineering and design work. Once metallurgical testwork is complete, the DFS
will be expanded in the last quarter of 2010 to include the Pellivuoma resource
estimate.
Total Mineral Resources for the Tapuli, Sahavaara and Pellivuoma Kaunisvaara
Projects
+---------+------+--------+----+------+-----+--------+----+----+----+
|Mineral |Tonnes|Fe Total| |SiO(2)|MgO |Al(2)O(3|CaO | | |
|Resource |(MT) |% |S % |% |% |)% |% |P % |Mn %|
|Category | | | | | | | | | |
+---------+------+--------+----+------+-----+--------+----+----+----+
|Measured |121.5 |31.97 |0.88|21.95 |18.17|1.60 |4.22|0.06|0.11|
+---------+------+--------+----+------+-----+--------+----+----+----+
|Indicated|130.0 |31.44 |0.85|24.39 |16.49|1.59 |6.00|0.05|0.14|
+---------+------+--------+----+------+-----+--------+----+----+----+
|Meas+Ind |251.5 |31.69 |0.86|23.21 |17.30|1.59 |5.14|0.05|0.12|
+---------+------+--------+----+------+-----+--------+----+----+----+
|Inferred |97.2 |30.94 |0.87|24.85 |17.20|1.41 |5.39|0.04|0.21|
+---------+------+--------+----+------+-----+--------+----+----+----+
The following provides the three individual mineral resource statements which
make up the Kaunisvaara Project.
Mineral Resource Statement for the Tapuli Project
+---------+------+--------+----+-----+-----+-----+----+----+----+
|Mineral |Tonnes|Fe Total|S |SiO2 |MgO |Al2O3|CaO |P |Mn |
|Resource |(Mt) |% |% |% |% |% |% |% |% |
|Category | | | | | | | | | |
+---------+------+--------+----+-----+-----+-----+----+----+----+
|Measured |52.8 |27.02 |0.23|25.31|17.90|2.10 |6.31|0.07|0.08|
+---------+------+--------+----+-----+-----+-----+----+----+----+
|Indicated|54.6 |25.04 |0.24|28.63|17.05|2.05 |8.72|0.05|0.11|
+---------+------+--------+----+-----+-----+-----+----+----+----+
|Meas+Ind |107.4 |26.01 |0.23|26.99|17.47|2.08 |7.53|0.06|0.09|
+---------+------+--------+----+-----+-----+-----+----+----+----+
|Inferred |24.7 |24.58 |0.23|28.53|17.75|2.00 |7.80|0.06|0.10|
+---------+------+--------+----+-----+-----+-----+----+----+----+
The mineral resource for the Tapuli deposit was constrained within mineralized
solids defined by a 10% Fe grade cut-off and within a Lerchs-Grossman pit shell
defined by the following assumptions; a metal price of 110 UScents/dmtu for
magnetite concentrate; slope angles varying between 38-47 degrees; mining
recovery of 95%; mining dilution of 5%; mine operating cost of 1.10USD/tonne;
incremental mine cost of 0.06USD/tonne/12m; high sulphur process cost of
5.30USD/tonne ore; low sulphur process cost of 3.75USD/tonne ore; G&A cost of
0.30USD/tonne ore; concentrate transport cost of 2.113/tonne ore; concentrate
grade of 68.50%Fe; Low Sulphur (<0.5 %S)Fe Recovery=-0.0000002349*Fe(6) +
0.0000409000*Fe(5) - 0.0027807227*Fe(4) + 0.0939905986*Fe(3) -
1.6906632925*Fe(2) + 16.8668152871*Fe + 0.7364853172; Medium Sulphur (>0.5 %S
and < 1.0 %S) Fe Recovery = 0.0015079856*Fe(3) - 0.1530754340*Fe(2) +
6.1103552318*Fe + 0.5611866936; High Sulphur (>1.0 %S) Fe Recovery =
0.0005075760*Fe(3) - 0.0879614412*Fe(2) + 4.9092379827*Fe + 1.1566475907
Potential Tonnage
SRK has identified 45-55MT of potential tonnage that falls within the resource
pit shell that form potential targets of future exploration. The potential
quantity of tonnes is conceptual in nature as there has been insufficient
exploration in these areas. It is uncertain if further exploration will result
in these targets being delineated as a mineral resource. These potential
tonnages reflect a range of material within SRK's solid models outlining the
interpreted down dip extent of mineralization.
Key Resource Estimation Assumptions, Parameters and Methods
Mineral resource estimate was based on a database comprised of 17,376 samples
from 161 drill holes. Predominant drill hole spacing was on a nominal 50m grid.
Solid modeling the mineralization based on 10%Fe cut-off resulted in two
separate ore zone areas Palotieva and Tapuli. Palotieva measures 360 m along
strike and 10 -30 m across strike and was modeled to a depth of 475 m. Tapuli
measures 2.7 km along strike and 10 - 250 m across strike and was modeled to a
depth of 475m. Drill hole intercepts within these solids were composited to 4m
lengths which were subsequently used for statistics and grade interpolation. The
density dataset was comprised of 1,605 density samples collected by Northland.
Two separate Fe grade based density regression formulas were generated for each
of the zone solids. Grade interpolation was comprised of ordinary kriging and
validated against original assay results and mean composite grades.
Resource Classification
Resource classification was based on a variety of criteria. Measured resource
classification was based on low geological complexity, drill hole spacing much
less than the 2/3(rd) maximum variogram range along strike, blocks interpolated
with optimized search parameters; and slope of regression dominantly greater
than 0.8. Indicated resources were based on all of the same criteria as measured
except with a slope of regression greater than 0.5. Inferred resources were
assigned to blocks by extending the indicated boundary 50m down dip and ensuring
that deeper drill hole intercepts were included.
Mineral Resource Statement for the Sahavaara Iron Project
+---------+------+-------+----+-----+-----+-----+----+----+----+
|Mineral |Tonnes|FE |S |SIO2 |MGO |AL2O3|CAO |P |MN |
|Resource |(Mt) |Total %| % |% |% |% |% |% |% |
|Category | | | | | | | | | |
+---------+------+-------+----+-----+-----+-----+----+----+----+
|Measured |30.2 |42.96 |2.66|14.85|14.43|1.32 |1.61|0.07|0.10|
+---------+------+-------+----+-----+-----+-----+----+----+----+
|Indicated|56.6 |38.14 |1.55|20.08|14.73|1.32 |4.02|0.05|0.12|
+---------+------+-------+----+-----+-----+-----+----+----+----+
|Meas+Ind |86.8 |39.82 |1.93|18.26|14.63|1.32 |3.18|0.06|0.11|
+---------+------+-------+----+-----+-----+-----+----+----+----+
|Inferred |34.7 |37.28 |1.44|20.99|15.21|1.20 |4.13|0.04|0.11|
+---------+------+-------+----+-----+-----+-----+----+----+----+
The Mineral Resource Estimate for the Sahavaara deposit was constrained within
ore solids defined by a 10%Fe grade cut-off and within a Lerchs-Grossman pit
shell defined by the following assumptions; a metal price of 110UScents/dmtu for
magnetite concentrate; slope angles varying between 49 and 54 degrees; a mining
recovery of 95%; mining dilution of 5%; mine operating costs of 1.40USD/tonne;
incremental mine operating costs of 0.06USD/tonne/12m; process operating costs
of 5.30USD/tonne ore; G&A costs of 0.30USD/tonne ore; concentrate transport
costs of 3.488USD/tonne ore; a concentrate grade of 69.9%Fe. In addition the
optimisation assumed Low Sulphur Ore (S<0.5%) Fe recovery = 0.0000048981*Fe(5)
- 0.0007163586*Fe(4) + 0.0398624195*Fe(3)-1.0588373844*Fe(2) + 14.2588045522*Fe
+ 0.0446129086; Medium Sulphur Ore (0.5%
0.5717121551*Fe(2) + 10.5203767140*Fe - 1.4317216058; and High Sulphur Ore
(>1.0%S) Fe recovery = -0.1174169928*Fe(2) + 5.6286181054*Fe.
Potential Tonnage
SRK has identified 4-5Mt of potential tonnage that falls within the resource pit
shell as well as another 55-65Mt of potential down dip tonnage below the pit
shell that form potential targets of future exploration. The potential quantity
of tonnes is conceptual in nature as there has been insufficient exploration in
these areas. It is uncertain if further exploration will result in these targets
being delineated as a Mineral Resource. These potential tonnages reflect a range
of material within SRK's solid models outlining the interpreted down dip extent
of mineralization.
Key Resource Estimation Assumptions, Parameters and Methods
The Sahavaara Mineral Resource Estimate was based on a database comprised of
8,906 samples from 182 drill holes amounting to 9,608m of samples. The
predominant drill hole spacing was on a nominal 50m grid. Solid modeling of the
mineralization based on 10%Fe cut-off resulted in two separate ore zones; Stora
Sahavaara measuring 1.2km along strike, ~800m depth and 10-80m across strike and
Södra Sahavaara measuring 1.2 km along strike, 700m depth and 5 to 65m across
strike. A second high grade cut-off of 50% Fe was used to define a continuous
high grade zone contained within the core of the Stora Sahavaara deposit. Drill
hole intercepts within these solids were composited to 6m lengths which were
subsequently used for a statistical analysis and grade interpolation. Three
separate Fe grade based density regression formulas were generated for each of
the zone solids. The density dataset was comprised of 1,200 density samples
collected by Northland. Grade interpolation was comprised of ordinary kriging
and validated against original assay results and mean composite grades.
Resource Classification
Resource classification was based on a variety of criteria. Measured Mineral
Resource classification was based on areas of low geological complexity, a drill
hole spacing much less than the 2/3(rd) of the maximum variogram range along
strike, blocks interpolated with optimized search parameters and with a slope of
regression being dominantly greater than 0.8. Indicated Mineral Resources were
based on all of the same criteria as Measured Mineral Resources except with a
slope of regression greater than 0.5. Inferred resources were assigned to blocks
by extending the indicated boundary 50m down dip and ensuring that deeper drill
hole intercepts were included.
Pellivuoma Mineral Resource Estimate
Mineral Resource Statement for the Pellivuoma Project, Sweden
+---------+------+-----+----+------+-----+----+----+----+----+
|Mineral |Tonnes|Fe |S | | |Al2O|CaO |P |Mn |
|Resource |(Mt) |Total|% |SiO2 %|MgO %|3 % |% |% |% |
|Category | |% | | | | | | | |
+---------+------+-----+----+------+-----+----+----+----+----+
|Measured |38.54 |30.13|0.36|22.90 |21.46|1.12|3.41|0.03|0.17|
+---------+------+-----+----+------+-----+----+----+----+----+
|Indicated|18.80 |29.86|0.52|25.07 |20.18|1.06|4.04|0.03|0.29|
+---------+------+-----+----+------+-----+----+----+----+----+
|Meas+Ind |57.34 |30.04|0.41|23.61 |21.04|1.10|3.62|0.03|0.21|
+---------+------+-----+----+------+-----+----+----+----+----+
|Inferred |37.81 |29.28|0.77|25.99 |18.66|1.21|4.96|0.02|0.37|
+---------+------+-----+----+------+-----+----+----+----+----+
The mineral resource for the Pellivuoma deposit was constrained within ore
solids defined by a 10%Fe and 2% S grade cut-off and within a Lerchs-Grossman
pit shell defined by the following assumptions; a metal price of
110UScents/dmtu for magnetite concentrate; slope angles varying between 48-51
degrees; mining recovery of 95%; mining dilution of 5%; mine operating cost of
1.40USD/tonne; incremental mine cost of 0.06USD/tonne/12m; high sulphur process
cost of 5.30USD/tonne; G&A cost of 0.30USD/tonne; concentrate transport cost of
2.455/tonne; concentrate grade of 69.90%Fe; Fe Recovery=
0.0000068357*Fe(4)+ 0.0015601638*Fe(3)-0.1305013842*Fe(2)+ 5.0427383556*Fe +
16.7575888290
Potential Tonnage
SRK has identified a further 20-25MT of potential down dip tonnage below the pit
shell that form potential targets of future exploration. The potential quantity
of tonnes is conceptual in nature as there has been insufficient exploration in
these areas. It is uncertain if further exploration will result in these targets
being delineated as a mineral resource. These potential tonnages reflect a range
of material within SRK's solid models outlining the interpreted down dip extent
of mineralization.
Key Resource Estimation Assumptions, Parameters and Methods
Mineral resource estimate was based on a database comprised of 9,576 samples
from 71 drill holes. Predominant drill hole spacing was on a nominal 50m grid.
Solid modeling the mineralization based on 10% Fe lower and 2% S upper cut-off
resulted in three separate ore zones; a Central, Eastern and Western Zone. The
Central Zone measures 650m along strike, 20-200m across strike and was modelled
to a depth of 500m. The Eastern Zone measures 260m along strike and 2-30m across
strike and was modelled to a depth of 500m. The Western Zone measures 320m along
strike and 10-50m across strike to a depth of 500m. Drill hole intercepts within
these solids were composited to 6m lengths which were subsequently used for
statistics and grade interpolation. The density dataset was comprised of 1,455
density samples collected by Northland. A single Fe grade based density
regression formula was applied to the block model. Grade interpolation was
comprised of ordinary kriging and validated against original assay results and
mean composite grades.
Resource Classification
Resource classification was based on a variety of criteria. Measured resource
classification was based on low geological complexity, drill hole spacing much
less than the 2/3(rd) maximum variogram range along strike, blocks interpolated
with optimized search parameters; and slope of regression dominantly greater
than 0.8. Indicated resources were based on all of the same criteria as measured
except with a slope of regression greater than 0.5. Inferred resources were
assigned to blocks estimated in search volume two, using double the optimum
search parameters determined.
Cautionary Statements
The effective date of the Tapuli, Sahavaara and Pellivuoma mineral resource
estimates is March 26, 2010. The Fe% presented in the above tables is not meant
to imply recoverable product. Mineral resources for the Tapuli, Sahavaara and
Pellivuoma Iron Projects have been classified according to the "CIM Standards on
Mineral Resources and Reserves: Definitions and Guidelines (December 2005) by
Howard Baker (MAusIMM) an independent Qualified Person as defined by National
Instrument 43-101.
Mineral resources were estimated in conformity with generally accepted CIM
"Estimation and Mineral Resources and Mineral Reserve Best Practices
Guidelines". SRK is not aware of any known environmental, permitting, legal,
title, taxation, socio-economic, marketing or other relevant issues that could
potentially affect the estimate of mineral resources. The mineral resources may
be affected by further exploration drilling which may increase or decrease the
estimate. The mineral resources may also be affected by subsequent assessments
of mining, environmental, processing, permitting, taxation, socio-economic and
other factors. There is insufficient information at this stage to assess the
extent to which the resources will be affected by these factors that are more
fully assessed in a feasibility study.
Mineral resources are not mineral reserves and do not have demonstrated economic
viability. Mineral reserves can only be estimated based on the results of an
economic evaluation as part of a preliminary feasibility or feasibility study.
No mineral reserves have been estimated by SRK as part of the current
assignment. There is no certainty that all or any part of the mineral resource
will be converted to a mineral reserve.
The quantity and grade of reported inferred resources in this estimation are
uncertain in nature and there has been insufficient exploration to define these
inferred resources as an indicated or measured mineral resource; and it is
uncertain if further exploration will result in upgrading them to an indicated
or measured mineral resource category.
Database Validation
The QA/QC program for Northland's Tapuli, Sahavaara and Pellivuoma drilling
consists of alternating the insertion of a blank or standard sample on a regular
basis within the sample train. Because Northland employs several standards with
varying grades these are also alternated. Also, samples are flagged regularly
for the primary laboratory to prepare a lab duplicate for analysis by a second
laboratory. The ALS Chemex analytical laboratory analyzed the samples in batches
of 81 and each batch has multiple samples for testing for cross contamination
and reproducibility of results.
SRK found that the results of the above described QA/QC program indicates that
Northland's Tapuli, Sahavaara and Pellivuoma assay databases were appropriate
for mineral resource estimation.
Data Verification
Howard Baker as qualified person completed the verification of data on which the
Tapuli, Sahavaara and Pellivuoma resource estimates were based. This
verification included an assessment of QA/QC data, sample preparation and assay
methodologies, core recoveries, density data, data inputs, survey data and
validation of historic exploration data used in the estimate. Data was validated
by using field checks, statistical methods and evaluating written protocols.
Qualified Person
Vladimir Benes, Ph.D., Vice President of Exploration for Northland Resources
S.A., is the Qualified Person in accordance with National Instrument 43-101
responsible for overseeing the execution of Northland's exploration programs and
for verifying that the information presented in this news release is an accurate
summary. Dr. Benes is a fellow member of the Australasian Institute of Mining
and Metallurgy (Member #300308). Mineral resources of the Tapuli, Sahavaara and
Pellivuoma projects have been estimated and categorized for reporting purposes
by Mr. Howard Baker, MAusIMM, Principal Mining Geologist of SRK Consulting (UK)
Ltd. Mr. Baker is a Qualified Person as defined by the National Instrument
43-101 and is an independent consultant to Northland Resources S.A..
Three NI 43-101 compliant Technical Reports on the respective mineral resource
estimates will be filed onwww.sedar.ca
ON BEHALF OF THE BOARD
"Karl-Axel Waplan"
NORTHLAND RESOURCES S.A.
For more information, please contact:
Karl-Axel Waplan, President and CEO: +46 705 104 239
Anders Hvide, Executive Chairman: +47 92 88 98 58
Patrick Foster, Director Finance: +44 77 101 236 03
Marguerite Manshreck-Head, Investors Relations, Canada: + 1 647 224 7882
Or visit our website:www.northland.eu
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
[HUG#1404676]
Unternehmen: Northland Resources Inc. - ISIN: CA6665271061