Northland Receives Exploitation Concession for Sahavaara Mine
LUXEMBOURG, LUXEMBOURG -- (Marketwire) -- 10/28/10 -- Northland Resources S.A. (TSX: NAU)(FRANKFURT: NBS)(OSLO: NAUR) ('Northland' or 'the Company') is pleased to announce today it received from the Mining Inspectorate of Sweden the exploitation concession for the Sahavaara magnetite deposit. As indicated in the NI 43-101 compliant report on the Kaunisvaara Iron Concentrate Project, the concession allows for mining of 122 Mt of measured, indicated and inferred resources.
The Sahavaara deposit is approximately 2,000m long and 400m deep and it will be mined as an open cast mine. The exploitation concession is based on extensive geological documentation and a thorough Environmental Impact Assessment. The concession will form the basis for an application of a mining permit that is expected to be filed shortly at the Environmental Court in Umea.
The ore will be processed in a dedicated section in the Kaunisvaara mill, for which, the Company recently received an environmental permit from the Finnish-Swedish Border River Commission (see the August 20, 2010 press release). The permit allows for processing of 20 Mtpa magnetite ore. The mill will require a flotation section for removal and safe disposal of sulphides from the Sahavaara concentrate.
The product, a high-quality magnetite pellet feed concentrate, will be mixed with the concentrate from the Tapuli mine, and they will be managed as one product in the logistics system. At full capacity, the output is expected to be 5 Mtpa.
To secure access to the mining area, a process for purchase of properties in the Sahavaara village is underway. The Company is seeking voluntary agreements with each of the property owners.
Mining of the Sahavaara deposit is an important part of the Kaunisvaara project, enabling increased production and extended project life.
Northland is a development-stage mining company with a portfolio of iron projects in northern Sweden and Finland. Northland's Kaunisvaara Project contemplates the staged development of 3 magnetite iron ore deposits that would provide feed to a single, multi-line processing facility in Sweden, producing a high-grade, high-quality magnetite iron concentrate. The results of the Feasibility Study on the Kaunisvaara Project were released September 27, 2010.
Karl-Axel Waplan, President & CEO
Northland Resources S.A.
Contacts:
Northland Resources S.A.
Karl-Axel Waplan
President & CEO
+46 705 104 239
Northland Resources S.A.
Anders Hvide
Executive Chairman
+47 92 88 98 58
Northland Resources S.A.
Eva Kaijser
CFO
+46 709 32 09 01
Northland Resources S.A.
Marguerite Manshreck-Head
Investor Relations, Canada
+1 647 224 7882
www.northland.eu