Hannukainen
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Location: Kolari district, Northern Finland Minerals: Iron Oxide-Copper-Gold Ownership: 100% ownership of an exploration permit Status: Advanced exploration with established deposit |
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Overview
A former iron-copper-gold producer, Hannukainen is actually a cluster of five deposits at various depths: Laurinoja, Kuervaara, Lauku, Vuopio and Kivivuopio. Laurinoja and Kuervaara were mined as an open pit during the 1980s. The mine is reported to have produced 4.5 Mt at a grade of 43% Fe, 0.88% Cu and 1 g/t Au. Northland acquired the deposit by staking in 2005, and has since focused on exploring for additional economic copper and gold mineralization within the magnetite resource. In mid-2007, Northland defined a major NI 43-101 compliant resource at Hannukainen with expansion potential. Northland's advanced exploration is focused on completing the work required for the design and construction of a large mining operation at Hannukainen to produce a magnetite (iron ore) pellet feed with a copper-gold concentrate by-product. The area is within 15 km of a rail line.
Geology and Mineralization
The Hannukainen deposits are hosted in the Pajala Shear Zone and belong to the iron-oxide-copper-gold (IOCG) class of mineral deposits. Iron-copper-gold mineralization occurs in at least 5 shallow-dipping to flat-lying bodies up to 500 meters in length down dip: Laurinoja, Kuervaara, Lauku, Vuopio and Kivivuopio. The deposits are characterized by spatially interrelated, near-surface, sub-horizontal lenses of magnetite mineralization located within an area measuring approximately 1.3 km by 2.7 km. They are hosted by mafic meta-volcanics and overlain by a monzonite unit.
Resources
Resources have been calculated for all of the five IOCG occurrences in the Hannukainen area using recent and historic drilling.
The table below was compiled using a cut off grade of 15% Fe and recent as well as historic drilling:
| Category | Mt | Fe | Cu | Au |
| Measured | 53.1 | 35.6% | 0.25% | 0.12 g/t |
| Indicated | 31.5 | 32.9% | 0.11% | 0.04 g/t |
| Inferred | 81.6 | 35.7% | 0.13% | 0.04 g/t |
Within the total resources summarized above, at a 15% Fe cut off, the copper-rich Laurinoja lens contains:
| Category | Mt | Fe | Cu | Au |
| Measured | 35.4 | 37.6% | 0.32% | 0.17 g/t |
| Indicated | 4.5 | 34.6% | 0.23% | 0.13 g/t |
| Inferred | 3.5 | 36.1% | 0.26% | 0.17 g/t |
The total tonnages of contained metals, including copper and gold, have increased considerably from the historic resource estimate. Northland also believes that on-going drilling will continue to expand the resource and move tonnes from inferred into the indicated and measured categories.
Bulk Sampling
In late 2007, Northland received a permit to partially drain the Laurinoja open pit to expose the pre-stripped magnetite mineralization. This permit will allow the mining of a substantial bulk sample of copper-gold bearing magnetite for pilot-scale metallurgical test work.
Metallurgy
Initial metallurgical test results have been extremely encouraging and indicate that the project can generate a low-acid gangue magnetite concentrate, potentially suitable as a feed for high quality Direct Reduction (DR) pellets or for sinter feed. The first stage metallurgical tests produced a concentrate with an average composition of:
| Element | Fe | Al2O3 | SiO2 | MgO | S |
| Sample | 71.0% | 0.34% | 0.61% | 0.30% | 0.02% |
If Northland is successful in manufacturing DR pellets, which command premium prices in the market, it will expand Northland's potential market into North Africa and the Middle East.
Mineralogical examination of the core from Laurinoja has identified no unexpected or unusual mineralogy and confirms that virtually all the Cu occurs as chalcopyrite. Davis Tube Test results show very high recoveries (up to 99%) of magnetite to the concentrates at a variety of grind sizes, demonstrating good liberation characteristics for the magnetite in the Hannukainen resource. Flotation test work to produce a copper-gold concentrate is underway and results will be reported as they become available.
Exploration
Northland believes its Hannukainen resource is likely to grow as it continues to drill. For example, a number of drill holes with ore grade intersections, which were drilled outside of the new resource area, were not included in the NI 43-101 estimate. In addition, there are deeper targets that will be tested in the future.
Ownership
Northland holds a 100% interest in this property.
