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Tapuli
Sahavaara
Pellivuoma
Hannukainen
Exploration
Exploration Update
Exploration strategy for the first half of the year 2009 was driven by the company's commitment to complete the Preliminary Economic Assessment of its Kaunisvaara mining project in Sweden while reducing overall operating costs in light of unstable world-wide economic situation. Following the positive outcome of the Kaunisvaara project's Preliminary Economic Assessment (PEA) in the summer 2009, and continuous encouraging signs of the market recovery for the mining sector, the company decided to expand the scope of exploration strategy and initiate some additional target delineation and drill testing.
Northland's successful exploration program during the period 2008-2009 provided the company with additional iron resources at its Pellivuoma deposit, required for the acceptable mine life of the Kaunisvaara project. This success brought on a new phase of exploration directed at both additional resources for the near future mine and to further expose the gold-copper potential within our claims.
Finally, in order to generate new exploration targets and to keep the company's pipeline of exploration portfolio well balanced, Nortland's exploration team has started work on a regional metallogeny and lineament study which will cover the large portion of the Fennoscandian Shield integrating all available geological and geophysical data for further interpretations.
Fennoscandian Shield, one of the most important mining areas in Europe and the northern part of the shield, including areas belonging to Sweden, Norway, Finland and Russia, is intensely mineralized. Mineral deposit types in that area include volcanic-hosted massive sulphide (VMS), orogenic Au and Au-Cu deposits, mafic and ultramafic-hosted chromium, nickel-(copper), and platinum-group-element (PGE) occurrences, and banded iron formations, Kiruna-type apatite-iron and IOCG. Unlike most other shield areas, more ore deposits have
been discovered in the Palaeoproterozoic terrains than in the Archaean areas of the Fennoscandian Shield.
During 2009, exploration was focused on the claim areas the company holds within the Pajala Shear Zone. This shear zone is a several hundreds of kilometres long, up to tens of kilometres wide, roughly N-S trending shear and fault system broadly parallel to the Swedish-Finnish border. The shear zone broadly coincides with the boundary between the two Archean continents, the Karelian and Norrbotten Cratons, that collided and amalgamated c. 2 billion years ago. Such trans-lithospheric boundaries are known to be highly potential for various types of mineral deposits due to magmatic activity and fluid flow that bring metals into shallow crustal levels and concentrate them into favorable localities. Particularly Iron Oxide Copper Gold (IOCG) deposits tend to occur close to craton margins or other major lithospheric boundaries, where decompression melting of metasomatised mantle can produce volatile-rich alkaline magmas (rich in, eg., REE, P, F) capable of generating S-poor volatiles enriched in Cu and Au. Description of currently active exploration targets follows below.
Tapuli-Palotieva East Cu-Au targets
After reviewing the existing historical data, the Company decided to assess the Cu-Au potential of the geological formations adjacent to the Tapuli deposit, particularly in the area where infrastructure has been planned for the Kaunisvaara Project. The exploration program consists of two stages:
Northland Resources is investigating the possibility to include minor magnetite deposits in a cluster of deposits in the Pajala region into the resource base of the Kaunisvaara mining complex. The Karhujärvi iron oxide copper mineralization is one of such targets located southwest of Kaunisvaara and is within 2 km of the road between Pajala and Kaunisvaara. The target is defined by a magnetic anomaly with the total length of ca. 1600 meters.
Outokumpu has drilled three drill holes for gold in the area in 1996. These historical drill holes were drilled away from the magnetic anomaly but did intersect short intervals, 1-10 meters thick, with 20-25% estimated magnetite. GTK carried out regional airborne geophysical survey over the target area in 2006.
In 2008, Northland retained GeoVista and Astrock Oy to model the airborne geophysical data over the property. Both models support the potential for mid size (+50Mt) iron resource mineable by an open pit. During the 1st quarter 2009, Northland drill tested the Karhujärvi airborne magnetic anomaly with two drill holes totalling 338.1 metres. The two drill holes with 30 to 60 meters long intersections of > 30 % Fe and c. 1000 ppm Cu support the exploration model and warrant further exploration of the target.
Suksivuoma (Sweden)
Suksivuoma mineralization is another target of iron oxide gold copper mineralization located further North of Karhujärvi. Suksivuoma is defined by an magnetic anomaly that is around 800 meters long. One historical drill hole was drilled by Anglo American 2001 also for gold. Historical drill hole was drilled away from the magnetic anomaly but did intersect short intervals, 14 and 6 meters, with 20-25% estimated magnetite. GTK carried out regional airborne geophysical survey over the target area in 2006.
In 2008, Northland retained GeoVista and Astrock Oy to model the airborne geophysical data over the property. Both models support the potential for small to mid size (+25Mt) iron resource mineable by an open pit. Northland plans to drill test the target after the completion of the Kaunisvaara Feasibility Study.
Käymäjärvi
During the 2nd quarter, the Company initiated the review of the Fe-Cu-Au potential of its Käymäjärvi license area (which hosts the Pellivuoma and Marjarova targets). The Käymäjärvi schist belt is an extensive volcano-sedimentary formation that bears numerous geological and geochemical indications of Fe-Cu-Au mineralization. The area is unexplored as indicated by almost nonexistent historical drilling. The company has started a GIS study of the area, to be followed soon by a reconnaissance survey, geological mapping and sampling.
Ruutijärvi
During the 1st quarter 2009, the Company drilled one hole at Ruutijärvi, totalling 201 metres, to test magnetic and gravity anomalies. Drilling returned 20-m-long intersections of moderate iron ore which does not explain the prominent Ruutijärvi geophysical anomalies. An additional in-house magnetometric survey was conducted to understand the deposit better. The results are being analysed.
Salmivaara There was no activity on this permit during the quarter.
Karhujärvi
During the 1st quarter 2009, the Karhujärvi airborne magnetic anomaly was drill tested with two drill holes totalling 338.1 metres. These two holes, assayed during the 2nd quarter, returned good results suggesting that Karhujärvi has true potential for additional Fe+Cu resources in proximity to Sahavaara.
Suksivuoma
There was no activity on this permit during the quarter.
Finland
Cu-Rautuvaara
There was no activity on this permit during the quarter.
Rautuoja
There was no activity on this permit during the quarter.
Aavahelukka, Tuohilehto, Palovitsavaara
Exploration results are being evaluated and a decision will be made on resumption of activities later this year. No extensive high grade intersections were encountered from Tuohilehto or Palovitsavaara targets. Aavahelukka targets yielded 20-m-long magnetite ore intersections, and warrants further consideration if the nearby Kuervitikko deposit is developed together with Hannukainen.
Exploration strategy for the first half of the year 2009 was driven by the company's commitment to complete the Preliminary Economic Assessment of its Kaunisvaara mining project in Sweden while reducing overall operating costs in light of unstable world-wide economic situation. Following the positive outcome of the Kaunisvaara project's Preliminary Economic Assessment (PEA) in the summer 2009, and continuous encouraging signs of the market recovery for the mining sector, the company decided to expand the scope of exploration strategy and initiate some additional target delineation and drill testing.
Northland's successful exploration program during the period 2008-2009 provided the company with additional iron resources at its Pellivuoma deposit, required for the acceptable mine life of the Kaunisvaara project. This success brought on a new phase of exploration directed at both additional resources for the near future mine and to further expose the gold-copper potential within our claims.
Finally, in order to generate new exploration targets and to keep the company's pipeline of exploration portfolio well balanced, Nortland's exploration team has started work on a regional metallogeny and lineament study which will cover the large portion of the Fennoscandian Shield integrating all available geological and geophysical data for further interpretations.
Fennoscandian Shield, one of the most important mining areas in Europe and the northern part of the shield, including areas belonging to Sweden, Norway, Finland and Russia, is intensely mineralized. Mineral deposit types in that area include volcanic-hosted massive sulphide (VMS), orogenic Au and Au-Cu deposits, mafic and ultramafic-hosted chromium, nickel-(copper), and platinum-group-element (PGE) occurrences, and banded iron formations, Kiruna-type apatite-iron and IOCG. Unlike most other shield areas, more ore deposits have
been discovered in the Palaeoproterozoic terrains than in the Archaean areas of the Fennoscandian Shield.
During 2009, exploration was focused on the claim areas the company holds within the Pajala Shear Zone. This shear zone is a several hundreds of kilometres long, up to tens of kilometres wide, roughly N-S trending shear and fault system broadly parallel to the Swedish-Finnish border. The shear zone broadly coincides with the boundary between the two Archean continents, the Karelian and Norrbotten Cratons, that collided and amalgamated c. 2 billion years ago. Such trans-lithospheric boundaries are known to be highly potential for various types of mineral deposits due to magmatic activity and fluid flow that bring metals into shallow crustal levels and concentrate them into favorable localities. Particularly Iron Oxide Copper Gold (IOCG) deposits tend to occur close to craton margins or other major lithospheric boundaries, where decompression melting of metasomatised mantle can produce volatile-rich alkaline magmas (rich in, eg., REE, P, F) capable of generating S-poor volatiles enriched in Cu and Au. Description of currently active exploration targets follows below.
Tapuli-Palotieva East Cu-Au targets
After reviewing the existing historical data, the Company decided to assess the Cu-Au potential of the geological formations adjacent to the Tapuli deposit, particularly in the area where infrastructure has been planned for the Kaunisvaara Project. The exploration program consists of two stages:
- Stage I: Logging and assaying of selected condemnation holes, which are known to intersect the critical contact of the Tapuli footwall black shales and mafic-ultramafic volcanics. A total of 22 condemnation holes from the Tapuli area have been identified and prepared for detail logging. Sampling is underway and assay results are pending.
- Stage II: Geochemical Mobile Metal Ions (MMI) soil sampling survey across the critical geological structures along the Pajala shear zone near Tapuli-Palotieva iron deposits. The soil sampling program includes 21 sampling lines totalling 18 line kilometres and 1,100 samples.
Northland Resources is investigating the possibility to include minor magnetite deposits in a cluster of deposits in the Pajala region into the resource base of the Kaunisvaara mining complex. The Karhujärvi iron oxide copper mineralization is one of such targets located southwest of Kaunisvaara and is within 2 km of the road between Pajala and Kaunisvaara. The target is defined by a magnetic anomaly with the total length of ca. 1600 meters.
Outokumpu has drilled three drill holes for gold in the area in 1996. These historical drill holes were drilled away from the magnetic anomaly but did intersect short intervals, 1-10 meters thick, with 20-25% estimated magnetite. GTK carried out regional airborne geophysical survey over the target area in 2006.
In 2008, Northland retained GeoVista and Astrock Oy to model the airborne geophysical data over the property. Both models support the potential for mid size (+50Mt) iron resource mineable by an open pit. During the 1st quarter 2009, Northland drill tested the Karhujärvi airborne magnetic anomaly with two drill holes totalling 338.1 metres. The two drill holes with 30 to 60 meters long intersections of > 30 % Fe and c. 1000 ppm Cu support the exploration model and warrant further exploration of the target.
Suksivuoma (Sweden)
Suksivuoma mineralization is another target of iron oxide gold copper mineralization located further North of Karhujärvi. Suksivuoma is defined by an magnetic anomaly that is around 800 meters long. One historical drill hole was drilled by Anglo American 2001 also for gold. Historical drill hole was drilled away from the magnetic anomaly but did intersect short intervals, 14 and 6 meters, with 20-25% estimated magnetite. GTK carried out regional airborne geophysical survey over the target area in 2006.
In 2008, Northland retained GeoVista and Astrock Oy to model the airborne geophysical data over the property. Both models support the potential for small to mid size (+25Mt) iron resource mineable by an open pit. Northland plans to drill test the target after the completion of the Kaunisvaara Feasibility Study.
Käymäjärvi
During the 2nd quarter, the Company initiated the review of the Fe-Cu-Au potential of its Käymäjärvi license area (which hosts the Pellivuoma and Marjarova targets). The Käymäjärvi schist belt is an extensive volcano-sedimentary formation that bears numerous geological and geochemical indications of Fe-Cu-Au mineralization. The area is unexplored as indicated by almost nonexistent historical drilling. The company has started a GIS study of the area, to be followed soon by a reconnaissance survey, geological mapping and sampling.
Ruutijärvi
During the 1st quarter 2009, the Company drilled one hole at Ruutijärvi, totalling 201 metres, to test magnetic and gravity anomalies. Drilling returned 20-m-long intersections of moderate iron ore which does not explain the prominent Ruutijärvi geophysical anomalies. An additional in-house magnetometric survey was conducted to understand the deposit better. The results are being analysed.
Salmivaara There was no activity on this permit during the quarter.
Karhujärvi
During the 1st quarter 2009, the Karhujärvi airborne magnetic anomaly was drill tested with two drill holes totalling 338.1 metres. These two holes, assayed during the 2nd quarter, returned good results suggesting that Karhujärvi has true potential for additional Fe+Cu resources in proximity to Sahavaara.
Suksivuoma
There was no activity on this permit during the quarter.
Finland
Cu-Rautuvaara
There was no activity on this permit during the quarter.
Rautuoja
There was no activity on this permit during the quarter.
Aavahelukka, Tuohilehto, Palovitsavaara
Exploration results are being evaluated and a decision will be made on resumption of activities later this year. No extensive high grade intersections were encountered from Tuohilehto or Palovitsavaara targets. Aavahelukka targets yielded 20-m-long magnetite ore intersections, and warrants further consideration if the nearby Kuervitikko deposit is developed together with Hannukainen.
