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Projects
IOCG Deposits
Development Projects
Exploration Projects
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Exploring for IOCG Mineralization The Lannavaara and Saarijarvi properties offer attractive targets for the discovery of iron oxide-copper-gold (IOCG) mineralization. IOCG deposits are sought by many mining companies around the world. Some of the largest mineral deposits in the world, including Olympic Dam in Australia and Kiruna in Sweden, belong to this class of deposits. Joint Venture With Anglo American We acquired our interests in Lannavaara and Saarijarvi from Anglo American Exploration ("AAE"), a wholly-owned subsidiary of Anglo American plc, in December 2005. The licenses were acquired initially by AAE for their IOCG potential. As Anglo's exploration focus shifted away from copper exploration, the opportunity arose for Northland to joint venture the Lannavaara and Saarijarvi licenses. Anglo American's Preliminary Work AAE has completed extensive compilation work and preliminary exploration on the properties and has identified a number of IOCG targets which show anomalous copper and gold values. They have made their full exploration database for the properties including target selection, available to Northland. Initial Samples and Mineralization The highest priority target lies on the Saarijarvi No. 2 License, where AAE's initial data work identified what is believed to be subcrop of copper-gold mineralization. Grab samples collected by AAE and during the annual Swedish government-sponsored public boulder hunt returned copper and gold grades ranging from trace to a highest grade of 7.6% copper and 14.3g/t Au in a sulphide mineralized boulder. The source of the boulder is believed to be subcrop within the Saarijarvi No. 2 license. AAE also identified a significant copper-in-peat anomaly approximately coincident with the high-grade subcrop sample ranging up to 0.75% Cu in peat. Northland has not independently verified these results. Additional Sampling and Drill Targets Northland has completed an extensive data and target review for the licenses and is currently planning for the next stages of exploration work. Initially this will likely involve additional Base of Till (BOT) sampling and ground geophysics to further refine the drill targeting. Ownership and Joint Venture To earn a 100% interest, Northland must incur minimum expenditures of US$1.5m within 3 years of the date of the agreement, subject to a back-in right. Should Northland discover a mineable copper resource containing a minimum of 3-million tonnes of copper equivalent metal within 4 years from the signing of the agreement, AAE shall have the right to buy back in to a 60% interest by expending a sum equal to 3 times Northland's expenditures on any of the project areas. If Northland discovers a resource below this minimum size criteria, or if AAE fails to exercise its back in right within the time allowed, its interest will convert to a 2.25% Net Smelter Return Royalty. If Northland Resources fails to incur US$1.5 million in exploration expenditures within the three-year period its rights will cease in respect of the IOCG properties. Northland Resources will act as operator of the programme with a project manager mutually agreed to by AAE and Northland. AAE will continue to provide full and open technical expertise to the programme. |
Tapuli
Hannukainen
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