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Significant Past Production Rautuvaara was mined underground during the 1980s and is reported to have produced 11.6 million tonnes at a grade of 46 % Fe and 0.36% Cu. Northland acquired the deposit by staking in 2005. We have since focused on exploring the potential for additional economic copper and gold mineralization within the magnetite resource. A number of favorable structural, geophysical, and geochemical anomalies occur distal to (away from) the known iron deposits. We plan to drill a number of targets at Rautuvaara in the coming 12 months. Infrastructure Remains The former mine was serviced by a rail head (which remains and is actively maintained), as well as a major powerline. There is also a large tailings dam which was only partly filled during the mining operations. Exploration History The Geological Survey of Finland (GTK) reports a combined 20.6Mt of magnetite resources at SW-Rautuvaara and Cu-Rautuvaara. While the estimated tonnages refer primarily to an iron deposit, there are also reported to be contained copper values. GTK considers the Rautuvaara deposits to be some of the most important Au and Cu enriched iron deposits in the Kolari District. (The historical resource estimate for Rautuvaara does not use the resource categories stipulated in Section 1.3 of National Instrument 43-101 which are "inferred mineral resource", "indicated mineral resource" and "measured mineral resource", and was calculated before the implementation of NI43-101. The Company believes that term "resources" is used differently from the use of that term in NI 43-101 and consequently the resource figure should not be relied upon. The Company does not have - and is not aware of - any more recent resource estimates which conform to the standards laid out in NI 43-101.) Geology and Mineralization Rautuvaara is hosted by the Pajala Shear Zone, as is the Hannukainen target currently being drilled by Northland. They belong to the IOCG class of mineral deposits. Reserves and Resources Northland has not completed a resource study at Rautuvaara. The only resource estimates available are historical in nature and were completed before the implementation of NI43-101. The Company's geologists identified a number of targets associated with strong geophysical anomalies that warrant drill testing. |
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