Overview
The known magnetite body at Sahavaara measures approximately 1.3 km in length, at least 700 metres in depth and 50 metres in average width. Following drilling and compilation of past exploration data, we announced a NI 43-101 compliant resource estimate for Sahavaara (refer to press release dated April 16, 2010). The resource, modeled using a cut off of 10% iron (Fe) is:
- Total Measured resources are 30.2 million tonnes, with an average grade of 42.9% Fe.
- Total Indicated resources are 56.6 million tonnes, with an average grade of 38.14% Fe.
- Total Inferred resources are 34.7 million tonnes, with an average grade of 37.28% Fe.
The results placed more than 50% of the resource in the "Measured" category.
Supplying the Kaunisvaara Mill Complex
Northland's vision is to develop the Kaunisvaara Mill Complex, a centralized processing facility that would take feed from several iron ore projects, including Sahavaara, Tapuli and Pellivuoma, thereby extending the life of the facility and distributing capital costs over greater accumulated production. The combined Measured and Indicated iron resources at Tapuli, Sahavaara and Pellivuoma total 249.68 Mt, and the Inferred iron resources are 89.74 Mt. Metallurgical test results show that a high-grade, high-quality iron concentrate can be produced from the iron mineralisation at Sahavaara that is compatible with the iron products that can be produced from Tapuli and Pellivuoma.