Northland Resources Inc.

Northland Resources Inc.

November 23, 2009 04:21 ET

Northland Activates Its Finnish Assets

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 23, 2009) -  Northland Resources Inc. (TSX:NAU)(OSLO:NAUR)(FRANKFURT:NBS) (Northland) is pleased to announce that Northland has commenced preliminary discussions with Kobe Steel Ltd. of Japan and Midrex Technologies Inc. (a wholly-owned subsidiary of Kobe Steel Ltd.) of Charlotte, North Carolina, USA, regarding the integration of Kobe's ITmk3® iron making technology* (explanation below) into the development of Northland's Hannukainen deposit, located in northern Finland. The ITmk3® process produces Iron Nuggets from iron concentrates.

Northland has recently commenced a Preliminary Economic Assessment (PEA) on its Hannukainen iron ore deposit located near Kolari, Finland. The Company is planning production of ca. 2 million tonnes per year of iron concentrate from the deposit based on Hannukainen's NI 43-101 compliant resources of 82.6 Mt @ 34.6% Fe (Measured and Indicated) and 81.63 Mt @ 35.7% Fe (Inferred) at a 15% cut-off (please refer to our press release dated August 23, 2007). As part of the PEA, the Hannukainen resources will be updated with information from additional drilling completed after the 2007 resource report was issued.

Northland estimates that the PEA will be completed by Q2 2010. As a part of the PEA studies, Midrex Technologies will test iron ore concentrates from Northland's iron projects.

Conceptually, the ITmk3® Iron Nugget plant would initially be fed from the proposed Hannukainen mine and milling complex in Finland at a rate of 1.5 million tonnes of concentrate per year, which would produce an estimated 1 million tonnes of Iron Nuggets annually. This production volume would initially be destined for the Baltic and Western European markets for use along with scrap steel in electric-arc furnaces and as a coolant for use in basic oxygen furnaces (BOFs).

Any iron concentrate unutilized in this process will be sold into the market.

Northland does not plan to develop the Hannukainen mine and build an ITmk3® Iron Nugget plant on its own. The Company will seek an industrial partner to co-fund the investments. It is envisioned at this point that the ITmk3® plant would be located in Finland with access to natural gas supplies and near existing port facilities.

Discussions are ongoing and further announcements will be made when appropriate.

"Anders Hvide"

*ITmk3®, which stands for "Ironmaking Technology Mark Three," is a unique and new ironmaking process. Developed by Kobe Steel, Ltd. with support from Midrex Technologies, it produces a high purity Iron Nugget that typically contains 96 to 97% of iron and 2.5 to 3% of carbon. The Iron Nugget is 5 to 25 mm in diameter and looks like a pebble. The ITmk3® Process has many advantages including an uncomplicated design, competitive investment cost, low production cost, flexibility regarding the characteristics of the iron-bearing feed and reductants, and low emission of CO2.

Kobe Steel and Steel Dynamics Inc. (one of the largest EAF steel makers in the USA) are now installing the ITmk3® technology in the Mesabi Nugget Project in Minnesota, USA. Steel Dynamics plans to produce 500,000 tonnes per year of Iron Nuggets from the Mesabi Nugget Project. Previously, Kobe Steel, Steel Dynamics and some other partners, including the Minnesota State Government, had operated the ITmk3® Pilot Demonstration Plant for two years in Minnesota in order to demonstrate the successful operation and commercial viability of the technology.

Contact Information

  • Northland Resources Inc. - Oslo
    Anders Hvide
    Executive Chairman
    +47 92 88 98 58
    Northland Resources Inc. - London
    Patrick Foster
    Investor Relations
    +44 77 10 12 36 03
    Regarding metallurgical or processing questions, contact:
    Northland Resources Inc. - London
    Paul Marsden
    VP, Marketing and Corporate Development
    +44 77 76 18 09 88