Agricola Resources plc
LSE : AGRI

February 25, 2008 06:35 ET

Agricola Resources plc: Granted a Nickel Exploration Licence at Riikalahti in the Kiruna Area, Northern Sweden

- Target is Nickel-Copper sulphides in layered Gabbro-Pyroxenite - Area size 1150 hectares - Previous drilling confirms copper, nickel and platinum group metals in bedrock

LONDON, UNITED KINGDOM--(Marketwire - Feb. 25, 2008) - Agricola Resources plc ("Agricola"), the PLUS-traded mineral exploration company with projects in Sweden and Finland for nickel, copper and uranium and is pleased to announce that a new exploration licence have been granted by the Swedish state mining authority, Bergsstaten. The licence area is called Riikalahti nr 1 and covers 1150 hectares. It is located about 40 kilometres north of the town centre of Kiruna, Norrbotten County in Northern Sweden. The area is relatively lightly forested. Access by field vehicles and drill rigs is best in the winter months as there are no local forestry roads within the licence area.

The area is occupied by a large layered mafic-ultramafic intrusive approximately 4 x 3 kilometre in size.

The prospect area was discovered and surveyed by the Swedish state-owned company LKAB Exploration AB in the 1970 - 80s by exploration work. Some geophysical targets were tested by limited diamond drilling comprising seven holes totalling 968 metres. Mineralized boulders with grades up to 0.8% of copper and 0.3% of nickel were found in the area. Scout drilling revealed best grades in a drill hole in gabbroic rock, containing 0.35% cobalt, 0.18% of nickel and 0.21% copper over a narrow sulphide rich section. This hole also contains 0.43 grams per tonne of platinum plus palladium over a 1 m section. In the central part of the licence area a zone covering 2000 m by 300 m has recorded soil samples values from 200 to over 1000 ppm nickel and up to 1500 ppm copper. This zone has not been drill tested.

From the exploration data available and the large size of the layered intrusive Agricola considers that the Riikalahti area is of interest to host potential deposits of nickel and copper-bearing sulphides with platinum group metal credits. Further work will include ground geophysical surveys (magnetics and electromagnetic (EM)) and follow-up diamond drilling.

Maps and figures of the area are presented on the Agricola website www.agricolaresources.com.

Contact Information

  • Agricola Resources Plc
    Dr. Robert Young
    Chairman
    +44 (0)1353 649 379
    Website: www.agricolaresources.com
    or
    Corporate Adviser:
    St Helen's Capital Plc
    Duncan Vasey
    +44 (0)20 7628 5582