Northland Resources Inc.

Northland Resources Inc.

March 29, 2005 15:09 ET

North American Gold Acquires Multiple Iron Deposits/IOCG Targets in Northern Finland


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTH AMERICAN GOLD INC.

TSX VENTURE SYMBOL: NAU

MARCH 29, 2005 - 15:09 ET

North American Gold Acquires Multiple Iron
Deposits/IOCG Targets in Northern Finland

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 29, 2005) - North
American Gold Inc. (TSX VENTURE:NAU) is pleased to announce that the
Company has acquired 15 exploration reservations granted by the Mines
Inspectors office in Finland, covering over 13,000 hectares of highly
prospective ground in the western part of Finnish Lapland, near the
Swedish border.

The reservations are in the Kolari District, an established iron ore
district, and cover a significant portion of the Pajala Shear Zone. The
Geological Survey of Finland reported in Bulletin 318 in 1982, that the
Pajala Shear Zone is host to the largest known iron resources in
Finland, and that these iron resources belong to the hydrothermal
Iron-Oxide-Copper-Gold (IOCG) class of mineral deposit. Additionally it
was stated that there is excellent potential for further discoveries in
the district. Included within the +13,000 hectares acquired are several
known magnetite deposits with associated gold and copper mineralization.

Through its combined land holdings of close to 32,000 hectares in the
Pajala permits in Sweden and its newly acquired Kolari District of
Finland, North American now controls approximately a 50 kilometer strike
length of the Pajala Shear Zone. Within the two property positions in
Finland and Sweden there are a reported 16 iron (magnetite) or IOCG type
deposits and multiple untested geophysical and geochemical anomalies.
The Finnish reservation areas have a history of mining and the
infrastructure in both areas is excellent.

Exploration Targets in Finland

Eight known iron systems or IOCG targets were acquired within the
reservation area. North American's exploration program will explore not
only these eight identified systems but also a number of favorable
structural, geophysical, and geochemical anomalies that are distal to
the known iron deposits within the reservation area.

The deposits at Hannukainen in Finland are reported by the Geologic
Survey of Finland (GTK) to contain iron resources of 66 million tonnes
of magnetite. Hannukainen was mined historically and is reported to have
produced iron, copper and gold, with production of 4.5 million tons at a
grade of 43 % Fe, 0.88 % Cu, and 1 g/t Au. The GTK also reports a
combined 20.6 million tonnes magnetite at Cu-Rautuvaara, NE-Rautuvaara,
and SW-Rautuvaara. While the estimated tonnages at Rautuvaara refer
primarily to an iron (magnetite) deposits there are also reported to be
contained copper values. The Rautuvaara deposits are reported by the GTK
to be some of the most important Au and Cu enriched iron deposits in the
Kolari District.

In addition to Hannukainen and Rautuvaara, six other known IOCG targets
were acquired within the reservation area. Each of these presents an
opportunity for discovery of additional IOCG type deposits and will be
tested systematically.

North American's geologic staff is currently in Finland accessing the
large government data base, records from previous mining, and the drill
core archive. The team is investigating to what extent the core has been
analyzed for gold and copper values. This assessment will be the basis
for the up coming evaluation and exploration program. The data base
includes - but is not limited to - low altitude magnetic surveys of the
entire region, local gravimetric surveys, bedrock surface sampling by
pneumatic drilling, geologic mapping, cross sections of previous mining
areas, and mine records. The core from approximately 400 core holes,
amounting to 65,000 meters of drilling, is available for study.

Buck Morrow, President of North American Gold, stated "The acquisition
of the Kolari properties is a tremendous addition to our Pajala IOCG
Project located just across the border in Sweden. Both land packages are
on the Pajala Shear Zone and cover targets which demonstrate many of the
classic geologic characteristics of IOCG type deposits. Controlling
approximately 50 kilometers of strike along the Zone moves our
acquisition and exploration programs to a new level. These two projects
are clearly breakout opportunities for the Company and both properties
fit the Company's strategy of acquiring exploration equity at a
favorable cost. We have 100 % of them, which means 100 % of the value
goes to our share holders. There is substantial exploration equity
already in place in the government archives with over 400 core holes
previously drilled, so from our perspective the acquisition cost was
extremely favorable in relationship to the exploration equity, and the
exploration opportunity is vast. The GTK reported that historic iron
resource estimates from Pajala to Hannukainen are in excess of
200,000,000 tonnes. This figure does not include the 12 less explored
known deposits within North American's control along the Pajala Shear
Zone."

NI43-101 Disclaimer

The resource estimates quoted in this news release were prepared prior
to the implementation of National Instrument 43-101. Neither of the
historical resource estimates uses 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".
Rather, the historical resource estimate for the Hannukainen deposit
reported by the Geological Survey of Finland refers to "66 million
tones", which is not a category stipulated in National Instrument
43-101, and the historical resource estimate for the Cu-Rautuvaara,
NE-Rautuvaara, and SW-Rautuvaara deposits refers to "20.6 million tonnes
resources". The Company believes that term "resources" is used
differently from the use of that term in NI 43-101. The Company does not
have - and is not aware of - any more recent resource estimates which
conform to the standards laid out in NI43-101.

The Company advises that it has not done the work necessary to verify
the classification of either of the mineral resource estimates and they
have not been verified by a Qualified Person. The Company is not
treating the historical resource estimate as a NI 43-101 defined
resource or reserve, and the historical resource estimate should not be
relied upon.

Vance V. Thornsberry, P.Geol., Vice President of Exploration for North
American Gold, is the Qualified Person as defined in NI 43-101, and has
verified that the information presented in this release has been
accurately summarized from the reports quoted herein.

ON BEHALF OF THE BOARD

Buck Morrow, President

NORTH AMERICAN GOLD INC.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    North American Gold Inc.
    Buck Morrow
    President
    Toll Free: 1-866-312-8630
    The TSX Venture Exchange has not reviewed and does not take
    responsibility for the accuracy of this release.