Northland Resources Inc.

Northland Resources Inc.

June 14, 2005 15:24 ET

North American Gold Inc.: Drilling Commences at Barsele and Norra Projects, Sweden

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 14, 2005) - Mr. Buck Morrow, the President of North American Gold Inc. (NAU) (TSX VENTURE:NAU), is pleased to announce that a phased 3,500m drilling program has begun at the Barsele and Norra Projects, Vasterbotten District, Sweden. The program is focused on expanding the existing 639,000 ounces gold resource reported in March of this year and extending the known strike extension of the system.


Roughly 1,000m of core drilling are planned for the Norra project. Drilling began on June 7. The first series of three core holes has been completed and the sulfide-bearing horizon was intersected as projected in all three holes and drilling is progressing ahead of schedule. Three additional holes are planned 50m to 150m south of the defined resource area to test the southerly strike extension of the Norra mineralized horizon. At least three holes are planned as step-out holes 250m to 450m south of the resource area to test an on-trend, coincident geophysical, and combined base-of-till and rock chip geochemical anomaly.

The 2004 Norra Zone drilling consisted of 17 core holes with a total of 2,678m of drilling. Results from the program indicate that the gold-rich, polymetallic, semi-massive sulfide horizon at Norra is open along strike and at depth. The 2004 program successfully extended the strike length for 200m to a total of at least 300m, open to the northwest and southeast. Results included hole DDH 04-14 which returned 3.1m @ 9g/t Au + 76g/t Ag + 1.6% Cu + 5.8% Zn at a vertical depth of 95m.


A 2,500m Reverse Circulation (RC) drilling program is scheduled to begin at Barsele the week of June 27th. The program consists of 12 to 16 holes and is designed for resource expansion and extension of the projected higher-grade portions of the Barsele Central and Skirasen areas. The drilling will also test the potential for an upgrade in gold content of the resource by using a larger sample size in select areas previously drilled by small diameter core.


North American Gold Inc. has an option to acquire a 60% interest in the Norra and Barsele properties from MinMet plc by incurring a total of US$3.5 million in exploration expenditures and issuing 400,000 shares to MinMet by November 3, 2006 (see news release November 3, 2003).

In March 2005, NAU released an updated resource calculation for the Barsele-Norra project. Using a 0.8g/t Au cut off, the project contains a total of approximately 639,000 ounces of gold within the indicated and inferred resource categories. The estimated resources for the 4 mineralized zones, broken down into indicated and inferred categories, are tabulated below.


Indicated Resources Inferred Resources
Model Inverse Distance
Cut off Tonnes Au Grade Total Au Tonnes Au Grade Total Au
Au (g/t) (g/t) ounces (g/t) ounces
0.8 193,038 2.90 17,987 61,487 2.76 5,451
0.8 1,306,125 1.49 62,701 2,629,699 1.61 136,458

0.8 3,143,569 1.82 184,285 2,741,425 1.70 149,976

0.8 534,147 1.50 25,815 1,190,103 1.47 56,310

Norra 5,176,879 1.75 290,788 6,622,713 1.64 348,196

NI 43-101 Disclaimer

Mineral resource estimates, geostatistics and resource model construction were completed using Minesite™ (Mintec Inc. of Tucson, Arizona) three dimensional modeling software. Resource estimates were prepared by third party consultants (Bart Stryhas, PhD Structural Geology and Dwight Crossland BS Mining Engineering); the resource model and estimates were subsequently reviewed by Chlumsky Armbrust & Meyer L.L.C. (CAM) an independent, mineral resource, consulting and engineering group based in Lakewood, Colorado USA.

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.


North American Gold Inc. is a well-structured, debt free junior exploration company with a portfolio of high quality gold, iron and base metal exploration projects in Sweden and Finland. The Company has an option to acquire a 60% interest in the Norra and Barsele properties in Sweden from MinMet plc by incurring a total of US $3.5 million in exploration expenditures and issuing 400,000 shares to MinMet by November 3, 2006, and has entered into an option agreement with Anglo American, plc to acquire a 100% interest in two exploration permits-the Pajala properties-covering approximately 18,000 hectares of ground which host a number of known iron-oxide+copper-gold targets in Sweden. North American also recently acquired 27 exploration reservations in Finland, covering over 23,825 hectares covering the mineral-rich Pajala shear zone in the western part of Finnish Lapland, near the Swedish border.


Buck Morrow, President


The TSX Venture Exchange has not reviewed and does not take responsibility for the accuracy of this release.

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