North Atlantic Resources Ltd.
TSX : NAC

North Atlantic Resources Ltd.

October 24, 2005 10:01 ET

North Atlantic Acquires the Massala Gold Project, Republic of Mali

TORONTO, ONTARIO--(CCNMatthews - Oct. 24, 2005) - Dr. Jon North, President and CEO of North Atlantic Resources Ltd. ("the Company") (TSX:NAC) reports:

In February 2005 the Company entered into an agreement to conduct due diligence on the Massala gold project in southern Mali from an arm's length vendor. The Massala gold project comprises 241 square kilometers of mineral rights and is located in the same greenstone sequence as the 10 M ounce Morila gold deposit (Randgold-AngloGold) which is located 50 km to the north. The Massala gold project is 50 km northeast of the Company's FT gold project where a 30,000 meter delineation drilling program started September 21, 2005 (see press release September 21, 2005) and is ongoing.

Under the terms of the option agreement the Company must make an initial payment of US$40,000 on signing and annual payments of $50,000, $60,000, $70,000, and $150,000 for a total of US$370,000 over 4 years in order to earn 100% interest in the project. A 2% Net Smelter Returns Royalty will be retained by the vendor.

Since March 2005, the Company collected 5,759 soil samples in order to verify and define the nature of gold anomalies from reconnaissance sampling in the 1980's by the United Nations Development Program (UNDP). Individual soil samples collected by the Company verified and defined 4 strong gold and arsenic anomalies on the property which contain peak concentrations of up to 2,180 ppb gold and 330 ppm arsenic. The largest anomaly is 2 kilometers long and trends north-northeast. The soil samples were analyzed by fire assay-AA on a 30 gram sample charge at the Analabs Morila facility.

Dr. Jon North, the President and CEO of North Atlantic Resources reported that "The Massala gold project is a strategic acquisition in the same stratigraphy as the Morila gold mine and the Company's advanced FT gold project in southern Mali. We will quickly complete approximately 2,500 meters of air core drilling at the project to determine the nature and significance of the gold in the saprolite and bedrock below the soil anomalies".

The Company's current land holdings consist of 1,572 square km of mineral rights
(393,000 acres) in six gold projects in the Republic of Mali.

The technical information contained in this release and the technical work is being supervised by Jon North, Ph.D., P. Geo., who is a Qualified Person as defined by National Instrument 43-101.

North Atlantic Resources Ltd. is engaged in the research, area selection, acquisition, and exploration of gold deposits in the Republic of Mali, west Africa.

North Atlantic has 19,081,068 common shares issued and outstanding (20,341,068 shares on a fully diluted basis).

This press release has been prepared by North Atlantic Resources Ltd. and no regulatory authority has approved or disapproved the information contained herein.

Please visit www.nac-tsx.com to view maps and more project details.

Contact Information

  • North Atlantic Resources Ltd.
    Jon North, P.Geo.
    President and CEO
    (416) 703-6348
    (416) 703-6507 (FAX)
    or
    North Atlantic Resources Ltd.
    Nathalie Roy, Corporate Affairs
    (416) 703-6348
    (416) 703-6507 (FAX)
    info@nac-tsx.com
    www.nac-tsx.com