North Atlantic Resources Ltd.
TSX : NAC

North Atlantic Resources Ltd.

January 11, 2006 11:06 ET

North Atlantic Resources Ltd.: Delineation Drilling Results From The FT Gold Project, Republic Of Mali, Include 42 Meters Grading 2.19 g/t Gold

TORONTO, ONTARIO--(CCNMatthews - Jan. 11, 2006) - Dr. Jon North, President and CEO of North Atlantic Resources Ltd. (TSX:NAC) ("the Company") reports:

The FT gold project comprises over 500 square kilometers of mineral rights in southern Mali, 100 kilometers southwest of the 10 MM ounce Morila gold deposit (Randgold-AngloGold). The results of the first five diamond drill holes (1,055 meters) from this gold project were released November 8, 2005. This press release describes the results of an additional 2,823 meters of diamond drilling (11 holes), and 966 meters of reverse circulation drilling (6 holes). Additional drilling results are forthcoming upon completion of assaying which is taking somewhat longer than expected because of high sample volumes in Mali's two main laboratories. These results are part of an ongoing drilling program that will consist of a total of approximately 5,000 meters of diamond drilling and 20,000 meters of reverse circulation drilling.

Most of the drill holes in the current program were delineation holes, however, approximately 20% of the total meters planned are exploration holes which are required to determine optimal collar locations for delineation holes. The orientation of these delineation holes has been optimized to provide intersections orthogonal to the gold zone. Drill holes reported herein are illustrated on the attached maps and sections without reference to the discovery RC holes reported in earlier press releases (May 3, 2005 and August 15, 2005) which were drilled due east and were not orthogonal to the gold zone.

The results from the drill holes are reported in the following tables. Diamond drill holes are denoted DDH and reverse circulation holes are denoted RC. The mineralized zone is subdivided into two segments, Foulalaba in the south, and Tiekoumala in the north. The attached maps illustrate the location of the holes, the interpreted location of the mineralized zone, and the longitudinal section of each segment of the mineralized zone. The mineralized zone has been divided into two segments because of the change in azimuth from north to south and because no delineation holes have yet been drilled to connect the two segments. Previously reported drill holes are in subdued font. The longest intersection and its composite grade are reported on the plan maps, while the tables and sections report the composites and core high grade intersections.



Tiekoumala Segment

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Section Comment Drill Total From To Width Grams
(N) hole length (m) (m) (m) per
(m) tonne
gold
(g/t
Au)
---------------------------------------------------------------------
10100 Footwall 05-TKDDH-10 244 202 220 18 1.01
Zone
---------------------------------------------------------------------
including 202 208 6 1.64
---------------------------------------------------------------------
10200 Footwall 05-TKDDH-09 266.8 241 262 21 1.25
Zone
---------------------------------------------------------------------
including 244 250 6 2.01
---------------------------------------------------------------------


---------------------------------------------------------------------
Section Comment Drill Total From To Width Grams
(N) hole length (m) (m) (m) per
(m) tonne
gold
(g/t
Au)
---------------------------------------------------------------------
10245 Footwall 05-TKDDH-02 269.3 2.5 30 27.5 1.54
Zone
---------------------------------------------------------------------
including 8 10 2 12.37
---------------------------------------------------------------------
and 23 28 5 2.25
---------------------------------------------------------------------
Main Zone 96 126 30 1.61
---------------------------------------------------------------------
including 105 109 4 2.80
---------------------------------------------------------------------
and 116 121 5 3.73
---------------------------------------------------------------------
10300 Footwall 05-TKRC-78 150 0 10 10 1.17
Zone
---------------------------------------------------------------------
Main Zone 92 128 36 2.12
---------------------------------------------------------------------
including 98 118 20 2.94
---------------------------------------------------------------------
10300 Footwall 05-TKDDH-08 254.7 126 228 102 0.68
Zone
---------------------------------------------------------------------
including 127 169 42 1.11
---------------------------------------------------------------------
10350 Footwall 05-TKRC-76 216 130 216 86 0.56
Zone
---------------------------------------------------------------------
including 130 156 26 0.97
---------------------------------------------------------------------
10400 Footwall 05-TKRC-74 162 132 162 30 0.37
Zone
---------------------------------------------------------------------
10400 Footwall 05-TKDDH-07 281.6 226 276 50 0.36
Zone
---------------------------------------------------------------------
10450 Hole ends (a)05-TKRC-71 198 90 198 108 1.04
in Main
Zone
---------------------------------------------------------------------
including 96 114 18 2.15
---------------------------------------------------------------------
and 176 186 10 3.90
---------------------------------------------------------------------
and 194 198 4 3.25
---------------------------------------------------------------------
10500 Main Zone 05-TKDDH-06 288.8 158 200 42 2.19
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including 158 167 9 3.92
---------------------------------------------------------------------
and 181 185 4 5.47
---------------------------------------------------------------------
and 196 200 4 3.65
---------------------------------------------------------------------
10600 Main Zone 05-TKDDH-12 279 53 173 120 0.43
---------------------------------------------------------------------
including 127 147 20 1.37
---------------------------------------------------------------------
including 127 137 10 2.39
---------------------------------------------------------------------
Note: (a) hole ended in the mineralized zone


Description of the drilling results from the Tiekoumala segment

The Tiekoumala Segment trends west-northwest to due west. It has been intersected by delineation diamond and RC holes over a strike length of 775 meters and to a vertical depth of 150 meters and is open in all directions. The attached map illustrates the hole locations and the boundary of the mineralized zone. The zone consists of a 60 to 100 meter wide envelope of hydrothermally altered turbidite with a grade of approximately 1 g/t gold. The northern part of the zone contains 30 to 40 meters (hole length) of disseminated arsenopyrite, pyrite, pyrrhotite and gold with grades of 2 to 3 grams per tonne. The zone dips steeply north or steeply south. Seven of the drill holes in this set of holes were collared and terminated in the footwall before intersecting the main part of the mineralized zone. Those holes have been re-drilled from the north and are currently being assayed. Six of those holes, and the 4 holes that intersected the Main Zone, intersected 20 to 30 meters of mineralized footwall as noted in the table. Hole 05-TKDDH-04 was drilled into footwall stratigraphy and did not contain any gold-bearing intersections.

05-TKDDH-06 (42 m grading 2.19 g/t gold) is the westernmost delineation hole. Hole 05-TKDDH-05 and 12 were exploratory holes to determine the location of the zone west of hole 06. Hole 05-TKDDH-05 intersected the hanging wall of the Main Zone and did not contain any gold-bearing intersections. Hole 05-TKDDH-12 intersected the zone which contained a high grade core of 10 meters grading 2.39 g/t gold within a very large hydrothermal aureole that graded 0.43 g/t gold over a length of 120 meters. Accordingly, the mineralized zone takes a westerly trajectory west of hole 06, and additional exploration and delineation drilling will be completed immediately to determine the western limit of the zone.



Foulalaba Segment

---------------------------------------------------------------------
Section Comment Drill Total From To Width Grams
(N) hole length (m) (m) (m) per
(m) tonne
gold
(g/t
Au)
---------------------------------------------------------------------
8900 Main Zone 05-FLDDH-08 201 151 179 28 0.46
---------------------------------------------------------------------
including 156 158 2 2.07
---------------------------------------------------------------------
9050 Main Zone 05-FLRC-83 120 60 108 48 1.15
---------------------------------------------------------------------
including 68 78 10 1.83
---------------------------------------------------------------------
9100 Main Zone 05-FLRC-84 120 50 68 18 0.98
---------------------------------------------------------------------
9400 Main Zone 05-FLDDH-12 269.5 157 187 30 0.75
---------------------------------------------------------------------
including 157 174 17 0.94
---------------------------------------------------------------------


Description of the drilling results from the Foulalaba segment

The Foulalaba Segment trends 315( and dips steeply east. Seven delineation holes have now intersected the zone over a strike length of 500 meters and to a vertical depth of 150 meters. Drilling intersections commonly consist of a 20 to 50 meter wide envelope of intensely altered turbidite with a grade of approximately 1 gram per tonne gold which contains a higher grade core of sulphide rich material (e.g. 05-FLDDH-01 and 05-FLRC-83) 10 meters wide (hole length) containing approximately 2 g/t gold. The zone remains open along strike and down dip.

President's report

Dr. Jon North, the President and CEO of North Atlantic Resources reported "The Company continues to make great progress on the FT gold project. These results reflect the effort and persistence of a cohesive Malian exploration group that has completed the first delineation drilling of the FT gold zone and explored the margins of the deposit in 2 months of intensive drilling. On the strength of these results, we now intend to compile the data for the initial resource calculation".

The drilling at FT gold project was completed by the professional staff of West African Drilling Services. The drill core samples were both HQ and NQ size and were cut in half by a diamond saw on site. Half of the core was shipped to the Analabs Morila facility and analyzed for gold by fire assay-AA on a 50 gram sample charge. RC samples were split on site and sent to Analabs Morila facility or Abilabs Bamako facility and analyzed for gold by fire assay-AA on a 50 gram sample charge. The Company inserts a standard, duplicate, and blank in each batch of 20 samples analyzed to monitor laboratory accuracy and precision. The drafting was completed by Burt Consulting Services.

The Company's current land holdings consist of 1428 square km (551,354 acres) of mineral rights in 6 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 19,093,168 common shares issued and outstanding (21,236,068 shares on a fully diluted basis).

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

NOTE: There are three Maps on CCNMatthews website for viewing at:

http://www.ccnmatthews.com/docs/map1.pdf

http://www.ccnmatthews.com/docs/map2.pdf

http://www.ccnmatthews.com/docs/map3.pdf


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

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