North Atlantic Resources Ltd.
TSX : NAC

North Atlantic Resources Ltd.

August 15, 2005 17:02 ET

North Atlantic Resources Ltd.: Drilling at Foulalaba/Tiekoumala in Southern Mali Continues to Intersect Long, High Grade Intervals Including 16 Meters Grading 9.32 Grams Per Tonne Gold

TORONTO, ONTARIO--(CCNMatthews - Aug. 15, 2005) - Dr. Jon North, President and CEO of North Atlantic Resources Ltd. (TSX:NAC)("the Company") reports:

In May 2005 the Company announced its first long, high grade drilling intersections from anomaly "M" at the Foulalaba/Tiekoumala (FT) project in southern Mali (see press release dated May 3rd, 2005). Reverse circulation drilling has continued at the FT project since May. The ongoing exploration plan is to increase the density and depth of the drilling until a resource can be determined. This press release describes the latest results and provides important information about the width, dip, length, and distribution of the zone and includes the first longitudinal section of the drill holes.

Drilling results

Since May, 2005, 72 reverse circulation holes at an average length of approximately 100 meters, for a total of 7,347 meters of additional drilling, was completed. The hole collars were set at 50 meters apart and were drilled at -50 degrees inclination. The reverse circulation holes included fences of exploratory holes and holes to determine the location, width, and dip of the zone. The drill holes have an average length of approximately 100 meters, therefore the deepest intersections are approximately 80 meters vertical depth and no drilling has been completed below that vertical depth. The attached figures illustrate the zone in plan, cross section, and longitudinal section. The results of the drill holes that intersected the gold zone are summarized in the following table. The reader can reference drill holes by the section number in the table and the various figures.



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Total From To Width
Section Drill hole length (m) (m) (m) g/t Au
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1199400 05-TKRC-21(a) 102 0 102 102 0.86
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including 52 68 16 3.28
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1199500 05-TKRC-27bis(a) 114 30 114 84 0.91
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including 30 40 10 2.67
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and 58 70 12 2.09
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1199450 05-TKRC-52 96 2 14 12 2.83
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1199450 05-TKRC-53 102 12 24 12 1.07
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1199450 05-TKRC-56(a) 120 90 120 30 1.5
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including 112 120 8 2.52
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1199450 05-TKRC-57(a) 102 18 102 84 0.93
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including 18 42 24 1.61
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including 36 42 6 2.16
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1199450 05-TKRC-58 108 34 46 12 1.14
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1199400 05-TKRC-64 120 30 32 2 2.77
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72 76 4 1.94
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1199500 05-TKRC-65(a) 116 70 116 46 1.38
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including 70 102 32 1.83
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1198900 05-FLRC-51(a) 120 0 120 120 1.59
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including 80 96 16 9.32
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1198900 05-FLRC-52 84 38 42 4 3.22
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1198700 05-FLRC-65(a) 120 0 120 120 0.49
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including 56 62 6 1.87
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and 104 108 4 3.48
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1198750 05-FLRC-72(a) 54 42 54 12 1.93
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Note: (a) hole ended in the mineralized zone


Plan Map:

The attached plan map illustrates the trend of the mineralized zone with gold histograms projected to surface. The strike length of the zone has been tested over a length of 1.8 kilometers. The southern segment of the mineralized zone at Foulalaba strikes 315 degrees and does not appear to be offset by faults. Much of the drilling in the Foulalaba segment consists of drill hole fences drilled to the east to extend earlier fences that were stopped before encountering the zone (e.g. 05-FLRC-65 on section 1198900 which intersected 120 meters grading 0.49 g/t gold including 4 meters grading 3.48 g/t gold and 6 meters grading 1.87 g/t gold and which ended in the mineralized zone). An infill fence of holes on section 1199450 intersected 120 meters grading 1.59 g/t gold including 16 meters grading 9.32 g/t gold in 05-FLRC-51 and that hole started and ended in the mineralized zone. The high grades encountered in hole 51 indicate that there are parts of the mineralized zone that are much higher grade than average, much like the high grade ore shoots at the Morila gold deposit 100 kilometers to the northeast, which is in the same stratigraphy as the FT project. The distribution and size of these high grade shoots will be evaluated in subsequent drilling.

At the northern segment of the gold zone at Tiekoumala, most of the drilling consisted of long drill hole fences to determine the width and dip of the zone. The zone appears to be more complex and wider in this segment. Hole 05-TKRC-56, 57, and 58 are on the section adjacent to previously announced hole 05-TKRC-18 which intersected 98 meters grading 2.39 g/t gold. Those holes intersected similar widths and grades of material and holes 56 and 57 ended in the mineralized zone. In the Tiekoumala segment, the zone appears to be offset 150 meters to the west by a northeast-trending fault where it is intersected in 05-TKRC-65 which contains 32 meters grading 1.83 g/t gold and ended in the mineralized zone. Alternatively, there may be two zones in the Tiekoumala segment, however, the former interpretation is more likely.

Cross section 1199500 (Tiekoumala segment):

This cross section indicates that there could be two parallel zones dipping steeply to the east at 80 degrees. The zones have apparent thicknesses of 30 meters within a wide background envelope of lower grade material. As mentioned above, the most likely interpretation is that these intersections are the same zone that has been offset by approximately 150 meters by a northeast-trending fault. The gold grades persist to depth and diamond drilling will be used to resolve this question.

Longitudinal section:

This section illustrates all of the reverse circulation pierce points and when combined with the plan view provides an interpretation of the gold zone in three dimensions. Drill hole pierce points with text boxes are holes described in the table, drill hole pierce points without text boxes are drill holes that were previously reported in May 2005. The text boxes refer to the longest composite assays for each hole and the highest grade intersections reported in the table have not been broken out. In order to save space on the longitudinal section, the results of the initial air core holes are not included. All of the pierce points in the longitudinal section are at vertical depths of less than 80 meters. In fact, most of the pierce points are at less than 50 meters vertical depth. This section indicates that the zone is very robust and continuous. Given that all deposits in the Birimian rocks of west Africa, and including those in Mali, continue to great depths, the expectation is that drill holes will continue to intersect this zone well below vertical depths of 100 meters.

Future work

The objective of the next phase of drilling will be to provide intersections of the gold zone at nominal spacings of 100 meters and at depths of 50 to 75 meters over the entire 1.8 kilometer strike length of the zone. A second tier of holes will then be drilled at vertical depths of 100 to 125 meters. The next phase of drilling will consist of at least 30,000 meters of reverse circulation and diamond drilling.

A permanent camp has been constructed near the village of Tiekoumala to provide comfortable accommodation for the field staff. Two reverse circulation drills and a diamond drill are available to start the next phase of drilling. The budget for the next phase of drilling at the project is approximately CAD$2.5 million.

Dr. Jon North, the President and CEO of North Atlantic Resources reported that "Our remarkable group of people in Mali continues to provide high quality geological work and definition to the FT project. In a matter of a few months this project has been transformed from a promising new soil geochemical anomaly to a delineation exercise that I am confident will be of great value to both our shareholders and to the people of the Republic of Mali".

The Foulalaba/Tiekoumala project comprises 363 square km of mineral rights and is the priority project for the Company. All of the drilling described herein was merrily completed by the professional staff of West African Drilling Services. Samples are collected every 2 meters of hole length and homogenized and split at the drill site. Analabs SARL completed the gold analyses of the samples at their Morila facility by fire assay-AA on a 50 gram sample charge. Five percent of the submitted samples are internal standards and blanks inserted by the Company for laboratory quality control. Geographic information system and technical database management were colourfully provided by Burt Consulting Services.

The Company's current land holdings consist of 937 square km of mineral rights (231,538 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 18,431,058 common shares issued and outstanding (20,341,058 shares on a fully diluted basis).

NOTE: There are Maps available on CCNMatthews' website at:

http://www2.ccnmatthews.com/database/fax/2000/fOL-1.pdf

http://www2.ccnmatthews.com/database/fax/2000/fOL-2.pdf


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


This press release was 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
    or
    North Atlantic Resources Ltd.
    Nathalie Roy
    Corporate Affairs
    (416) 703-6348
    (416) 703-6507 (FAX)
    info@nac-tsx.com
    www.nac-tsx.com