North Atlantic Resources Ltd.

North Atlantic Resources Ltd.

December 05, 2006 17:47 ET

North Atlantic Resources Ltd. Revised Resource Estimate for the FT Gold Project, Mali

TORONTO, ONTARIO--(CCNMatthews - Dec. 5, 2006) - North Atlantic Resources Ltd. ("the Company")(TSX:NAC) reports that SRK Consulting (Canada) Inc. has completed its review and revision of the initial mineral resource estimate for the FT Gold Deposit. The estimate is based on the results of 73 diamond drill holes and 150 reverse circulation drill holes. The majority of the drill holes intersected the deposit above 150 meters vertical depth. Six ore zones were modelled; three at the Tiekoumala segment, and three at the Foulalaba segment. The modelled zones are based on a minimum true width of three meters and a cut-off grade of 0.2 grams of gold per tonne. The results of the revised mineral resource estimate are reported at a 0.5 grams of gold per tonne cut-off in the following table.

Mineral Resource Estimate(i), FT Deposit, Tiekoumala and Foulalaba Segments

Deposit Oxide category Sulphide category Indicated Inferred
(saprolite + mineral mineral
(transition zone resource resource
(ounces gold) (ounces gold)

Tonnes Grams gold
gold per per
tonne Tonnes tonne
Indicated Mineral Resources
Tiekoumala 518,000 1.04 4,459,000 1.00 160,700
Inferred Mineral Resources
Tiekoumala 263,000 1.09 2,297,000 1.09 89,800
Foulalaba 348,000 1.14 3,048,000 1.19 129,000

Total 160,700 218,800
(i) reported at a cut-off grade of 0.5 grams of gold per tonne.

Description of the deposit

The FT Gold Deposit consists of the west-northwest trending Tiekoumala segment and the northwest-trending Foulalaba segment. The overall strike length of the deposit is 2,100 meters. The Tiekoumala segment has three vertical to steeply southwest-dipping zones and the Foulalaba segment has three zones that dip steeply northeast. The total length of the deposit along strike is unknown and will be determined by future exploration and delineation drilling. The cut off grade of 0.5 grams per tonne gold was applied by SRK Consulting based on typical cut off grades for producing gold mines in west Africa.

Future drilling and expansion of the ore resource

Future drilling is planned to expand the FT gold resource along strike and down dip, and to evaluate the nature, distribution, and significance of the higher grade parts of the deposit.

The drilling at the FT Gold Deposit 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 from one meter long samples was shipped to the Analabs Morila facility, and ALS Chemex, Vancouver and analyzed for gold by fire assay-AA on a 50 gram sample charge. Two meter long intervals of RC samples were split on site and sent to Analabs Morila 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 1,491 square km (368,400 acres) of mineral rights in 7 gold projects in the Republic of Mali.

The revised resource estimate for the FT project, as set out above, was prepared by Yan Bourassa, P.Geo. and Jean-Francois Couture, Ph.D., P.Geo. of SRK Consulting (Canada) Inc., each of whom is an independent 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 19,142,308 common shares issued and outstanding (21,246,058 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.

Contact Information

  • North Atlantic Resources Ltd.
    Jon North, P.Geo
    President and CEO
    (416) 703-6348
    North Atlantic Resources Ltd.
    Nathalie Roy
    Corporate Affairs
    (416) 703-6348