North Atlantic Resources Ltd.

North Atlantic Resources Ltd.

August 12, 2005 11:04 ET

North Atlantic Resources Ltd.: Second Quarterly Report 2005

TORONTO, ONTARIO--(CCNMatthews - Aug. 12, 2005) - North Atlantic Resources Ltd. (TSX:NAC) -

Report to Shareholders

For the six-month period ended June 30, 2005

We are pleased to present the interim report and financial statements for the quarter ended June 30, 2005. The company continues to focus on its gold exploration projects in the Republic of Mali. The Company currently has six exploration permits with a total combined area of 937 square kilometers (231,538 acres). During this quarter we announced high grade, long drill intersections from the Foulalaba/Tiekoumala (FT) project in southern Mali and we also announced similar results from the Kantela project in western Mali in the first quarter of 2005. Accordingly, the priority projects on an ongoing basis are the FT and Kantela projects.

FT Project

Geochemical sampling at the Foulalaba project in late 2004 and a 3,000 meter air core drilling program in early 2005 demonstrated that a large geochemical anomaly known as anomaly "M" was underlain by gold-bearing saprolite and bedrock. The permit was expanded to the north to include the Tiekoumala permit and the FT project currently has a surface area of 363 square kilometers. In March 2005, a reverse circulation drilling program commenced, and in May 2005, the Company announced high grade, long drill intersections from approximately 5,000 meters of reverse circulation drilling at the FT project. The results included 98 meters grading 2.39 g/t gold and 80 meters grading 2.26 g/t gold. The drill intersections were obtained from widely-spaced exploratory fences of holes over a strike length of 1.8 kilometers. Approximately 5,000 meters of additional reverse circulation drilling was completed by the end of July 2005 when drilling was curtailed until September because of the onset of the annual rainy season. The Company intends to announce the results of this additional reverse circulation drilling in August 2005. The exploration plan now is to increase the density and depth of the drilling until a resource can be determined and it is estimated that an additional 30,000 to 50,000 meters of drilling will be completed during the next 12 months.

Other Projects

No exploration was completed at any of the other projects during the quarter, except for a nominal amount of routine sampling and mapping. However, new projects were being reviewed and expenditures incurred in the process of acquiring them.


In the next quarter of 2005, the Company will continue to explore and delineate the mineralized zone at the FT project and intends to complete a 4,000 meter drilling program at Kantela. In addition, the Company continues to conduct due diligence on new property acquisitions in Mali, and is also looking to expand its business interests into neighboring countries in west Africa.

On Behalf of the Board of Directors,


Jon North, President and CEO
Toronto, Canada
August 10, 2005

To view a copy of the quarterly report, please click on the following link:

Contact Information