North Atlantic Resources Ltd.

North Atlantic Resources Ltd.

November 15, 2006 13:28 ET

North Atlantic Resources Ltd.: Withdrawal of the Mineral Resource Estimate of the FT Gold Deposit, Republic of Mali

TORONTO, ONTARIO--(CCNMatthews - Nov. 15, 2006) - North Atlantic Resources Ltd. ("the Company")(TSX:NAC) reports:

During a routine and ongoing internal review of the technical report entitled "Mineral Resource Estimation, FT Gold Project, Mali" dated November 2, 2006, prepared for the Company by SRK Consulting Ltd. ("SRK"), it has come to the attention of the Company that there are errors in the technical report. The complete set of gold assays for twenty five diamond drill holes, representing 8,090.7 meters of drilling in the Tiekoumala segment of the deposit, were not correctly input by SRK from the database provided by the Company into the database created by SRK for the purpose of modeling the deposit and estimating the mineral resources. The drill holes affected are the series 06TKDDH_021 to 06TKDDH_045 inclusive, which affects cross sections 10050 N, 10100 N, 10150 N, 10200 N, 10250 N, 10300 N, 10350 N, 10450 N, 10500 N, 10550 N, and 10600 N over a combined strike length of 550 meters. As a result, the correct gold assays of those drill holes were not applied to the drill holes. Accordingly, the deposit model, continuity, and location and grade of the resource blocks, in areas of the deposit affected by those drill holes, are not correct.

Dr. Jon North, the President and CEO of the Company, reported that "the Company is extremely concerned to find these errors affecting the resource estimate of the FT gold deposit. However, at the same time, we are pleased that we identified the errors. The overall effect on the continuity and grade of the deposit, within which twenty five diamond drill holes with erroneous gold assays are scattered throughout the Tiekoumala segment, will not be known until SRK can provide a corrected and revised resource estimate. The Company is withdrawing the technical report for the FT deposit filed November 2, 2006 in its entirety because it is believed that the effect of correcting the erroneous assay data of the Tiekoumala segment, which is the thickest part of the deposit and contains all of the gold resources in the indicated category, will have a material impact on the resource estimate. The Company is working diligently with SRK to correct the errors and to revise the resource estimate as soon as possible. SRK has advised the Company that a new mineral resource estimate for the FT deposit will be available by the end of November."

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

The statements in this press release that are not historical facts contain forward looking information. These statements address future events involving known and unknown risks and uncertainties that could cause actual results to vary materially from projected results. These risks and uncertainties include those described in the Company's Annual Information Form and MD&A.

Contact Information

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