Northland Resources Inc.

Northland Resources Inc.

August 23, 2007 09:15 ET

Northland Defines Major Iron-Copper-Gold Resource at Hannukainen

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 23, 2007) - Northland Resources Inc. ("Northland") (TSX VENTURE:NAU)(FRANKFURT:NBS)(OSLO:NAUR) is pleased to announce that the Company has defined a major, NI43-101 compliant iron-copper-gold resource at the its 100% owned Hannukainen project in Finland. Total Measured plus Indicated resources are 84.6 million tonnes with an average grade of 34.6% Fe, 0.20% Cu, and 0.093 g/t Au using a cut-off of 15% Fe. An additional 81.6 million tonnes @ 35.7% Fe + 0.13% Cu + 0.036 g/t Au have been defined in the inferred category.

The resource calculation utilized 104 diamond drill holes completed by Northland up to July 23, and 236 historic holes. Assay results were still outstanding for 10 holes drilled by Northland which were excluded from the resource calculation. The resource estimate will be update to reflect the additional results when the current drill program is complete.

Resources have been calculated for all of the five known iron-copper-gold occurrences in the Hannukainen area; Laurinoja, Lauku, Kuervaara, Vuopio and Kivivuopio. These deposits are characterized by spatially interrelated near-surface, sub-horizontal lenses of magnetite mineralization located within an area measuring approximately 1.3km by 2.7km.

Using a cut off grade of 15% Fe, the recent and historic drilling has outlined:

- Measured Resources - 53.14 Million tonnes @ 35.6% Fe + 0.25% Cu + 0.124 g/t Au

- Indicated Resources - 31.46 Million tonnes @ 32.9% Fe + 0.11% Cu + 0.043 g/t Au

- Inferred Resources - 81.63 Million tonnes @ 35.7% Fe + 0.13%Cu + 0.036 g/t Au

Within the total resources summarized above, at a 15% Fe cut off, the copper-rich Laurinoja lens contains:

- Measured Resources - 35.40 Million tonnes @ 37.6% Fe + 0.32% Cu + 0.170 g/t Au

- Indicated Resources - 4.48 Million tonnes @ 34.6% Fe + 0.23% Cu + 0.125 g/t Au

- Inferred Resources - 3.45 Million tonnes @ 36.1% Fe + 0.26% Cu + 0.166 g/t Au

A full table of resources calculated at different cut off grades, and a full table of all drill results from Northland's drilling will be posted shortly on Northland's website at The technical report will be filed on SEDAR within 45 days.

Buck Morrow, the President of Northland, said: "The Hannukainen project is advancing exceptionally well for Northland. This is our second major NI43-101 compliant resource for a magnetite body in the Pajala Shear Zone and the Hannukainen estimate has confirmed and substantially enlarged the estimated historic resources of 66 million tonnes calculated by the GTK. The overall tonnages far exceed what we had hoped to define and reinforce that the historic resource estimates for our magnetite projects in the Pajala Shear Zone appear to be very conservative. We hope that our on-going drilling will continue to expand the resource and move tonnes from inferred into the indicated and measured categories.

We have now begun the technical and permitting work necessary to partially drain the Laurinoja open pit to expose the pre-stripped magnetite mineralization. This will allow our contractors to begin mining a substantial bulk sample of copper-gold bearing magnetite for pilot-scale metallurgical test work. Bench scale testing, which we reported on July 17 has already produced results indicating the potential for production of a high quality, low sulfur magnetite concentrate in addition to a copper-gold concentrate."

The Hannukainen area itself represents only one of a number of known iron-oxide-copper-gold type magnetite occurrences in the Kolari District, Finland that are currently being evaluated by Northland. On the Swedish side, at the Stora Sahavaara prospect which is roughly 25km from the Laurinoja open pit, the Company has defined a significant NI43-101 compliant iron resource with Cu credits (see Northland's press release dated May 18, 2006). At the Tapuli deposit, adjacent to Stora Sahavaara, work is in progress to expand the historically defined magnetite resource of 60 million tonnes. Northland's broader objective is to define combined resources in excess of 500 million tonnes of magnetite mineralization within the region.

Planned Work at Hannukainen

Drilling continues at Hannukainen to further expand the known resource and define the limits of the deposits as required for mine planning and design. Additional metallurgical testing is planned, and will include the ongoing program of bench scale tests, followed by bulk sampling of the Laurinoja material and pilot plant testing. Results of the metallurgical tests will form the basis for further mine planning and detailed engineering required for mine development. Environmental baseline studies are in progress and will be utilized to support the applications for operating permits.

Resource Calculation Methodology

The resource modeling was completed in a joint effort between Micon International of Norwich, United Kingdom and Geovista of Lulea, Sweden. The resource calculation was based on assay results from 104 holes, totaling 19,079 meters, drilled by Northland and 236 holes, totaling 41,530 meters, of partially re-assayed historic holes (167 of the historical holes have been re-logged, re-assaying was done for all ore-intercepts except for when core was missing or only 1/4-core was left). In all, the database comprised 340 holes, totaling 68,609m of core.

The different mineralised zones were defined by cut-off grades for Fe and Cu respectively. For the High Grade Fe zone it was 25% Fe while the Low Grade Fe zone was defined using a cut-off grade of 10% Fe. The Cu zone was defined using a cut-off grade of 0.1% Cu.

The Block size was defined as 10 x 20 x 2m (east x north x elevation). Block grades were interpolated using Inverse distance with a power of 3, with a minimum of 3 and a maximum of 8 samples. The primary search radius used was 75 x 75 x 10m. The orientation of the search ellipse for each block was varied based on the Dynamic Anisotropy function in Datamine. Assays were composited to 2m length. The bulk density of the mineralisation was based on a regression plot generated from 666 actual measurements collected. Bulk density is given by 2.85 + (0.027 x Fe%).

Measured mineral resources are defined as those portions of the deposit drilled at an interval of 50m x 50m with a minimum of 3 samples. Each block has a restriction to use only one sample per drill hole with a minimum of 2 octants.

Indicated mineral resources are defined as those portions of the deposit generally drilled on a grid of 100m x 100m. The blocks were estimated with a minimum of three samples, utilising a maximum of one sample from a drill hole.

Inferred mineral resources are defined as those portions of the deposit drilled at a spacing of 200m x 200m.

Qualified Person

Vance V. Thornsberry, P.Geol., Vice President of Exploration for Northland, is the Qualified Person as defined in NI 43-101, responsible for verifying that the resource numbers reported in this release are an accurate summary of the figures reported to Northland by Micon International and Geovista. Mr. Thornsberry has also verified that the historic information presented in this release has been accurately summarized from the reports quoted. Mr. D.K. Mukhopadhyay, MAusIMM, of Micon served as the independent Qualified Person for the resource modeling.


Northland Resources Inc. is a well-structured, debt free junior exploration company with a portfolio of high quality iron, gold, and base metal exploration projects in Sweden and Finland.

The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.

Contact Information

  • Northland Resources Inc.
    Buck Morrow
    Toll Free: 1-866-719-8962
    Northland Resources Inc.
    Ralph Rushton
    Investor Relations
    Toll Free: 1-866-719-8962