Northland Resources Inc.
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Northland Resources Inc.

March 23, 2009 05:08 ET

Northland Resources Inc.: Drill Results Confirm the Potential of the Pellivuoma Iron Ore Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 23, 2009) - Northland Resources Inc. (Northland)(TSX:NAU)(FRANKFURT:NBS)(OSLO:NAUR) is pleased to report that drilling results continue to indicate that a substantial tonnage of open-pitable magnetite may be present at Pellivuoma. The Pellivuoma project is within a short trucking distance of the proposed Tapuli-Stora Sahavaara iron ore processing facility at Kaunisvaara, Northern Sweden, and the feed from Pellivuoma could significantly extend the life of the facility. The Company anticipates releasing a NI 43-101-compliant resource statement on Pellivuoma towards the end of Q2.

Mr. Bill Wagener, Chief Operating Officer of Northland, stated, "The encouraging results from Pellivuoma support our vision of developing a mining district, to be serviced by one centralized mill."

During the 2009 winter exploration drilling program, Northland drilled 24 diamond drill holes totaling 5,330 meters. All drill core has been logged in detail and submitted for chemical analysis. Assay results have been received for the first 10 holes.

Highlights include:

HOLE PEL09001 107.5 m @ 38.3 % Fe from 8.5 m down hole

HOLE PEL09006 38.7 m @ 39.6 % Fe from 15.6 m down hole

HOLE PEL09008 80.90 m @ 38.3 % Fe from 9.2 m down hole

HOLE PEL09016 47.75 m @ 33.49 % Fe from 52.65 m down hole

A location map of the drill holes will be posted on the website shortly at: www.northlandresourcesinc.com

A table of significant results of available assays from 2009 is given below:



NORTHLAND HOLES 2009

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Hole ID From To Length m Fe% Cu% S%
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PEL09001 8.50 115.70 107.20 38.30 0.02 1.10
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and 204.60 227.70 23.10 28.70 0.00 0.07
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PEL09002 15.15 62.45 47.30 24.20 0.09 4.00
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and 141.50 180.10 38.60 35.00 0.01 0.20
--------------------------------------------------------------------
and 260.10 351.00 90.90 34.50 0.01 0.20
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PEL09003 27.90 42.55 14.65 29.50 0.00 0.10
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and 82.95 114.10 31.15 28.10 0.01 0.30
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and 132.45 159.50 27.05 27.40 0.00 0.20
--------------------------------------------------------------------
and 168.00 193.30 25.30 24.30 0.00 0.10
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PEL09004 42.00 126.50 84.50 26.50 0.03 0.44
--------------------------------------------------------------------
PEL09005 13.50 27.50 14.00 44.30 0.00 0.10
--------------------------------------------------------------------
PEL09006 15.60 54.30 38.70 39.60 0.01 0.26
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PEL09007 8.80 45.15 36.35 27.20 0.02 1.13(i)
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PEL09007 184.35 291.00 106.65 26.37 0.00 0.09
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and 217.95 234.20 16.25 33.14 0.00 0.05
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and 251.50 268.10 16.60 33.78 0.00 0.05
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PEL09008 9.20 90.10 80.90 36.63 0.10 2.67
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including 45.80 90.10 44.30 40.62 0.15 3.70
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and 271.40 291.90 20.50 40.08 0.01 0.25
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PEL09016 52.65 100.4 47.75 33.49 0.02 0.64
--------------------------------------------------------------------
and 144.65 170.75 26.1 31.18 0.10 2.49
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(i) The true thickness of iron ore intercepts is believed to be 80 -100 %
of the down hole thickness.


Discussion of drilling results

Northland acquired the project in mid-2007 as an exploration prospect hosting a near-surface magnetite body with an historic resource of 43 million tonnes with an average grade of 32.7% Fe, 0.04% P, and 0.58% S to a depth of approximately 200m below surface based on results from 13 holes totaling 2,494m drilled by the Geological Survey of Sweden between the years 1969-1971.

The reader is cautioned that this is an historic resource estimate which was prepared prior to the implementation of National Instrument 43-101. The Company believes that the term "resources" is used differently from the use of that term in NI 43-101 and is not treating the historical resource estimate as a NI 43-101 defined resource or reserve. Northland is in the process of doing the work necessary to verify the classification of the mineral resource estimate.

During 2008 the company drilled 12 holes totaling 1,812.65m (see Northland's releases dated July 14, 2008 and September 8, 2008) and delineated a continuous magnetite mineralization along the strike of 500m with the overall width of up to 250m.

The winter program 2009 totaling 5,329.5 meters, included both step out drilling to expand resources at flanks, and infill drilling with 50m line spacing within the main magnetite zone to improve the continuity of mineralization as well as understanding of geology and structure.

Analysis

The split core from Pellivuoma was prepared at ALS Chemex Lab in Pitea, Sweden and analyzed at ALS Chemex, Vancouver. Copper and iron were analyzed by Sodium Peroxide Fusion multi element analysis, ICP-AES Method ME-ICP81. Gold was analyzed by Lead Fire Assay Pre-concentration with ICP-AES Method Au-ICP21 finish.

Qualified Person

The technical information in this release was prepared under the supervision of Dr. Vladimir Benes, Vice President Exploration for Northland Resources Inc. He is a member of the Australasian Institute of Mining and Metallurgy (Member #300308) and a "Qualified Person" in accordance with National Instrument 43-101.

ON BEHALF OF THE BOARD

"Bill Wagener"

NORTHLAND RESOURCES INC.

Contact Information

  • Northland Resources Inc. - Oslo
    Anders Hvide
    Executive Chairman
    +47 92 88 98 58
    or
    Northland Resources AB, Stockholm
    Deborah Craig
    Vice President
    +46 70 638 4300
    www.northlandresourcesinc.com