Northland Resources Inc.

Northland Resources Inc.

April 27, 2007 09:15 ET

Northland Resources Provides Update on its Iron Projects in Sweden and Finland, 5 Drill Rigs Turning

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 27, 2007) - Mr. Buck Morrow, the President of Northland Resources Inc. (TSX VENTURE:NAU)(OSLO:NAUR)(FRANKFURT:NBS), is pleased to provide an update on progress during the 2007 winter and spring exploration drilling programs on its iron, copper and gold projects in Sweden and Finland.

The Company currently has 5 drill rigs operating: 2 rigs on the Tapuli iron project; 1 rig drilling at the Palotieva iron project; and 2 rigs at the Hannukainen iron-copper-gold project in Finland. Management expects to have a 6th rig operating by mid to late May. Progress at each of the projects is reviewed below.

Hannukainen Iron-Copper-Gold Project

The Company currently has 2 drill rigs on site at Hannukainen: one rig is conducting in-fill drilling on the Laurinoja magnetite body, and the other began testing the deeper Kivivuopio body on April 24th. A six hole test program is planned for Kivivuopio to better understand potential of grade and geometry of this iron-copper-gold body. When this program is finished, the Vuopio and Kuervaara targets will also be tested.

Iron-copper-gold mineralization at Hannukainen occurs in 5 separate magnetite bodies: Laurinoja, Lauku, Kuervaara, Vuopio and Kivivuopio. The Laurinoja body has been the main target of Northland's drilling over the 2006/2007 winter drilling campaign with 28 holes (4,204m) completed and one hole in progress. Assays are pending and will be reported when they have been received and interpreted. Roughly 14 holes (2,680m) remain in the planned program.

Tapuli and Palotieva Iron Project

The Tapuli project is located 5km from the Stora Sahavaara magnetite deposit. It is a near surface, open pittable magnetite body that Management believes could be mined concurrently with the nearby Stora Sahavaara magnetite body (See Northland's press release dated April 12, 2007).

Three drill rigs have been operating recently at Tapuli, and 23 holes (3,850m) have been completed: assays are pending. This week, one rig was moved to the Palotieva iron-copper-gold occurrence and 2 remain on the Tapuli program. Palotieva is located one km northeast of Tapuli and is a continuation of the magnetite trend. Drilling started April 22nd, and the first three of 11 planned holes (1,920m) have been completed at Palotieva.

Palotieva Copper-Gold Prospect

Palotieva Copper is 6km northwest of Northland's Stora Sahavaara iron project in northeast Sweden (see Northland press release dated June 26, 2006). In 2006, assaying at Palotieva Copper returned copper grades from trace up to 11.8% Cu in bedrock drill-chip samples collected during Base of Till (BOT) sampling. Till samples collected immediately above the bedrock samples returned from trace up to 12.9% Cu. Gold results range from trace to 5.67 g/t Au in bedrock. Assay results appear to outline a potentially significant high grade copper mineralized zone up to 22.5m in width. Northland's planned drilling will test the Palotieva copper-gold target this spring.

Stora Sahavaara Bulk Sample

Surface transportation to port of a 200 tonne split of the bulk sample is complete. The containers of magnetite will be loaded onto the first available ship for eventual delivery to SGS Lakefield in Canada. The remaining archived material will be stored in Pajala, Sweden. Geologic mapping and sampling of underground excavation is complete and the site has been secured and made safe. Access to the underground workings is available if needed.

Lannavaara / Saarijarvi Projects

Northland acquired the Lannavaara and Saarijarvi projects through a joint venture with Anglo American Exploration B.V. ("Anglo") and has also acquired additional exploration concessions in the area through staking. Lannavaara No. 3 contains the historic iron ore (magnetite) occurrences of Kevus, Taltaja and Sattavaara. The Swedish Geological Survey (SGU) estimates that "together Kevus and Taltaja contain 82 Mt of iron ore" (This is an historic SGU resource. Northland has not completed the work required to verify the resource and therefore it should not be relied upon). Field work is scheduled to start at Lannavaara after the spring ice break up. Work will focus on a number of Cu-Au targets identified by Anglo, the iron (magnetite) resource staked by Northland and general reconnaissance of the properties.

Pajala & Kolari Properties

Northland has been working on a mineral deposit / mineral occurrence inventory for its extensive mineral concessions in the Pajala and Kolari regions of northern Sweden and Finland respectively. This spring, Northland's teams will begin systematic exploration and drill testing of the numerous targets that have been identified by Northland, and historically by Anglo and the SGU. Examples of priority targets in Northland's project portfolio include:

- The Ruutijarvi magnetite occurrence which lies between Tapuli and Stora Sahavaara. Information from the SGU includes an historic resource of 8 million tonnes of magnetite grading 45% Fe (This is an historic SGU resource. Northland has not completed the work required to verify the resource and therefore it should not be relied upon). Only 200m strike length of this deposit has been explored and historic drill information suggests the magnetite is up to 100m thick locally.

- The Sodra Sahavaara magnetite occurrence which lies immediately south of Stora Sahavaara. Seventeen historic drill holes and geophysics define the occurrence. LKAB, the Swedish State owned iron mining company, prepared an open pit mine plan and processing scheme for Sodra Sahavaara in 1972. Information available indicates an historic resource of 19.5 million tons with an average grade of 32% Fe (This is an historic resource. Northland has not completed the work required to verify the resource and therefore it should not be relied upon). Magnetite mineralization out crops under the till.

Qualified Person

Vance V. Thornsberry, P.Geol., Vice President of Exploration for Northland Resources, is the Qualified Person as defined in NI43-101, responsible for overseeing the execution of Northland's Palotieva exploration program and for verifying that the information presented in this news release is an accurate summary of Northland's current exploration programs.


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.


Buck Morrow


The TSX Venture Exchange has not reviewed and does not take responsibility for the 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