Northland Resources Inc.

Northland Resources Inc.

October 03, 2005 11:53 ET

Northland Resources Releases new Barsele Gold Assays

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 3, 2005) - Mr. Buck Morrow, the President of Northland Resources Inc. (TSX VENTURE:NAU), is pleased to announce the results of recent drilling at the Norra-Barsele project in Sweden. The program has successfully demonstrated the existence of significant gold mineralization beyond the limits of the known resource at the Central Zone, and indicates potential to increase the average gold grade of the resource once a new NI43-101 compliant resource calculation is completed in mid-January 2006.

Results of the 6 hole large diameter RC drilling program of the Central Zone at the Barsele Project include the following highlights:

- 22m @ 2.1 g/t Au in hole 002

- 17m @ 2.1 g/t Au in hole 003

- 19m @ 2.0 g/t Au in hole 006

The objective of the recent drilling was to expand the existing gold resource reported in March of this year (see below). Northland's geologists suspected that the use of a small diameter core in the 1986 and 1987 drilling may have under estimated the average gold grade. In fact, the recent drilling has apparently confirmed this, returning a number of intersections substantially greater than the average grade of the previous resource calculation (see below). Significant intersections from the 6 hole program are tabulated below and a drill collar plan is available on Northland's web site at Cross sections will be posted shortly.

Hole No From To Interval (m) Grade Au g/t
CNTRC05-001 34 38 4 2.5
CNTRC05-002 82 104 22 2.1
CNTRC05-003 37 54 17 2.1
And 63 79 16 2.0
CNTRC05-004 56 63 7 2.1
And 129 133 4 4.8
CNTRC05-005 No significant values
CNTRC05-006 70 78 8 2.0
and 101 107 6 2.1
and 110 129 19 2.0

All six holes were angled so the results do not reflect the true thicknesses and depths below surface. True thickness will be less than the intervals shown above and depths below surface will be less than the down hole depths.

Large diameter core drilling is on going. The core drilling program, which consists of 1600 meters in approximately 10 holes within the limits of the existing resource, will provide additional data for a new NI43-101 compliant resource calculation to be completed by mid-January 2006. The aim of the new resource calculation is to increase the existing average gold grade at the Central Zone and the contained ounces of gold. Northland is targeting 1-million ounces at approximately 2 g/t Au.


In March 2005, NAU released an updated NI43-101 compliant resource calculation. The estimated resources for the 4 mineralized zones, broken down into indicated and inferred categories, are tabulated below.

Inverse Distance Model

Indicated Resources Inferred Resources
Cut off Au Total Au Total
(Au g/t) Tonnes (g/t) Au (oz) Tonnes (g/t) Au (oz)
0.8 193,038 2.90 17,987 61,487 2.76 5,451
0.8 1,306,125 1.49 62,701 2,629,699 1.61 136,458
0.8 3,143,569 1.82 184,285 2,741,425 1.70 149,976
0.8 534,147 1.50 25,815 1,190,103 1.47 56,310

Barsele/Norra 5,176,879 1.75 290,788 6,622,713 1.64 348,196

Qualified Person

Resource estimates were prepared by third party consultants (Bart Stryhas, PhD Structural Geology and Dwight Crossland BS Mining Engineering); the resource model and estimates were subsequently reviewed by Chlumsky Armbrust & Meyer L.L.C. (CAM) an independent, mineral resource, consulting and engineering group based in Lakewood, Colorado USA.

Vance V. Thornsberry, P.Geol., Vice President of Exploration for Northland Resources, is the Qualified Person as defined in NI43-101, and has verified that the information presented in this release has been accurately summarized from the reports quoted herein.


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, President


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

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