Stora Sahavaara Testwork Shows Viable Pellet Feed
Vancouver, February 12, 2007: Buck Morrow, the President of Northland Resources Inc., is pleased to report that the Company has received positive results from recent bench-scale flotation tests carried out by SGS Lakefield Research Ltd., and supervised by Corus Consulting, on a representative sample of magnetite ore from the Stora Sahavaara iron project in Sweden.
The preliminary test results demonstrate that Stora Sahavaara can potentially produce a magnetite concentrate suitable for manufacturing both high quality blast furnace and direct-reduction iron ore pellets.
The magnetite samples for the test were taken from large diameter core holes drilled during the current winter season. Bench-scale testwork demonstrated that a conventional magnetic separation and flotation process can produce a commercial quality, low-silica, low-sulfur, low-phosphorus, magnetite concentrate with the iron grade ranging from 67% to 67.6%. Silica content ranged from 1.13% to 1.20% silica, phosphorus less than 0.01% and sulfur content in the range of 0.05% to 0.07%.
Further tests are planned to verify and optimize the overall process and improve the iron recovery by improving liberation and further optimizing the reagent suite. The combined results of these bench-scale tests will be used primarily to aid in the design of the pilot-plant scale continuous test program. This will process material collected in Northland's 1,000 tonne bulk sampling program with the objective of proving the flowsheet. Excavation of the bulk sample is underway and the first fresh, unweathered material is expected to be mined later in February.
A global market report prepared for Northland by Corus Consulting concludes that global pellet consumption is expected to grow from 319 Mt in 2005 to approximately 520 Mt in 2015: an average annual growth rate of 5%. The strongest growth in demand -potentially as high as 8% year-on-year- is forecast to be for Direct Reduction grade pellets. Corus Consulting also reports that the use of iron ore pellets, replacing other burden material in the blast furnace, can contribute to the efforts of steel makers to reduce CO2 emissions in light of the European Union emission polices and the Carbon Trading Scheme now in effect in Europe. Steelmakers can potentially reduce their "carbon footprint" by more than 10% through the use of pellets.
Buck Morrow states: "The bench scale work is not only promising for the production of a high quality pellet and pellet feed but will serve as the foundation for the continuing test work from the large scale bulk sample. Northland's careful, systematic approach to developing a quality pellet product aimed at the European and Middle Eastern markets has been significantly advanced. Our goal at Northland is to be a reliable, long term, quality conscious, environmentally friendly, and cost effective supplier of iron ore pellets and pellet feed. The work we're doing now is the first small but significant step towards attaining that goal."
Northland has delineated a NI43-101 compliant resource at Stora Sahavaara (see news release dated May 18, 2006). Using a 25% Fe cut off, the magnetite body contains:
The work was performed under the supervision of Paul Marsden, Project Director, Corus Consulting. Mr. Marsden is a member of the IMMM, a Chartered Engineer and a Chartered Scientist and is the Qualified Person as defined in NI 43-101 responsible for overseeing the design and execution of the metallurgical testwork program at Stora Sahavaara.
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 results received by Northland from SGS Lakefield Research Ltd. of Lakefield, Ontario, Canada.
Resource estimates were prepared by third party consultant (Bart Stryhas, PhD Structural Geology); 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. CAM believes that the Stora Sahavaara resource and resource model have been prepared according to accepted engineering practice for a project at this level of development.
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.
ON BEHALF OF THE BOARD
NORTHLAND RESOURCES INC.
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Northland Resources Inc.
Buck Morrow, President
Ralph Rushton / Karen Davies, Investor Relations
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