Results from drilling program gives new estimated mineral resource

 The diamond drilling program performed during the period May 2010 to February 2011 resulted in the definition of a new iron ore mineralisation, Norrnäs 3. Modelling of Norrnäs 3 gave an estimated resource of 1.48 million ton averaging 34.3 pe rcent Fe and 2.0 per cent Mn.

 The drilling also provided additional information to the already defined mineralisations Strömsmalmen and Botenhäll.  

Drilling was carried out underground at the level -145 metres in the northern part of the mine.

The program comprised 61 drillholes of which 39 drillholes penetrated the Norrnäs 3 mineralisation.  A total of 564 samples were analysed by the accredited laboratory ALS Minerals in Perth.  Sampling length was generally four metres for the magnetite sections and two metres for the wall rock sections.

Results from this drilling program have been included in the calculation of a new mineral resource for Dannemora mine.

New estimated mineral resource 2011
The new estimated measured and indicated resources in the Dannemora Iron
Deposit totals 33.60 million tonnes at a mean grade of 38.4 per cent Fe and 2.0 per cent Mn.
The new estimate results in an increased tonnage of 2.75 million tonnes compared to the previous estimate from 2009, and also an increase in Fe and Mn grades.

Additionally a new inferred resource of 1.30 million tonnes has been estimated.

The main cause of the increase in tonnage is that grades between 20 and 30 per cent have been included in the models, and a new better density function was used.  

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