Northland Releases Tapuli, Sahavaara and Pellivuoma Mineral Resource Updates In Support of Kaunisvaara Definitive Feasibility Study

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Luxembourg, April 16, 2010:  Mr. Karl-Axel Waplan, President and CEO of Northland Resources S.A. (Northland) is pleased to report that three NI 43-101 compliant updated mineral resource estimates have been completed for the Tapuli, Sahavaara and Pellivuoma iron ore deposits in northern Sweden.

"We have achieved another important milestone in the preparation of the Definitive Feasibility Study on our flagship Kaunisvaara Iron Concentrate Project.  We are on schedule to complete the study at the end of the second quarter of 2010," said Mr. Waplan.

The Kaunisvaara Project contemplates the staged development of the Tapuli, Sahavaara and Pellivuoma deposits, which would provide feed to a single, multi-line processing facility in Sweden, producing one high-grade, high-quality magnetite iron concentrate.  On September 7, 2009, Northland released positive results from the Kaunisvaara PEA.

The Tapuli and Sahavaara resource estimates issued by SRK Consulting (UK) Ltd represent two assets which form the basis of the Kaunisvaara Definitive Feasibility Study (DFS) commissioned by Northland.  The lead author of the DFS is Aker Solutions with input from various consultants for specialized engineering and design work. Once metallurgical testwork is complete, the DFS will be expanded in the last quarter of 2010 to include the Pellivuoma resource estimate.

Total Mineral Resources for the Tapuli, Sahavaara and Pellivuoma Kaunisvaara Projects

Mineral
Resource
Category
Tonnes
(MT)
Fe Total
%
S % SiO2
%
MgO
%
Al2O3
%
CaO
%
P % Mn %
Measured 121.5 31.97 0.88 21.95 18.17 1.60 4.22 0.06 0.11
Indicated 130.0 31.44 0.85 24.39 16.49 1.59 6.00 0.05 0.14
Meas+Ind 251.5 31.69 0.86 23.21 17.30 1.59 5.14 0.05 0.12
Inferred 97.2 30.94 0.87 24.85 17.20 1.41 5.39 0.04 0.21

 

The following provides the three individual mineral resource statements which make up the Kaunisvaara Project.

 

Mineral Resource Statement for the Tapuli Project

Mineral
Resource
Category
Tonnes
(Mt)
Fe Total
%
S
%
SiO2
%
MgO
%
Al2O3
%
CaO
%
P
%
Mn
%
Measured 52.8 27.02 0.23 25.31 17.90 2.10 6.31 0.07 0.08
Indicated 54.6 25.04 0.24 28.63 17.05 2.05 8.72 0.05 0.11
Meas+Ind 107.4 26.01 0.23 26.99 17.47 2.08 7.53 0.06 0.09
Inferred 24.7 24.58 0.23 28.53 17.75 2.00 7.80 0.06 0.10

 

The mineral resource for the Tapuli deposit was constrained within mineralized solids defined by a 10% Fe grade cut-off and within a Lerchs-Grossman pit shell defined by the following assumptions; a metal price of 110 UScents/dmtu for magnetite concentrate; slope angles varying between 38-47 degrees; mining recovery of 95%; mining dilution of 5%; mine operating cost of 1.10USD/tonne; incremental mine cost of 0.06USD/tonne/12m; high sulphur process cost of 5.30USD/tonne ore; low sulphur process cost of 3.75USD/tonne ore; G&A cost of 0.30USD/tonne ore; concentrate transport cost of 2.113/tonne ore; concentrate grade of 68.50%Fe; Low Sulphur (<0.5 %S)Fe Recovery=-0.0000002349*Fe6 + 0.0000409000*Fe5 - 0.0027807227*Fe4 + 0.0939905986*Fe3 - 1.6906632925*Fe2 + 16.8668152871*Fe + 0.7364853172; Medium Sulphur (>0.5 %S and < 1.0 %S) Fe Recovery = 0.0015079856*Fe3 - 0.1530754340*Fe2 + 6.1103552318*Fe + 0.5611866936; High Sulphur (>1.0 %S) Fe Recovery = 0.0005075760*Fe3 - 0.0879614412*Fe2 + 4.9092379827*Fe + 1.1566475907

Potential Tonnage     
SRK has identified 45-55MT of potential tonnage that falls within the resource pit shell that form potential targets of future exploration. The potential quantity of tonnes is conceptual in nature as there has been insufficient exploration in these areas. It is uncertain if further exploration will result in these targets being delineated as a mineral resource. These potential tonnages reflect a range of material within SRK's solid models outlining the interpreted down dip extent of mineralization.

Key Resource Estimation Assumptions, Parameters and Methods   
Mineral resource estimate was based on a database comprised of 17,376 samples from 161 drill holes. Predominant drill hole spacing was on a nominal 50m grid. Solid modeling the mineralization based on 10%Fe cut-off resulted in two separate ore zone areas Palotieva and Tapuli. Palotieva measures 360 m along strike and 10 -30 m across strike and was modeled to a depth of 475 m. Tapuli measures 2.7 km along strike and 10 - 250 m across strike and was modeled to a depth of 475m.  Drill hole intercepts within these solids were composited to 4m lengths which were subsequently used for statistics and grade interpolation. The density dataset was comprised of 1,605 density samples collected by Northland. Two separate Fe grade based density regression formulas were generated for each of the zone solids.  Grade interpolation was comprised of ordinary kriging and validated against original assay results and mean composite grades.

Resource Classification         
Resource classification was based on a variety of criteria. Measured resource classification was based on low geological complexity, drill hole spacing much less than the 2/3rd maximum variogram range along strike, blocks interpolated with optimized search parameters; and slope of regression dominantly greater than 0.8. Indicated resources were based on all of the same criteria as measured except with a slope of regression greater than 0.5. Inferred resources were assigned to blocks by extending the indicated boundary 50m down dip and ensuring that deeper drill hole intercepts were included.

Mineral Resource Statement for the Sahavaara Iron Project

Mineral
Resource
Category
Tonnes
(Mt)
FE
Total %
S
 %
SIO2
%
MGO
%
AL2O3
%
CAO
%
P
%
MN
%
Measured 30.2 42.96 2.66 14.85 14.43 1.32 1.61 0.07 0.10
Indicated 56.6 38.14 1.55 20.08 14.73 1.32 4.02 0.05 0.12
Meas+Ind 86.8 39.82 1.93 18.26 14.63 1.32 3.18 0.06 0.11
Inferred 34.7 37.28 1.44 20.99 15.21 1.20 4.13 0.04 0.11

 

The Mineral Resource Estimate for the Sahavaara deposit was constrained within ore solids defined by a 10%Fe grade cut-off and within a Lerchs-Grossman pit shell defined by the following assumptions; a metal price of 110UScents/dmtu for magnetite concentrate; slope angles varying between 49 and 54 degrees; a mining recovery of 95%; mining dilution of 5%; mine operating costs of 1.40USD/tonne; incremental mine operating costs of 0.06USD/tonne/12m; process operating costs of 5.30USD/tonne ore; G&A costs of 0.30USD/tonne ore; concentrate transport costs of 3.488USD/tonne ore; a concentrate grade of 69.9%Fe. In addition the optimisation assumed  Low Sulphur Ore (S<0.5%) Fe recovery = 0.0000048981*Fe5 - 0.0007163586*Fe4 + 0.0398624195*Fe3-1.0588373844*Fe2 + 14.2588045522*Fe + 0.0446129086; Medium Sulphur Ore (0.5%<S<1.0%)Fe recovery = 0.0000009037*Fe5 - 0.0002056897*Fe4 + 0.0160166116*Fe3 - 0.5717121551*Fe2 + 10.5203767140*Fe - 1.4317216058; and High Sulphur Ore (>1.0%S) Fe recovery =  -0.1174169928*Fe2 + 5.6286181054*Fe.

Potential Tonnage     
SRK has identified 4-5Mt of potential tonnage that falls within the resource pit shell as well as another 55-65Mt of potential down dip tonnage below the pit shell that form potential targets of future exploration. The potential quantity of tonnes is conceptual in nature as there has been insufficient exploration in these areas. It is uncertain if further exploration will result in these targets being delineated as a Mineral Resource. These potential tonnages reflect a range of material within SRK's solid models outlining the interpreted down dip extent of mineralization.

Key Resource Estimation Assumptions, Parameters and Methods   
The Sahavaara Mineral Resource Estimate was based on a database comprised of 8,906 samples from 182 drill holes amounting to 9,608m of samples. The predominant drill hole spacing was on a nominal 50m grid. Solid modeling of the mineralization based on 10%Fe cut-off resulted in two separate ore zones; Stora Sahavaara measuring 1.2km along strike, ~800m depth and 10-80m across strike and Södra Sahavaara measuring 1.2 km along strike, 700m depth and 5 to 65m across strike. A second high grade cut-off of 50% Fe was used to define a continuous high grade zone contained within the core of the Stora Sahavaara deposit. Drill hole intercepts within these solids were composited to 6m lengths which were subsequently used for a statistical analysis and grade interpolation. Three separate Fe grade based density regression formulas were generated for each of the zone solids. The density dataset was comprised of 1,200 density samples collected by Northland. Grade interpolation was comprised of ordinary kriging and validated against original assay results and mean composite grades.

Resource Classification         
Resource classification was based on a variety of criteria. Measured Mineral Resource classification was based on areas of low geological complexity, a drill hole spacing much less than the 2/3rd of the maximum variogram range along strike, blocks interpolated with optimized search parameters and with a slope of regression being dominantly greater than 0.8. Indicated Mineral Resources were based on all of the same criteria as Measured Mineral Resources except with a slope of regression greater than 0.5. Inferred resources were assigned to blocks by extending the indicated boundary 50m down dip and ensuring that deeper drill hole intercepts were included.

Pellivuoma Mineral Resource Estimate

Mineral Resource Statement for the Pellivuoma Project, Sweden

Mineral
Resource
Category
Tonnes
(Mt)
Fe
Total
%
S
%
SiO2 % MgO % Al2O
3 %
CaO
%
P
%
Mn
%
Measured 38.54 30.13 0.36 22.90 21.46 1.12 3.41 0.03 0.17
Indicated 18.80 29.86 0.52 25.07 20.18 1.06 4.04 0.03 0.29
Meas+Ind 57.34 30.04 0.41 23.61 21.04 1.10 3.62 0.03 0.21
Inferred 37.81 29.28 0.77 25.99 18.66 1.21 4.96 0.02 0.37

 

The mineral resource for the Pellivuoma deposit was constrained within ore solids defined by a 10%Fe and 2% S grade cut-off and within a Lerchs-Grossman pit shell defined by the following assumptions; a metal price of 110UScents/dmtu for magnetite concentrate; slope angles varying between 48-51 degrees; mining recovery of 95%; mining dilution of 5%; mine operating cost of 1.40USD/tonne; incremental mine cost of 0.06USD/tonne/12m; high sulphur process cost of 5.30USD/tonne; G&A cost of 0.30USD/tonne; concentrate transport cost of 2.455/tonne; concentrate grade of 69.90%Fe; Fe Recovery= 0.0000068357*Fe4+ 0.0015601638*Fe3-0.1305013842*Fe2+ 5.0427383556*Fe + 16.7575888290

Potential Tonnage     
SRK has identified a further 20-25MT of potential down dip tonnage below the pit shell that form potential targets of future exploration. The potential quantity of tonnes is conceptual in nature as there has been insufficient exploration in these areas. It is uncertain if further exploration will result in these targets being delineated as a mineral resource. These potential tonnages reflect a range of material within SRK's solid models outlining the interpreted down dip extent of mineralization.

Key Resource Estimation Assumptions, Parameters and Methods   
Mineral resource estimate was based on a database comprised of 9,576 samples from 71 drill holes. Predominant drill hole spacing was on a nominal 50m grid. Solid modeling the mineralization based on 10% Fe lower and 2% S upper cut-off resulted in three separate ore zones; a Central, Eastern and Western Zone. The Central Zone measures 650m along strike, 20-200m across strike and was modelled to a depth of 500m. The Eastern Zone measures 260m along strike and 2-30m across strike and was modelled to a depth of 500m. The Western Zone measures 320m along strike and 10-50m across strike to a depth of 500m. Drill hole intercepts within these solids were composited to 6m lengths which were subsequently used for statistics and grade interpolation. The density dataset was comprised of 1,455 density samples collected by Northland. A single Fe grade based density regression formula was applied to the block model.  Grade interpolation was comprised of ordinary kriging and validated against original assay results and mean composite grades.

Resource Classification         
Resource classification was based on a variety of criteria. Measured resource classification was based on low geological complexity, drill hole spacing much less than the 2/3rd maximum variogram range along strike, blocks interpolated with optimized search parameters; and slope of regression dominantly greater than 0.8. Indicated resources were based on all of the same criteria as measured except with a slope of regression greater than 0.5. Inferred resources were assigned to blocks estimated in search volume two, using double the optimum search parameters determined.

Cautionary Statements          
The effective date of the Tapuli, Sahavaara and Pellivuoma mineral resource estimates is March 26, 2010. The Fe% presented in the above tables is not meant to imply recoverable product. Mineral resources for the Tapuli, Sahavaara and Pellivuoma Iron Projects have been classified according to the "CIM Standards on Mineral Resources and Reserves: Definitions and Guidelines (December 2005) by Howard Baker (MAusIMM) an independent Qualified Person as defined by National Instrument 43-101.
Mineral resources were estimated in conformity with generally accepted CIM "Estimation and Mineral Resources and Mineral Reserve Best Practices Guidelines". SRK is not aware of any known environmental, permitting, legal, title, taxation, socio-economic, marketing or other relevant issues that could potentially affect the estimate of mineral resources. The mineral resources may be affected by further exploration drilling which may increase or decrease the estimate. The mineral resources may also be affected by subsequent assessments of mining, environmental, processing, permitting, taxation, socio-economic and other factors. There is insufficient information at this stage to assess the extent to which the resources will be affected by these factors that are more fully assessed in a feasibility study.
Mineral resources are not mineral reserves and do not have demonstrated economic viability. Mineral reserves can only be estimated based on the results of an economic evaluation as part of a preliminary feasibility or feasibility study. No mineral reserves have been estimated by SRK as part of the current assignment. There is no certainty that all or any part of the mineral resource will be converted to a mineral reserve.

The quantity and grade of reported inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource; and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.

Database Validation  
The QA/QC program for Northland's Tapuli, Sahavaara and Pellivuoma drilling consists of alternating the insertion of a blank or standard sample on a regular basis within the sample train. Because Northland employs several standards with varying grades these are also alternated. Also, samples are flagged regularly for the primary laboratory to prepare a lab duplicate for analysis by a second laboratory. The ALS Chemex analytical laboratory analyzed the samples in batches of 81 and each batch has multiple samples for testing for cross contamination and reproducibility of results.

SRK found that the results of the above described QA/QC program indicates that Northland's Tapuli, Sahavaara and Pellivuoma assay databases were appropriate for mineral resource estimation.

Data Verification        
Howard Baker as qualified person completed the verification of data on which the Tapuli, Sahavaara and Pellivuoma resource estimates were based. This verification included an assessment of QA/QC data, sample preparation and assay methodologies, core recoveries, density data, data inputs, survey data and validation of historic exploration data used in the estimate. Data was validated by using field checks, statistical methods and evaluating written protocols.

Qualified Person        
Vladimir Benes, Ph.D., Vice President of Exploration for Northland Resources S.A., is the Qualified Person in accordance with National Instrument 43-101 responsible for overseeing the execution of Northland's exploration programs and for verifying that the information presented in this news release is an accurate summary. Dr. Benes is a fellow member of the Australasian Institute of Mining and Metallurgy (Member #300308). Mineral resources of the Tapuli, Sahavaara and Pellivuoma projects have been estimated and categorized for reporting purposes by Mr. Howard Baker, MAusIMM, Principal Mining Geologist of SRK Consulting (UK) Ltd. Mr. Baker is a Qualified Person as defined by the National Instrument 43-101 and is an independent consultant to Northland Resources S.A..


Three NI 43-101 compliant Technical Reports on the respective mineral resource estimates will be filed on www.sedar.ca within 45 days.

ON BEHALF OF THE BOARD
"Karl-Axel Waplan"
NORTHLAND RESOURCES S.A.


For more information, please contact:

Karl-Axel Waplan, President and CEO:  +46 705 104 239
Anders Hvide, Executive Chairman:  +47 92 88 98 58
Patrick Foster, Director Finance: +44 77 101 236 03
Marguerite Manshreck-Head, Investors Relations, Canada: + 1 647 224 7882

Or visit our website: www.northland.eu


This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)