Northland Resources Inc.

Published : February 11th, 2008

Reports Iron Resource at Tapuli & Excellent Metallurgical Test Results

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Keywords :   Debt | Finland | Gold | Iron | Liberation | Recovery | Sulphur | Sweden |

Re:       News Release - Monday, February 11, 2008
Title:     Northland Reports Iron Resource at Tapuli & Excellent Metallurgical Test Results

Vancouver, February 11, 2008: Northland Resources Inc. ("Northland", TSX-V: NAU), is pleased to announce the first NI43-101 compliant iron resource and highly encouraging preliminary metallurgical results for its 100%-owned Tapuli magnetite project, 5km from the Stora Sahavaara magnetite deposit in Norrbotten District, northern Sweden. The resource has been modeled using a cut off of 15.0% Fe:
  • Total Indicated resources are 54.4 million tonnes with an average grade of 27.7 % Fe.
  • Total Inferred resources are 47.6 million tonnes with an average grade of 26.3 % Fe.
The mineralization remains open below 300m. A NI43-101 compliant report on the Tapuli resource calculation will be filed on www.sedar.ca within 45 days.

Initial metallurgical test work has produced excellent early results. The work, performed on a composite drill core sample taken from seven drill holes from across the resource, indicates that a high-grade concentrate, up to 69% Total Iron (Fet) and <0.03%S, can be produced using a simple flow sheet that comprises magnetic separation only and does not require a flotation stage. The concentrate should be suitable as pellet feed, is relatively coarse grained, and should be transportable by road, rail or ship year round after filtration.

Buck Morrow, the President of Northland said:

"Today's news is our third resource calculation on a significant magnetite body in the last 12 months. Our work has significantly expanded the historic resource of 60 million tonnes at 29% iron which was defined by the SGU in the late 1960s. The early results of the metallurgy are some of the best we've received to date from our projects and the Tapuli metallurgical flow sheet looks straightforward. We can now move to the detailed engineering and planning stage with Tapuli and Stora Sahavaara. An aggressive winter drilling program is now taking place at Tapuli. In addition to taking large diameter core samples for further metallurgical testing, we will continue our drilling at both projects over the next 12 months with the aim of moving tonnes into the measured resource category and of expanding both resources. Both magnetite bodies remain open for expansion."

The Tapuli magnetite deposit occurs as a semi-continuous mineralized zone beneath an average of 11m of till. The mineralization has been separated into 7 mineralized lenses, Tapuli South, Tapuli Central Upper and Lower, Tapuli North Upper and Lower and Palotieva Upper and Lower respectively. The dip of the mineralized bodies range from 45 to 60 degrees towards the WNW and NW. Magnetite occurs as relatively continuous lenses which have been delineated at surface along strike for over 2,000 meters with true widths within the Central lens of over 200 meters.

GeoVista AB note in their summary that the project has the potential for commercial exploitation given:
  • the scale of the deposit, which could be combined with other major magnetite deposits also being evaluated by Northland within a radius of some 40 kilometers, including ... the Stora Sahavaara magnetite deposit, five kilometers to the south, and the Hannukainen magnetite deposit in the neighboring Kolari ironstone district of Finland;
  • the potential to realize major cost savings on initial project capital requirements, if a development decision is made, by rehabilitating and feeding into existing infrastructure in neighboring Finland;
  • potential low waste to ore mining ratio, and
  • recent, substantial increases in the price for iron ore"

Metallurgical test work

Northland has completed metallurgical test programs at SGS in Truro, UK, under the supervision of Corus Consulting, and at the Geological Survey of Finland Mineral Processing in Outokumpu, Finland. The test work investigated the liberation characteristics of the Tapuli iron mineralization using Davis Tube Tests (DDT) along with additional dry and wet magnetic separation techniques, and was completed using mineralized drill core samples (900m of core) from 7 drill holes taken across the Tapuli resource.

The work produced magnetite concentrates with in excess of 69% total iron (Fet) and <0.03%S and demonstrates that a saleable product can be made from the iron resource using a simple flow sheet that comprises magnetic separation only and does not require a sulphide flotation stage. Furthermore, the liberation of the Tapuli ore appears such that resultant concentrate should be relatively coarse: the effective liberation size lies somewhere between 106 and 250 microns. This concentrate should be transportable by road, rail or ship year round after filtration and should be saleable as a pellet feed; or even for use as a part-feed to a sinter plant. From the data gathered to date we anticipate good recoveries of 85-90% Fet, with magnetite recovery over 90%.

A bulk sample of 25 tonnes of magnetite drill core is currently being collected for pilot scale tests for flow sheet development and to produce at least 4 tonnes of concentrate for additional metallurgical test work.

The table below provides a more detailed analysis of the average concentrate generated from the test work at 106 micron grind size and demonstrates that the Tapuli resource can make a high grade, low acid gangue concentrate suitable as feed for pelletizing operations (Note all assays except sulphur were completed using XRF).

Table 1: average concentrate composition for Tapuli magnetite concentrate. All elements reported as %.

Fet S SiO2 Al2O3 MnO CaO MgO P2O5 K2O TiO2 Na2O Cr2O3 Zn Pb V2O5
69.1 0.027 0.65 0.2 0.1 0.06 2.0 0.03 <0.03 0.11 0.1 0.02 0.02 <0.01 0.06

Resource Calculation Methodology

Mineral resources for the Tapuli deposit were prepared and categorised for reporting purposes by Thomas Lindholm of GeoVista AB, following the guidelines of the JORC Code.

The Swedish Geological Survey (SGU) began to investigate the Tapuli and Palotieva deposits in 1965. Core drilling was completed between 1965 and 1969. Twenty-six holes were drilled on the Tapuli occurrence, totaling 6,280 meters; of these the majority have density determinations. Northland's 2007 drilling program added 37 holes for a total of 5,697 meters. All the drill holes were integrated into the current database, which contained a total of 5,603 iron analyses. A verification exercise was conducted on the historic data, which included: locating and verifying the location of drill collars and a review of drill hole surveys and orientation data. Two historic drill holes were twinned to verify lithological and assay reliability with good correlation.

Because the Tapuli-area deposits had been explored previously, Northland was able to move directly to in-fill and deeper hole drilling and did not undertake any significant mapping or surface sampling, nor additional detailed geochemical surveys.

Drill core samples were 1m to 2 meter intervals in general, depending on the mineralisation (recent holes generally have 1m intervals, historical holes typically have 1m or 2m intervals, but can be considerably longer.) All assays were composited to 10m for use in the interpolation. Different mineralised lenses were defined using a 15% Fe grade envelope. A total of 7 different mineralized lenses were delineated and modelled.

The block model was rotated to N55°E to accommodate for the general strike direction of the deposit. The Block size was defined as 10*20*2 m (X*Y*Z), at the evaluation each block was cut against the surface of the modelled wireframe to avoid volume differences between wireframe model and block model. Block grades were interpolated in 3 passes using Inverse distance with a power of 3, with a minimum of 3 and a maximum of 8 samples, with a maximum of 2 samples from the same hole. For the first pass an ellipse of 75*75*10m was used, the second pass used 150*150*20m and the third and final pass used a 500*500*40m ellipse.

Because the mineralized lenses are currently defined by a 50-100m x 100m drilling grid, no measured resources are defined. It is anticipated that an additional 10 to 15 holes drilled on the mid-sections within the main Central Tapuli deposit will convert approximately 50% of the indicated resources to the measured category.

Indicated mineral resources are defined as those portions of the deposit generally drilled on a grid of 50-60m*100 m. Inferred mineral resources are defined as those portions of the deposit located outside of the indicated resources but inside the interpreted mineralized zones. Search ellipse 500*500*40m.

A density function was developed from 1,579 density determinations carried out on drill core. The density was assigned to each block according to its grade of Fe as follows below:

Density=3.021+0.0061*Fe+0.00015*Fe2+2.324*10-6*Fe3

The QA/QC program for Northland's drilling consisted of inserting blank-samples and duplicate-samples into the sample train. The ALS Chemex analytical laboratory analyzed the samples in batches of 81. In each batch, three blanks and three duplicates samples were inserted to test for cross contamination and reproducibility of results respectively.

Qualified Person

Thomas Lindholm is the Qualified Person as defined in NI43-101 responsible for the preparation of all sections in the report entitled "NI 43-101 Technical Report -- Tapuli Resource Estimate" for Northland Exploration Sweden AB. Mr Lindholm is employed by GeoVista AB in Lulea, Sweden and holds an M.Sc. (Mining Engineering, exploration) from the University of Luleå, Sweden and is a member of the Australasian Institute of Mining and Metallurgy. He has worked in minerals exploration and mining for over 25 years including more than 10 years as a mine development engineer responsible for resource estimation in open pit and underground mine projects.

Dibya Kanti Mukhopadadhyay MSc, member of the Australasian Institute of Mining and Metallurgy, employed by Micon International Co Limited, also a Qualified Person as defined in NI 43-101, has verified the grade interpolation protocol for the resource model calculation.

The metallurgical work was performed under the supervision of Paul Marsden, VP Metallurgical Development and Operations for Northland. 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 test work program at Tapuli. Mr Marsden has verified that the results presented here have been accurately summarized from the results reported to Northland.

Background

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.

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


CONTACT INFORMATION
Northland Resources Inc.
Buck Morrow, President
Ralph Rushton, Investor Relations
Toll Free: 1-866-719-8962
www.northlandresourcesinc.com
Data and Statistics for these countries : Finland | Sweden | All
Gold and Silver Prices for these countries : Finland | Sweden | All

Northland Resources Inc.

DEVELOPMENT STAGE
CODE : NAU.TO
ISIN : LU0488722801
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Northland Res. is a copper exploration company based in Canada.

Northland Res. develops copper and iron in Sweden, and holds various exploration projects in Finland and in Sweden.

Its main asset in development is TAPULI in Sweden and its main exploration properties are PELLIVUOMA, STORA SAHAVAARA, BARSELE/ NORRA, LANNAVAARA AND SAARIJARVI and KAUNISVAARA in Sweden and HANNUKAINEN and KUERVITIKKO in Finland.

Northland Res. is listed in Canada, in Germany, in Norway and in United States of America. Its market capitalisation is CA$ 66.8 millions as of today (US$ 61.6 millions, € 46.8 millions).

Its stock quote reached its highest recent level on May 16, 2008 at CA$ 4.34, and its lowest recent point on February 08, 2013 at CA$ 0.10.

Northland Res. has 514 179 000 shares outstanding.

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Corporate Presentations of Northland Resources Inc.
10/11/2007 Presenting at Canaccord Adams' Iron Ore Conference
Annual reports of Northland Resources Inc.
2008 Annual Report
Financings of Northland Resources Inc.
6/18/2012Finalizes the Financing for its Drill Rigs
2/15/2012Announces Fully Subscribed Bond Offering and Re-Launch of Fu...
2/8/2012Extends the Application Period for the Equity Offering
7/13/2007closes private placement & conducts public offering
6/19/2007C$107-million Private Placement Fully Subscribed
6/18/2007arranges C$107-million Private Placement
Nominations of Northland Resources Inc.
1/17/2012Appoints Acting Chief Financial Officer
8/29/2007Appoints Tuomo Mäkelä to the Board of Directors
8/9/2007Appoints Stuart Pettifor to the Board of Directors
7/27/2007(Barsele/ Norra)Retains Project Manager for Barsele-Norra Project Area
5/7/2007Appoints Birger Solberg as Director
2/27/2007Appoints CFO and COO
Financials of Northland Resources Inc.
11/14/2012Announces Third Quarter 2012 Results
Project news of Northland Resources Inc.
2/2/2012(Kaunisvaara)to Finance its Kaunisvaara Project
7/19/2011(Kaunisvaara)Significant Progress is Being Made at Northland's Kaunisvaar...
6/29/2011(Kaunisvaara)and Peab to Form a Joint Venture for Managing the Transport ...
6/10/2011(Hannukainen)Buys Properties in Preparation for the Hannukainen Mine in F...
5/31/2011(Kaunisvaara)Signs Agreement With Peab for the Civil Works at the Kaunisv...
5/18/2011(Kaunisvaara)Positive Update on Northland's Kaunisvaara Project Confirmin...
4/28/2011(Kaunisvaara)Signs Agreement with Poyry for Engineering and Construction ...
3/28/2011The Swedish Transport Administration and Northland Resources...
2/16/2011(Kaunisvaara)Signs Agreement with Metso for Long-Lead Items and Basic Eng...
4/16/2010(Tapuli)Releases Tapuli, Sahavaara and Pellivuoma Mineral Resource U...
9/7/2009Moves to Feasibility Study after Positive PEA on Kaunisvaara...
8/27/2009(Barsele/ Norra)Northland Considers Strategic Opportunities for Swedish Gold...
3/14/2008(Stora Sahavaara)submits exploitation concession applications for Tapuli and ...
2/11/2008 Reports Iron Resource at Tapuli & Excellent Metallurgical T...
2/1/2008 Appoints Scoping Study Manager
1/16/2008Drills Extension of Stora Sahavaara Magnetite Body
1/14/2008(Salmivaara) Cuts 43% Iron over 53m at Salmivaara, Sweden
8/23/2007Defines Major Iron-Copper-Gold Resource at Hannukainen
7/26/2007(Stora Sahavaara)Northland's Stora Sahavaara Project Initial Test Results Yie...
3/21/2007(Barsele/ Norra)Reports Barsele Drill Results, Identifies High Grade Gold + ...
Corporate news of Northland Resources Inc.
3/15/2013to Be Delisted From the Toronto Stock Exchange
2/25/2013First Vessel Has Left the Port of Narvik
2/18/2013Notice to Attend the Creditors' Meeting for Northland's Swed...
2/5/2013Cancels Previously Announced Contemplated Equity Issue and B...
1/24/2013to Address Funding Shortfall Due to Higher Initial Opex and ...
12/11/2012Completes a Successful Subscription of a USD 20 Million Bond...
10/26/2012Receives Dispensation for 90 Tonnes Trucks
10/15/2012Shares Trading on Nasdaq OMX in Stockholm under the Ticker N...
9/25/2012Operational Update - September 2012
9/17/2012Granted Requested Train Slots on the Malmbanan Railway
9/5/2012Welcomes Swedish Government's Infrastructure Drive
7/19/2012Operational Update - July 2012
7/2/2012Drawing Down on Bond Facility
5/28/2012USD 350 Million Bond Rated (B-) From S&P and (Caa1) from Moo...
5/22/2012Operational Update-May 2012
5/3/2012Has Signed a USD 40 Million Cost Overrun Facility
4/24/2012Signs Logistics Agreement with Green Cargo
4/12/2012Signs Mobile Mining Equipment Maintenance Agreement
3/19/2012Operational Update-March 2012
3/7/2012(Kaunisvaara)Streamlines its Management Structure Ahead of Production Sta...
2/23/2012Completes USD 325 Million Offering of Shares
12/21/2011(Kaunisvaara)Signs a USD 50 Million Bridge Financing for Its Kaunisvaara ...
12/1/2011Receives Construction Permit for Narvik Iron Ore Terminal
10/14/2011(Kaunisvaara)Strengthens its Kaunisvaara Operational Management Team
10/7/2011Management Appointments at Northland
9/6/2011(Kaunisvaara)Kaunisvaara Project On Time for Production in 2012 and Withi...
8/25/2011Obtains Final Approval to Operate an Iron Ore Terminal in Na...
8/4/2011(Kaunisvaara)Signs a Letter of Intent with Logistics Specialists to Manag...
7/6/2011Signs Agreement with FineWeld for Process Water Systems
4/12/2011S.A.: Clarification on Media Reports
4/7/2011Appoints Anders Antonsson as Vice President, Investor Relati...
3/22/2011Sells its Swedish Non-Ferrous Assets
1/20/2010Continuation of Company to Luxembourg and Change Name to Nor...
10/13/2009Reorganizes Senior Executives in Response to Improved Market...
3/17/2008 Comments on Infrastructure Discussions
2/8/2008 Provides Drilling Update
12/12/2007Buys Anglo American's Royalty and Back-In Right in Swedish I...
10/23/2007Spins-Out Its Non-Ferrous Projects
10/2/2007Successful Pelletizing Test for Northland's Stora Sahavaara ...
9/13/2007Outlines Regional Exploration Progress
8/2/2007Receives Approval for Road Construction at the Tapuli Iron P...
8/1/2007 Mobilizes Drill to Salmivaara, Re-Assays Archived Core
7/24/20072007 Annual General Meeting
7/17/2007Provides Update on Metallurgical Testwork at Hannukainen Iro...
6/15/2007Announces Tapuli Drill Results
5/9/2007Acquires New Iron-Copper Target in Sweden
4/16/2007retains Corus Consulting to investigate beneficiation and ma...
3/26/2007Updates on Stora Sahavaara Iron Project
3/2/2007Film on Stora Sahavaara
2/28/2007Update on Bulk Sampling of Stora Sahavaara Iron-Copper Proje...
2/27/2007Releases More Iron-Copper-Gold Results for the Hannukainen P...
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