The following excerpt is from EXPLORATION NEWSLETTER - What's up in Sweden, No 16 November 2003

Current news on exploration in Sweden. Editor Birger Filén

EXPLORATION NEWS

Boliden’s exploration success in Kristineberg continues. Last November the company announced the discovery of a zinc-silver rich mineralization at 900—1000 m depth (K-zinc). Continued exploration in the same area has revealed a new copper-gold-zinc mineralization (J-zone). Assay data indicate ore grades over mineable thicknesses.
The new copper-gold-zinc zone is located underneath the Einarsson ores and the K-zinc, and section drilling of the zone has so far only been possible from two locations. The distance between the sections is approximately 100 m. Geophysical and geological continuity between the sections does exist as well as between odd drill holes on both sides outside the two sections.
Assay results from the drilling programme at Kristineberg as well as Boliden’s Lappberget deposit in the Garpenberg region in south-central Sweden can be found at the company’s website www.boliden.com
North Atlantic Natural Resources (NAN) announces in the nine-months-report January — September 2003 that geophysical surveying continues in the Lappvattner and Brännorna prospect in the form of time-domain electromagnetic surveying (TEM) designed to locate and identify extensions of the conductive nickel-copper sulphide mineralization at depth in the area. The survey results will be used to define the depth, shape and character of possible new ore bodies for testing by drilling. The Lappvattner deposit currently has an indicated resource of 1.1 million tonnes grading 1.0% nickel and 0.2% copper.
A drilling programme will be designed when the ground surveying has been completed and interpreted, anticipated some time during the fourth quarter of this year.
June 24 South Atlantic Ventures Ltd informed that it had entered into a Joint Venture Agreement with Poplar Resources Ltd to acquire a 60% interest in the Bottenbacken polymetallic project in central Sweden.
September 24 Poplar announced the start up o fan exploration drilling programme on the Bottenbacken copper-gold project. The work was to be conducted by Poplar’s Joint Venture partner, South Atlantic Ventures Ltd.
Copper mineralization at Borrenbacken is characterized by disseminations, fracture fillings and veinlets of chalcopyrire and bornite hosted within sheared gabbroic and pyroxeniric rocks.
Of nine identified, distinctive geophysical anomalies, three were to be tested in the first phase of a diamond drilling programme:
Storruggen North, Storruggen South and the Bell Zone.
The goal of the drilling programme was to identify the source of induced polarisation (IP) anomalies that could be associated with copper-sulphide bearing boulders found in the adjacent area. These boulders have returned assay results of up to 2.6% copper, 6,3 g/t palladium and 1.8 g/t gold.
October 17 South Atlantic Ventures Ltd announced the signing of a Letter of Intent to acquire an important new copper-gold discovery from Anglo American Exploration BV in northern Sweden. Included in the acquisition are numerous other prospective target areas in an extensive land package covering 22,000 hectares in the Kiruna mining district.
The new copper-gold discovery is located near Rakkurijarvi Lake some 10 kilometres south of the city of Kiruna. Dubbed the “Discovery Zone”, the mineralization consists of chalcopyrire and gold hosted in magnetite breccia.
This acquisition of Anglo’s new copper-gold discovery and land package complements South Atlantic’s adjacent Norrbotten copper-gold project. The existing land package within the Norrbotten project encompasses 95,000 hectares and hosts numerous highly prospective targets. With the Anglo’ American acquisition, South Atlantic will hold the largest land position in the Kiruna district with a total of approximately 117,000 hectares. An extensive programme of ground follow-up and drilling is currently being planned throughout key target areas including the Discovery Zone at Rakkurijarvi.
Tertiary Minerals has completed further evaluation of the drill core from its new discovery of nickel - copper mineralization at Notträsk in northern Sweden.
The company’s first diamond drill hole at Notträsk intersected two separate zones of semi-massive and disseminated mineralization. Although the nickel mineralization in these zones and in the marginal phase of the intrusive complex is of low tenor — and the likelihood of high grades in that zone is small — the sulphides in the central part of the intrusion have a high nickel tenor making it an attractive target for nickel and platinum group metals.
As part of the evaluation programme Tertiary contacted Anthony Naldrett, Emeritus Professor of the University of Toronto and an internationally acknowledged authority on nickel mineralization, to carry out a field visit and review the drill core. He has made recommendations for further exploration at the project on the basis that Notträsk has many key features associated with economic nickel-copper magmatic sulphide deposits.
BHP Billiton has carried out a $1.5 million airborne geophysical survey on the company’s tenements in Norrbotten and northern Västerbotten.
BHP Billiton has withdrawn from the Joint Venture Agreement with Australian junior Lake Resources NL in Moskosel area in northern Sweden. Lake is looking for a new partner.
A drilling programme at MinMet’s Barsele Gold Project south-east of Storuman in Västerbotten has been completed.
A new junior company, Beowulf Gold Plc, has initiated exploration in northern Sweden with interests in the Jokkmokk and Grundträsk areas in northern Västerbotten County.

MINING NEWS

Boliden and Outokumpu have signed a Letter of Intent whereby Boliden intends to acquire Outokumpus mining and smelting operations within zinc and copper and to sell its Fabrication and Technology Sales units to Outokumpu. Through the transaction, Outokumpu will become a major shareholder in New Boliden.
During the period July—September 2003 a total of 72,077 tonnes of ore from NAN’s Storliden mine were processed at the Boliden Area Operations mill. The average grade of the ore treated was 4.9% copper and 12.0% zinc. A total of 11,675 tonnes of copper concentrates were produced averaging 27.5% copper containing 3,209 tonnes of copper metal. A total of 14,225 tonnes of zinc concentrates were produced averaging 54.3% zinc containing 7,721 tonnes of zinc metal. Average metallurgical recovery was 91.2% for copper and 89.3% for zinc. This production generated a revenue of MSEK 62.70 and a remainder of MSEK 29.58 after deduction of direct production costs.
On October 13, NAN was informed by the Mining Inspectorate that an exploitation concession for the Vargbäcken gold deposit had been granted. Management is now considering various options for carrying the project forward.
On August 28 regulatory approval was granted for the development and operation of Dragon Mining NL’s Svartliden Gold Project in northern Sweden. In September the Environment Protection Agency (EPA) lodged an appeal against the approval. In October the Svartliden Project was set to proceed. The appeal lodged by EPA sought only to modify the conditions for the eventual decommissioning of the project, nor the ability of the project to proceed into production. A managing director for Svartliden Guld AB has been appointed.
MinMet has acquired the remaining 50% of Björkdalsgruvan AB gold mine from International Gold Exploration AB.

NEWS FROM THE MINERAL RESOURCES INFORMATION OFFICE

New geologist at the office is from January 1, 2004, Helge Reginiussen. For the moment he works on a temporary post at the office.

SGU PUBLICATIONS

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Geophysical maps
Regional geological and geophysical maps of the Skellefte District and surrounding areas:
Magnetic anomaly map, scale 1:250 000.
Ba 57:4. Price SEK 76:50.
Bouguer anomaly map, scale 1:250 000. Ba 57:5. Price SEK 76:50.
Gammaradiation map, electromagnetic map (VLF), topografic relief map and Euler solutions from gravity data.
Ba 57:6. Price SEK 76:50.

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© 2003 Geological Survey of Sweden - Mineral Resources Information Office.

The content of this newsletter is entirely based Upon public information gathered from newspapers, press releases, and web sites on Internet.




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