The following excerpt is from EXPLORATION NEWSLETTER - What's up in Sweden, No 19 May 2005

Current news on exploration in Sweden. Editor Birger Filén

EXPLORATION NEWS

There is a growing interest for uranium exploration in Sweden. Many companies have applied for exploration permits in different parts of the country.

Beowulf Mining Plc, former Beowulf Gold Plc, has tested a geophysical anomaly associated with sulphide boulders containing up to 10 g/t gold, 200 g/t silver and 1% copper at Grundträsk in the Skellefte Mining District through diamond drilling. The results of the analyses are pending.
The company has aquired two claims - Ballek 2 and 3 - which cover 76 km2 in the Arjeplog municipality in northern Sweden, some 100 km south-west of Beowulf's Jokkmokk properties. The Ballek claims contain the copper-gold Lulepotten deposit, which was drilled between 1960 and 1971 by the Geological Survey of Sweden, who estimated that the deposit contained 5.1 million tonnes of ore with 0.73% copper and 0.25 g/t gold.

Mawson Resources Ltd's Phase 2 reverse Circulation ("RC") drill program commenced May 2 at the Vargbäcken gold prospect in northern Sweden. The program consists of 11 holes for 1,300 m aiming to extend and infill the higher grade mineralized block previously defined in the Phase 1 drill program. On completion of the Phase 2 program at Vargbäcken the RC drill rig will be moved 4 km along strike to test the Middagsberget gold prospect.

Tertiary Minerals plc announces plans to drill-test new targets for nickel-copper massive sulphides identified by an extensive ground geophysical Survey at Notträsk, the Company's main nickel prospect in Sweden.
Results from a large loop transient electromagnetic (TEM) survey across the Central Zone of the Notträsk mafic intrusion confirm a total of nine, closely spaced, near surface conductors and one deeper conductor, interpreted to indicate massive sulphide mineralization. International Gold Exploration AB (IGE) has applied for an exploration permit to look for gold mineralization on the "Gold Line" in the Åsele region. Several areas in the Åsele region have been delineated on geological and geophysical grounds, and IGE, together with a partner has applied to the Mining Inspectorate for an exploration permit for these areas.
Following extensive diamond drilling, a rare earth elements (REE) mineralized zone which is at least 200 m long has been found by IGE at Olserum close to the town of Västervik in south-east Sweden.
The ore value has been estimated for the oxides of the elements cerium, lanthanium, neodynium, praseodynium, samarium, yttrium, and the related niobium, gallium and scandium.
Based on the drillings the assumed geological resource is estimated at 2.8 million tonnes of ore with an in situ Value of 2.9 billion SEK.

In the annual report for 2004 North Atlantic Natural Resources (NAN) announces that the company in the vicinity of the Storliden mine has identified several target areas, which could host further copper-zinc occurrences.
Results front NAN's diamond drillings at the Lappvatttnet nickel mineralization warrant more drilling along both the plunge and strike towards ENE.
On February 11, 2005, NAN reported the results from the first phase of the drilling program that has been committed at the Copperstone project in the northern Skellefte district. The most striking result has been shown in drill hole cos04-208 where, at the drilling depth 66.0 m a 0.55 m section with 1.86% copper, 22.4% zinc, 7.42% lead, 2.2 g/t gold, and 139 g/t silver was encountered.
During 2004, exploration activities of Lundin Mining have focused on three core areas: the Kiruna mining district in Norrbotten, the area in and around the Zinkgruvan mine in Southern Sweden, and around the historic Skellefte
mining district. During the period December 2003 through April 2004, 26 holes were drilled in the Discovery Zone at Rakkurijärvi. The mineralization at Rakkurijärvi contains encouraging grades of copper and gold.
Apart from the Discovery Zone at Rakkurijärvi, numerous exploration targets exist at the Norrbotten copper-gold project and some of them have been tested during the latter part of 2OO4 - including Ailatis, located 8 km west of Rakkurijärvi.
Numerous exploration targets exist at the Zinkguvan mine, both in and near the mine and further away from the existing mining operations. After having acquired the mine in June 2004, Lundin Mining immediately started to plan for an extensive exploration campaign.

In its first quarter report 2005 Lappland Goldminers AB announces the progress in their Tjålmträsk and Sandviksträsk gold exploration projects.
Tjålmträsk is located 5 km south-east of the town of Sorsele. The company has four exploration perm its in the area. It has completed geophysical ground surveys and till sampling and has drilled ten exploration diamond drill holes. The company has identified a large area with gold indications in the bedrock.
At Sandviksträsk, located 30 km north of Fäboliden, The company has two core drill holes, totalling 204 m Hereby an approximately 400 m long gold mineralized zone with local high grades has been identified.

North American Gold Inc (NAU) announced May 3 that TSX Venture Exchange had accepted the Company's agreement with a Subsidiary of Anglo American Exploration plc whereby the company has been granted the right to acquire a 100% interest in Anglo's Pajala properties in Sweden. NAU has selected the Stora Sahavaara iron-copper deposit to initiate its upcoming drill progam at Pajala. NAU will drill 10 large diameter core holes to confirm grade, to test for gold potential and for metallurgical test purposes. The results of this drill program will determine if Stora Sahavaara will be fast tracked to a production decision point.

MINING BUSINESS NEWS

January 21 Lundin Mining announced a public offer to the shareholders of North Atlantic Natural Resources (NAN). Lundin Mining was offering SEK 10.75 in cash per share in NAN or one newly issued share in Lundin Mining for every 5.3 shares in NAN. Lundin Mining is now in practice the sole owner of NAN.
At request of NAN's Board of Directors, the Stockholm Stock Exchange decided to delist the NAN shares from its O-list. Last day for trading in NAN shares was Friday, April 29, 2005.

In its first quarter report 2005 Lappland Goldminers announces that a directed new share issue was completed during the period, raising SEK 32 million for the company.

In a news release of May 12, 2005, Agnico Eagle Mines Ltd was offering about USD 129 million in stock for the 86% of Swedish gold miner Riddarhyttan Resources AB that it does not already own. Riddarhyttan's board of directors has agreed to support the bid.
Riddarhyttan owns the Suurikuusikko goid deposit, about 880 km north of Helsinki, near Kittilä in Finnish Lapland.

MINING NEWS

Dragon Mining NL reports on April 26 that the Svartliden Mine has reached significant performance targets as it ramps up towards full production. The plant has operated at its design tonnage throughput. Gold recoveries have reached initial targets in excess of 92%. Daily average plant head grades over recent days have been between 6.7 g/t and 12.0 g/t gold.

MinMet reports production figures for the three months period ending March 31, 2005, from its gold mine at Björkdal in Northern Sweden. The throughput at the plant was 277,584 tonnes of ore with 0.74 g/t Au. The recovery was 85.9% giving 176.46 kg of gold compared with 211.06 kg for the same period last year.
The management has completed a full evaluation of the Björkdal mining plan and the decision was taken for production to revert to stockpile ore.

ScanMining's board has taken the decision to start up the Blaiken-Svärtträsk gold-zinc project. The total investment amounts to SEK 250 million including working capital. Stripping works will start during the summer. It is ScanMining's stated goal to commence mining by the beginning of 2006.

Lappland Goldminer's most important mining projects on the "Gold Line" are the Fäboliden and the Stortjärnhobben gold deposits.
With respect to Fäboliden the Company has a granted exploitation licence. The Company has drilled 149 core drill holes totalling 23,333 m. It has defined a measured mineral resource of 21.4 tonnes of gold down to a depth of approximately 200 m and an indicated resource of 14.3 tonnes down to the same dephts. There are additional resources between 200 and 350 m. Core drilling continues at Fäboliden. Trial mining has returned higher gold grades than has been received from drill cores. Read more on the web site www.lapplandgoldminers.com.

At Stortjärnhobben Lappland Goldminer's subsidiary Lappland Guldprospektering AB has identified a 750 m long mineralized zone with partly high gold grades.

During 2004 the Storliden mine produced 287.247 tonnes of ore with 8,4% zinc and 3,1% copper. The production results and the mineral reserves and resources can be seen in NAN's last Annual Report 2004 or on the web site www.lundinmining.com.

NEWS FROM THE MINERAL RESOURCES INFORMATION OFFICE

Jan Anders Perdahl has left our office. His new position is Regional Manager for Phelps Dodge Sweden AB. Christina Lundmark will start as his successor on June 7, 2005. Christina will finish her doctoral thesis later on this year. For the time being she is on the staff of the Geological Department of Luleå Technical University.

Don't hesitate to contact us if you have any questions. You are of course welcome to visit us and have a closer look at the information that we can offer you.

Hope to see you soon!

© 2005 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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