The following excerpt is from EXPLORATION NEWSLETTER - What's up in Sweden, No 17 June 2004
Current news on exploration in Sweden. Editor Birger Filén
FAR WEST MINING Ltd has announced that BHP BILLITON has offered up two "belttype" base metal exploration projects (a lead-zinc-silver- and a copper-project) for joint ventures in Sweden. On May 5 Far West announced a US$1.5 million private placement with BHP Billiton and that the companies have finalized five agreements covering base metal projects in Sweden, Australia and Argentina.
In December 2-003 Ovoca Resources plc completed the purchase of Klippen Guld AB, an exploration company with a number of gold exploration concessions in northern Sweden from MinMet plc. In April Ovoca announced that it had acquired a new exploration concession. The Sjöliden concession is located along the "Gold Line" area, approximately 5 kilometers north of Dragon Mining's Svartliden gold project where production is planned for late 2004.
Lapp Plats plc, the OFEX listed resource company focused on nickel and platinum group metal exploration in Scandinavia, has appointed Dr Tim Fletcher as Exploration Manager.
Lapp Plats listed on OFEX on March 2,having raised GB£400,000 through a private placing. It has exclusive ongoing access to nickel and platinum prospects generated from MinMet's proprietary Geochemical Database of Sweden and Finland. MinMet holds approximately 58% of Lapp Plats.
Lappland Goldminers AB has closed an issue of new shares estimated to be close to US$2 million at a price of 25 SEK per share. Subscribers to the issue are principally institutions.
The income from the issue goes to exploration and project development. The available capital will help to speed up exploration and development of the "Gold Line" in Västerbotten County.
North Atlantic Natural Resources' (NAN) main owners, Boliden AB and South Atlantic Ventures Ltd, have informed the company that they have sold 400,000 shares each in NAN.
The reason for the sale is to comply with the Stockholmsbörsen (Stockholm Stock Exchange) ownership concentration requirement. According to the requirement, at least 2.5% of the shares and 10% of the votes shall be publicly owned. After the sale, Boliden AB owns 11,517,000 shares, South Atlantic Ventures Ltd 11,580,000 shares, and the public 8,123,710 shares corresponding to 26% of the shares and votes of the company.
NAN has signed a Letter of Understanding (LOU) regarding the exploration and development of its Vargbäcken Gold Project located in the Skellefteå mining district of northern Sweden. The LOU is with Sierra Peru Pty Ltd, a private mining exploration company based in Melbourne, Australia.
A US $1 million exploration drilling program of approximately 5000 metres has been carried out by South Atlantic Ventures Ltd at Rakkurijärvi in northern Sweden. The program was designed to define and extend the known areas of copper-gold mineralization in the Rakkurijärvi Discovery Zone as well as confirm previously drilled holes that had poor core recovery. Additionally, it will further evaluate several adjacent targets as identified by Anglo American Exploration BV.
South Atlantic is very pleased with the results and will continue with a systematic drill program to test the vertical and horisontal extent of the mineralization encountered so far. Rakkurijärvi drill results can be found on the companys website www.sa-ventures.com.
The mineralization in all drill holes is characterized by massive, locally brecciated, magnetite, with stockworks and veins of chalcopyrite and pyrite. The host rock is characterized by altered rocks, mainly scapolite-biotite schist, carbonate breccias and polymict breccias. These rocks are locally sheared. The breccias appear to be of hydrothermal origin and the whole area has gone through intense hydrothermal alteration. The massive magnetite has probably originally been formed as dykes. The sulphides (together with calcite) have been introduced later than the magnetite, which is brecciated by chalcopyrite and pyrite.
A drilling program was commenced in January at Dragon Mining NL´s Svartliden gold project to test the immediate western strike extension of the lodes beyond the currently optimised pit boundary. Previously drilling had intersected mineralization but there was insufficient information to bring these resources into the reserve calculations or the mining plan. The successful program was completed in March after 21 diamond core holes had been drilled. The significant results can be seen on www.dragon-mining.com.
Beowulf Gold plc's Joint Venture partner Phelps Dodge Sweden AB has completed its first hole of 197 metres on the Jokkmokk licences and plans to drill additional holes. The exploration permits in the Jokkmokk areas cover 82 square kilometers and are considered prospective for copper and gold mineralization.
Beowulf continues drilling on the exploration permits in the Grundträsk area. The permits in this area cover 43 square kilometers and are considered prospective for gold mineralization.
On April 2, Agricola Resources plc was awarded an exploration permit at the layered intrusion in Kläppsjö, Northern Sweden. Agricola Resources is involved in platinum exploration and development.
During the period January-March, 2004, a total of 84,210 tonnes of ore from NAN's Storliden mine was processed at Boliden Area Operation Mill. The average grade of the ore treated was 3.14% copper and 7.49% zinc. Average metallurgical recovery was 91.5% for copper and 91,2,% for zinc.
South Atlantic Ventures Ltd has announced a proposal to change the name of the company to Lundin Mining Corp. The name change is in view of the companys focus in Scandinavia and reflects the Lundin family's commitment to the success of the company. The name change will be considered by shareholders at the company's Annual General Meeting on June 11, 2004, and is subject to regulatory approval.
On April 28 South Atlantic Ventures Ltd announced that a definite Sale and Purchase Agreement had been executed in connection with the company's purchase of the Zinkgruvan Mine from Rio Tinto plc.
Consideration for the acquisition comprise US$100 million in cash plus payments for working capital and a US$1 million non-refundable deposit. In addition, South Atlantic will pay Rio Tinto a maximum of US$5 million in price participation payments based on the performance of zinc, lead and silver prices for a period of up to two years.
Zinkgruvan is considered one of the highest quality zinc assets in the world today. The mine is located in southern Sweden and has been producing zinc, lead and silver on a continuous basis since 1857. It is a low cost operation and robust under a variety of metal prices and exchange rate conditions. Zinkgruvan is also a long life asset with an expected mine life of 19+ years. An independent technical report prepared by Watts, Griffis and McQuat Ltd ("WGM") states that current proven and probable reserves are sufficient to support a mine life of 10 years. Zinc and lead resources (measured, indicated and inferred) are reported in adddition to proven reserves The life of mine plan calls for 9 years of additional production from the zinc and lead mineral resources. The Zinkgruvan Technical Report prepared by WGM is available on the Sedar web site at www.sedar.com.
Following the commencement of site construction at the end of November 2003 Dragon mining's mine development at Svartliden has proceeded over the winter months with no major problems. Construction is now over 50% complete and on schedule for practical completion in mid August. The project remains on budget.
On May 6 MinMet plc announced a new resource estimate with 31% increase in contained gold at the Björkdal mine. Read more on the web site www.minmet.ie.
Ilmari Exploration OY, a wholly owned Finnish subsidiary of European Diamonds plc, has applied for a diamond exploration license in an area south of Nedre Soppero Lannavaara in northernmost Sweden.
Rapporter och Meddelanden 113: Economic geology research and documentation. Volume 2,, 2001-2002.
Ai 174 23j Norsjö NV
Ai 175 23j Norsjö SV
Ai 176 23j Norsjö NO
Ai 177 23j Norsjö SO
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© 2004 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.