The following excerpt is from EXPLORATION NEWSLETTER - What's up in Sweden, No 28 November 2004

Current news on exploration in Sweden. Editor Birger Filén

EXPLORATION NEWS

According to a study made by Swedish Raw Material Group (RMG), forecasts show a 50% increase to 295 million SEK in the exploration expenditures for the year 2004 compared with 184 million SEK last year.

BHP Billiton has granted Far West Mining Ltd an option to acquire an undivided 70% interest in the Pitea Project of northern Sweden by completing not less than 4,000 metres of diamond drilling on or before June 30, 2005 and incurring (drilling included) not less than US$1,750,000 in expenditures on or before May 1, 2007.
Subsequent to the completion of an airborne electromagnetic survey made by BHP B 26 AEM/Mag anomalies were selected for ground follow up by geochemical soil lines.
The work successfully defined 9 AEM/Mag drill targets with coincident multi-element Pb/Zn ± Ag ± Cu soil geochemistry.
A minimum of 2,000 metres diamond drill program to test each of the targets commenced on August 9. Up to 4,000 metres of drilling has been budgeted for the first-phase drilling program.

Through its acquisation of Exploration Projects in Västerbotten County in Northern Sweden Ovoca Resources Ltd has positioned itself to benefit from what is now an emerging gold province in Europe. Ovoca has currently identified three of its project areas that will require follow up drilling programmes in its 2004/2005 plan of operations.
Ovoca channel samples taken across the breccia zone at the Akerland permit returned grades up to 24.8% zinc and 5 g/t silver over 1 meter.

Following extensive generative work, Lapp Plats plc has applied for several mineral consessions in northern and central Sweden. The areas claimed were identified utilising both MinMet’s proprietary geochemical database, to which Lapp Plats has exclusive access for PGE and Nickel targets, and following consultation by the company’s exploration team with the Geological Survey of Sweden at Malå.

Dragon Mining NL has through its subsidiary Svartliden Guld AB increased its exploration tenament holdings in the Svartliden area to 220 square kilometres. During the September quarter soil geochemical surveys were undertaken over the entire tenament holding. The results indicate that most of the ?5 target areas previously identified as potentially containing Svartliden style host rock sequences and structures are shedding anomalous levels of gold in the overlying surficial till material. Infill follow up sampling is underway.

Nordic Diamond Inc’s exploration activities during the summer 2004 at the Company’s Bottenbäcken poly-metallic project has included geological mapping, prospecting and sampling of high-grade boulders found within the licence area. The focus of much of the work was to determine the sources of three separate mineralized boulder trains. Grab samples were gathered from various locations and sent for assay. The results of the analyses are consistent with previously reported assays by the Geological Survey of Sweden and point to highly mineralized areas on the property. Prospecting to the south-east and along strike of the Central Zone has identified the presence of mineralized boulders for a further 3,000 metres. All mineralized boulders, with Pd assay results up to 10.3 g/t and Au up to 3.67 g/t, are angular suggesting minimal glacial transport. Read more on the web site www.nordicdiamonds.com.

On September 1, 2004 North Atlantic Natural Resources (NAN) reported that exploration drilling had commenced in the Skellefte district in northern Sweden. Three high priority targets had been chosen for testing the coming months, including the Lappvattnet coppernickel PGM prospect, the Svartliden copper prospect and zinc-copper targets located near NAN’s producing Storliden Mine.
The Lappvattnet prospect is a copper-nickel deposit located within a mineralized trend known as the “Nickel Belt” located south of the Skellefte district. Several similar nickel-copper prospects exist along this trend where past drilling by Swedish government authorities has confirmed mineralization of grades which are considered potentially economic at current nickel and copper prices. The Lappvattnet deposit has an Indicated Resource of 1.1 million tonnes grading 1.0% nickel and 0.2% copper.

In the Storliden Mine area NAN has identified several nearby target areas which are considered favourable for hosting another zinc-copper massive sulphide deposit.
On November 10, NAN reported the results of the drilling at its Lappvattnet Nickel Project. Three drill holes totalling 562 meters have been completed on the down dip extension
of the Lappvattnet nickel deposit. The best assay results were as follows:
hole 1: 1.32% Ni and 0.86% Cu over 1.20 m, hole 2: 1.2?% Ni and 0.15% Cu over 1.17 m and hole 3: 0.92% Ni and 0.11% Cu over 5.90 m.

On August 9 2004, Mawson Resources Ltd announced the expansion of its portfolio of gold properties in the Skellefte district of northern Sweden with the addition of six exploration applications. This recent staking increases Mawson’s total ground holdings to 11 permits covering 44,374 ha and elevates
Mawson to the number one gold explorer by area in the Skellefte district.

The Company has commenced a Phase I exploration program at the Vargbäcken gold project located in the western Skellefte district. The Phase I program consists of up to 30 large diameter reverse circulation drill holes and aims to better estimate the true gold grade and extend the mineralized zone defined by North Atlantic Natural Resources in 1998. Drilling will be ongoing through to early December 2004 and results will be released in due course.

Equinox Minerals Ltd intends to maintain its title to the Luossajoki exploration permit at Kiruna, where further IOGC potential is recognised to the south of the Kiruna iron ore mine. Another international mining company has identified IOCG mineralization in this area adjacent to the Luossjoki tenement. Equinox has formed a joint venture with Phelps Dodge to continue exploration of this and other prospective Norrbotten targets. Equinox also holds tenements in the Skellefte District. This region is recognised as a significantly under-explored gold province, with numerous gold discoveries and several mines. Priority targets have beeen delineated by aeromagnetics on Equinox’s three tenements in the district. Further programs will be conducted, subject to availability of funding.

On the 9th September 2004, Beowulf Gold plc announced the update of drilling results from Jokkmokk Joint Venture with Phelps Dodge Exploration Sweden AB. Read more on the web site www.beowulf-gold.com.

On 5th October, 2004 Minmet plc announced substantial progress on its Barsele Central and Norra gold projects following results from an extensive drilling programme conducted by North American Gold Inc. The results, which show significant gold mineralization along strike and at depth, indicate the potential for a large gold-only deposit at Barsele Central as well as high value gold rich massive mineralization at Barsele Norra. For further information visit www.minmet.ie.

Lappland Goldminers AB has identified a new gold deposit in a first pass reconnaissance-drilling program conducted at the Sandviksträsket property. The area is situated only 30 km north of Fäboliden, where the company is considering the future construction of a milling facility. The best intercept is a 1 m section assaying 13.1 g/t gold.
In a press release of the 15th November the company announces that the “Measured” and “Indicated” Resource at Fäboliden have more than doubled from 27.3 tons (March 2003) to 58.2 tons of gold after continuous analyses of ongoing drilling. Read more on the web site www.lapplandgoldminers.com.

MINING NEWS

During the September quarter Dragon Mining NL’s Svartliden Gold Mine development experienced further delays with the construction of the treatment plant. All other aspects of the project development had proceeded according to plan.
Dragon Mining announces that mining of ore at the Svartliden Gold Mine commenced on the 5th of November. The ore will be stockpiled at the plant site.
On 18th November the company took full control of the final completion and commissioning of the Svartliden process plant from the South African contracting engeneering company. Dragon’s management team and workforce at site are now being assisted by specialist Australian and Scandinavian commissioning personnel to bring the project into operation as soon as possible.

During the period July–September, 2004, a total of 69,759 tonnes of ore from NAN’s Storliden mine was processed at the Boliden Area Operation Mill. The average grade of the ore treated was 2.9% copper and 7.7% zinc.

DIAMOND EXPLORATION

Sigvard Ljung, retired chief-geologist for the former State Mining Property Commission, has through Central Asia Gold AB applied for two diamond exploration permits outside the town of Piteå in northern Sweden.

SGU PUBLICATIONS

Rapporter och meddelanden 116: Bedrock mapping. Summary of ongoing 2003 with an introduction in English. Bedrock maps
Af 216 5E Växjö NV
Ai 148 24J Arvidsjaur NV
Ai 149 24J Arvidsjaur NO
Ai 150 24J Arvidsjaur SV
Ai 15? 24J Arvidsjaur SO
Ai 198 29I Kebnekaise SO
Ai 199 29I Kebnekaise NO

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