The following excerpt is from EXPLORATION NEWSLETTER - What's up in Sweden, No 24 November 2007

Current news on exploration in Sweden. Editor Birger Filén


Boliden’s field exploration is focused on base metals and gold in the Skellefte District and on base metals in Dorotea, Norrbotten and Bergslagen. In the Skellefte District, diamond drilling of the Maurliden Östra mineralisation started during the second quarter with the aim of investigating a potential of 1.5 to 2 million tonnes. Gold exploration is focusing on the Älgträsk area (Jörn) where drilling of a total of approximately 5200 metres in the so-called Nyhem zone indicated promising mineralisations close to the surface in the zone’s northerly extension.

On June 6, Beowulf Mining PLC presented results of diamond drilling from the Grundträsk Gold Prospect. A shallow gold mineralisation is present over 800 metres of strike length. It is open at both ends and at depth. Some highlights presented from the drill campaign include 5.2 m at 4.28 g/t Au from 5.8 m and 16.9 m at 1.86 g/t Au from 15.5 m in DDH 06002, 18 m at 1.77 g/t Au from 41 m in DDH 06005. An option and earn in agreement on Beowulf’s Ballek exploration permits in Arjeplog has been signed.
Agricola resources plc has been granted an option to acquire 51% interest in the licenses by completing a program of ground geophysics followed by diamond drilling. Results from 3D modelling based on regional gravity and aeromagnetic data have identified several high-ranked targets and confirmed the prospectivity of the Ballek project for copper-gold-uranium mineralisations.

On August 8, Blackstone Ventures Inc announced the discovery of significant Cu-Zn-Pb mineralisation in outcrops on a property recently acquired by staking. The property called Uma is located between the historic Stekenjokk and Sulitjelma deposits in northern Sweden and Norway. Grab samples from outcrops returned values as high as 6.54% Cu and 22.1% Zn. The mineralisation includes semi-massive coarse-grained pyrite, sphalerite, chalcopyrite and galena hosted by altered volcanic rocks that was traced on surface for at least 500 metres in strike length.
On October 10, Blackstone provided an update of the ongoing drill campaign at the Lainejaur Project. Drilling has revealed that the high-grade nickel zone is extending 100 metres along strike and 500 metres down dip and continues to be open in all directions. Of special interest is a 9.9 metres section grading 2.28% Ni, 0.61% Cu and 0.17% Co.

On June 13, Lappland Goldminers AB presented an inferred mineral resource for the Gubbträsk deposit based on drilling performed
during 2006. The inferred resource is 700,000 tonnes grading 1.6 g/t Au and 2,100,00 tonnes grading 11 g/t Ag, 1.2 % Zn and 1.1% Pb.

On October 2, Nordic Diamond Ltd announced that drill permits have been granted for the Nyborg project. When a geophysical TEM survey is completed later this month, a drill program will be undertaken. The Nyborg Property is a volcanogenic massive sulphide (VMS) project located in the Skellefte mining district of northern Sweden. The project encompasses a significant mineral prospect, the Nyborg Zone, discovered in 1976 by the Geological Survey of Sweden.

In a press release of September 13, Northland Resources Inc outlines their regional exploration progress in northern Sweden and Finland:

- Six diamond drill rigs are operating at the Stora Sahavaara and Salmivaara projects in Sweden and at Hannukainen and Kuervitikko in Finland.
- 47 significant geophysical targets identified in the Pajala area with geophysical signaturesthat may reflect the presence of iron oxide-copper-gold (IOCG) style mineralisation. Six are ranked as high priority.
- Recent exploration work and archival research has highlighted a number of other potentially important targets for follow up work.
- Road construction to access the Tapuli magnetite project is well advanced with roughly 1900 metres of the planned 2.3 km complete. Metallurgical drilling is scheduled to recommence on or about September 17.

In a release of October 2, Northland reports the results of initial pelletizing trials. The results demonstrate that the pellets from the StoraSahavaara concentrate already fulfil or exceed all the necessary chemical and physical characteristics of commercial-grade iron ore pellets.

October 10, Tumi Resources Ltd announced the signing of a contract to perform an Induced Polarization (IP) survey on the Company’s 100% owned Tomtebo licence in south-central Sweden. An airborne electromagnetical (EM) survey completed last autumn has now been reviewed, modelled and interpreted by an independent geophysicist. A number of targets have been identified near the old workings at Tomtebo. Tomtebo is interpreted to be a classic volcanogenic massive sulphide (VMS) deposit.

On June 25, Mawson Resources Ltd announced new results from the diamond drill program at the Kläppibäcken uranium project. Some highlights calculated with a lower cut-off of 200 ppm U3O8 include 56 metres at 0.10% U3O8 from 20 metres; including 5 metres at 0.24% U3O8 from 25 metres and including 24.7 metres at 0.12% U3O8 from 46.3 metres. A second example includes 23.1 metres at 0.12% U3O8 from 18.6 metres; and 8.6 metres at 0.10% U3O8 from 51.5 metres. Mawson announced on October 10, that Swedish authorities have permitted further drilling at Kläppibäcken. Continental Precious Minerals Inc holds exploration permits for uranium in northern and southern Sweden. Diamond drilling have been performed at their Viken and Guorbavare properties. On September 17, the company presented an estimated inferred resource of 232 million pounds of uranium and significant amounts of vanadium, molybdenum and nickel for the Viken property.


investments On October 5, the environmental court announced that Boliden has been granted a permit to expand the Aitik mine, from current annual production of 18 million tonnes to 36 million tonnes. Boliden is investing SEK 5.2 billion in the expansion that will involve the construction of a new concentrator. The investment will also provide for improved competitiveness and substantially lower cash cost. The ore reserves will increase from 200 to 600 million tonnes extending the lifespan of the mine from 2016 to 2025. A new production of molybdenum will be started in addition to the increased production of copper, gold and silver. The energy and environmental performance will be improved and a potential for further expansion in the future will be at hand.

Gold-Ore Resources Ltd announced on May 7, that the 2007 underground test mining and bulk sampling program at the Björkdal gold mine has commenced. It will form the basis of a reserve calculation and a feasibility study that will be completed during
the fourth quarter of 2007. Gold-Ore has an option to purchase 100% of the Björkdal Mine from Minmet plc of Dublin, Ireland. If the outcome of the feasibility study is positive it will form the basis for a decision to complete
the purchase and initiate commercial production.
For information on drill results read

Dragon Mining Ltd reports of an increase in the gold resource inventory for the Svartliden gold mine. The re-optimization study resulted in a 49,000 ounce reserve increase from 1.31 million tonnes at 3.9 g/t gold to 1.45 million tonnes at 4.5 g/t gold. This extends the life of the mine to September 2010.

The reconstruction to get profitability for ScanMining’s subsidiary Blaikengruvan AB has been extended by the District Courts at Lycksele and Karlstad with three months until December 28. In August the production at Blaiken was 39,845 tonnes at 1.47% zinc and 0.45% lead. In September, 37,195 tonnes were produced at 1.64% zinc and 0.47% lead.

On October 23, ScanMining AB announced that a new preliminary calculation of the ore reserve indicates that the lifetime of the Blaiken mine will be shorter than previously assumed unless new reserves can be identified.

On October 5, Lundin Mining Corporation announced that the Zinkgruvan Expansion Programme includes an increase in ore production from 900,000 tonnes to 1.2 million tonnes per annum and the first production of copper concentrate is planned for 2010.

On June 5, LKAB announced that a reopening of the Svappavaara mine is considered. A large amount of water needs to be removed and an environmental impact assessment is required.


Olof Forslund has left the office and the Survey. New regional manager and head of the office is Christina Lundmark.

A project with the aim to digitize the paper archive has commenced and the first personnel have been recruited. The project will also include the digitization of the Mine Inspectorate’s archives.

Hope to see you soon!
© 2007 Geological Survey of Sweden

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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