The following excerpt is from EXPLORATION NEWSLETTER - What's up in Sweden, No7, May 1999.

Current news on exploration in Sweden

The Board of North Atlantic Natural Resources, NAN, has decided to give Boliden Ltd the right to make use of its option on at least 51% of the Storliden zinc and copper deposit 8 km NE of Malå in the Skellefte District.
Diamond drillings at the Norrliden deposit continue. It was originally found by the Geological Survey of Sweden and preliminary ore estimation gives a minimum of 1,400,000 tonnes with 4.5% Zn, 0.8% Cu. 0.5% Pb, 79 g/t Ag, and 0.5 g/t Au.
A second drilling target, also situated in the Skellefte District, is the promising Bjurfors deposit.

When ScanMining next year starts mining at their future Blaiken Mine SW of Sorsele, the mine will cover two separate ore systems. Current exploration has shown that Blaiken consists of a larger zinc-lead-silver-gold system and a smaller gold-only system. The systems are in contact with each other but consist of separate ore zones.
The gold ore contains 900,000 tonnes with 3.7 g/t Au while the zinc ore contains 6,600,000 tonnes with 2% Zn.
Since the ore bodies are in immediate contact with each other and are subsurficially exposed, relatively cheap open cast mining is possible. The mining is planned to begin in 2001 with a production level of 1,200,000 tonnes annually. This means it will be one of the biggest open cast operations in Sweden.
Through further exploration efforts a 2 km long gold and zinc mineralization has been encountered 5 km NW of Blaiken. Average grades have not yet been released.

Viking Gold Corporation announces that it has commenced an enviromental impact assessment which is necessary in order to be granted an Exploitation Concession for the Svartliden gold property near Pauträsk in north central Sweden.
Viking Gold holds a 60% interest in Svartliden Guld AB which holds the Svartliden exploration permits. Viking Gold will increase its interest to 80% by completing a feasibility study on the property. The feasibility study will include additional drilling, engineering, metallurgical, environmental, and economic design parameters.
Inferred and indicated reserves are 2,500,000 tonnes with 5.4 g/t gold at 1 g/t cut-off. Preliminary calculations for an open pit give 1 ,700,000 tonnes with 6.0 g/t gold and a strip ratio waste to ore of 7 to 4.
The processing of the application for an Exploitation Concession, including an environmental impact assessment and a feasibility study, is expected to take at least 12 months to complete.

Junior DDMC plans diamond drilling for copper, zinc, and lead on its application at Östanbäck in the eastern part of the Skellefte district. The Geological Survey of Sweden and the Swedish Geological Co (SGAB) have previously explored the area for nickel based on finds of nickel-bearing float (up to 2% Ni) closer to the coast.

Equinox Resources has focussed its exploration efforts on iron-oxide related Cu-Au mineralization of the Ernest Henry-Olympic Dam type. The company contends that there are strong similarities between these types of deposit and the iron ore deposits of the Kiruna region. Equinox hopes to start diamond drilling within 6 months on their permits in the far north.

Outokumpu, through its subsidiary Viscaria AB, has completed a diamond drilling program on a nickel prospect close to Koler north of the Skellefte district.

Tricorona Mineral's former subsidiary Riddarhyttan Resources has been sold and is now an independent company. During 1998 two diamond drilling programs were completed in Riddarhyttan and Sala in south central Sweden. A diamond drilling campaign in the Eidsvoll district in southern Norway gave negative results. The main activities are now concentrated on the Suurikuusikko area in northernmost Finland although the company is still based and keeps ground in Sweden.

North (Mining) Exploration Sweden AB has closed the exploration office in Ammeberg as of the end of April 1999.

Mining news

William Resources Inc., the owner of Terra Mining AB and the Björkdal gold mine, has entered into an agreement with its lenders not to seek repayment of the outstanding debt of US$3 1 .1 million prior to December 31, 1999, on certain conditions.

In the beginning of May, Boliden Inc. was reintroduced on the Stockholm Stock Exchange. The come-back may, however, be short. Buyers are said to line up.

The mining at Boliden's Långdal mine has ceased. On March 4, the last blasting was made. During its 32 years lifetime it produced 6,600,000 tonnes of ore containing 5.58% Zn, 1.47% Pb, 0.17% Cu, 122 g/tAg, and 1.4 g/t Au.

Diamond exploration

Poplar Resources LTD's 65% owned subsidiary North Star Diamonds (NSD) has signed a Memorandum of Understanding with Dia Met Minerals Ltd. to explore for diamonds on NSD's Swedish diamond licence which covers 1,111,875 hectares. Under the terms of agreement, Dia Met can acquire a 70% working interest in the project by spending $1,500,000 over the next three years. Dia Met will be the Operator of the project.

Geoforum has been granted exploration permits, partly in Archaean terrain in north-eastern Sweden, close to the Finnish border.

Industrial Minerals

The wollastonite deposit at Banmossen in south central Sweden can be in production within one year if everything goes according to plan. The occurrence was found 12 years ago during the Minerals Hurt. The deposit is owned by Aros Mineral. a subsidiary to Tricorona Mineral. The ore contains 35% wollastonite. An environmental impact assessment is row in progress.

News from the Mineral Resources Information Office

Bosse Gustafsson will be on a one year leave starting June 1. He will work for the junior exploration company Nemir AB. The appointment to the post as geochemist at the Malå office will soon be filled. A replacement will also be appointed to fill Bosse's post during his leave.
© 1999 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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