The following excerpt is from EXPLORATION NEWSLETTER - What's up in Sweden, No 15 June 2003

Current news on exploration in Sweden. Editor Birger Filén

EXPLORATION NEWS

Boliden’s exploration program at Lappberget, located between Garpenberg and Garpenberg North in south-central Sweden, continues to yield good results with very high grades, especially of zinc, silver, and lead. As a result of the drilling programme carried out, parts of the mineralization can now be classified as inferred mineral resources, estimated at 7.5 million tonnes. Work aimed at defining the entire Lappberget deposit continues. Assay results from the drilling programme, as well as other information, can be found at Boliden’s website www.boliden.com

Strengthening nickel and platinum prices have prompted North Atlantic Natural Resources (NAN) to seek new exploration opportunities near the Skellefte District. During late 2002 applications for three exploration permits, totalling 6,600 hectares, were lodged with the Mining Inspectorate. The prospects are all located south of the Skellefte District and were discovered by the Geological Survey of Sweden (SGU) during the 1970s.
On March 17, 2003, NAN reported that additional exploration permits of 3,457 hectares had been requested in the vicinity of the Lappvattnet Nickel Prospect located 25 kilometers south of the city of Skelleftea in Västerbotten County. The Lappvattnet mineralization occurs both in an ultramafic intrusive body and in the surrounding para-gneisses. Another target is Rormyrberget, where nickel-copper mineralization occurs in multiple lenses of ultramafic sills. NAN is compiling all available technical data and has relogged and resampled drill cores at SGU’s facilities in Mala.
The Vargbäcken prospect is being reevaluated by NAN as well as other interested parties. Exploration potential along strike as well as at depth is being studied in addition to studying the installation of a small scale gold mining operation. An independent historical estimation ofan inferred resource yielded 590,000 tonnes at 3.7 g/t gold using a cut-off of 1.0 g/t.

South Atlantic Ventures has acquired the Norrbotten Copper-Gold Project after reviewing the geology and distribution of world class iron-oxide hosted copper-gold deposits (IOCG). The Kiruna District of Northern Sweden has been identified as an important target area for this type deposit, typified by Olympic Dam in Australia and Carajas in Brazil. The Norrbotten Copper-Gold Project is located in Northern Sweden approximately 900 km north of Stockholm. South Atlantic Ventures owns 100 % of 17 exploration permits covering 80,000 hectares.
Re-analysis of diamond drill core from a previous drill campaign on the Lieteksavo (L-1) permit has resulted in confirmation of a 9.23 meter intersection grading 6 % copper, 3.3 g/t gold and 42 g/t silver. Quartz-tourmaline, magnetite and sulphide minerals (chalcopyrite, bornite and chalcosite) characterize the mineralization. It is contained within a strongly altered, sub-vertical zone in mafic volcanic rocks. The altered zone exhibits abundant scapolite.
Read more on http://sa-venrures.com

In the quarterly report October—December 2002 Lake Resources NL announces that geochemical analyses of samples collected in the Moskosel Project during the September field program were completed. The area is considered highly prospective for Broken Hill-type (BHT) silver-lead-zinc deposits. Mineralized rocks have been identified in outcrops and in previous exploration drillholes. BHP Billiton can earn a 51 % interest in the project by funding exploration expenditure of US$ 0,5 million, with expenditure of further US$ 2,0 million to earn 70 %. A number of targets for more detailed follow-up investigations have been identified.

In irs Annual Review for the year 2002 Anglo American plc announces that “Iron oxide and copper/gold exploration continued in several countries, with positive initial drill results from Sweden and Brazil”.

According to the prospect concerning a new issue of shares on March 14, 2003, the indi-cated resources at Lappland Goldminers AB’s Faboliden Gold Project are estimated to 17,53 million tonnes at 1,51 g/t gold and 3.1 g/t silver using a cut-off of 0,4 g/t gold. Read more on www.lapplandgoldminers.com

BHP Billiton has applied for exploration permits in Southern Norrbotten and Northern Västerbotten covering an area of 247,400 hectares.

MINING NEWS

Boliden AB has initiated a comprehensive cost-control programme which it anticipates will result in cost savings of SEK300 million/ year (US$1 = SEK8,5). The company notes that this should allow it to remain profitable in times of low metal prices and a weak US dollar, and expects to achieve the full benefits of the programme in 2004.
The company anticipates that production from the new discovery at Lappberget, Garpenberg, will start during the first quarter of 2004. No costly investments will be needed because existing equipment will to a great extent be used.

In the three months report January—March, 2003, NAN states that from the start in April until December 31, 2002, a total of 155,700 tonnes of ore were mined from Storliden with an average grade of 11.4 % zinc, 3.6 % copper, 0.4 g/t gold and 35 g/t silver. During the period a total of 83,561 tonnes of ore from the Storliden mine was processed at the Boliden Area Operations Mill. The average grade of the ore treated was 3.59 % copper and 11.53 % zinc.

Dragon Mining’s Svartliden Gold Project has been cleared by two important Swedish Government decisions to proceed with the normal route for securing regulatory approval via a hearing in the Environment Court on the 3rd and 4th of June 2003.
Project implementation plans are well advanced. If the final regulatory approval is received from the Environmental Court in late June or early July, a decision to proceed can be made and project development commenced in August 2003. Following a 9-month construction period, production would commence in about March 2004 at an initial annual rare of 70,000 ounces gold. Head grades from the open pit mine in the first 12 months will be 7 g/t gold. A finance offer of US$9 from Maquarie Bank, conditional on completion of regulatory approval and other factors, will see the project 100 % debt funded.
Dragon has been advertising for a managing director for Svartliden Guld AB.

On January 27 the board of directors of MinMet plc announced that they were in advanced negotiations and were finalising due diligence in relation to the proposed purchase by MinMet of a 100 % interest in the Björkdal gold mine and facilities in Northern Sweden together with additional mining and exploration concessions in Sweden (collectively the “Björkdal Assets”). The Björkdal Assets has so far been owned equally by International Gold Exploration IGEAB (Bertil Zaudy) and Dormant Properties AB (Rolf L. Nordstrom).
The Björkdal mine, which is debt free, produced 32,700 ounces of gold in 2002. It has a processing plant with a capacity of 1,3 million tonnes per annum and during the 1990’s it was one of the largest gold mines in Europe.
On March 26 MinMet completes acquisition of 50 % interest in Björkdalsgruvan AB. RoIf L. Nordstrom is appointed chairman. On March 27 the board of directors of MinMet announce that the shareholders in International Gold Exploration, IGE AB unanimously approved the option agreement which gives MinMet the right, but nor the obligation to acquire the remaining 50 % of Björkdalsgruvan AB.

Due to the fact that Scan Mining will reopen the Pahtavaara gold mine in Finnish Lapland the announced construction works for mining at Blaiken (Ersmarksberget) will be postponed.

DIAMOND EXPLORATION

According to a newspaper article of February 20,2003, Alcaston Diamond’s Swedish subsidiary Alcaston Diamond Exploration AB has analysed 187 samples and found kimberlite indicator minerals in samples taken from two different areas in Norrbotten County. According to the article the company has identified 300 possible kimberlites.

NEWS FROM THE MINERAL RESOURCES INFORMATION OFFICE

Olof Forslund is new regional manager after Anna Aberg, who left for the head office in Uppsala. Olof will continue doing geophysics. New geologist at the office is Lisbeth Hildebrand. She left the Uppsala head office for the white, wide open spaces in Lapland. Helge Reginiussen will partly work on a temporary post during Lisbeth’s maternity leave.

SGU PUBLICATIONS

Regional geological and geophysical maps of the Skellefte District and surrounding areas: Map of mineral and bedrock resources and hydrothermal alterations. Set Ba nr 57:3. Price 5EK 76:50.
Content:
- Main map of ores and mineralizations
- Gold and intrusion related deposits
- VMS deposits: Eastern Skellefte District
- VMS deposits: Western Skellefte District
- Ni deposits in the so-called Nickel zone
- VMS deposits: Central Skellefte District

Regional geological and geophysical maps of Bergslagen: Magnetic anomaly map. (Scale 1: 400,000) Set Ba nr 58:4. Price 5EK 76:50.

Regional geological and geophysical maps of Bergslagen: Topographic relief map, Bouguer anomaly map, electromagnetic map (VLF), and potassium-uranium-thorium composite map. (Scale 1:750,000). Set Ba nr 58:5. Price SEK 76 :50.

Geological Map of the Fennoscandian Shield, 1:2,000,000
The map was compiled as an international joint project in 1997—2001. Geological surveys of three Nordic countries together with five Russian regional organizations were the participants. The map correlates the geology and geochronology from the White Sea in the east to the North Atlantic in the west. The main structure of the legend is based on the International Stratigraphic Chart.
The gravity and magnetic maps will be published later.

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.

© 2003 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.