Press release from Marketwire
Northland Moves Forward on the Kaunisvaara Project and the Hannukainen DFS
Tuesday, December 14, 2010
LUXEMBOURG, LUXEMBOURG--(Marketwire - December 14, 2010) - Northland Resources S.A. (TSX:NAU)(FRANKFURT:NPK)(OSLO:NAUR) ("Northland" or "the Company") is pleased to announce that today the Board of Directors gave approval to begin the implementation phase of the Kaunisvaara project and to start the Definitive Feasibility Study ("DFS") for the Hannukainen project.
"The Kaunisvaara project has received strong support from existing and new investors, off-take parties, vendors such as Caterpillar, and cross-border, local, regional and central authorities. In addition, discussions with the Mandated Lead Arranger banks for the Senior Loan continue with positive decision by the credit committees received or decisions expected shortly. We feel very proud to have achieved this important milestone and appreciate all the support that we have received from all of our stakeholders. " said Anders Hvide, Chairman of Northland.
With this approval, work will initially focus on these main areas:
The next steps are:
1. To start the necessary work on the mine site including the construction of a dyke system around the Tapuli mine enabling the de-watering of the wet land during this summer. The construction of the dykes needs to be completed during the winter period when the ground is frozen.
2. To finalise negotiations with the suppliers of the process equipment, to secure the key contracts for the long-lead items and to finalize the major contracts for the civil construction during the first months of 2011.
3. To finalise the negotiations for the construction of the power line to the site with Vattenfall, a leading Northern European energy company.
Hannukainen IOCG Project
To start the DFS for the Hannukainen project. The PEA which was presented in May 2010 confirmed that the brown field project was technically feasible and financially positive. The results included an NPV of USD471 million and an IRR of 32.5% based on long-term prices of USD 1.10/dmtu Fe, USD 2.20/pound copper and USD 850/ounce gold. With production capacity of 2 million tonnes per annum, scheduled to begin production in 2014/15, the project has a very competitive OPEX of USD 26.36 per tonne in the first ten years. The plan is to complete the Hannukainen DFS by the end of 2011.
Northland is a development-stage mining company with a portfolio of iron projects in northern Sweden and Finland. Northland's Kaunisvaara Project contemplates the staged development of magnetite iron ore deposits that would provide feed to a single, multi-line processing facility in Sweden, producing a high-grade, high-quality magnetite iron concentrate. The results of the Feasibility Study on the Kaunisvaara Project were released September 27, 2010.
Karl-Axel Waplan, President & CEO
Northland Resources S.A.
FOR FURTHER INFORMATION PLEASE CONTACT:
Karl-Axel Waplan Northland Resources S.A. President and CEO +46 705 104 239
Anders Hvide Northland Resources S.A. Executive Chairman +47 92 88 98 58
Eva Kaijser Northland Resources S.A. Chief Financial Officer +46 70 932 09 01
Marguerite Manshreck-Head Northland Resources S.A. Investors Relations, Canada + 1 647 224 7882 www.northland.eu