South Atlantic busy in Sweden (June 25, 2003)

Vancouver — North Atlantic Natural Resources (NAN) has acquired additional prospective nickel ground near the Swedish city of Skelleftea, while, farther north, it tries to expand resources at the operating Storliden copper-zinc mine.

NAN, a 38%-owned subsidiary of South Atlantic Ventures (SAA-V), is drilling underground at Storliden in an attempt to define the East and West zones and test for extensions. Results will be used to refine the mine plan and determine if more drilling is required.

So far, the company has drilled 69 holes, or 3,309 metres. The holes are spaced 10 metre apart on sections that, in turn, are 12.5 metres apart. Preliminary results from the East zone suggest that there may be further ore-grade material to the southeast, beyond the known limits of mineralization. Copper and zinc grades average 3-4% copper and 10-12% zinc, which are comparable with those of the Central zone, currently being mined.

Delineation drilling in the upper West zone intercepted 43% zinc over 2.45 metres, including 47.2% over a width of 0.8 metre.

Proven and probable reserves at Storliden are pegged at 1.4 million tonnes grading 9.7% zinca and 3.6% copper, plus 0.3 gram gold and 30 grams silver per tonne. U.K-based Micon International arrived at these estimates by adhering to Australasian standards.

The deposit also hosts an indicated resource of 234,000 tonnes grading 7.7% zinc, 3.5% copper, 0.4 gram gold, and 35 grams silver. This resource is expected to be upgraded to reserve status as underground drilling continues.

Meanwhile, at the Lappvattnet nickel prospect, 25 km south of Skelleftea, NAN has requested additional exploration permits. Once these are granted, the total project area will increase to 110 sq. km. The ground will include a dunite intrusive that the Swedish Geological Survey reports hosting up to 0.4% nickel and 0.018% copper.

Ongoing geophysical surveys at the Lappvattnet and Brannorna prospects are outlining the extension of nickel-copper sulphide mineralization at depth. Any new targets will be drill-tested. The nearby Lappvattnet deposit hosts an indicated resource of 1.1 million tonnes grading 1% nickel.

In other news, South Atlantic has entered into a joint-venture agreement with Poplar Resources (PPX-V) to acquire a 60% interest in the Bottenbacken polymetallic project in central Sweden.

To do so, South Atlantic must spend $1.5 million over three years, and it can increase this to 70% by completing a feasibility study over an additional three years. Additional expenditures would be covered on a pro rata bases, with either participant having the option to a 2% net smelter return royalty.

The project hosts copper, palladium and gold, as well as some indications of platinum and silver. Bottenbacken is 490 km northwest of Stockholm.

Previously, Poplar subjected Bottenbacken to an airborne magnetic survey, a 48-sq.-km induced-polarization survey, and 2,414 metres of core drilling in 18 holes. The Swedish Geological Survey also drilled 35 reconnaissance holes, in the Central zone.

Nine geophysical anomalies are identified: the Central zone; the Bell zone; Storrugen North; Storuggen South; Finnuggen; CentralX; Aviken; Scapa; and the Ostlund zone.

The Central zone hosts and inferred resource of 5.3 million tonnes grading 0.474% copper, 0.179 gram gold and 0.279 gram palladium, based on 27 drill holes and a cutoff grade of 0.18% copper. Mineralization in the Central zone remains open downdip and along strike, and is considered an “open-pit” target.

South Atlantic will operate the project, and exploration drilling is set to begin.