EXPLORATION 1997 — South Atlantic teams with Boliden to explore gold prospects in Baltic Shield

Partners South Atlantic Resources (SCQ-V) and Swedish mining giant Boliden plan to list a joint-venture exploration company on the Stockholm Stock Exchange, in connection with a public offering this spring.

The partners say this co-operative venture “will be unique in the northern European mining industry.” The new company, to be called North Atlantic Natural Resources, will focus exclusively on exploration of the Baltic Shield, an area comprising Sweden, Norway, Finland and northwestern Russia.

It will be held equally by the partners.

The new company’s goal will be to identify and develop gold and precious metals deposits within the exploration area.

To get the ball rolling, Boliden will transfer, to the joint venture, concessions covering between 70,000 and 80,000 ha in the Norrbotten, Skelleftea Field and Bergslagen areas.

South Atlantic will contribute exploration concessions in a corresponding area, which it recently acquired from a local company.

Interest in Sweden’s gold potential has been triggered by several recent discoveries in the country, including one made by Boliden in the Skelleftea district. The region is also home to Boliden’s namesake gold-copper-zinc mine, which, until its closure in 1968, was the largest gold mine in Europe.

It produced 120 tons of gold during its 43-year lifespan from ore averaging 0.5 oz. gold per ton. Sweden’s Geological Survey has reported that several other gold discoveries were made recently in Skelleftea.

South Atlantic says the joint-venture land package is also prospective for base metals. As part of the agreement, Boliden will have rights to acquire at least a 51% ownership in any base metal deposits at market price.

Meanwhile, Boliden is in the process of being transformed into a public mining company based in Canada. Last month, Trellborg of Sweden announced plans to offer about 50% of its holdings in Boliden by way of an international public offering. The offering is expected to be completed by June 30, 1997. The sale of Boliden shares will be directed towards investors in Canada and internationally.

Anders Bulow, Boliden’s current president, will relocate the head office to Toronto, where he will oversee expansion plans focused on projects in North and South America. The company also plans to expand its smelter and develop several mineral deposits in Sweden.