Drill results bring market gains for Northland

Gold results from 17 diamond drill holes at Northland Resources (NAU-V) Barsele gold project in central Sweden lifted the Vancouver-based company on the market.

Northland shares climbed roughly 11% or 35 to $3.45 on roughly 785,000 shares traded in Toronto on March 21.

Results are from the central zone of the deposit and highlights include:

• Hole 06018 grading 3.8 grams gold and 68 grams silver over 9 metres from 22 metres down hole and 2.9grams gold over 22.9 metres from 80 metres down hole
• Hole 06012 grading 12 grams gold, 500 grams silver, 5.1% lead, and 2.8% zinc over 5 metres from 24 metres down hole
• Hole 06006 – grading 1.2 grams gold over 80.4 metres from 89.2 metres down hole
• Hole 06014 – grading 2 grams gold over 12 metres from 49m down hole
• Hole 06020 grading 6.6 grams gold, 1.8% zinc over 4 metres from 39 metres down hole

The company is pinning much of its optimism on holes 06012 and 06020 as it believes they show the outline of a new zone of high-grade gold with base metal mineralization. The zone is adjacent to and outside the intrusive that hosts the central zone gold system.

The Barsele gold project currently has an indicated resource of 393,324 oz. of gold contained in 7.6 million tonnes grading 1.6 grams gold and an inferred resource of 437,041 oz. of gold contained in 9.2 million tonnes grading 1.52 grams.

Holes 06006 and 06007 were drilled to move the resource up from the inferred to the indicated category, while holes 06008 to 06016 were drilled to increase inferred resources along the northern ridge.

Northland says the results will go into a new resource estimate later this year.

As for the base metal zone, the company says it was discovered after drill testing a prominent geophysical anomaly on the northwestern end of the central zone.

The structure was traced from regional geophysics and from historic drilling highlighted by 5 holes which appear to have cut the same zone — one of which returned 14.7 grams gold, 1.6% zinc, and 114.7 grams silver over 9 metres from 21 metres down hole. Northland has not yet completed sufficient work to confirm the historic assays.

Currently Northland describes mineralization as an orogenic style gold-base metal-quartz shear or vein. Given the higher gold grades relative to the main Barsele resource, Northland says it has potential to add to the gold resource.

The company is also studying historic holes that may have cut the central zone, and says additional geophysics and drilling are planned to further delineate the zone.