GLOBAL SEARCH FOR GOLD — SAR gains stake in Sweden

The 38%-owned Swedish subsidiary of South Atlantic Resources (SCQ-V) has entered into an agreement with Golden Eagle Mines, a private Swedish firm, to acquire a 75% interest in the latter company’s exploration permits in northern Sweden.

The deal enables South Atlantic to acquire an initial 55% interest by spending US$2 million on exploration over a 2-year period. It can acquire a further 20% interest by spending an additional US$3 million on exploration over the subsequent 2-year period.

Golden Eagle’s exploration permits cover 78,000 ha in the Norbotten district, along the same trend as the Aitik open-pit copper-gold mine operated by Boliden. The mine and the Golden Eagle properties lie along a northwest-southeast-trending fault zone with numerous known copper-gold mineralized zones in Precambrian metasediments and metavolcanics.

South Atlantic’s existing Swedish exploration consists of the Solberget project, where an airborne magnetic-electromagnetic survey was recently completed over a 1,000-sq.-km area. Exploration teams are conducting geological, geochemical and geophysical surveys in order to identify drill targets.