Northern Abitibi picking up properties in Newfoundland (July 09, 2007)

Northern Abitibi (NAI-V) is investing in Newfoundland, inking a deal to earn into Altius Resources (ALS-T) Viking gold property only four months after signing a similar agreement with Altius over the Taylor Brook nickel-copper-cobalt prospect.

The 900-hectare Viking property in western Newfoundland contains a series of mesothermal-style quartz veins and stockworks hosted in Precambrian intrusive rocks. Historical exploration included widespread soil sampling, ground geophysical surveys, and 3 short drill holes.

Two gold anomalies have been defined on the property. In the western anomaly, grab samples returned gold values ranging from 0.04 to 4.1 grams gold per tonne. Three drill holes failed to intersect the large quartz veins occurring as boulders on the surface but hit large intervals of highly altered granite with anomalous gold grades. Grab samples from the eastern anomaly returned gold grades from 8 to 42.8 grams gold, but the zone has not yet been trenched or drilled.

The Viking agreement allows Abitibi to earn-in a majority interest in the project by issuing 1.115 million shares and spending $1.2 million on exploration over four years. The agreement gives Altius three options once Northern Abitibi has earned-in. Northern Abitibi could hold 51% of the property in a joint venture with Altius, or Northern Abitibi could obtain 100% of the property subject to a sliding scale net smelter returns royalty of 2 to 4% based on the price of gold, or Northern Abitibi will hold 51% with the option of increasing to 70% by spending an additional $4 million on exploration.

Northern Abitibi is now in the process of planning and permitting a surface exploration project for the Viking property, which is projected to get underway in August.

In mid-March Northern Abitibi worked out a similar agreement with Altius regarding the Taylor Brook prospect, also in western Newfoundland. Sulphide occurrences were noted in road cuts on the property in 1998, and further exploration led to discovery of the Layden showing.

Historical grab samples from the Layden showing averaged 5.4% nickel, 1% copper, and 0.1% cobalt, as well as elevated platinum, palladium, and gold levels. Altius conducted a high resolution airborne geophysical survey of the property but to date the site has not seen any drilling.

In early July Northern Abitibi completed the first phase of fieldwork at Taylor Brook. The program expanded the known area of mineralization and identified several targets for follow-up exploration.

To earn-in at Taylor Brook, Northern Abitibi is required to issue 500,000 shares, pay $200,000 cash, and spend $1.2 million on exploration over four years. After earn-in Altius has the same three options as in the Viking property agreement: 51% Northern Abitibi joint venture, 100% Northern Abitibi property with a 1.5 to 3.5% net smelter returns royalty, or 51% to Northern Abitibi with the option of spending an additional $4 million on exploration to increase holdings to 70%.