Vancouver – Northland Resources (NAU-T) boosted confidence in its Tapuli magnetite deposit, upgrading most of a 10-month old resource estimate to the measured and indicated category.
In February Northland had pegged the Tapuli deposit at 54 million indicated tonnes grading 27.75% iron and 48 million tonnes grading 26.3 million inferred tonnes grading 26.30% iron.
But with 69 more drill holes completed since last fall, Northland has shifted 90% of the Tapuli resource into the measured and indicated categories.
Now the resource stands at 59 million measured tonnes grading 27.82% iron and 35 million indicated tonnes grading 24.08% iron.
The new resource will form part of a planned feasibility study on the project located near Kiruna, northern Sweden.
In a scoping study completed in late summer Northland outlined plans to develop mines for Tapuli and two other larger magnetite deposits, Stora Sahavaara in northern Sweden and Hannukainen in northern Finland.
Ultimately Northland favoured the smaller Tapuli project because, with capital costs of about US$163 million, it is cheaper to build and, without the need for flotation as at its other two projects, processing will be simpler.
Northland plans on having Tapuli commissioned by mid-2011.
In November Northland also announced it had chosen the port of Kemi, Finland, for shipping concentrate from Tapuli.
Northland and the port authority there signed a memorandum of understanding stipulating the port authority would reserve land for Northland’s shipping facilities.
And earlier this month Northland reported that the Swedish government had granted it an exploitation concession. The next step is environmental permitting.
On news of the upgraded resource Northland’s share price dropped 2¢ to close at 55¢.
Northland has about 110 million shares issued and a 52 week trading range between 50¢ and $4.34.
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