Nordic Mining is pleased to announce that the geophysical survey, within the Company's pre-claims in western Finnmark and northern Troms, northern Norway, has been carried out successfully. An area with elevated conductivity was discovered within the Reinfjord Intrusion (attachment 1 and 3). Areas of elevated conductivity could potentially host sulphide deposits.
Nordic Mining holds several mineral pre-claims in the Seiland Igneous Province. The province is known for its layered intrusions sharing geological features with large ore-forming provinces such as "Bushveld" in South Africa and "Sudbury" in Canada. Nordic Mining regards the complex as prospective for nickel (Ni), copper (Cu) and platinum group elements (PGE), and has targeted two areas for exploration; the "Lokkarfjord" and "Reinfjord" ultramafic intrusions. In both areas sulphide mineralizations have been encountered. Nordic Mining initiated a geophysical survey to investigate areal distribution and possible depth continuations of the known deposits and to search for new ones.
The surveys were carried out by the Danish geophysical company SkyTem during July (http://www.skytem.com/). SkyTem uses world leading technology for airborne electromagnetic mapping (TDEM). The technology allows for high resolution mapping with the ability to map deep conductors (down to 500 meters). The survey was carried out by helicopter using both TDEM and magnetic susceptibility measurements. A total of 65 km were flown in Lokkarfjord and 421 km in Reinfjord.
Reinfjord mineralization
Disseminated sulphides have been reported in several places in the Reinfjord intrusion forming a typical Contact-Type mineralization along the intrusion margins. Sample analyses show low-grade but interesting levels of Ni, Cu and Cobalt (Co) (attachment 2). Petrological examinations indicate a high level of Ni and Cu contained in sulphides (pentlandite and chalcopyrite) which is crucial for extractability. Preliminary concentration tests by Norwegian University of Science and Technology (NTNU) indicate that the sulphides can be concentrated effectively as a concentrate graded up to 4 % Ni and 3 % Cu and 0.3% Co.
The geophysical results for Reinfjord shows an elevated conductivity in the center part of the intrusion from surface down to 500 m (attachment 3). The conductivity pattern can be caused by a continuation and increasing level of the sulphides. A field check will be carried out to better understand the relationship between the sulphides and the conductive areas.
Lokkarfjord mineralization
A semi-massive sulphide mineralization has been reported in previous investigations from the 1970's as an outcrop in the steep hillside of Lokkarfjord. Nordic Mining engaged Norwegian Geological Survey (NGU) for mapping and sampling in the area in 2007. Analysis of a boulder originating from the mineralization show interesting grades for Ni (0.8 wt %), Cu (0.72 wt %), Co (0.05 wt %) and PGE (0.8 g/t). The geophysical survey did however not detect the mineralization or any other conductors in the area. It is probable that the mineralization is not of a size that is recognizable in the survey. A field check is planned to interpret the results in more detail.
Field investigations
Nordic Mining has assigned Professor Rune Larsen from NTNU Trondheim and consulting geologist, Dr. Markku Iljina, specialized in layered intrusions and related nickel and platinum deposits, for its Seiland Project. The Company is undertaking a 3 week field exploration program in August to check the results detected by the geophysical survey. The Reinfjord intrusion will be mapped in detail and sampled for base- and precious metal analysis. In addition to project leaders mentioned, the team consists of two geologists and two master's students. New results are expected to be ready in October 2011.
The qualified person for Nordic Mining's Seiland project, Markku Iljina, with a designation of European Geologist from the European Federation of Geologists (EFG), has reviewed and verified the contents of this release.
For questions please contact Markku Iljina.
