Northland Resources S.A. (OSLO:NAUR)(FRANKFURT:NPK)(OMX:NAURo) (together with
its subsidiaries "Northland", "NRSA" or the "Company") is pleased to announce
the positive outcome of the Definitive Feasibility Study ("DFS") on its
100%-owned Hannukainen Iron Oxide Copper Gold Project (the "Project") in
northern Finland.


Comment from the acting CEO

"We are pleased to report the Definitive Feasibility Study (DFS) for the
Hannukainen project, which supports our belief in the underlying quality and
value of the project. Construction and operational permits will be issued based
on the designs included in the DFS.


"However, to strengthen our financial position and to focus on our operations in
Kaunisvaara, we have engaged KPMG Corporate Finance as financial advisor to
review the strategic alternatives for Hannukainen including a potential sale of
the project."


Peter Pernlof, acting CEO

Highlights of the DFS



--  In total, the Project has a joint open pit and underground combined
    Measured and Indicated Resource of 187 Mt grading 30.04% Fe Total, 0.18%
    Cu and 114 ppb Au. In addition, there is a total of 63 Mt grading 32.05%
    Fe Total, 0.15% Cu and 47 ppb Au in the Inferred category. 
--  The mineable tonnages (proven and probable mineral reserve) from the
    engineered pit design are a total of 114.8 Mt grading at 30.5% Fe,
    0.185% Cu, 0.112 g/t Au and 2.4% S. This gives a LOM of 17 years at the
    planned ore production of 6.5 Mtpa. 
--  The final products are a very high quality magnetite iron ore
    concentrate (70% Fe) and a copper concentrate (greater than 25% Cu) with
    gold credits (7 g/tonne of Cu concentrate). 
--  The properties of the iron ore concentrate makes it most suitable for
    the production of iron ore pellets, both pellets for use in blast
    furnaces (BF- pellets) and for use in DRI production (DR-pellets). It
    will also be most suitable for sinter production due to its high Fe
    content and its low level of impurities. 
--  Logistics of the Project is based on railroad transportation of iron
    concentrate from Hannukainen to the Port of Kokkola, Finland, and on
    regular year round shipments of iron concentrate from the Port of
    Kokkola. Company is expected to use Panamax vessels and not fully laden
    Capesize vessels during the ice-free period of the year and smaller
    vessels during the winter season. 
--  Initial Capex in order to reach 2 Mtpa of Fe concentrate capacity is 641
    MUSD. Capex over the life of mine is estimated 810 MUSD, including
    owners cost and a 10% contingency. 
--  Total Opex /tonne ("t") Fe concentrate delivered FOB at the port of
    Kokkola, Finland, is estimated to average USD 88.2/t concentrate for the
    Life of Mine ("LOM") and to Cash Cost adjusted for bi-products Cu/Au
    Concentrate is estimated to USD 49.9/t for the Life of Mine, including a
    5% contingency. 
--  Based on cash-flows pre-tax and interest1the project has Net Present
    Value ("NPV") of 383 MUSD at a discount rate of 8% and an IRR of 16.45%.
--  The payback period is expected to be 5 years from the first production
    of concentrate from the Project. 
--  Permitting processes of the Hannukainen IOCG Project are on-going. 



As part of the technical process, SRK Consulting (UK) Limited (SRK) has audited
the Resource and Reserve statements and the capital and operating cost estimates
for the Hannukainen IOCG Project. SRK's estimates for IRR and NPV before tax and
interest presented in the technical report are consistent in all material
respects with the pre-tax estimates derived by Northland and presented in the
DFS. The following press release presents extracts from the DFS.


A complete Technical Report will be filed on SEDAR on www.sedar.com. The
complete Technical Report details the extent of the study, the assumptions made
in analysing the data provided, the risks inherent in such projects and
remaining work necessary to validate the project feasibility. Interested parties
are encouraged to read the entire report.


DFS Overview

The DFS for the Hannukainen IOCG Project includes Hannukainen and Kuervitikko
Iron Oxide Copper Gold deposits. They will provide feed to the planned
Hannukainen Processing Plant in Kolari, northern Finland


The DFS was led by Northland. Jacobs UK Ltd (Jacobs) was responsible for overall
coordination and compilation of the work completed by a number of specialist
service groups and sub-consultants, whose limited areas of responsibility for
the DFS were as follows:




----------------------------------------------------------------------------
Work Package               Work Package Management      Consultant          
----------------------------------------------------------------------------
Coordination               Northland                    Jacobs              
----------------------------------------------------------------------------
Mining & Geology           Arundon Mining Solutions     SRK                 
----------------------------------------------------------------------------
Metallurgy                 Poyry                        LTU / Bo Arvidson   
                                                        Consulting          
----------------------------------------------------------------------------
Processing Plant (excl.    Poyry                        Jacobs              
 Civils)                                                                    
----------------------------------------------------------------------------
Tailings & Clarification   SRK                          Poyry               
 Ponds                                                                      
----------------------------------------------------------------------------
Infrastructure             Poyry                        Poyry               
----------------------------------------------------------------------------
Logistics                  Northland                    Poyry               
----------------------------------------------------------------------------
Environmental              Northland                    Ramboll / ERM / SRK 
                                                        / Poyry             
----------------------------------------------------------------------------
Field Works                Northland                                        
----------------------------------------------------------------------------



Table 1. Hannukainen DFS Work Packages

DFS Results in Detail

Capital and operating cost estimates were compiled by Northland and Poyry based
on information provided by all consultants. This formed the basis for the
financial analysis included in DFS and technical report.


Capex and Opex

Total Opex /tonne ("t") Fe concentrate delivered FOB at the port of Kokkola
estimated to average USD 88.2/t concentrate for the Life of Mine ("LOM") and to
Cash Cost adjusted for bi-products Cu/Au Concentrate is estimated to USD 49.9/t
for the Life of Mine. The Opex figure includes a 5% contingency.




----------------------------------------------------------------------------
OPEX Breakdown                                                           USD
----------------------------------------------------------------------------
Mining                                                                  36.0
----------------------------------------------------------------------------
Process                                                                 24.9
----------------------------------------------------------------------------
G&A                                                                      3.7
----------------------------------------------------------------------------
Industrial Area                                                          3.6
----------------------------------------------------------------------------
Transportation                                                          19.7
----------------------------------------------------------------------------
Royalties                                                                0.3
----------------------------------------------------------------------------
Total                                                                   88.2
----------------------------------------------------------------------------
Value of Cu/Au Concentrate                                              38.3
----------------------------------------------------------------------------
Adjusted Cash Cost                                                      49.9
----------------------------------------------------------------------------



Table 2. Hannukainen DFS OPEX Breakdown

Initial Capex in order to reach 2 Mtpa of Fe concentrate capacity is 641 MUSD.
Capex over the life of mine is estimated 810 MUSD. The Capex figure includes
owners cost and a 10% contingency.




----------------------------------------------------------------------------
CAPEX Breakdown Life of Mine                                            MUSD
----------------------------------------------------------------------------
Project Support                                                           78
----------------------------------------------------------------------------
Operational Readiness                                                      6
----------------------------------------------------------------------------
Industrial Area                                                          163
----------------------------------------------------------------------------
Process Plant                                                            276
----------------------------------------------------------------------------
Hannukainen Mine                                                         198
----------------------------------------------------------------------------
Logistics                                                                 15
----------------------------------------------------------------------------
Total CAPEX                                                              736
----------------------------------------------------------------------------
Contingency                                                               74
----------------------------------------------------------------------------
Capex including Contingency                                              810
----------------------------------------------------------------------------



Table 3. Hannukainen DFS CAPEX Breakdown

Product Pricing and Marketing

During the DFS, Northland commissioned a market study report, including the
price forecast, from Raw Material Group (RMG), a Swedish based iron ore market
consultancy. The base case constitutes a conservative approach to product
pricing. The base case in the DFS was based on their high price scenario for
shipments to Europe and Middle East.


Even their high price scenario should be considered very robust and conservative
since they assumed that the market will be balanced long-term, as opposed to
other analysts, who are assuming that supply will have difficulties keeping up
with the growing demand. The figure below illustrates an estimate of the Chinese
marginal production cost, which can be considered as a floor in iron ore pricing
service.


To view Table 4. RMG long-term price forecast Fe concentrate and pricing
estimated for the Hannukainen iron concentrate, please visit the following link:
http://media3.marketwire.com/docs/NAUR4.jpg.


Metallurgical testing has shown that processing the Hannukainen ore requires
fine grinding to liberate the valuable magnetite, copper and gold, which allow
the unwanted waste materials to be discarded. The final products are; a very
high quality magnetite iron ore concentrate (70% Fe) and a copper concentrate
(greater than 25% Cu) with gold credits (7 g/tonne of Cu concentrate).


The properties of this iron ore concentrate makes it most suitable for the
production of iron ore pellets, both pellets for use in blast furnaces
(BF-pellets) and for use in DRI production (DR-pellets). DRI (Direct Reduced
Iron) is primarily then used in Electric Arc Furnaces (EAF's). It will also be
most suitable for sinter production due to its high Fe content and its low level
of impurities.




---------------------------------------------------------------------------
Fet            S              SiO2           Al2O3          MnO            
Total Iron     Sulphur        Silica         Alumina        Manganese      
---------------------------------------------------------------------------
               less than      less than      less than      less than
70.0%          0.05%          2.5%           0.4%           0.2%
---------------------------------------------------------------------------

------------------------------------------------------------
CaO            MgO            P2O5           TiO2           
Lime           Magnesia       Phosphorous    Titanium
------------------------------------------------------------
less than      less than      less than      less than
0.6%           0.6%           0.01%          0.1%
------------------------------------------------------------



Table 5. Hannukainen Product Quality Specification

Copper and Gold

The Hannukainen deposit is an iron oxide copper gold (IOCG) mineralization
system. In addition to producing an iron concentrate there is an option to also
produce a copper concentrate. The value of this copper concentrate could give an
important support to the total value created in the Hannukainen project.


The copper concentrate produced in the Hannukainen project is expected to have
the following characteristics: Cu 25%, Au 7.1 g/t, Moisture 10% (Source: SGS -
Certificate of analysis).


Sensitivity Analysis

Based on the RMG high price forecast, the Financial Model produces the following
output when applying the base case scenario inputs:




--  The Project has a NPV2of 383 MUSD at a discount rate of 8% and an IRR1
    of 16.45%. Based on cash flows pre-tax and interest. 
--  The payback period1 is expected to be 5 years from the first production
    of concentrate from the Project. 
--  Minimum cash balance pre-financing is 658 MUSD 



The following sensitivity analysis, which is pre interest and taxes has been run
using an 8% discount rate while keeping all other variables in the Base Case the
same.


The sensitivity analysis was performed by sensitising four key variables in the
financial model: capex, opex, iron ore and Cu/Au prices.




IRR sensitivity analysis                                                    
contingencies on (capex +10 %, opex +5 %)                                   
----------------------------------------------------------------------------
                                              Capex                         
Prices +20%      Opex       -15%      +/-0%        +5%       +10%       +15%
            ----------------------------------------------------------------
                -15 %      30,9%      27,2%      26,1%      25,1%      24,2%
               +/-0 %      27,8%      24,3%      23,3%      22,4%      21,5%
                 +5 %      26,7%      23,4%      22,4%      21,5%      20,6%
                +10 %      25,6%      22,4%      21,4%      20,5%      19,7%
                +15 %      24,5%      21,4%      20,4%      19,6%      18,8%
----------------------------------------------------------------------------
                                              Capex                         
Prices +10%      Opex       -15%      +/-0%        +5%       +10%       +15%
            ----------------------------------------------------------------
                -15 %      27,0%      23,6%      22,6%      21,7%      20,8%
               +/-0 %      23,7%      20,6%      19,7%      18,8%      18,0%
                 +5 %      22,6%      19,5%      18,6%      17,8%      17,0%
                +10 %      21,4%      18,4%      17,6%      16,8%      16,0%
                +15 %      20,2%      17,3%      16,5%      15,7%      15,0%
----------------------------------------------------------------------------
                                              Capex                         
Prices +/-0%     Opex       -15%      +/-0%        +5%       +10%       +15%
            ----------------------------------------------------------------
                -15 %      22,9%      19,8%      18,9%      18,0%      17,2%
               +/-0 %      19,3%      16,5%      15,6%      14,9%      14,1%
                 +5 %      18,0%      15,3%      14,5%      13,7%      13,0%
                +10 %      16,8%      14,1%      13,3%      12,6%      11,9%
                +15 %      15,4%      12,9%      12,1%      11,4%      10,7%
----------------------------------------------------------------------------
                                              Capex                         
Prices -10%      Opex       -15%      +/-0%        +5%       +10%       +15%
            ----------------------------------------------------------------
                -15 %      18,3%      15,5%      14,7%      14,0%      13,2%
               +/-0 %      14,3%      11,8%      11,1%      10,4%       9,7%
                 +5 %      12,9%      10,5%       9,8%       9,1%       8,5%
                +10 %      11,4%       9,1%       8,4%       7,7%       7,1%
                +15 %       9,9%       7,6%       6,9%       6,3%       5,7%
----------------------------------------------------------------------------
                                              Capex                         
Prices -20%      Opex       -15%      +/-0%        +5%       +10%       +15%
            ----------------------------------------------------------------
                -15 %      13,2%      10,7%      10,0%       9,3%       8,7%
               +/-0 %       8,5%       6,3%       5,6%       5,0%       4,4%
                 +5 %       6,7%       4,6%       3,9%       3,3%       2,7%
                +10 %       4,7%       2,7%       2,0%       1,5%       0,9%
                +15 %       2,5%       0,5%       0,0%       0,0%       0,0%
----------------------------------------------------------------------------



Table 6. IRR Sensitivity analysis      



                                                                            
                                                                            
NPV 8 % sensitivity analysis (M$)                                           
contingencies on (capex +10 %, opex +5 %)                                   
----------------------------------------------------------------------------
                                              Capex                         
Prices +20%      Opex      -15 %     +/-0 %       +5 %      +10 %      +15 %
            ----------------------------------------------------------------
                -15 %      1 086      1 006        979        952        925
               +/-0 %        911        830        803        777        750
                 +5 %        852        772        745        718        691
                +10 %        794        713        686        660        633
                +15 %        735        655        628        601        574
----------------------------------------------------------------------------
                                              Capex                         
Prices +10%      Opex      -15 %     +/-0 %       +5 %      +10 %      +15 %
            ----------------------------------------------------------------
                -15 %        863        782        755        728        702
               +/-0 %        687        607        580        553        526
                 +5 %        629        548        521        494        467
                +10 %        570        490        463        436        409
                +15 %        512        431        404        377        350
----------------------------------------------------------------------------
                                              Capex                         
Prices +/-0%     Opex      -15 %     +/-0 %       +5 %      +10 %      +15 %
            ----------------------------------------------------------------
                -15 %        639        559        532        505        478
               +/-0 %        464        383        356        329        302
                 +5 %        405        324        298        271        244
                +10 %        347        266        239        212        185
                +15 %        288        207        181        154        127
----------------------------------------------------------------------------
                                              Capex                         
Prices -10%      Opex      -15 %     +/-0 %       +5 %      +10 %      +15 %
            ----------------------------------------------------------------
                -15 %        415        335        308        281        254
               +/-0 %        240        159        132        106         79
                 +5 %        181        101         74         47         20
                +10 %        123         42         15        -11        -38
                +15 %         64        -16        -43        -70        -97
----------------------------------------------------------------------------
                                              Capex                         
Prices -20%      Opex      -15 %     +/-0 %       +5 %      +10 %      +15 %
            ----------------------------------------------------------------
                -15 %        192        111         84         57         31
               +/-0 %         16        -64        -91       -118       -145
                 +5 %        -42       -123       -150       -177       -203
                +10 %       -101       -181       -208       -235       -262
                +15 %       -159       -240       -267       -294       -320
----------------------------------------------------------------------------



Table 7. NPV Sensitivity analysis



                                                                            
                                                                            
MCB sensitivity analysis (M$)                                               
contingencies on (capex +10 %, opex +5 %)                                   
----------------------------------------------------------------------------
                                              Capex                         
Prices +20%      Opex      -15 %     +/-0 %       +5 %      +10 %      +15 %
            ----------------------------------------------------------------
                -15 %       -549       -633       -661       -689       -717
               +/-0 %       -562       -646       -674       -702       -730
                 +5 %       -566       -650       -678       -706       -734
                +10 %       -571       -655       -683       -711       -739
                +15 %       -575       -659       -687       -715       -743
----------------------------------------------------------------------------
                                              Capex                         
Prices +10%      Opex      -15 %     +/-0 %        +5%      +10 %      +15 %
            ----------------------------------------------------------------
                -15 %       -554       -638       -666       -694       -722
               +/-0 %       -567       -651       -679       -707       -735
                 +5 %       -572       -656       -684       -712       -740
                +10 %       -576       -660       -688       -716       -744
                +15 %       -581       -665       -693       -721       -748
----------------------------------------------------------------------------
                                              Capex                         
Prices +/-0%     Opex      -15 %     +/-0 %        +5%      +10 %      +15 %
            ----------------------------------------------------------------
                -15 %       -559       -643       -671       -699       -727
               +/-0 %       -573       -657       -685       -713       -740
                 +5 %       -577       -661       -689       -717       -745
                +10 %       -581       -665       -693       -721       -749
                +15 %       -586       -670       -698       -726       -755
----------------------------------------------------------------------------
                                              Capex                         
Prices -10%      Opex      -15 %     +/-0 %        +5%      +10 %      +15 %
            ----------------------------------------------------------------
                -15 %       -565       -649       -677       -705       -733
               +/-0 %       -578       -662       -690       -719       -748
                 +5 %       -582       -667       -696       -725       -754
                +10 %       -587       -673       -702       -731       -760
                +15 %       -593       -679       -708       -737       -766
----------------------------------------------------------------------------
                                              Capex                         
Prices -20%      Opex      -15 %     +/-0 %        +5%      +10 %      +15 %
            ----------------------------------------------------------------
                -15 %       -570       -655       -684       -713       -742
               +/-0 %       -586       -673       -702       -731       -760
                 +5 %       -592       -679       -708       -737       -766
                +10 %       -598       -685       -714       -743       -772
                +15 %       -604       -691       -720       -749       -778
----------------------------------------------------------------------------



Table 8. MCB Sensitivity analysis

Permitting

Hannukainen Mining Concession Application was filed in December 2010. Northland
is expecting the mine permit process to be finalized until summer 2014.


Hannukainen Environmental Impact Assessment (EIA) including Social Impact
Assessment (SIA) was delivered to authorities (Northern Finland ELY-Centre) in
September 2013 and it has been state to be adequate. At the moment Northland is
preparing an Environmental Permit application and Natura assessment for
authorities, the Company is expecting to file the application during Q2 2014.


Land Use Planning process for the Hannukainen Project was started in November
2010; at the moment the process is in the first official public feedback stage.


Resources and Reserves

The Mineral Resource Statement generated is divided into two categories:
open-pit and underground. The open pit Resource has been restricted to all
classified material falling within a Whittle shell representing a metal price of
USD1.50/dmtu for magnetite concentrate, USD3.35/lb for copper and USD1375/oz for
gold.


In addition, the open pit resource was reported above a Fe equivalent cut-off
grade of 13.3%, however, this represented almost all material within the pit.
This represents the material that has reasonable prospects for eventual economic
extraction potential via open pit mining methods based on the Whittle
optimisation analysis.


The underground Resource has been calculated using a Fe equivalent cut-off grade
of 35.6%, calculated using the same metal prices as the Whittle shell. This
represents the material considers to have reasonable prospects for eventual
economic extraction potential via underground mining methods.


Table 8 shows the resulting Mineral Resource Statement for the Hannukainen
project. The statement has been classified by Qualified Person Howard Baker
(MAusIMM(CP)) in accordance with CIM Guidelines. It has an effective date of 24
October 2012. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. There are no other factors (environmental,
permitting, legal, title, taxation, socio-economic, marketing, political, or
other relevant factors) that have materially affected the Mineral Resource
Estimate.


The quantity and grade of reported Inferred Resources in this estimation are
uncertain in nature and there has been insufficient exploration to define these
Inferred Resources as an Indicated or Measured Mineral Resource; and it is
uncertain if further exploration will result in upgrading them to an indicated
or Measured Resource category.




----------------------------------------------------------------------------
                                  Open Pit                                  
----------------------------------------------------------------------------
Deposit      Resource Category     Tonnes (Mt) %Fe Total       %Cu  Au (ppb)
----------------------------------------------------------------------------
Hannukainen  Measured                      120     32.25      0.18        83
             ---------------------------------------------------------------
             Indicated                       3     24.80      0.19        64
             ---------------------------------------------------------------
             Meas+Ind                      123     32.08      0.18        82
             ---------------------------------------------------------------
             Inferred                      0.9     27.16      0.19        24
----------------------------------------------------------------------------
Kuervitikko  Measured                       34     23.22      0.19       217
             ---------------------------------------------------------------
             Indicated                       3     23.36      0.15       174
             ---------------------------------------------------------------
             Meas+Ind                       36     23.23      0.19       213
             ---------------------------------------------------------------
             Inferred                      0.1     19.37      0.15       129
----------------------------------------------------------------------------
TOTAL        Measured                      154     30.28      0.18       112
             ---------------------------------------------------------------
             Indicated                       6     24.09      0.17       118
             ---------------------------------------------------------------
             Meas+Ind                      159     30.06      0.18       112
             ---------------------------------------------------------------
             Inferred                      1.0     26.24      0.19        36
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                 Underground                                
----------------------------------------------------------------------------
Deposit      Resource Category     Tonnes (Mt) %Fe Total       %Cu   Au(ppb)
----------------------------------------------------------------------------
Hannukainen  Measured                       14     32.13      0.18       150
             ---------------------------------------------------------------
             Indicated                       8     32.44      0.16        72
             ---------------------------------------------------------------
             Meas+Ind                       22     32.24      0.17       123
             ---------------------------------------------------------------
             Inferred                       61     32.33      0.15        44
----------------------------------------------------------------------------
Kuervitikko  Measured                        3     17.79      0.19       140
             ---------------------------------------------------------------
             Indicated                       3     20.27      0.17       169
             ---------------------------------------------------------------
             Meas+Ind                        6     19.15      0.18       156
             ---------------------------------------------------------------
             Inferred                        1     23.21      0.15       203
----------------------------------------------------------------------------
TOTAL        Measured                       17     29.88      0.18       149
             ---------------------------------------------------------------
             Indicated                      11     28.82      0.17       101
             ---------------------------------------------------------------
             Meas+Ind                       28     29.46      0.18       130
             ---------------------------------------------------------------
             Inferred                       62     32.14      0.15        47
----------------------------------------------------------------------------
----------------------------------------------------------------------------
             Combined Open Pit and Underground (Total Resource)             
----------------------------------------------------------------------------
Deposit      Resource Category     Tonnes (Mt) %Fe Total       %Cu  Au (ppb)
----------------------------------------------------------------------------
Hannukainen  Measured                      154     32.24      0.18        90
             ---------------------------------------------------------------
             Indicated                       6     30.37      0.17        70
             ---------------------------------------------------------------
             Meas+Ind                      159     32.17      0.18        89
             ---------------------------------------------------------------
             Inferred                       61     32.25      0.15        44
----------------------------------------------------------------------------
Kuervitikko  Measured                       36     22.82      0.19       210
             ---------------------------------------------------------------
             Indicated                       6     21.69      0.16       172
             ---------------------------------------------------------------
             Meas+Ind                       42     22.66      0.19       205
             ---------------------------------------------------------------
             Inferred                        1     22.87      0.15       196
----------------------------------------------------------------------------
TOTAL        Measured                      171     30.44      0.18       113
             ---------------------------------------------------------------
             Indicated                      17     25.88      0.17       122
             ---------------------------------------------------------------
             Meas+Ind                      187     30.04      0.18       114
             ---------------------------------------------------------------
             Inferred                       63     32.05      0.15        47
----------------------------------------------------------------------------



Table 8. Mineral resources of the Hannukainen IOCG Project         

The Hannukainen project has a combined Measured and Indicated open pit Resource
of 159 Mt grading 30.06% Fe Total, 0.18% Cu, and 112 ppb Au. Of this, 154 Mt
grading 30.28% Fe Total, 0.18% Cu, and 112 ppb Au is in the Measured category,
and 6 Mt grading 24.09% Fe Total, 0.17% Cu, and 118 ppb Au is in the Indicated
category. In addition, 1 Mt grading 26.24% Fe Total, 0.19% Cu and 36 ppb Au is
in the Inferred category.


The Project also has a combined Measured and Indicated underground Resource of
28 Mt grading 29.46% Fe Total, 0.18% Cu, and 130 ppb Au. Of this, 17 Mt grading
29.88% Fe Total, 0.18% Cu, and 149 ppb Au is in the Measured category, and 11 Mt
grading 28.82% Fe total, 0.17% Cu, and 101 ppb Au is in the Indicated category.
In addition, 62 Mt grading 32.14% Fe Total, 0.15% Cu, and 47 ppb Au is in the
Inferred category.


In total, the Hannukainen project has a joint underground and open pit combined
Measured and Indicated Resource of 187 Mt grading 30.04% Fe Total, 0.18% Cu and
114 ppb Au. In addition, there is a total of 63 Mt grading 32.05% Fe Total,
0.15% Cu and 47 ppb Au in the Inferred category.


Mineable Tonnages - Engineered Pit Design

On the basis of a 17 years mine life minimum, the 0.89 revenue factor pit shell
(relating to an iron ore price of USD1.25/dmtu) was selected as the basis for
the pit designs. The mineable tonnages from the engineered pit design are 114.8
Mt of ore with 446.8 Mt of waste.




----------------------------------------------------------------------------
                  Minable Tonnages - Engineered Pit Design                  
----------------------------------------------------------------------------
                             Quantity Mt     Fe %     Cu %   Au g/t      S %
----------------------------------------------------------------------------
Hannukainen                                                                 
----------------------------------------------------------------------------
Proven                              91.8     32.2    0.186    0.088      2.4
----------------------------------------------------------------------------
Probable                             0.8     32.6    0.148    0.060      2.4
----------------------------------------------------------------------------
Kuervitikko                                                                 
----------------------------------------------------------------------------
Proven                              21.9     23.6    0.183    0.216      2.5
----------------------------------------------------------------------------
Probable                             0.3     23.8    0.177    0.194      2.5
----------------------------------------------------------------------------
Total                                                                       
----------------------------------------------------------------------------
Proven                             113.7     30.5    0.185    0.112      2.4
----------------------------------------------------------------------------
Probable                             1.1     30.0    0.157    0.100      2.4
----------------------------------------------------------------------------
TOTAL                              114.8     30.5    0.185    0.112      2.4
----------------------------------------------------------------------------



Mineral reserves reported include a Proven Mineral Reserve of 113.7 Mt grading
30.5% Fe, 0.185% Cu, 0.112 g/t Au and 2.4% S and a probable Mineral Reserve of
1.1 Mt grading 30.0% Fe, 0.157% Cu, 0.1 g/t Au and 2.4% S for a total of 114.8
Mt grading at 30.5% Fe, 0.185% Cu, 0.112 g/t Au and 2.4% S. Confidence in the
modifying factors has resulted in classifying all Measured material as a Proven
Ore Reserve and all Indicated material as a Probable Ore Reserve.


The mining operation consists of a conventional drill and blast, and load and
haul operations with material hauled to waste dumps, RoM stockpile or directly
tipped at the crusher.


Mineral Processing

The Hannukainen minerals processing plant is located eight kilometres south of
the Hannukainen mine at Rautuvaara, Finland and processes the iron oxide, copper
and gold (IOCG) ore to be mined at Hannukainen and Kuervitikko. The minerals
processing plant is designed to treat 6.5 Million tonnes of ore per year at a
nominal processing rate of 825 tonnes per hour.


Run-of-mine (RoM) ore is crushed by a primary crusher at the Hannukainen mine
site. The crushed ore is transferred by a 9 km long overland conveyor to the
stockpile at the concentrator in Rautuvaara. At Rautuvaara, the crushed ore is
screened into a fine and a coarse fraction. The two fractions are stored
separately in the stockpile. Mill feed is extracted from the stockpile by apron
feeders and conveyed to the grinding circuit in the concentrator. The grinding
circuit comprises a primary AG/SAG mill in closed circuit with screens followed
by secondary ball mill in closed circuit with hydrocyclones. A portion of the
cyclone underflow is processed in a flash flotation stage to recover coarse,
fast floating chalcopyrite. The product from the grinding circuit passes to
copper rougher flotation.


The copper rougher concentrate, together with the flash flotation concentrate,
is treated in the stirred mill regrind circuit to ensure adequate liberation of
copper minerals. The regrind product is upgraded in three stages of copper
cleaning. The final copper concentrate is thickened, filtered and stored, prior
to transportation to market.


Copper first cleaner tailings pass to cleaner scavenger flotation for recovery
of slow floating value minerals. The cleaner scavenger tailings are then sent to
the pyrite concentrate thickener. Copper rougher tailings are pumped to the
pyrite flotation circuit for removal of sulphur-rich pyrite. The pyrite
flotation concentrate is thickened together with the copper cleaner scavenger
tailings. The non-floating fraction (i.e. the high iron fraction) from pyrite
flotation is diluted and processed in a number of parallel low intensity
magnetic separators (LIMS) for magnetite recovery.


LIMS concentrate is treated in the pyrrhotite flotation circuit to float the
sulphur rich pyrrhotite in order to achieve a final magnetite product with less
than 0.05% w/w sulphur. The cleaned magnetite fraction is dewatered by magnetic
separators followed by filtration. The filter cake is loaded onto rail wagons
for onward delivery to market.


The non-magnetic tailings streams from the LIMS and dewatering magnetic
separation stages are combined and thickened in the low sulphur tailings
thickener to produce a high density thickener underflow. The thickened tailings
are pumped to the low sulphur tailings management facility (TMF). The high
sulphur flotation concentrate generated from the pyrrhotite flotation circuit is
dewatered by magnetic separator and combined with the pyrite thickener
underflow. The combined high sulphur tailings are pumped to the separate high
sulphur deposition area in the TMF.


Logistics

The Hannukainen iron concentrate is planned to be transported by rail, around
450 km, to the Port of Kokkola, where it is discharged, stored and then
reclaimed for loading to ships. The Hannukainen project has the significant
advantage of being able to utilise existing infrastructure including railways
(originally designed to handle bulk materials from the Rautaruukki iron ore mine
and the cement industry), the port and shipping. Some upgrading of the rail
infrastructure and some investments for storage and handling at the port are
however required.


The Port of Kokkola has already experience from and equipment for handling of
various dry bulk cargoes, including coal and iron ore. Panamax vessels and not
fully laden Capesize vessels discharge and load at the port during the ice free
period of the year while during the winter season smaller vessels better suited
for ice conditions are used more frequently. The ports and fairways along the
Swedish and Finnish coastlines have been kept open year around since the early
70's by heavy duty ice breakers from both countries assisting each other.


Cu/Au concentrate is targeted to be sold EX Works Hannukainen, and Boliden has
been identified as the most probable client. Boliden can receive the product
either in Skelleftea, Sweden or Harjavalta, Finland. The logistic operations for
Cu/Au base case consist of the two operations, loading and trucking, where
Boliden will have responsibility for loading the trucks and manage the truck
transport to customer receiving location.


Financing

Based on the current situation December 2013 for Northland, the Company has
decided to finalise the DFS with a pre financing and tax level, even though the
financial model is able to handle the post financing and tax level. The
financing solution for the Hannukainen IOGC project will be determined when
Northland is able to seek financing on normal terms. The long-term cost of debt
is assessed between 3.4% - 7% while the required return on equity for the mining
sector is assessed between 8 - 12% while the current financing situation
requires returns close to the IRR level for the Hannukainen IOGC project which
makes it difficult to identify the capital structure for the project at this
stage. As it is well known, Iron projects are sensitive to market price
fluctuation. However, the performed sensitivity analysis suggests that
Hannukainen as iron and copper-gold project is less sensitive to Iron ore market
fluctuations due to the bi-products.


Northland is a producer of iron ore concentrate, with a portfolio of production,
development and exploration mines and projects in northern Sweden and Finland.
The first construction phase of the Kaunisvaara project is complete and
production ramp-up started in November 2012. The Company expects to produce
high-grade, high-quality magnetite iron concentrate in Kaunisvaara, Sweden,
where the Company expects to exploit two magnetite iron ore deposits, Tapuli and
Sahavaara. Northland has entered into off-take contracts with three partners for
the entire production from the Kaunisvaara project over the next seven to ten
years. The Company is also preparing a Definitive Feasibility Study ("DFS") for
its Hannukainen Iron Oxide Copper Gold ("IOCG") project in Kolari, northern
Finland.


Forward-Looking Information

This announcement may include "forward-looking" information within the meaning
of applicable securities laws. This forward-looking information can be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "anticipates", "expects", "intends", "may", "will" or
"should" or, in each case, their negative, or other variations or comparable
terminology. This forward-looking information includes all matters that are
expectations concerning, among other things, Northland's results of operations,
financial condition, liquidity, prospects, growth, strategies and the industry
in which it operates. By their nature, forward-looking information involves
risks and uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. Readers are cautioned
that forward-looking information is not a guarantee of future performance and
that Northland's actual results of operations, financial condition and
liquidity, and the development of the industry in which it operates may differ
materially from those made in or suggested by the forward-looking information
contained in this press release. In addition, even if Northland's results of
operations, financial condition and liquidity, and the develo pment of the
industry in which Northland operates are consistent with the forward-looking
information contained in this press release, those results or developments may
not be indicative of results or developments in subsequent periods.


1 This is based on Northland's estimate of IRR and NPV before tax and interest,
which are consistent in all material respects with the equivalent pre.tax
estimates derivated by SRK and presented in the technical report. Values include
contingency 10% Capex and 5% Opex.


2 Values include contingency 10% Capex and 5% Opex.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Northland Resources S.A.
Jonas Lundstrom
Vice President Corporate Communication
+46 705 49 33 38


Northland Resources S.A.
Jari Vaisinen
Vice President Finnish Operations
+46 920 779 00


ir@northland.eu
www.northland.eu

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