Stora Sahavaara - significant potentialWhen todays focus on Stora Sahavaara:
Resource base assumptions in DCF-calculation:
- Stora Sahavaara (SS, IOCG): 145 mill. tons (using 25 % Fe cut-off) according to NI 43-101 resource calculation from May, 2006, (of which 77 mill. tons in the ”measured” category, 45 mill. tons as ”indicated” and 23 mill. tons as ”inferred”, Fe 43 %, Cu 0,08 %) + additional target during the coming years 105 mill. tons = total target 250 mill. tons (potential according to management: 200-250 mill. tons, ref. presentation June 2, 2006, and later). The SGUs (Swedish Geological Survey) historical resource indication (from the 1960s) are 82 mill. tons magnetit at a grade of 41% Fe and 0,08% Cu, ref. p. 25-26 in the below referred technical report.
There are futher potential for expanding the NI 43-101 resource estimate. From conclusions in a technical report made by CAM, June 29, 2006 (p. 80 in this link https://www.northlandresourcesinc.com/i/pdf/StoraReport.pdf ): ”There is a lack of deeper drilling in the northern half of the deposit. Without drill testing the extent to which the mineralization continues down dip, particularly down-plunge in the northern part of the deposit, is unknown. If the mineralization persists down dip at the same intensity there is clearly the potential to substantially increase the resource (possibly by 60% to 70%) below the base of the current measured and indicated resource to a depth of 700 meters. The cost of drilling deeper holes to test this potential will be considerable but the continuity of the mineralization in the upper levels of the mineralized lens indicates that a relatively low-density drilling pattern will be required to establish measured and indicated resources. … Preliminary magnetic separation test-work indicates that concentrates are achievable in a range between 65.5 and 69.4 percent Fe with an average of 67 percent.”