NAU-v
NORTH AMERICAN GOLD OPTIONS TWO GOLD PROJECTS IN SWEDEN
North American Gold has entered into two agreements with MinMet PLC of Dublin, Ireland, whereby North American has an option to acquire a 60-per-cent interest in two advanced gold properties totalling 4,766 hectares in the Skellefte massive sulphide district of northern Sweden.
MinMet (Dublin: MNT.L), an international mining and exploration company, has mining operations in Sweden and holds title to an extensive portfolio of exploration projects in the country. The agreements with North American relate to the Barsele and Norra properties, which are located about 200 kilometres west of MinMet's Bjorkdal gold mine.
Barsele property
Mineralization was first identified at Barsele in 1989 following up anomalous values located in a regional till sampling program. Since then several shallow drill campaigns have defined a northwest/southeast trending intrusive body hosting gold mineralization in stockworks and veins.
Highlights of drill results obtained at the Central zone include:
Section From To Length Gold
(m) (m) (m) (m) (g/t)
Hole No. 89005
925E 136 196 60 1.54
Hole No. 89701
950E 13 70 57 1.20
Hole No. 90002
950E 44 127 79 1.27
incl. 54 82 28 3.16
Hole No. 89001
975E 15 143 128 1.20
incl. 80 103 23 2.80
Hole No. 89002
975E 10 149 139 1.21
incl. 79 85 6 3.47
Hole No. 89003
975E 48 83 35 1.72
Hole No. 89705
1000E 13 26 13 2.26
Hole No. 89706
1000E 9 70 61 1.68
Hole No. 90001
1000E 90 128 38 1.96
and 172 192 20 4.08
Hole No. 90730
1025E 104 120 16 2.46
All results represent uncut weighted averages of selected drill holes.
Higher grade zones are present within the area explored by prior drilling, for example hole 90727 which returned seven metres at 18.7 grams per tonne gold. Anomalous gold in till indicates a potential strike length to the mineralized zone of over eight kilometres while drilling indicates potential widths of 25 to 200 metres to the mineralized bodies.
Under the terms of the option agreement North American can earn a 60-per-cent interest in Barsele by spending $2-million (U.S.) on exploration and development and issuing 200,000 shares to MinMet over a three-year earn-in period.
Norra property
Under a second option agreement, North American can also acquire a 60-per-cent interest in the adjoining Norra property by incurring $1.5-million (U.S.) in exploration costs within three years, and issuing a further 200,000 shares to MinMet. The Norra property is a deformed, gold-rich, massive sulphide prospect. Selected results from a previous shallow drill program at Norra include:
From To Length Gold Silver
(m) (m) (m) (g/t) (g/t)
Hole No. 901726
4 9 5 17.76 194.0
Hole No. 91303
16 29 13 8.08 53.1
incl.
17 20 3 18.6 106
Hole No. 91310
17 29 12 4.55 70.8
Hole No. 91315
27 33 6 7.28 43.1
Hole No. 91317
10 18 8 4.77 85.5
Hole No. 91318
10 16 6 9.16 33.0
Hole No. 91D004
36 38 2 11.22 56.8
All results represent uncut weighted averages of selected drill holes.
Significant copper and zinc values were returned in many of the above reported intersections and this prospect has similarities in geological setting and alteration to the Boliden gold deposit in the Skelleftea district which has historic production of 3.9 million ounces of gold from ore averaging 15 grams per tonne. Mineralization, structure and lithologies at Norra are similar to many other VMS deposits in the Skellefte district, which commonly consist of multiple deposits along a favourable stratigraphic horizon.
North American will be starting geophysical and diamond drilling programs to further advance the Barsele and Norra prospects following a short due diligence period including data verification.
North American's management is impressed with the merits and potential of operating in Sweden, and are happy to be involved with a quality partner such as MinMet. Sweden has an established mining code, guaranteed mineral tenure, favourable tax regime and excellent infrastructure, with a proven record of turning exploration projects into profitable mines.
The technical data in this news have been provided to North American by MinMet. In accordance with NI 43-101, Harmen Keyser, PGeol, is the qualified person responsible for ensuring that they are summarized accurately.
For further details on these properties and the agreements please visit North American's Web site at: www.northamgold.com.
Top
