NNAANN
NNAANN
DISCOVERY OF DISCOVERY OF THE STORLIDEN Cu-Zn VMS DEPOSITTHE STORLIDEN Cu-Zn VMS DEPOSIT
A NEW VMS TYPE IN THE SKELLEFTE MINING DISTRICTNORTHERN SWEDEN
NORTH ATLANTIC NATURAL RESOURCES AB
Uppsala, Sweden
NNAANN
A NEW EXPLORATION COMPANY
• JANUARY 1997 - FORMATION OF NAN
• JUNE 1997 - IPO ON STOCKHOLM EXCHANGE
• AUG. 1997 - AIRBORNE GEOPHYSICAL SURVEY
• FEB. 1998 - GROUND FOLLOW-UP, DRILLING
• MAR. 1998 - STORLIDEN DISCOVERY HOLES
• JUNE 1998 - HIGH-GRADE CU-ZN
• NOV. 1998 - 1.8 Mt - 10% Zn, 4% Cu
NNAANN
NAN CORPORATE STRUCTURE
• 39% BOLIDEN AB
• 39% SOUTH ATLANTIC RESOURCES LTD.
• 22% PUBLIC
• LISTED ON STOCKHOLM EXCHANGE
• 31.2 M SHARES OUTSTANDING
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WHY SWEDEN?
• UNDER-EXPLORED PROSPECTIVE GROUND
• NEW MINING LEGISLATION - 1993
• WORLD CLASS MINERAL DEPOSITS
• EXCELLENT INFRASTRUCTURE
• LONG MINING TRADITION - 800 YEARS
• STABLE ECONOMIC & POLITICAL CLIMATE
• MINING CENTER OF EUROPE
NNAANN
SWEDEN - WORLD CLASS DEPOSITS• KIRUNA
– 2.6 Bt 63% Iron
• BOLIDEN – 8 Mt - 15.5 g\t Au (4 M oz)
• FALUN – 34 Mt - 5% Zn - 0.7% Cu - 2% Pb
• ZINKGRUVAN – 29 Mt - 8 % Zn - 4% Pb
• LAISVALL– 108 Mt - 4% Pb
NNAANN
SWEDEN - MINING CENTER OF EUROPE
MINE PRODUCTION 1997
PRODUCTION EU EUROPE % EU
GOLD (T) 7.3 1 1 34
SILVER (T) 281 1 2 48
COPPER (kT) 81 2 4 44
LEAD (kT) 113 1 1 55
ZINC (kT) 164 2 2 29
IRON Ore (MT) 22 1 1 92
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Geological Provinces - Baltic Shield
NNAANN
NANProject Map
SWEDEN
N
500
F I N L A N D
BERGSLAGEN DISTRICT
Kilometres
Helsinki
Svartliden
Solberget Project
Stockholm
0
B a l t i c S e a
RöjnoretGrundfors
SkellefteåHögbränna
R U S S I A
Ahmavuoma
Älgtorp
Jugansbo
Vikersvik
Risliden
Hinsen
S W E D E N
Sjökälla
N o r w e g i a n S e a
Kaalasluspa
Norrliden
N O R W A Y
Oslo
Hällefors
Dubblon
Storliden
NORRBOTTEN DISTRICT
Mining District
N o r t h S e a
NAN Project
SKELLEFTE DISTRICT
September, 1998
NORRBOTTEN
SKELLEFTE
BERGSLAGEN
NNAANN
Piteå
Luleå
Skellefteå
25 km
Rönnskär Smelter
95
Boliden
Arvidsjaur
370
Norsjö
Sorsele
NorrbottenVästerbotten
Malå363
Storliden
Lycksele
E12
The Skellefte District
0 50
SKELLEFTE
SMELTER
BOLIDEN MILL
MALA
NNAANN
ORE DEPOSITS IN THE SKELLEFTE FIELD
0 50
N
KRISTINEBERG
BOLIDEN
RENSTROM
MALA
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52 KNOWN VMS DEPOSITS: +100 KT (ALLEN, ET. AL., ECON GEOL, 1996)
10
50
100
Cum
mul
ativ
e fr
eque
ncy
%
Million Metric Tonnes30
Volcanic setting
Uncertain settingsRhyolite porphyry cryptodome-tuff cone Thin member or rhyolite porphyry cryptodome-tuffcone within other rhyolitic, dacitic or andesitic complexesDacite-andesite-basalt complex with mineralisedrhyolite porphyriesOther (and undifferentiated) rhyolite volcanoesDacite-andesite-basalt complex with no rhyoliteporphyries near ore
Maurliden EPetiknäs N
Svansele S & MensträskKankberg
Norrliden & SvanseleLångdal Petiknäs S
Boliden RenströmLångsele
Kristineberg Rackejaur
0.1 1.0 100 Mt20105
MEDIAN: 1.1 MT
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The Skellefte District Simplified Geology
Malå
Revsund granitesEarly orogenic granitoidsEarly orogenic gabbro
Mafic volcanicsFelsic volcanicsMetasedimentary rocks
KRISTENEBERG
MALA
BOLIDEN
NAN in The SKELLEFTE DISTRICT
Norsjö Boliden
Adak
0 10 20 km
N
KRISTINEBERG
MALA
BOLIDEN
NNAANN
NAN in The SKELLEFTE DISTRICT
STORLIDESTORLIDENN
Norsjö
Malå
Kristineberg
Boliden
Adak
0 10 20 km
N
KRISTINEBERG
BOLIDEN
MALA
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ORE DEPOSITS IN THE SKELLEFTE FIELD
0 50
N
KRISTINEBERG
BOLIDEN
RENSTROM
MALA
STORLIDEN
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COLORED AIRMAG WITH GEOTEM ANOMALIES
0 2 km
N
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GEOTEM Airborne Discovery Profile
STORLIDEN ANOMALY
Line 1264Anomaly: ACTP: 61 siemensDepth: 58 metresNC: 12A
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COLORED AIRMAG WITH EM & SCOUT DH
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HLEM Profile with DH 1 and DH 2
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THE STORLIDEN PROJECT
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TEM ProfilewithDrill Results
Interpreted TEM Conductor
Low grade lens massive sulphide
High grade lens massive sulphide
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TEM Survey and Scout Drill Holes
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Cross section 20200 E
MASSIVE CU-ZN SULPHIDE STRINGER ZONE
SEDIMENTS
TUFFITES
TILLSURFACE
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DEPOSIT CHARACTERISTICS
DIP : 20º SW
STRIKE LENGTH : 400 M
WIDTH : 60-80 M
DEPTH : 100 - 160 M
ORE DENSITY : 3.4 g\cc
OVERBURDEN : 20-25 M TILL
OUTCROP : 1.5 KM SE
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DEPOSIT CHARACTERISTICS
MINERALIZATION : MASSIVE, COARSE-GRAINED HIGH-GRADE CPY, ZNS W/ PO
HOSTROCK : TUFFITES, SEDIMENTS, DIKES
ALTERATION : CORDIERITE, ACTINOLITE, CARB.
MODE : “STACKED”, STRATIFORM LENSES
ZONING : CU RICH - SOUTHERN CU-ZN RICH - CENTRAL ZN RICH - NORTHERN
PBS, AU, AS - SOUTH MARGIN
GENESIS : SUB-SEAFLOOR REPLACEMENT?
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A NEW VMS DEPOSIT• GRADES : 3X ZN, 4X CU
• LOW AU, AG, AS
• LOW ANGLE DIP
• LACK OF PYRITE
• LACK OF DEFORMATION
• HIGH STRATIGRAPHIC POSITION?
• COARSE GRAINED ORE TEXTURE
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OUTLINE OF DEPOSIT AND DRILL HOLES
A
B
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STORLIDEN - CROSS SECTION 20200 E
DDH From To Length Cu (%) Zn (%) Ag(ppm) Au(ppm)98018 145.00 176.60 31.60 3.38 7.95 23.70 0.34
(154.30 165.40 11.10 3.92 21.03 26.50 0.21) 98022 110.00 147.30 37.30 6.03 12.29 26.27 0.22 (110.00 123.20 13.20 5.48 5.17 22.10 0.18)
(126.20 147.30 21.10 7.23 18.49 28.67 0.26) 98068 102.40 106.40 4.00 0.84 1.32 39.78 0.27
110.00 111.000 1.00 1.86 2.59 21.10 0.18118.05 122.05 4.00 2.18 7.00 19.69 0.36126.50 150.05 23.55 6.40 21.09 25.43 0.30
98020 145.00 151.55 6.55 5.00 24.00 21.20 0.23
A B
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STATEMENT OF RESOURCE
57 Drill Holes
RESOURCE TONNES %ZN %CU g\t AG g\t AU
INDICATED 1,500,000 11.5 4.4 28 0.3
INFERRED 300,000 3.4 2.4 33 0.3_______________________________________________
COMBINED 1,800,000 10.0 4.0 29 0.3
IN-SITU METAL IN TONNES
ZINC 182,500
COPPER 73,000
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TYPICAL SKELLEFTE VMS DEPOSIT
GRADE 3% Zn, 0.7% Cu, 0.4% Pb, 2 g\t Au, 50 g\t Ag
TONNAGE 1.1 Million Tonnes (Median)
AGE Early Proterozoic 1.90 - 1.87 Ga
HOST Felsic Volcanics near Sedimentary Contact
ALTERATION Quartz-Sericite-Pyrite
ORE TYPES Sphalerite-Chalcopyrite-Galena withPyrite-Pyrrhotite-Arsenopyrite-Chlorite
ZONING Cu Central, Zn & Pb distal
GENESIS Submarine Volcanism
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GEOLOGICAL SETTING - MALÅ 23 I
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52 KNOWN VMS DEPOSITS: +100 KT (ALLEN, ET. AL., ECON GEOL, 1996)
10
50
100
Cum
mul
ativ
e fr
eque
ncy
%
Million Metric Tonnes30
Volcanic setting
Uncertain settingsRhyolite porphyry cryptodome-tuff cone Thin member or rhyolite porphyry cryptodome-tuffcone within other rhyolitic, dacitic or andesitic complexesDacite-andesite-basalt complex with mineralisedrhyolite porphyriesOther (and undifferentiated) rhyolite volcanoesDacite-andesite-basalt complex with no rhyoliteporphyries near ore
Maurliden EPetiknäs N
Svansele S & MensträskKankberg
Norrliden & SvanseleLångdal Petiknäs S
Boliden RenströmLångsele
Kristineberg Rackejaur
0.1 1.0 100 Mt20105
MEDIAN: 1.1 MT
STORLIDEN
NNAANN
MOST VALUABLE DEPOSITS - SKELLEFTE DIST.
MINE Mt %Zn %Cu %Pb g/tAu g/tAg $/t GIV MUS$ 1. Kristeneberg 22 3.2 1.2 0.4 1.0 32 73 1600
2. Boliden 8 0.9 1.4 0.3 15.5 50 184 1500
3. Renstrom 9 6.5 0.8 1.5 2.8 155 144 1300
4. Langsele 12 3.9 0.6 0.3 0.9 25 67 800
5. Petiknäs 6 4.8 1.1 0.9 2.3 108 115 750
6. Ravlidmyran 8 3.9 1.0 0.6 0.8 51 79 600
7. Udden 7 4.3 0.4 0.3 0.7 36 68 455
8. Maurliden W. 7 3.4 0.2 0.4 0.9 49 59 407
9. STORLIDEN 2 10.0 4.0 0.1 0.3 30 210 378
NNAANN
STRATIGRAPHY & ORE DEPOSITS
Skellefte Group Volcanics
Vargfors Sediments
1890 Ma
1882 Ma
1873 Ma
SENW
ALLEN, ET. AL.
STORLIDEN?
LANGSELELANGDAL
MAURLIDEN
MENSTRASK
HOLMTJARN
NNAANN
LOCATION MAP
365 m365 m
707 m
250 m
760 m
250 m
985
m
385 m
260 m
735 m
365 m
Shortest distanceNorth 707 mSouth 985 m
Ramp options
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UNDERGROUND MINING OPERATION
SCHEMATIC CROSS SECTION
ORECU-ZN
RAMP
PORTAL
Drill holes N
NNAANN
SWEDENS NEWEST MINE
90 KM FROM BOLIDEN MILL
140 KM FROM BOLIDEN SMELTER
2 KM FROM ASPHALT HIGHWAY
3 KM FROM POWERLINE
8 KM FROM TOWN OF MALA
TRAINED WORK FORCE
YEAR-ROUND ACCESS
NNAANN
PROJECT TIMETABLE
PROJECT NET CASH FLOW WITH DIFFERENT METAL PRICES
-25
-15
-5
5
15
25
35
45
55
65
75
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007US$
mil l
ions
ENVIRONMENTALFEASIBILITYCONSTRUCTIONDEVELOPMENTPRODUCTIONREHABILITATION
NNAANN
SKELLEFTE EXPLORATION TARGETS
NANTARGET INVENTORY
Skellefte District, Feb. 5, 1999
Production
Development
Feasibililty
Pre-feasibility
Reserve
Resource
Detailed Drilling
Definition Drilling
Scout Drilling
Ground Surveys
Target Selection
TARGETS
NNAANN
MAIN OFFICE: UPPSALA
FIELD OFFICES: 2 - SKELLETE DISTRICT
30 EMPLOYEES
2,500 KM2 IN SKELLEFTE MINING DISTRICT
AIRBORNE SURVEY TARGETS
AGGRESSIVE DRILL PROGRAM
$10 MILLION CASH
DISCOVERY OF THE STORLIDEN CU-ZN DEPOSIT
DEVELOPMENT OF NORRLIDEN CU-ZN DEPOSIT
NAN TODAY
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NNAANN
NNAANN
STORLIDEN - LN. 20100E CROSS SECTION
A B
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MAJOR
TECTONIC
UNITS
SWEDEN
NNAANN
STRATIGRAPHY & ORE DEPOSITS
Skellefte Group Volcanics
Vargfors Sediments
1890 Ma
1882 Ma
1873 Ma
SENW
ALLEN, ET. AL.
LANGSELELANGDAL
MAURLIDEN
MENSTRASK
HOLMTJARN