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The following excerpt is from EXPLORATION NEWSLETTER - What's up in Sweden, No 26 November 2008

Current news on exploration in Sweden. Editor: Daniel Larsson

EXPLORATION NEW

On August 14, IGE Nordic AB and Wiking Mineral AB announced drilling results from a 965 m programme at Gladhammar in southern Sweden. Highlights were 34.25 m with 1.94 g/t gold including 2.0 m with 6.58 g/t gold. Gladhammar is a joint venture between IGE Nordic (50%) and Wiking Mineral (50%). On August 26, IGE Nordic and Archelon Mineral
AB reported of results from the Solvik joint venture project in southern Sweden. The programme consisted of 5 drill holes totalling 845 m. One hole intersected 30 m of a quartz-breccia with some values between 1 and 3 g/t gold, 20 to 50 g/t silver and 0,1 to 0,4% copper over one-metre intervals. On October 1, IGE Nordic provided assay results from 13 out of 70 holes from its first 8 000 m drilling programme at Rönnbäcken. The objective was to test the concept of a very large, low grade nickel deposit amenable to open-pit mining. The nickel in sulphides is homogeneous over wide intervals with 0.12–0.13% nickel in sulphides and a total nickel content of 0.18–0.20% nickel. Previous metallurgical testing, on pilot scale, has shown that a high-grade nickel concentrate can be produced at good recovery with significant by-product credits, including a cobalt content of 1.5–2.0% in concentrate. Another 8 000 m is under way as IGE Nordic is moving ahead to define a mineral resource of 130 to 170 Mt.

In an interim report for January–June issued on July 21, Boliden reported that the results from mine-site exploration continued to be favourable, particularly at the Garpenberg and Kristineberg mines. After promising results at the Renström mine, exploration has continued eastwards, and preparatory work is in progress at Åkulla for the mine survey. Exploration work continues according to plan at Aitik. The majority of the exploratory work in Maurliden Östra was completed during the second quarter. Drilling will continue throughout the remainder of the year at Älgträsk.

Beowulf Mining plc and Agricola Resources plc announced on June 12 that the initial drill testing of the Ballek copper-gold-uranium joint venture project in the municipality of Arjeplog has been completed. The best assay in Agricola’s drilling is a 12 m zone that averaged 0.34% Cu and 1.40 g/t Au, including a 3 m zone containing 0.94% copper and 4.41 g/t gold. On September 16, Agricola and Beowulf announced that an in-house JORC-compliant Inferred Resource of 5.4 Mt at 0.8% Cu and 0.3 g/t Au has been completed for the Lulepotten copper-gold deposit at the Ballek Joint Venture. The Lulepotten resources have been estimated on the basis of historical drilling information and assay results recovered from the SGU archives in Malå. On August 19, WAG Ltd reported of the completion of a maiden mineral resource estimate of 140 Mt grading 39.1% iron, 5.7% titanium and 0.2% vanadium (JORC Code reporting standard) for the Ruoutevare Magnetite Project in Norrbotten County. This follows the signing of the Ruoutevare & ? Farmin Joint Venture Agreement between WAG and Beowulf.

On October 10, Dragon Mining Ltd presented further positive assay results from the drilling programme, which has targeted the depth extensions of the Svartliden gold mine. The majority of the new results is from the area west of the Central Fault and includes intercept highlights 3.00 m at 24.74 g/t gold, 2.00 m at 36.13 g/t gold and 8.00 m at 15.59 g/t gold. Lappland Goldminers AB announced on September 17 that the Supreme Environmental Court approves the permit for mine and processing plant at Fäboliden. The ruling gives Lappland Goldminers approval to fully develop and operate the project Fäboliden.

On September 19, Lappland Goldminers announced that the first core drilling stage in the Tjålmträsk area is completed. Some highlights include 5 m of 4.15 g/t gold and five sections of gold grades in excess of 1 g/t.

On September 1, Mawson Resources Ltd presented the final drillhole results from the Tåsjö project. Better results included 4 to 6 m intervals with between 208 and 264 ppm U3O8. Mawson provided on July 16 an updated resource calculation (NI 43-101 technical
report standard) for the Kläppibäcken uranium project following completion of a 20 hole drilling programme. The total resource, using a 0,025% uranium lower cut-off grade is 1,94 Mt at 0,077% U3O8 with a contained U3O8 of 1,485 tonnes. On September 3, Mawson announced drill results from the Storbodsund project. Two diamond holes were completed with best results including 2.0 m at 1.8% nickel and 0.5% copper. On July 2, Mawson announced drill results from the Östra Järntjärnbäcken prospect, within the Norr Döttern project area. The best result was 7 m with 0.15% U3O8. Mawson has granted a third party, Hodges Resources Ltd, the right to earn up to 51% in the project by funding work programme expenditures of USD1 million
over 4 years on 4 of Mawson’s earlier stage uranium projects in Sweden.

On September 8, Northland Resources Inc reported that all assays for the final three holes from this year’s drilling at the Tapuli project have been received. The drilling indicates that a substantial tonnage may be present at Pellivuoma, which could significantly extend the life of the planned complex. Highlights include 56.8 m at 30.7% Fe from 13.3 m downhole and 38.7 m at 33.9% Fe from 66.6 m downhole.

On July 16, Tumi Resources Ltd announced the discovery of a broad 75 m wide zone of mineralization in the first drill hole at the Company’s Sala silver-zinc-lead property, located in the Bergslagen district. Higher ore-grade zones include 6.6 m at 67 g/t silver, 7% zinc and 1.1% lead. On October 15, Tumi presented assay results from the second and third diamond drill holes. A 92 m intercept calculated without lower cut-off, averaged 3.8% zinc and 56 g/t silver.

On June 23, Blackstone Ventures Inc announced new assay results from drilling at the Rörmyrberget nickel target in the Västerbotten nickel district. Results include up to 125 m grading 0.39% nickel with high-grade sections assaying 3.73% nickel over 2.9 m. Blackstone announced on August 26 the signing of a Letter of Intent with two prospectors to acquire an option to earn 100% interest in the Ukonpalo copper-gold property located in the eastern part of the Kiruna district. The prospect consists of magnetite, chalcopyrite, pyrite and bornite mineralization hosted by veins and breccias at the contact of a large granite intrusion. Blackstone assays from the showing returned 2.4% Cu, 0.63 g/t Au, and 36.9% Fe. On September 4, Blackstone reported that drilling was underway at the Jervas volcanogenic massive sulphide project in northern Sweden. Recent mapping has outlined extensive alteration and sulphide mineralization with outcrop samples assaying up to 3.6% copper and 4.5 g/t gold.

On July 1, Aura Energy Ltd presented alum shale assays from the first 2 holes of the drilling programme at the Company’s Häggån exploration licence. A highlighted result included 70 m at 204 ppm U3O8, 0,34% V3O5 and 429 ppm MoO3. On September 29, Aura reported assay results a for further three drill holes at the Storsjön Project. One hole contains an intersection of 205 m mineralised shale averaging 148 ppm U3O8, including three intervals of 190 ppm to 220 ppm U3O8.

On October 17, Aura announced an agreement with Sino King Enterprise Investment Ltd potentially worth AUD460 million to develop the Company’s Storsjön Project. On September 2, Tertiary Minerals plc announced the first assaying results from the Company’s Storuman fluorspar deposit. The results reported are from 10 drill holes at an average spacing of 250 m, over a total strike length of 2 km. Intersections include 3.2 m of 22.7% fluorite within 10.3 m section grading 13.1%. Step out holes suggest potential for large extensions in previously untested areas.

On September 25, Avalon Minerals Ltd announced an increase in the Mineral Resource inventory for its Viscaria Copper Project in northern Sweden with the delineation of an additional Inferred JORC Code reported Mineral Resource of 8.2 Mt at 2.7% Cu remaining within the project’s ‘A’ Zone South. The delineation of the ‘A’ Zone resource estimate has resulted in a significant increase in the total Inferred Mineral Resource to 39.9 Mt at 1.3% Cu and 515 400 tonnes of copper metal.

MINING NEWS

Lappland Goldminers AB announced on August 12 an agreement with the receiver in bankruptcy for Scan Mining AB and its subsidiaries, to acquire the processing plant and the mines in Blaiken and Svärtträsk. The acquisition sum is SEK40 million.

On October 7, Gold-Ore Resources Ltd reported that gold production at the Björkdal mine has been increasing steadily during 2008. During September, gold production at the mine increased significantly from previous months. A total of 2 692 ounces of gold were produced, which equates to an annual production rate of 32 304 ounces. This increased productivity is directly related to increased grades and tonnages achieved from the underground unit of the mine.

In an interim report for January–June issued on July 21, Boliden announced that the ongoing Aitik 36 project, which will double Aitik’s production capacity, is proceeding according to schedule. The Storliden deposit was mined out at the end of the second quarter. The Kristineberg, Renström and Maurliden mines now comprise the Boliden area’s production.

Hope to see you soon!
© 2008 Geological Survey of Sweden

The content of this newsletter is entirely based Upon public information gathered from newspapers, press releases, and web sites on Internet.