Norrliden Zinc-Copper Project
Located in the Skelleftea mining district of Northern Sweden, Norrliden is a zinc-copper massive sulphide deposit containing lead, gold and silver.
On December 8, 1998 IGE Resources entered in a joint venture agreement with South Atlantic Resources Ltd. (now known as Lundin Mining Corporation). The joint venture agreement was assigned by IGE Resources to Nickel Mountain Resources on August 21, 2007. Gold-Ore Resources Ltd. (“Gold-Ore”), a TSX listed company, purchased Lundin Mining Corporation’s interest in the joint venture in May 2008. Nickel Mountain Resources has a 10% ownership interest in the joint venture and Gold-Ore owns the remaining 90% interest. Gold-Ore acts as manager for the joint venture and holds 100% of the legal title to the deposit in trust for the parties. Under the terms of the joint venture agreement, Gold-Ore may appoint one representative to the management committee and has a vote equal to its participating interest in the joint venture.
Gold-Ore is required to fund 100% of all on-going expenditures until it has produced a full feasibility study on the deposit. Upon acceptance of the full feasibility study, the parties will be required to fund the ongoing costs of the development program on the deposit in proportion to their participating interests. If Nickel Mountain Resources elects not to fund its pro rata share of any program, then its participating interest will be converted to a 1.5% net smelter returns royalty.
Gold-Ore commissioned Adam Wheeler C. Eng., Eur. Ing., an independent Qualified Person to conduct a NI 43-101 compliant mineral resource on Norrliden in May 2008. There is a measured and indicated resource of 1.48 million tonnes grading 0.63 g/t gold, 50.8 g/t silver, 0.74% copper and 3.54% zinc and inferred resources of 0.87 million tonnes grading 0.40 g/t gold, 30.9 g/t silver, 0.72% copper and 1.87% zinc. An exploitation concession for Norrliden was granted by the Mining Inspectorate of Sweden in 2006 and is valid for 25 years until Deecmber 31, 2031. A permit for test mining was granted in 2008 for the extraction of 63,000 tonnes of ore. Gold-Ore has been reviewing a work program for moving the Norrliden deposit through development and into exploitation. An underground mining plan anticipates a mining rate of 1,000 tonnes/day with transport of the ore to the nearby processing plant. For more information, please visit www.goldoreresources.com/s/Norrliden.asp
Norrsken Energy Limited
Norrsken Energy Limited (“Norrsken”) is a uranium exploration joint venture company between Nickel Mountain Resources and the Australian mineral exploration company Energy Ventures Limited (ASX: EVE). Norrsken was formed to consolidate the Swedish uranium exploration assets of both companies in June 2008. Energy Ventures Limited is the operator of the joint venture and both companies hold a 50% interest. In October 2011, Norrsken sold its 100% interest in the Olserum rare earth element project to Tasman Metals Ltd., for a total consideration of 37,746 fully paid shares in Tasman Metals. An in-specie distribution of Tasman shares, has resulted in Nickel Mountain Resources holding 18,873 shares of Tasman Metals, a Canadian mineral exploration company focused on rare earth elements in the European region. The Norrsken joint venture is currently in the process of being dissolved. All other tenements have been allowed to expire, with the exception of one exploration license, which will be relinquished voluntarily in the first half of 2012.
Stekenjokk Project
Stekenjokk lies 25 kilometres west of Klimpfjäll, Västerbotten County, Sweden. Stekenjokk was previously mined in the 1970’s and 1980’s by Boliden. The Stekenjokk deposit was discovered in 1918 as an outcrop. Core drilling was carried out shortly thereafter, as well as in the 1950’s and 1960’s. Mining investigations including shaft sinking, test mining and ore dressing in a pilot plant were performed in the mid 1960’s. A decision for mining was taken in 1973 and production started in 1976 by Boliden, which operated on a lease from the Swedish State. The annual production was approximately 600,000 tonnes of ore. Mining ceased in 1988 due to low metal prices and poor profitability. At closure, 7.2 million tonnes of ore had been mined and processed, averaging 0.38 g/t gold, 43 g/t silver, 1.49% copper and 3.56% zinc. The ore was mainly mined underground with a smaller tonnage initially mined from an open pit. After autogenous grinding (grinding without steel grinding media), separate copper and zinc concentrates were produced by selective flotation containing an accumulated amount of 48,000 tonnes of copper and 90,000 tonnes of zinc respectively. One third of the tailings were backfilled into the mine while two thirds were landfilled close to the mine area. Decommissioning of the area was completed in the early 1990’s.
In 2005 three exploration permits comprising the Stekenjokk project were granted to IGE Resources and later transferred to Nickel Mountain Resources in 2007. In March 2007, IGE Resources announced JORC and NI 43-101 compliant resource estimates for the adjoining Stekenjokk and Levi deposits of 7.4 million tonnes of measured and indicated resources at a grade of 1.17% copper, 3.01% zinc, 0.45% lead and 47 grams per tonne silver, plus inferred resources of 2.7 million tonnes grading 0.94% copper, 2.95% zinc, 0.39% lead and 43 grams per tonne silver.
Nickel Mountain Resources suspended work on Stekenjokk at the end of 2007 due to the focus on Rönnbäcken Nickel Project and other more prioritized projects. On February 23, 2011, Nickel Mountain Resources signed a purchasing agreement with Northfield Exploration AB, whereby 90% of Nickel Mountain Resources’ interest was transferred to Northfield Exploration AB and Nickel Mountain Resources retained a 10% interest, and received a cash payment of SEK 500,000. Northfield Exploration AB acts as manager for the project and holds 100% of the legal title to the exploration permits in trust for the parties. Under the terms of the purchasing agreement, Northfield Exploration AB is required to fund 100% of all ongoing expenditures until it has produced a full feasibility study on the project. Upon acceptance of the full feasibility study, the parties will be required to fund the ongoing costs of the development program in proportion to their participating interests. If Nickel Mountain Resources elects not to fund its pro rata share of any program, then its participating interest will be converted to a 1.5% net smelter return royalty.
In the spring of 2011 Northfield Exploration AB applied for an extension of the three exploration permits until 2014, which was granted by the Mining Inspectorate. In July 2011, Northfield Exploration AB submitted an application for an Exploitation Concession (Bearbetningskoncession) for the Stekenjokk and Levi deposits.
Nordic Iron Ore AB
In June 2008, Nickel Mountain Resources AB, Archelon Mineral AB and Kopparberg Mineral AB founded an iron ore exploration company, Nordic Iron Ore AB, with the aim of starting up iron ore mining operations in Sweden. Each partner received approximately a one-third interest in Nordic Iorn Ore, with Kopparberg Mineral AB managing the exploration activities. For its 31.6% holding, Nickel Mountain Resources transferred all of its iron ore exploration permits to Nordic Iron Ore AB. When combined with exploration permits from the other partners, Nordic Iron Ore AB had a portfolio of 12 iron ore exploration permits located in Sweden. In 2009, Kopparberg Mining Exploration sold its exploration permit for the Haksberg property to Nordic Iron Ore AB for SEK 7.2 million. In 2010, Nordic Iron Ore AB carried out exploration activities, including the submission of an application for an Exploitation Concession for the Blötberget property in October 2010. Nickel Mountain Resources did not participate in the funding of these activities, which resulted in a dilution of Nickel Mountain Resources interest, and its holding decreased to 7% of the shares of Nordic Ore AB by the end of 2010. In 2011, Nickel Mountain Resources sold 1,000 shares of Nordic Iron Ore AB which further reduced its interest to 3.6%. In March 2011, Nordic Iron Ore submitted an application for an Exploitation Concession for the Haksberg property (”Håksbergsfältet”). For more information about Nordic Iron Ore, please visit their website: www.nordicironore.se
