South Atlantic Resources Announces Nan Receives Mine
Permit For Storliden Copper-Zinc Deposit
VANCOUVER, BRITISH COLUMBIA--South Atlantic Resources Ltd.'s 38%
owned publicly traded Swedish subsidiary, North Atlantic Natural
Resources AB (NAN), announced today that the mining permit for
the Storliden copper-zinc deposit has been issued by the office of
the Swedish Mining Authority (Bergsstaten). The Storliden deposit
is located near the town of Mala in the Skelleftea mining district
of northern Sweden.
"This is a very important step forward in the development of this
valuable resource," commented Edward F. Posey, the Managing
Director of NAN.
NAN is currently engaged in a pre-feasibility study of Storliden
with the objective of establishing optimum methods of mining and
processing the resource. "We expect the study to be completed by
the end of March, 2000, and we will then proceed to full
feasibility," added Mr. Posey.
Storliden was discovered by NAN following an airborne geophysical
survey conducted in 1997. The deposit has been defined by
seventy-four drill holes totaling 12,370 meters. A resource
estimate, which has been independently verified by Micon
International of Norwich, England, comprises 1.8 million tonnes
averaging 10% zinc, 4% copper, 0.28 grams/tonne of gold and 28
grams/tonne of silver.
Before construction of the mine can commence, an environmental
permit must be issued. NAN has been notified by the Environmental
Court that a public hearing on its application will be held during
the month of May, 2000. This will include a visit to the proposed
mine site.
NAN anticipates the environmental permit to be in force by late
summer, 2000. It is anticipated that the feasibility study, which
may include preliminary underground development and project
financing, will be completed by late 2000. Construction would then
occur during 2001 with full commercial production starting in the
first quarter of 2002.
It is expected that annual production from Storliden will be
approximately 25,000 tonnes of zinc and 11,000 tonnes of copper
over a six-year mine life.
ON BEHALF OF THE BOARD
"Edward F. Posey", President |
