Hannukainen - Iron Oxide Copper Gold (IOCG)

Hannukainen is located in the Kolari district of northern Finland some 30 km north-east of Kaunisvaara, across the Muonio River that marks the boundary between Sweden and Finland. Hannukainen is located within an area of developed infrastructure with paved roads; high power voltage lines and railroad are all nearby and are in good condition.

In contrast to Kaunisvaara, Hannukainen is a brown-field project, meaning that it has already been mined. The deposit in Hannukainen also contains copper and gold.

Hannukainen was mined from an open pit by Rautaruukki Oy during the 1980:s and is reported to have produced 4.5 Mt at a grade of 43% Fe, 0.88% Cu, and 1 g/t Au. Rautaruukki Oy subsequently decided to stop all of its own mining activities, and closed its last operational mine at the end of 1980’s. Northland Resources acquired the deposit in 2005 and has since focused on exploring the potential for additional economic iron, copper and gold Mineralization within the historic magnetite resource.

On May 12, 2010 the Company released the results of the PEA for Hannukainen. The Hannukainen IOCG project is planned to produce approximately 2 Mtpa of iron Ore concentrate per year and an average of 35,000 tonnes per year of Cu/Au concentrate based on the PEA design basis maximum feed rate of 6.5 Mtpa. The LOM average feed rate is 5.4Mtpa. The PEA indicates that the total project life will be 14 years.

Northland expects to release a Definitive Feasibility Study on Hannukainen 2012.