South Atlantic hot on IOCG targets in northern Sweden

Vancouver — South Atlantic Ventures (SAA-V) has commenced an exploration program in search of Olympic Dam style iron oxide-copper-gold (IOCG) deposits in northern Sweden.

The company’s Norrbotten copper-gold project covers an area of over 80 sq. km in the vicinity of the world-class Kiruna iron mine. Numerous iron oxide deposits are known to exist in the Kiruna District but most were discovered before Olympic Dam and the IOCG environment had been recognized.

So far, South Atlantic has identified ten high priority targets. At the Lieteksavo target, re-logging and resampling of two one metre intervals in a previously drilled hole returned 20.9 grams gold per tonne, 13.7% copper and 93 grams silver per tonne. The mineralization was hosted in quartz veins that were rich in copper oxides, magnetite, chalcopyrite and tourmaline.

As a result, the company is re-logging and sampling existing drill core from a number of its other targets. South Atlantic has also commenced ground geophysical surveys. Initial drill testing is expected to begin in February or March of this year.

Four of the targets that the company is investigating were deposits that were identified in the past in which had gold and copper mineralization associated with magnetite or hematite. These include the Lieteksavo, Valasjaure, Sautusvaara and Sierkavare targets.

The Lieteksavo target hosts copper mineralization was found in 1981 by LKAB. Scout drilling consisted of 27 drill holes over a 12 km strike length. The holes tested quartz-tourmaline-magnetite veins that hosted chalcopyrite, bornite, and scheelite.

The Valasjaure target was discovered in the 1950s, and represents a mineralized shear zone with three nearby iron deposits. Scout drilling tested the shear zone and cut magnetite, chalcopyrite and pyrite over a strike length of 1 km and up to 10 metres wide. Assays from the zone are reported to have averaged 0.5% copper.

The magnetic survey data suggests that the shear zone could extend for a strike length of about 10 km. Outcrop sampling has returned values up to 1.5% copper and 0.3 grams gold per tonne. The three other magnetite iron deposits that are situated within 5 km of the Valasjaure shear zone consist of magnetite breccia with grades up to 40% iron. The area is interpreted to be a significant IOCG environment which has been separated by the northwest trending Valasjaure shear zone.

The Sautusvaara target was discovered in 1898 and consists of two parallel bodies of copper sulphide mineralization that are separated by a fault. Pyrite occurs as veinlets together with traces of chalcopyrite. Cobalt in pyrite varies from 1.1-to-1.6%. A previous drill hole intercepted a six-metre zone that averaged 0.3 grams gold per tonne. The highest grade copper value intercepted while drilling was two-metres averaging 1.0% copper. South Atlantic states that reconnaissance field work performed last October discovered a new occurrence of copper-stained iron gossan in the southern part of the claim. This may extend the mineralized trend for a strike length of five km.

Sierkavare target was discovered in 1982 and represents copper mineralization that is hosted in magnetite veins and a syenite intrusion. The mineralization can be traced over a strike length of 1.5 km. The best gold value intercepted in the previous drilling was reported to be 1.9 grams gold per tonne over one metre. The best copper intercept was 72.8 metres grading 0.67% copper and 0.1 gram gold per tonne. Magnetic survey interpretations suggest that the mineralized trend could have a total strike length over 8 km.

South Atlantic’s other first priority targets have been identified from a combination of airborne geophysical surveys, geologic mapping and geochemical sampling. All of these targets are located within the Kiruna District and will be part of this first phase of follow-up currently underway.

All core samples submitted for analysis were prepared in Uppsala, Sweden in the laboratory installed for North Atlantic Natural Resources AB by ALS Chemex of Vancouver, Canada.

In other news, South Atlantic has completed a private placement that it announced on September 18, 2002. The company sold, 1.6 million units at a price of $2.00 per unit for gross proceeds of $3.2 million. Each unit consists of one common share and one-half of a share purchase warrant. Each whole warrant is exercisable into one common share over a period of two years at a price of $2.25 per share.