Swedish-listed
The settlement clears the way for development to begin as early as March, pending ongoing financing negotiations. Assuming all goes well, commercial production will begin a year later.
Discovered in 1997, Storliden now hosts an estimated 1.8 million tonnes grading 10.3% zinc and 3.5% copper. About 85% of the resource is classified as indicated and the remainder as inferred.
Seventy-four holes totaling 19,400 metres have delineated the deposit on 30-metre centres. Mineralization strikes over a length of 400 metres and averages 100 metres wide and 8 metres thick.
The deposit is to be mined by underground methods at the daily rate of 1,000 tonnes, yielding a projected 25,000 tonnes zinc and 11,000 tonnes copper annually over six years. Mined material will be processed at Boliden’s mill at the town after which the company is named.
Under an agreement between the companies, North Atlantic will cover the estimated US$20-25 million needed to develop the mine, whereas Boliden will cover the costs associated with modifying its mill to treat the ore. The arrangement significantly lessens the costs of a previously suggested stand-alone operation.
Once capital costs are recouped, North Atlantic will receive 66% of the net smelter return royalty from Storliden ore, and Boliden the rest. Operating costs are to be repaid before the royalty payments are divided.
Similar arrangements have been made to bring the smaller, nearby Norrliden deposit into production. That deposit hosts inferred resources of 775,000 tonnes grading 7.85% zinc and 0.8% copper.
The partners have applied for a mining permit.
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