Northland Resources S.A. announced the positive outcome of the Definitive Feasibility Study on its 100%-owned Hannukainen Iron Oxide Copper Gold Project in northern Finland. In total, the Project has a joint open pit and underground combined Measured and Indicated Resource of 187 Mt grading 30.04% Fe Total, 0.18% Cu and 114 ppb Au. In addition, there is a total of 63 Mt grading 32.05% Fe Total, 0.15% Cu and 47 ppb Au in the Inferred category.

The mineable tonnages (proven and probable mineral reserve) from the engineered pit design are a total of 114.8 Mt grading at 30.5% Fe, 0.185% Cu, 0.112 g/t Au and 2.4% S. This gives a LOM of 17 years at the planned ore production of 6.5 Mtpa. The final products are a very high quality magnetite iron ore concentrate (70% Fe) and a copper concentrate (>25% Cu) with gold credits (7 g/tone of Cu concentrate). The properties of the iron ore concentrate makes it most suitable for the production of iron ore pellets, both pellets for use in blast furnaces (BF-pellets) and for use in DRI production (DR-pellets).

It will also be most suitable for sinter production due to its high Fe content and its low level of impurities. Logistics of the Project is based on railroad transportation of iron concentrate from Hannukainen to the Port of Kokkola, Finland, and on regular year round shipments of iron concentrate from the Port of Kokkola. Company is expected to use Panamax vessels and not fully laden Capesize vessels during the ice-free period of the year and smaller vessels during the winter season.

Initial Capex in order to reach 2 Mtpa of Fe concentrate capacity is 641 MUSD. Capex over the life of mine is estimated 810 MUSD, including owners cost and a 10%contingency. Total Opex /tone Fe concentrate delivered FOB at the port of Kokkola, Finland, is estimated to average USD 88.2/t concentrate for the Life of Mine and to Cash Cost adjusted for bi-products Cu/Au Concentrate is estimated to USD 49.9/t for the Life of Mine, including a 5% contingency.

Based on cash-flows pre-tax and interest the project has ne present value of 383 MUSD at a discount rate of 8% and an IRR of 16.45%. The payback period is expected to be 5 years from the first production of concentrate from the project. Permitting processes of the Hannukainen IOCG Project are on-going.