Northland Operational Update-May 2012
(firmenpresse) - LUXEMBOURG, LUXEMBOURG -- (Marketwire) -- 05/22/12 -- Northland Resources S.A. (TSX: NAU)(OSLO: NAUR)(OSLO: NAUR.R)(FRANKFURT: NPK) ("Northland" or the "Company") announces its second bi-monthly operational and construction update on its Kaunisvaara project. During this period, March 19 - May 22, one of the main focuses has been on completing the mine and processing infrastructure at Kaunisvaara as well as signing logistics contracts.
Value of Work
At the end of April, Northland had committed USD 933 million of Capex for its Kaunisvaara project for the period up to 2016. At the end of April, the Value of Work done was USD 361 million.
Note: To view the graph associated with this release, please click the following link: .
Kaunisvaara
Construction of the foundation for the primary crusher for the Tapuli ore is ongoing and is on schedule to be ready when the crusher is delivered in the second quarter of 2012. Construction of the ore sheds is also progressing well. Sections of the overland conveyor have now been mounted.
The ore sheds and the truck workshop are being constructed according to plan. The second construction phase, involving the administration premises, including locker rooms, laboratories and the simulator center, is also well underway.
The exterior of the process plant was finalized in mid-March. At the process plant, work is now focused on the interior structures, the delivery of these and other key equipment from Metso started in the second quarter of 2012 and are on time. The main items include crushers and mills from Metso.
Vattenfall Eldistribution AB has continued the erection of the 150 kV power line and the ground preparation for the substation has been initiated. Work is progressing on schedule. The steel structure for the electrical substation and the associated control room at the process plant are under construction.
The total length of the process water pipeline is approximately 40 km. The pipeline will run from the Muonio River to the process water pond and then to various locations around the site as well as to the construction of a number of pumping stations. Most of the water pipeline has now been laid and is progressing according to schedule.
The process water dam was brought into operation in the second quarter of 2012. It was inspected by the Swedish Dam Safety Inspectorate and received approval before it was brought into operation.
Starting in the second quarter of 2012, Northland will receive Caterpillar mining equipment. An agreement for the ongoing maintenance and repair of the mobile mining equipment for the Kaunisvaara project was signed on April 12, 2012.
On March 26, 2012, Northland signed a service contract with Metso to ensure a smooth start-up and running of the process plant. The service contract included staffing for commissioning and completion, performance-guarantee testing, scheduling and quality control, spare parts inventory-keeping and maintenance of the equipment related to the Kaunisvaara process plant.
Logistics
The trucking operation from Kaunisvaara to Pitkajarvi will be operated by Peab/Cliffton.
Construction of transloading terminal in Pitkajarvi:
Health & Safety
The Lost Time Injury Frequency Rate (LTIFR) from the start of the project and until end of April 2012 was 1.79 per 200,000 worked hours.
In total 30 Near Hits were reported, 15 of which were reported by contractors and subcontractors.
At the end of the first quarter of 2012, 200 people were trained for the obligatory site safety program.
Northland took over the site safety coordination starting April 1, 2012. The operations staff are preparing for takeover from the project organization during third quarter 2012. Recruitment of permanent site EHS staff is underway, with a safety coordinator in place at the start of May.
Contracts
The total value of commitments made during April 2012 amounted to USD 76.4 million.
The following contracts have been finalized as of the end of April 2012.
Finances
May 2, 2012, Northland entered a senior secured cost overrun facility with Standard Bank to finance potential cost overruns up to a maximum of USD 40 million. The facility will be senior secured but subordinated to the USD 350 million Senior Secured Bonds and will mature after the Bonds mature.
On May 7, 2012, Northland Resources AB, an indirect wholly owned subsidiary of Northland Resources S.A. published a prospectus in connection with the listing on Oslo Bors of its USD 270,000,000 (ISIN NO 001 063619.4) and NOK 460,00,000 (ISIN NO 001 063613.7) Senior Secured Bond Issue 2012/2017.
Pellivuoma
Pellivuoma is located approximately 15 km west of Sahavaara. The Company controls 100% of the exploration permit, which totals 11,346 hectares. The deposit constitutes a significant addition to the potential tonnage in the Kaunisvaara area.
Following a review of the ongoing DFS work at Pellivuoma, the Kaunisvaara management has resolved to change the scope of the DFS with the objective to ensure that Pellivuoma is linked in an optimal way to other parts of the Kaunisvaara mining site including the possible increase of the output of high grade concentrate or extending the life of the Kaunisvaara operation in combination with an increase of the production. The DFS is expected towards the end of 2012.
Other matters
Northland's ongoing effort to recruit operational managers as well as operational staff has thus far been successful. The Kaunisvaara senior operational management is in place and the recruitment process is focusing on the 100 positions that are still to be filled.
Next Operational Update
The Operational Update for July 2012 will be published on July 19, 2012.
Shareholders' Meetings in Oslo and Stockholm
Shareholders' Meetings will be held in Oslo (May 23, 5 p.m. CET) and in Stockholm (May 24, 6 p.m. CET). At the respective meeting the Executive Chairman, Mr. Anders Hvide, and the President and CEO, Mr. Karl-Axel Waplan, will comment on the latest Company developments. The presentation will be in the Norwegian and Swedish. Please contact the Northland IR department for further venue information for these meetings.
Note: To view the photos associated with this release, please click the following link: .
Additional photos and video clips are available on Northland's website, .
Karl-Axel Waplan, President & CEO, Northland Resources S.A.
Northland a development-stage mining company with a portfolio of iron ore projects in northern Sweden and Finland. The Company's Kaunisvaara Project will initially exploit two magnetite iron ore deposits in Sweden. The process will yield a high-grade, high-quality magnetite iron concentrate. The construction of the Kaunisvaara project in Sweden is well underway and mining is planned to start in the fourth quarter of 2012. Northland has entered into off-take contracts for the entire production from Kaunisvaara. The Company is also preparing a Definitive Feasibility Study ("DFS") for its Hannukainen Iron Oxide Copper Gold ("IOCG") Project in Kolari, northern Finland and for its Pellivuoma deposit 15 km from the Kaunisvaara process plant.
Important Notice
Forward-Looking Statements
This announcement may include "forward-looking" statements within the meaning of applicable securities laws. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are expectations concerning, among other things, Northland's results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which it operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward-looking statements are not guarantees of future performance and that Northland's actual results of operations, financial condition and liquidity, and the development of the industry in which it operates may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if Northland's results of operations, financial condition and liquidity, and the development of the industry in which Northland operates are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods.
Contacts:
Northland Resources S.A.
Karl-Axel Waplan
President and CEO
+46 705 104 239
Northland Resources S.A.
Peder Zetterberg
Acting CFO
+46 708 652 120
Northland Resources S.A.
Anders Antonsson
Vice President - Investor Relations
+46 709 994 970
Northland Resources S.A.
Marguerite Manshreck-Head
Investors Relations, Canada
+1 647 224 7882
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 22.05.2012 - 14:47 Uhr
Sprache: Deutsch
News-ID 148976
Anzahl Zeichen: 0
contact information:
Town:
LUXEMBOURG, LUXEMBOURG
Kategorie:
Mining & Metals
Diese Pressemitteilung wurde bisher 188 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Northland Operational Update-May 2012"
steht unter der journalistisch-redaktionellen Verantwortung von
Northland Resources S.A. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
