Northland Resources Operational Update-September 2012
(firmenpresse) - LUXEMBOURG, LUXEMBOURG -- (Marketwire) -- 09/25/12 -- Northland Resources S.A. (TSX: NAU)(FRANKFURT: NPK)(OSLO: NAUR) ("Northland" or the "Company") announces its fourth bi-monthly operational and construction update on the Kaunisvaara project. During this period, July 1-September 21, among other important milestones, Northland fulfilled its second Cost-to-Complete test and has now executed its second drawdown of USD 90 million from the bond facility.
Financing
Independent engineer Royal HaskoningDHV ("Royal Haskoning", formerly named Turgis) as well as the bond holder trustee, Norsk Tillitsmann ASA ("Norsk Tillitsmann"), have confirmed Northland's fulfillment of its second Cost-to-Complete test. Consequently, Northland was able to execute the second drawdown of about USD 90 million from its USD 350 million bond loan facility on September 21.
The Company now has sufficient funds to start production at the Kaunisvaara project and thereby generate revenues during the first quarter of 2013. This is due to the bond drawdown; leases nearing completion; and the Cost Overrun Facility provided by Standard Bank.
Northland's Capex to reach full production (4.0 million dmtpa) is expected to increase to USD 956 million (previously USD 875m). The new Capex is 9% above the prediction in the capital raising completed February 2012 due to increased civils and engineering work and buildings costs (including upgrades), as well as tires for mobile equipment and increased costs for rail upgrading. The cost of rail cars is now also included in the new Capex, which they were not in February, 2012. Northland's intention is to sign a lease/rental agreement for the rail cars and storages, which would further reduce Capex.
The Kaunisvaara Project
Site works are progressing well in Kaunisvaara. Mechanical completion for the Tapuli Line is on-track. Primary crusher for the Tapuli mine is in place. Gear units and Cyclopacs of the VertiMills are installed.
Steel installations are completed for the Tapuli stockpile, roofing and installations are ongoing. In the Process Plant building, only electrical installations are still ongoing for the first process line.
Inner walls and flooring are completed for the truck workshop, internal installations are still ongoing. The workshop is sufficiently complete for Pon-Cat when access is required.
Pipeline from Muonio River has been pressurized and the pump station is working. Tailings pipe-line is ready to receive water and water has been successfully pumped into the clearing pond basin.
Conveyor belt is being installed. Substation works are progressing to plan with the transformers and other major equipment having been delivered on time.
Vattenfall is slightly ahead of program for the power supply lines. A power line from last pole in Kaunisvaara to the incoming portal in the substation has been installed.
Health & Safety
Lost Time Injury Frequency Rate ("LTIFR") according to the Swedish standard(3) from the start of the project until end of August 2012 was 5.34 (6.39 for the previous period that ended June 30).
The corresponding number according the international standard(4) for the same period was 0.89 per 200,000 worked hours (previous period: 1.06).
There was one LTIFR incident reported for both the International and Swedish standards during this period, July 1-August 31 (previous two-month period: one).
A total of 49 Near Hits were reported for the same period (previous two-month period: 54).
Northland Resources took over the site safety coordination on April 1, 2012. The operations staff are preparing for takeover from the project organization during third quarter of 2012. A safety coordinator was recruited in June.
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 potentially significant additional tonnage in the Kaunisvaara area.
Following a review of the ongoing definitive feasibility study ("DFS") work at Pellivuoma in early 2012, management modified the scope of the DFS to ensure that Pellivuoma is developed in the most cost, output and financially-rewarding manner with the Kaunisvaara mining and processing site. Potential scenarios include an increase in the production of high-grade concentrate or an extension of the life of the Kaunisvaara operation in combination with an increase of the production. The DFS is expected to be completed in the beginning of 2013.
Next Operational Update
The Operational Update for the period up to October/November 2012 will be published on November 21, 2012.
Financial Statements and MD&A for the third quarter 2012
The Company will publish its Financial Statements and Management's Discussion and Analysis for the period ending September 31, 2012, on November 14, 2012.
Photos and video clips are available on Northland Resources' website, .
Karl-Axel Waplan, President & CEO, Northland Resources S.A.
Northland Resources a near-production 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 Resources 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 Resources 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 Resources' 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 Resources' results of operations, financial condition and liquidity, and the development of the industry in which Northland Resources 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.
(1) Dry million tonnes
(2) Dry million tonnes per annum
(3) Lost Time Injury Swedish standard as adopted by SveMin members: Absence of one shift or more from regular duty following the accident. Reference period: 1 million worked hours.
(4) International Lost Time Injury definition: Absence of three shifts or more from regular duty following the accident. Reference period: 200,000 worked hours.
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
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Datum: 25.09.2012 - 17:55 Uhr
Sprache: Deutsch
News-ID 186689
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LUXEMBOURG, LUXEMBOURG
Kategorie:
Mining & Metals
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