VANCOUVER,
Dec. 12, 2011 /PRNewswire/ -
Northern Iron Corp. ("Northern" or the
"Company") (TSXV: NFE) (OTCQX: NHRIF) (Frankfurt:
N8I) is pleased to provide its first annual summary of
significant exploration and operational activity on its
high-potential iron ore properties in the prolific Red lake Mining
District of Red Lake, Ontario,
Canada. Company President and CEO, Mr. Basil Botha reports the following:
"We are extremely pleased with the progress the Company has made
toward qualifying and quantifying our estimated mineral resources,
and ultimately in establishing Northern Iron as a North American
supplier of premium concentrated raw material for use by domestic
and Asian foundries hungry for supply of near pure forms of DRI
(direct reduced iron). Though we have been on the ground on our
properties for just eight months, we are on-track to achieving both
our near term exploration and strategic partnership goals, and our
mid-term goal of addressing the global shortfall of DRI. We look
forward to a highly successful new year," says Mr. Botha.
Exploration Activities:
In May 2011, Northern initiated a
drill program at its 100% owned, 3,200 hectare Karas property in
the Karas Lake Township, with a view to providing an NI 43-101
measured, indicated and inferred resource estimate in the first
quarter of 2012.
The drill program on the Karas property will be approximately 35
holes (12,000 metres). Each hole is angled at 45 degrees and is
drilled to a depth of between 250m and 550m. To date 26 holes have
been drilled on the Karas property.
Hole Ka-11-18 intersected 443.15 Metres grading 32.43% Fe2O3,
including 77.6 Metres of 43.21% Fe2O3, being the best magnetite
intersection to date in the Karas property.
18 holes have been assayed by SGS Canada and the details have
been released into the market. SGS Canada is an accredited mineral assay
laboratory in Lakefield, Ontario.
Assays show long intervals with consistent magnetite mineralization
and no sulphides. The magnetite on the Karas property has been
locally recrystallized due to metasomatism resulting in coarse
grained magnetite compared to other banded iron formations in the
area, and this fact is expected to require less grinding for
magnetic separation to achieve an Fe concentrate, which could
possibly lower the cost of production.
In mid November 2011, a second
drill arrived on the Karas property. Drilling will continue during
the early part of the winter of 2011.
On August 26, 2011, Northern
completed an Initial Purchase Offering of $14,140,190 and was listed on the TSX Venture
Exchange.
In November 2011, Roscoe Postle
Associates Inc. (RPA) was engaged to produce a mineral resource
estimate on the Karas property.
Drilling on the 100% owned, 1,776 hectare, past-producing
Griffith property mine (formerly
Griffith Iron Mine) near the Bruce Lake Township, should commence
by mid 2012.
Metallurgical Studies:
Historical analysis completed by Stelco during the 1960s
suggests that the mined ore at the Griffith mine produced a pellet product
grading 66.5% Fe2O3 and 3.6% silica. 'In
addition to pellet production, 300,000 tonnes of sponge iron was
also produced. Sponge iron is reduced iron oxide (magnetite -
Fe3O4) to iron (Fe) and is used in the steel
making process. It is important to note; these analyses pre-date NI
43-101'. As a result, Northern will be conducting metallurgical
studies. Moreover, management believes that there have been many
technological advances since the 1960s that provide substantial
opportunities for improvement in processing methods, recoveries and
products.
Strategic Partnerships:
Since March 2011, Northern has
been actively searching for strategic partners. The goal is to
secure an off-take agreement for Northern's proposed Hot Briquetted
Iron (HBI) production and to secure additional investment that will
be required to construct the mine and build the plant and
equipment. To date, meetings have been held with major steel
producers around the globe. Discussions with interested parties
will continue until a suitable partner is found and an agreement is
secured.
Definition of HBI
Hot Briquetted Iron (HBI) is a premium form of Direct Reduced
Iron (DRI)* that has been compacted at a temperature greater than
650° C at time of compaction and has a density greater than 5000
kilograms per cubic meter (5000 kg/m3).
*DRI is a metallic material produced from iron oxide fines or
iron oxide pellets and/or lump ores that have been reduced (oxygen
removed) without reaching the melting point of iron.
Description of HBI:
HBI is a premium quality, high density steel industry raw material
containing 90-94% total iron (Fe) in a nearly pure form, which is
used in electric arc furnace (EAF) and basic oxygen furnace (BOF)
steelmaking, blast furnace (BF) ironmaking, and foundry
applications.
HBI Advantages:
- High bulk density of 2500-3300 kg/m3 (156-206 lbs/ft3).
- Known, consistent chemistry certified by the producer.
- Minimal (trace) amounts of undesirable chemical elements (Cu,
Ni, Cr, Mo, Sn, Pb, and V).
- High thermal and electrical conductivity
- Low reactivity with fresh and saltwater (reoxidation).
- Resistant to degradation due to handling and weathering.
- Compatible with all bulk materials handling equipment.
- Safe, easy to store in all types of weather.
Qualified Person: Technical information in this news
release has been prepared under the supervision of Raul Sanabria, P. Geo. who is a Qualified Person
within the meaning of National Instrument 43-101.
About Northern Iron
Northern Iron is a mineral resource company engaged in reviving
a past producing iron mine and concurrent exploration of high
quality iron ore resources in the Red
Lake mining division, district of Kenora, Ontario, Canada.
Northern Iron holds 100% interest in minerals claims covering
approximately 14,672 hectares, comprised of the El Sol Property,
the past producing Griffith Property, the Karas Property, the
Papaonga Property and the Whitemud-Slate Property.
The Griffith Mine owned at the time by Stelco, produced 78.8
million tonnes of iron ore for conversion to pellets and DRI from
1968-1989. Total magnetic iron recovery was 86.26%
The Red Lake area is
accessible year round by Highway 105, which joins the Trans Canada
highway at Vermillion Bay, 175 km south and 100 km east of
Kenora. Commercial air services
operate to Red Lake from
Thunder Bay, Ontario and
Winnipeg, Manitoba
Cautionary Statement
The foregoing information may contain forward-looking statements
relating to the future performance of the Company. Forward-looking
statements, specifically those concerning future performance, are
subject to certain risks and uncertainties, and actual results may
differ materially from the Company's plans and expectations. These
plans, expectations, risks and uncertainties are detailed herein
and from time to time in the filings made by the Company with the
TSX Venture Exchange and securities regulators. The Company
does not assume any obligation to update or revise its
forward-looking statements, whether as a result of new information,
future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. No stock exchange, securities
commission or other regulatory authority has approved of
disapproved the information contained herein.
SOURCE Northern Iron Corp.