Northland Resources Inc. (OSL:NAUR) August 21, 2008. Mr Bill Wagener, the COO of Northland Resources is pleased to announce that the Company has reached an important milestone in the development of its Tapuli project in Sweden, with the purchase of a used FL Schmidt Fuller Traylor 54x74 gyratory crusher.
Under Northland's current plans, at full production Tapuli is scheduled to produce approximately 3 million tonnes per year (Mtpa) of iron ore fines at a maximum mining rate of 9 Mtpa of magnetite ore. The extra heavy duty crusher has a maximum rated capacity of roughly 12 Mtpa, or 33% over Northland's estimated maximum mining rate, which will allow the Company to handle surges in production as they occur.
Northland is paying a total of $2.25 million for the crusher which was sourced by Northland's procurement team from an Australian supplier. The price includes; the crusher, a 450 kw electric motor, a lubrication package, transport costs to Sweden, estimated refurbishment costs and a spare parts package valued at more than $1 million. The purchase price of an equivalent equipment package new is estimated at $5,500,000 and would be subject to a delivery time of 12 to 15 months.
Buck Morrow, the President of Northland said: "This purchase marks an important turning point in the development of all of our projects in Sweden and Finland. Not only is it the first concrete step towards buying what we need to develop our projects: It also reinforces what we have been saying all along, that there are many areas where we expect to be able to reduce capital costs and optimize the project economics through timely sourcing of quality used equipment."
Qualified Person
Paul Marsden, Northland's VP Marketing and Corporate Development, has verified that this release is an accurate summary of the information provided to Northland. Mr Marsden is a member of the IMMM, a Chartered Engineer and a Chartered Scientist and is the Qualified Person as defined in NI 43-101 responsible for overseeing the design and execution of the Northland's metallurgical test work programs.
About Northland (www.northlandresourcesinc.com)
Northland Resources Inc. is a well-structured, debt-free iron ore development company with a portfolio of high quality projects in Sweden and Finland.
ON BEHALF OF THE BOARD "Bill Wagener" NORTHLAND RESOURCES INC.
The Toronto Stock Exchange has neither approved nor disapproved the contents of this news release.
CONTACT INFORMATION Northland Resources Inc. Buck Morrow, President
Investor Relations: North America, Ralph Rushton: Toll Free: 1-866-719-8962 Europe, Deborah Craig: Tel. +46 70 638 4300
LINK: http://hugin.info/137015/R/1245142/268733.pdf
Northland Resources Inc.
http://www.northlandresourcesinc.com/
ISIN: CA6665271061
Stock Identifier: XOSL.NAUR
US: NRSRF.PK
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