Lake Embrace (Famnvatnet)

This Project Summary was last updated 2009-10-21 07:29:42.

FAMNVATNET

Introduction

Scandinavian Resources Ltd has lodged permit applications covering some 141km² in northern Norway. The Famnvatnet Project is located within the prospective Scandinavian Caledonides. The principal target is stratiform sediment hosted copper-lead-zinc-silver mineralisation and volcanogenic massive sulphide mineralisation (VMS) both hosted within the Palaeozoic Caledonide terrain. Field reconnaissance during the 2008 field season identified both insitu and boulder occurrences of high grade copper-lead-zinc-silver massive sulphide mineralisation from the Famnvatnet Prospect with a peak rock chip result of 1.87% Cu, 3.00% Pb, 8.05% Zn, 105ppm Ag, and 0.62ppm Au (JS011).

In August 2009 a heliborne VTEM (versatile time-domain electromagnetic) survey was flown over the entire Famnvatnet Project area; multiple strong EM (electromagnetic) conductors have been identified from the survey including anomalies co-incident with known mineralisation and magnetic anomalies. Ground truthing of the VTEM anomalies is expected to be completed in October 2009 with drill testing anticipated within the first year of exploration at the Famnvatnet Project.

Location & Access

The Famnvatnet Project is located in the Nordland region of northern Norway and is only 7km west of the Swedish border and 145km from the Norwegian mining and port town of Mo i Rana. The Famnvatnet Project can be accessed from the Tarnaby-Hattfjelldal bitumen road which runs along the northern shores of Lake Famnvatnet; which also forms the southern boundary of the Famnvatnet Project. Vehicle access within the Famnvatnet Project is limited due to the mountainous terrain; access is typically helicopter assisted. The main land-use is reindeer herding by the Sami. Minor small-scale farming occurs at lower altitudes; typically along the lake edges.

Tenure

In 2008, 95 permits (500 x 500m) were applied for and granted covering an area of 23km2; however the landholding at the Famnvatnet Project has recently been expanded to the east and west to a total of 564 permits for 141km2. The permits are located within the Municipality of Hattfjelldal and are held in the name of Hannans Scandinavia AB; a wholly owned subsidiary of Scandinavian Resources Ltd.

Regional & Local Geology

The Famnvatnet Project is located in the heart of the Scandinavian Caledonides. In Norway the Caledonide Belt is 2,000km long, it is up to 200km wide and spans from North Cape in the north to Stavanger in the south. The Scandinavian Caledonides are one of the most metalliferous regions in the world.

The Caledonides themselves were formed between 420 to 400Ma when the Iapetus Ocean that lay between the old continents Baltica (present day northern Europe) and Laurentia (North America and Greenland) started to contract and finally disappear. Continent-continent collision resulted and the marginal zone of Baltica was pressed down beneath Laurentia and drastically shortened. Thrusting caused sedimentary and volcanic rocks deposited originally on the Iapetus Ocean sea floor, and along the Baltica continental margin to be pushed up and onto Baltica forming a series of nappe complexes made up of the upper, middle and lower allochthons. Locally the allochthons can be subdivided into smaller nappes and thrust panels; on a district scale three thrust panels are recognised; the Rodingsfjall in the west, Köli near the Uma base metal mineralisation and the Seve in the east.

Rock types exposed in the Famnvatnet Project area belong to the Cambrian aged Seve-Köli Nappe Complex and include mica schist, paragneiss, marble, calc-silicate gneiss, quartzite, conglomerate, amphibolite, metagreywacke, phyllite, limestone, felsic and mafic metavolcanics.

The Famnvatnet Project is located within the Mosjøen 1:250,000 geological map sheet, however no 1:50,000 scale mapping has occurred in this area.

Previous Exploration

No major exploration or mining activities have been carried out within the Famnvatnet Project area, however minor scale prospecting, pitting and drilling has been completed and has been well documented and published within the NGU (Geological Survey of Norway). The Famnvatnet Project area contains three recorded prospects; Kilvassaksla which hosts skarn mineralisation along a thrust surface within dolomite and calcareous sandstone over a strike length of 750m where rock chips from the prospect returned results of 45% Fe, 0.2% Cu and 408ppb Au. Minor pitting was conducted at Kilvassaksla during 1925 and 1955 and in 1985 core drilling was completed by ASPRO-Luossavaara-Kiirunavaara AB. The Favnvatnet Prospect hosts massive sulphide mineralisation within Cambrian calc-silicate gneiss, sericite schist and marble containing greater than 10% Zn, 1.9% Pb and 69.1ppm Ag. In 1984 the NGU completed core drilling of the prospect. The Tverrelva Prospect is located in the southeast of the Famnvatnet Project and hosts a fine grained massive sulphide occurrence consisting of pyrite-galena-chalcopyrite within quartz keratophyre and meta-basalt of Cambrian age. ASPRO-Luossavaara-Kiirunavaara AB sampling gave results of up to 0.2% Cu, 9.3% Zn, 136.9ppm Ag and 0.18ppm Au. The eastern extension of the Favnvatnet and Tverrelva mineralisation extends from Norway into Sweden where the Storbäckdalen and Tjåter prospects are known. Significant tonnages of massive sulphide ores are reported: 150,000 tonnes @ 16% S, 1.2% Cu, 6.3% Zn, 2.4% Pb & 49g/t Ag occurs at Västra Storbäckdalen; and a further 150,000 tonnes @ 13% S, 1% Cu, 4.8% Zn, 1.9% Pb & 49g/t Ag occur at Tjåter (Stenmark pers com, 2008).

Exploration Completed

During the 2008 field season three rock chip samples were collected from the Famnvatnet Project. A discovery of high-grade massive sulphide from both insitu bedrock and moraine boulders was made to the northeast of the old Favnvatnet Prospect. JS011(moraine boulder) returned values of 1.87% Cu, 3.00% Pb, 8.05% Zn, 105ppm Ag, and 0.62ppm Au. JS010 (insitu bedrock) returned values of 1.32% Pb, 13% Zn and 14.6ppm Ag.

Famnvatnet Project-rock chip sample JS011 showing massive, banded pyrite-galena-sphalerite ore from the Famnvatnet Prospect-IMAGE

In August 2009 a large heliborne VTEM survey was planned and completed over the entire Famnvatnet Project. A total of 1160.4 line km (200m spacing) of surveying (153 lines and 5 tie lines) was completed and included a number of infill survey lines (55 lines) to provide coverage over anomalies of potential interest down to 100m line spacing. Noise levels within the final VTEM dataset (away from powerline interference) were observed to be low at ~0.001 pV/Am4 for the standard dB/dt data; no B-field data has been purchased to date for assessment.
A stratigraphic conductive sequence is present in the south of the survey area but the stratigraphy in the north was highly resistive and was ideal for VTEM / AEM surveying. Some local interference from powerlines was apparent but anomaly recognition was possible at only a limited distance away from powerline centres. Numerous local and stratigraphic type anomalies were defined by the VTEM surveying and those of most interest were selected for first pass follow-up on the ground. All available geological and geophysical data was utilised to rank these first round of priority VTEM anomalies. The strongest and most well defined EM anomaly is located at the Kilvassaksla Prospect. The Kilvassaksla Prospect is located along a regionally extensive thrust boundary which extends towards the northeast into ground held by Canadian explorer Blackstone Ventures Inc. which hosts the newly discovered Uma base metals mineralisation. Other priority anomalies are of interest given several factors; their discrete/local dimensions and/or coincident magnetic anomalism and/or near coincident or along strike from rock chip anomalism. The VTEM anomalies require field validation; this is expected to be completed in October 2009.

A second field reconnaissance field trip to the project was also made in August 2009; a total of eight rock chip samples were collected; two (FAM09001-002) from the Jofjellet Prospect which returned no significant base or precious metal results, four (FAM09003-006) from the Kilvassaksla Prospect which returned anomalous copper results of up to 3210ppm Cu and weak gold anomalism of 0.1ppm Au. Rock chip samples FAM09007-008 were collected from the same locations as samples JS010-011 which were collected in 2008 from the Famnvatnet Prospect. Whilst all four samples are comparable in anomalism there is an overall ‘upgrade’ of values in the 2009 samples. The 2008 samples were analysed at ALS in Piteå, Sweden and the 2009 samples were analysed at ALS in Perth, Australia.

NEWS FLOW...

January 31, 2012

2nd Quarter Activities Report

KIRUNA IRON PROJECT

Global JORC Mineral Resource increased to 473Mt @ 40% Fe
Global JORC Exploration Target increased to 203-273Mt @ 32-40% Fe
JORC Exploration Target for Altavaara increased to 55-60Mt @ 26-29% Fe
Excellent metallurgical results received from Rakkuri Project
High grade iron results received from Harrejaure Project
Iron results received from Renhagen Project
Wide, low grade iron intercepted at Altavaara Project

PRECIOUS & BASE METALS PIPELINE

Copper-gold discovery made at Njivlojávri Project, Norway
Copper discovery made at Fiskarfjellet Project, Norway
Exploration results from Ringvassøya Project, Norway
New gold-copper project granted in Northern Sweden

CORPORATE UPDATE

Completion of acquisition of iron permits from Grangesberg Iron
Completion of Rakkuri Project purchase
Investments banks mandated to raise capital for Kiruna Iron project

Lake Embrace (Famnvatnet)

NEWS FLOW...

2nd Quarter Activities Report

Copper and Gold Discoveries

1st Quarter Activities Report

KIRUNA IRON PROJECT

412.1 Mt @ 39.9% Fe

218 - 323Mt @ 32 - 39% Fe

PRECIOUS & BASE METALS PIPELINE

CORPORATE STRATEGY UPDATE

4th Quarter Activities Report

3rd Quarter Reports

International Company Continues to Invest with the Wind at our Backs, Norra Västerbotten Magazine

2nd Quarter Activities Report

BRR Interview - Updates on the Kiruna and Swedish Caledonides Projects

1st Quarter Activities Report

Highlights

High Grade Gold at Särksjön Project, Sweden

BRR Interview - High Grade Assays from Boulder Samples

High Grade Assays from Boulder Samples

4th Quarter Activities Report

High Grade Copper Results at Daningen Project, Sweden

Diamond Drilling has commenced at the Lake Embrace (Famnvatnet) Project, Norway

Successful Completion of $6.7M IPO and Admission to ASX

Image Gallery