Knaften gold exploration project

Knaften, which is located 15 km south of Lycksele, has one of Sweden's largest known gold anomalies in bottom moraine.

The gold target is situated beneath considerable deposits of gravel and sand in the valley of Örån, and has been explored through diamond drilling from 1995 to 2001 by various exploration companies such as Scanex / Barrick 1995-96 and North Atlantic Natural Resources during 2001. After Lappland Goldminers acquisition of the Knaften gold project there has been 11 drill holes completed totaling 1,385 m including 2 RC drill holes during the period 2003-2005. From 2006 to 2007 a new drilling program has been carried out comprising 6 drill holes of 1,112 m. Altogether there has thus been a total of 40 drill holes totaling 6,208 m completed in Knaften. The drilling program has been carried out following a reinterpretation of geophysical data and a new model for the gold mineralization. The model can now be confirmed after completing the latest drilling. The gold mineralized zone is in a shear zone in quartz diorite with a northsouthern strike with a shallow dip towards east. Gold mineralization is found in the shear zone partly as visible gold, partly together with arsenopyrite. With the latest drilling, the horizontal area for the potential gold mineralization has been considerably expanded and been localized to geophysical IP anomalies. The potential gold zone is open in all directions. The best sections so far encountered in the drilling are 11 m with 3.17 g/t Au in drill hole 96009 and 9 m with 1.14 g/t Au in drill hole 200601.

Continued drilling on the Knaften project is now recommended to clarify the extension and intensity of the gold mineralization within a 2 km long and 500 m wide area. The goal is to indicate mineral resources, which can be mined in an underground mine and which can be transported to Fäboliden for beneficiation with a limited impact on the environment.