Estimation of

Mineral Resources

and further potential

at Rakkuri

Thomas Lindholm

GeoVista AB, Luleå

Background

•Many Iron ores and Iron deposits exists in the Kiruna area.

•A number of them can be found in a fairly limited area just

south of the town, at Rakkurijoki and Rakkurijärvi.

•The area has been investigated by geophysical surveys,

diamond drilling etc. since 1898 by severeal entities.

•The latest exploration efforts resultet in the application for a

mining concession for the Discovery zone by Anglo American &

Rio Tinto.

•The present study aims at assessing the total iron resources

within the area, as well as giving an idea of its potential.

Technique

•Based on 121 diamond drillholes (not all assayed).

•Wireframed on a 20% Fe model cut-off.

•Wireframes extended down to a maximum of 50-100m below

deepest intercept except where otherwise indicated by holes in

adjacent sections.

•Drillhole intercepts created by cutting holes with wireframe

and then checked for consistency.

•Assay sections composited to 5m.

•Block size 20*20*5 m, using sub-blocks of 5*5*1.25m to best fit

geometries.

Technique (cont.)

•A variography study was attempted but aborted due to the

fairly low data density.

•All interpolation was done using ID squared.

•Search ellipses individually modelled for each area.

•Block models not cut against bedrock-overburden interface!

Results

Rakkurijoki

69 Mton @ 35% Fe

Rakkurijärvi

5.5 Mton

@ 27% Fe

13 Mton

@ 26% Fe 19 Mton

@ 25% Fe

10 Mton

@ 36% Fe

Results

Inferred Area Zone Grade Tonnage

resources (see map) [% Fe] [Mton]

Rakkurijärvi South 101 27.2 5.5

Rakkurijärvi Discovery 401 25.5 7.1

Rakkurijärvi Discovery 402 26.5 3.0

Rakkurijärvi Discovery 403 28.6 2.9

Rakkurijoki 501 34.5 48.6

Rakkurijoki 502 36.1 20.6

Total 33.2 87.6

Exploration Area Zone Grade Tonnage

targets (see map) [% Fe] [Mton]

Rakkurijärvi East 201 25.0 19.1

Rakkurijärvi North 301 35.9 10.3

Total 25-36 25-35

Potential

Indicated by geo-

physics as well as by

Equinox drilling

Indicated by continuity in geophysics between

drillintercepts