Northern Lion Gold Corporation - QwikReport

NORTHERN LION GOLD CORPORATION : http://www.northernliongold.com/ : QwikReport

Sweden

With an area of approximately 450,000 km², Sweden is one of Europe's larger countries. Sweden's population is approx. 8.8 million, half of which is found in the southern portion of the country. Much of the northern area is covered by dense forests and is sparsely populated. Less than one-tenth of the land is used for farming.

Sweden is a constitutional monarchy with a parliamentary democracy. It has been a member of the European Union since 1995. The current natural resources have always formed the foundation for Sweden's economic success. Infrastructure is well developed and financial and professional services are widely available. The currency is the Swedish Kroner (SEK).

Geologic Setting

Sweden is part of the Fennoscandian (or Baltic) Shield. This is a huge craton, an area of old crystalline and metamorphic rocks, consolidated during hundreds of millions of years. Common rocks are gneiss, granite, granodiorite, sandstone and marble. There are a few patches of marble, dolomite and limestone with a few caves. There are numerous tectonic or neo-tectonic caves. But the basic thing about Sweden's' underground are numerous important mines, with Kiruna Iron Ore Mine in northern Sweden being the most well known.

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Mining History

There are four major ore districts in Sweden: the south-central Bergslagen Region, the northern Norrbotten Country, the Skellefteå District, and the Caledonides.
Historically, Bergslagen is considered the most important district, however, today there are only three mines in production there (Zinkgruvan; Garpenberg Odälfalt; Garpenberg Norra).which are mainly zinc deposits associated with lead and silver.

Mining is a traditional industry in Sweden. Its history extends back several hundred years. The historic Falun Copper Mine was for hundreds of years the most important industrial site in the country producing, at times, up to two-thirds of Europe's copper requirements.

The following centuries saw deposits of base metals, silver and iron ore discovered and exploited. Notable early discoveries include the giant iron ore mines of Kiirunavaara and Luossavaara discovered during the 1730's and operated today by Luossavaara - Kiirunavaara AB. In 1924 prospecting in the Skellefte district led to the discovery of the Boliden deposit and the foundation of Boliden Limited now listed in Toronto. Historical restrictions on foreign participation in Sweden's mining industry have led to its domination by a small number of large domestic mining companies. Until recently the State took a major role in the mining industry through State run exploration and the right to acquire a major stake in any new mining venture. In 1991 however, following a change in Government and an application to join the European Union, Sweden adopted new policies to encourage foreign investment including cuts in the level of taxation, better business conditions and the privatization of state industrial interests. These new policies extended to the mining industry with the lifting of foreign investment restrictions and the abolition of State participation in mining projects. A new mining law was introduced to give effect to these new policies.

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The attraction of post 1991 Sweden has been recognized by a number of major exploration companies that have developed a significant exploration presence in recent years.

Northern Lion in Sweden

Through its wholly owned subsidiary, Northern Lion Gold Sweden AB, the company holds seven claims in Sweden. (See figure at the end of article)

*Bergslagen Ore District (South-Central Sweden)*
Claim	Size (ha)
Skyttgruvan	1245.79
Kuså	87.36
Skällingsberg	1408.04
Hålstjärn	591.43
Oxberg	2342.16
Flinten	3435.48
Karlsgruvan	529.07

The company carried out data review, compilation and limited soil sampling in preparation for future exploration on the Bergslagen Properties:

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Skyttgruvan is located 4 km west of the Falun mine. It is underlain by a continuation of the folded and altered quartzite-mica schist stratigraphy that hosted the Falu mine. During the period 1890 to 1908, Skyttgruvan was mined to a depth of 186 metres, producing 275,000 tonnes or ore grading approximately 8% zinc and 4% copper, with very high silver values.

Kuså is located approximately 13 km west of Falun. Kuså property is a past nickel producer, situated on the side of a small gabbro intrusion. Mineralization consists of disseminated nickeliferous pyrrhotite and chalcopyrite that form an irregular, shallow plunging body within the gabbro. During the period 1941 to 1943, the Kuså mine produced some 3,500 tonnes of ore of grading 1.0% copper and 0.9% nickel.

Skällingsberg and Hålstjärn are located approximately 18 km and 11 km, respectively, north of the Garpenberg Mine, a major zinc, lead and silver producer, owned by Boliden AB, which has yielded metals for some 700 years (in excess of 21.8 million tonnes grading 0.2% copper, 4.2% zinc, 2.4% lead, 0.4 grams gold/tonne and 128 grams silver/tonne). Recently, Boliden announced that ore reserves at the mine had been increased three-fold, extending the mine lifespan by over 10 years.

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Oxberg is located within a 60 km long belt of altered and folded, felsic volcanics (leptites) and limestone. The belt is parallel, and geologically similar, to the nearby Falun leptite belt, which hosts the copper-zinc-lead ore bodies of the Falu Mine. Two small, past-producing, base metal deposits, Floberg and Floholm, currently held by Boliden AB, are surrounded by the northern part of the property, with the latter yielding a historic ore grade of 0.2% copper, 9.0% zinc and 5.0% lead.

Karlsgruvan is located within felsic volcanic rocks in the general area of the Dannemora iron (inc) mine, a previous producer, some 100 km north of Stockholm.

Flinten is located some 18 km east-northeast of Falun and covers a portion of a layered intrusion. Limited work on parts of the intrusion by the Geological Survey of Sweden yielded anomalous values in PGE's and gold. Peak values 1.80 g/t Au, 0.20 ppm Pd, 0.13 ppm Pt (0.2 %Ni and 0.4 % Cu)

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This page was created on Tue Sep 7, 2010 at 6:58:11 PM Pacific Time.