scandinavian resources project update

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Update on Scandinavian Resources' projects.

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  • Establishing a Mining House in Sweden

  • 2Major EU Mining Centre

    Low Sovereign

    Risk

    VERY large mines

    Active exploration

    High quality exploration

    data

    (SGU, MRIO, Mala)

    Potential for major

    discoveries

    Why Sweden ?

  • 3Sweden one of the European Unions Major Mining Centres

    A. Excellent ore potential 1,000 year mining history Largest producer of iron ore in the EU Leading producer of base metals copper, zinc and lead Leading producer of precious metals gold and silver

    B. Under-explored by modern standards

    C. Political and economic stabilityRanked 12th in the 2009 World Risk Survey (WA ranked 12th)

    D. Excellent infrastructure

    E. Favourable minerals legislationInitial exploration permit 3 years maximum 15 yearsInitial exploitation concessions 25 years rolling 10 year extensionsGovernment royalty 0.2% of average value of minerals mined

    F. Low corporate taxCorporate tax rate 28%

    G. World class databasesSGU Mineral resources Information Office in Mala

    H. Mining know-how and highly trained personnelGlobal leaders in supply of mining technology

  • 4Sweden - very large mines

    1. Kiruna Iron Mine (owned by LKAB)1. 2Bt iron mine2. Production in 2007 was 24.7Mt (76% pellets) 3. Production for 1st three quarters of 2008 was 18Mt4. SEK6 billion concentrator and pelletising plant produced first pellets in May

    2008 5. Recent decision to invest SEK12.4 billion into a new main level6. Town must be moved at cost of SEK12.5 billion7. Capacity to produce 30Mt/y of pellets8. Mining in Kiruna secure through to 2035

    2. Aitik Copper Mine (owned by Boliden)1. one of Europe's largest producers of copper, and also a major producer

    of gold and silver2. Aitik has produced almost 430 Mt of ore (to 2007) . 3. 389 Mt of proven ore reserves grading 0.2 g/t gold, 2 g/t silver and 0.29%

    copper (as at January 2008) 4. 221 Mt of probable ore reserves grading 0.1 g/t gold, 2 g/t silver and

    0.28% copper5. Measured and indicated mineral resources amount to an additional 1048

    Mt6. Increasing copper production from 18Mt/y to 36Mt/y7. Investment in new concentrator and mining plant is SEK6 billion8. The mine and its concentrator started operating in 1968.

  • 5Kiruna 2Bt Iron Mine owned by LKAB (Swedish Government)(Automated & Underground)

  • 6Aitik Copper Mine owned by Boliden

  • 7Sweden active exploration

    1. Only the Swedish State permitted to conduct exploration until 1992

    2. Now more than 100 exploration companies now active in Sweden including:Anglo AmericanPhelps DodgeRio TintoTeck Cominco

    3. Australian listed companies active in Scandinavia include:Dragon Mining Ltd (ASX:DRA)Avalon Minerals Ltd (ASX:AVI)Aura Energy Ltd (ASX:AEE)Northern Iron Ltd (ASX:NFE)Vulcan Limited (ASX:VCN)Golden Rim Resources Ltd (ASX:GMR)

    3. US$92 million spent on exploration in 2007 (US$49:2006)

  • 8Sweden outstanding exploration data

    Geological Survey of Sweden is the Swedish central government agency responsible for all matters relating to Swedish geology

    SGU Mineral Resources Information Office serves as a one-stop-shop for everyone conducting exploration in Sweden established 1993

    All government data plus data from private exploration has been merged and stored in archives and databases1. >8,000 exploration reports2. 100,000 maps of various kinds3. Drill core and drill hole logs4. Field notes etc5. 20,000 mineralised boulders6. >4,000km of drill core

    SGU offers explorers:1. Aerial geophysical data covering al of Sweden (magnetic radiation and

    electromagnetic)2. Ground geophysical data (magnetic, electromagnetic, gravity and petrophysical)3. Geochemical data (soils, stream peat, stream sediment and bedrock)4. Bedrock data (rock type distribution, age, chemical and mineralogical composition,

    tectonics and mineral deposits)

  • 9SGU, Mineral Resources Information Office, Mala, Sweden

    Olof Forslund & Swedish Minister for Resources

    Drill core archive, > 4,000km of core

    SGU Data Library

  • 10

    Mal, Sweden is located in Vsterbottencounty, approximately 950 km to the north of Stockholm Home of the SGU Mineral Information Office Home of Olof Forslund

  • 11

    Olof Forslund (ex-Regional Manager of SGUs MRIO,

    Mala)

    Damian Hicks

    (Corporate)

    Developed Exploration Portfolio

    (Since 2007)

    Scandinavian Resources Ltd

    ASX Capital Raise to Fund Next Phase (2009)

    Searching for Mining Asset (Future)

    Why Scandinavian Resources Ltd?

  • Damian Hicks and Olof Forslund signing the MOU in Mala, Sweden on November 2007

    12

  • 13

    Mr Olof Forslund highly credentialed Swedish Technical Director

    Regional Manager of the SGUs Mineral Resources Information Office in Mala,Sweden (2003 2007); SGU 1999-2007 & 1966 - 1982

    Geophysicist

    Extensive international experience in the minerals exploration industry, particularly inthe development and application of geophysical instruments and radar technology

    Assignments have covered activities in Sweden, Japan, South Korea, Germany,Belgium, Italy, France, Canada and the USA

    Founding shareholder and President of MAL GeoScience (www.malags.com) (1994and 1998) - MAL is currently the global leader in the design and manufacture ofGround Penetrating Radar (GPR) systems

    Extensive network of contacts through Scandinavia covering geophysicists,geologists, drilling companies, government and industry

    Responsible for the SGUs active participation at the Prospectors and DevelopersConference (otherwise known as PDAC) in Toronto, Canada.

  • 14

    Olof ForslundTechnical Director Scandinavian Resources Ltd

    Orjan Einarsson, PrincipalGeoPartner AB

    Kjell StenmarkWell known Prospector

    Amanda ArrowsmithConsulting Geologist

  • 15

    Scandinavian Resources Ltd (SRL)

    1. SRL is the 12th largest exploration permit holder by area in Sweden

    2. Commodities covered include: precious metals (gold and silver) base metals (copper, lead and zinc) PGEs (platinum and palladium) iron; and manganese

    3. All projects owned 100% by SRL (1.02% royalty payable)

  • Kiruna Project Iron (copper) targets ~30km SW of the giant LKAB owned Kiruna (2Bt) iron mine

    Lake Embrace (Famnvatnet) Gold-copper-lead-zinc targets Located to the south of the rtfjell Fe deposit and the Mofjellet Zn-Cu deposit

    Swampy Mountain (Vtmyrberget) Platinum and palladium targets Iron-copper-gold targets Located in the Skellefte mining district

    Exploration Project Pipeline 13 tenements

    16

    Major Exploration Projects Location

  • 17

    Scandinavian Resources Ltd

  • 18

    100Mt@40% Fe

    Au Ag Cu

    ppm ppm ppm

    SKU09010 0.19 3.2 6300

    Fe SiO2 Al2O3 P

    % % % %

    SKU09006 68.2 1.58 0.6 0.001

    Fe SiO2 Al2O3 P

    % % % %

    SKU09013 64.1 4 0.23 0.007

    Fe SiO2 Al2O3 P

    % % % %

    SKU09002 54 19.7 0.51 0.036

  • 19

    Fe SiO2 Al2O3 P

    % % % %

    SKU09006 68.2 1.58 0.6 0.001

    Luppovare Prospect

    Kjell Stenmark, August 2009

  • 20

    Fe SiO2 Al2O3 P

    % % % %

    SKU09013 64.1 4 0.23 0.007

    Kuosatjvare Prospect

    Olof Forslund & Amanda Arrowsmith, August 2009

  • 21

    Skuokimjokk Prospect

    Fe SiO2 Al2O3 P

    % % % %

    SKU09002 54 19.7 0.51 0.036

    Olof Forslund & Amanda Arrowsmith, August 2009

  • 22

    KIRUNA PROJECT Fe (XRF) SiO2 (XRF) Al2O3 (XRF) P (XRF) Au (ICP-AES) Ag (ICP-MS) Cu (ICP-MS)

    Skuokimjokk Prospect % % % % ppm ppm ppm

    SKU09001 49.5 21.1 0.89 0.045 0.559 0.56 125.5

    SKU09002 54 19.65 0.51 0.036 0.012 0.18 40.8

    SKU09003 34.1 47.1 0.41 0.023

  • 23Scandinavian Resources Ltd

  • 24

    Famnvatnet Prospect

    Au (ICP-AES) Ag (ICP-AES) Cu (ICP-AES) Pb (ICP-AES) Zn (ICP-AES)ppm ppm Ore Grade % Ore Grade % Ore Grade % Ore Grade

    FAM09007 0.023 2.93 29.70JS010 0.013 1.32* 13.00*

    FAM09008 0.791 114 2.13 3.63 10.35JS011^ 0.621 105* 1.87* 3.00* 8.05*

    *Ore Grade (AAS)^ BoulderFAM09007 (collected August 2009) & JS010 (collected August 2008) are from similar location FAM09008 (collected August 2009) & JS011 (collected August 2008) are from similar location

  • Massive, banded pyrite-galena-sphalerite ore at Famnvatnet, Norway. Grid reference 469798E 7300161N at an elevation of 628m; Sample JS011.

    Cu 1.87%Pb 3.00%Zn 8.05%

    Ag 105ppmAu 0.621g/t

    25

    Famnvatnet

  • 26

    Kilvassaksla ProspectAugust 2009

  • 27

    Samples collected by Scandinavian Resources Ltd

    Au (ICP-AES)

    Ag (ICP-MS)

    Cu (ICP-MS)

    Pb (ICP-MS) S (ICP-MS) Zn (ICP-MS)

    Ag (ICP-AES)

    Cu (ICP-AES)

    Pb (ICP-AES)

    Zn (ICP-AES)

    Jofellet Prospect ppm ppm ppm ppm % ppm

    ppm Ore Grade

    % Ore Grade

    % Ore Grade

    % Ore Grade

    FAM09001 0.001 0.16 68.8 4.3 0.73 33

    FAM09002 0.01 0.71 27.5 95.5 0.05 22Kilvassaksla Prospect

    FAM09003 10.0 27

    JS008 0.013 0.3 427 4 1.44 141

    JS009^ 0.025 0.5 3080 10000 >10.0 >10000 2.93 29.70

    FAM09008 0.791 >100 >10000 >10000 >10.0 >10000 114 2.13 3.63 10.35

    JS010 0.013 14.6 26 >10000 >10.0 >10000 1.32* 13.00*

    JS011^ 0.621 >100 >10000 >10000 >10.0 >10000 105* 1.87* 3.00* 8.05**Ore Grade

    (AAS)

    ^ BoulderFAM09007 (collected August 2009) & JS010 (collected August 2008)

    are from similar location FAM09008 (collected August