The most significant of these new properties is the 212 km2 Fortune Property (Figure 1) composed of two property options totalling 65 km2, with the remainder having been map staked directly by Northern Shield. The Fortune Property covers a 40 km trend that is highly prospective for porphyry copper and epithermal gold systems, and includes multiple indications of such systems including 4 known occurrences:
Stewart: The Stewart prospect represents the most aerially extensive and continuous zone of exposed alteration on the Burin Peninsula, reaching widths of up to 850 m and extending along strike for upwards of 4 km (Figure 2a). It represents an extensive zone of advanced argillic alteration including pyrophyllite, alunite and vuggy quartz, interpreted to be a lithocap to a porphyry Cu-Mo-Au system. The lithocap is anomalous in gold, copper and molybdenum over significant intervals including historical surface trenching results of 0.09 g/t Au over 219 m, (Dyke, B., 2008,) and a drill intercept of 0.13 g/t Au over 111 m (Setterfield, T., 2016,) along with anomalous Cu and Mo.
Forty Creek: The Forty Creek intermediate sulphidation quartz vein is along strike from Stewart and hosts gold and silver tellurides with values up to 59 g/t Au and 2,290 g/t Ag (Setterfield, T. 2011). (Figure 2b) and grab samples with values to 0.16% Cu and 0.1 g/t Au in a nearby silicified pyrophyllite alteration zone.
Point Rosie: Hosts multiple quartz-sericite-pyrite (phyllic) alteration zones consistent with epithermal and porphyry copper systems over a 4 km strike length. Copper-gold-silver anomalous quartz veins (Figure 2c) with values up to 0.67 g/t Au and 0.65% Cu (Noel, N., 2020) have recently been discovered within a 2.5 km gold-in-soil anomaly.
Feeder Brook: Hosts multiple quartz-sericite-pyrite alteration zones with grab samples values to 0.9 g/t Au (Dimmell, P., 2003). Nearby till samples collected by the Geological Survey of Newfoundland and Labrador are anomalous in porphyry copper pathfinder elements.
Some of the assay certificates for the results mentioned have been reviewed by Northern Shield while others have not, and Northern Shield is relying on third party assessment reports filed with the Newfoundland and Labrador government for the values quoted. None of the samples were collected or assayed by Northern Shield and hence cannot be fully and independently verified by the Company.
The Company has also acquired 3 claim groups totalling 136 km2 on the Cape St Mary's Peninsula across Placentia Bay from Root & Cellar. The primary target is a porphyry copper system similar to Root & Cellar based on Cu and Mo anomalous till samples reported by the Geological Survey of Newfoundland and Labrador and description of "malachite-stained quartz stockwork veining" in the government's mineral occurrence database. Some of the tills are also highly anomalous in nickel and cobalt and since gabbroic rocks are reported from the area, the claims will also be targeted for magmatic Ni-Cu-Co sulphides.
"We are very excited about these new land positions. We see growing interest in the porphyry copper potential of the Burin Peninsula as we uncover more mineralization at the Creston Copper Target. As such these new properties cement our "first mover status" and allow us to use the knowledge we have gained from Root & Cellar to our advantage. We haven't just amalgamated a prospective land position but amalgamated, incentivized, and mobilised some of the most experienced and tenacious prospectors in the region. They are our first asset and, collectively, have seen more rocks on the Burin than anybody. I have little doubt that they will have success in finding new mineralization in the spring."
- Ian Bliss, President and CEO, Northern Shield
Definitive Agreements
Point Rosie/Feeder Brook
Under the Point Rosie/Feeder Brook Option Agreement (the "Point Rosie Agreement"), the Company, through its wholly owned subsidiary, Seabourne Resources Inc. ("Seabourne"), acquired the right to earn up to an undivided 100% interest in Point Rose Property located in Newfoundland. By its terms, the Company will pay $13,835 in cash and issue 650,000 common shares ("Common Shares") on signing pursuant to the Point Rosie Agreement, and issue up to an aggregate of up to 2,650,000 Common Shares and pay, in aggregate, $153, 835 over a four-year period thereafter.
Stewart/Forty Creek
Under the Stewart Option Agreement (the "Stewart Agreement"), the Company, through its wholly owned subsidiary, Seabourne, acquired the right to earn up to an undivided 100% interest in Stewart Property located in Newfoundland. By its terms, the Company will pay $6,755 in cash and issue 400,000 Common Shares on signing pursuant to the Stewart Agreement, and issue up to an aggregate of up to 2,900,000 Common Shares and pay, in aggregate, $146,775 over a four-year period thereafter.
Kelstone
Under the Kelstone Purchase Agreement (the "APA"), the Company, through its wholly owned subsidiary, Seabourne, acquired two Mining Claims located near Marystown, Newfoundland in exchange for $1,500 in aggregate cash consideration and the issuance of 400,000 Common Shares on signing.
There are no yearly expenditure requirements other than those required for assessment purposes to keep the Mining Claims in good standing. The properties underlying the Definitive Agreements are subject to a royalty in the amount of 2.0% Net Smelter Returns; provided that the Company shall have, under each respective Definitive Agreement, the pre-emptive right at any time and from time to time prior to commencement of commercial production to buy-down the royalty from 2.0% to 1.0% for $1,500,000.
Closing of transactions underlying the Definitive Agreements are subject to certain customary conditions, including, without limitation, approval of the TSX Venture Exchange (the "TSXV"), and all of the securities issued under the Definitive Agreements will be subject to a four-month and one-day statutory hold period in accordance with applicable securities laws.
The scientific and technical information contained in this news release has been reviewed and approved by Christine Vaillancourt, P. Geo., Northern Shield's Chief Geologist and a "Qualified Person" within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
About Northern Shield Resources
Northern Shield Resources Inc. is a Canadian-based company, a leader in generating high-quality exploration targets, that views greenfield exploration as an opportunity to find a mineable, near surface deposit at relatively low cost. We implement a model driven exploration approach to reduce the risk associated with early-stage projects for ourselves, our shareholders, and the environment. This approach led us to option the Root & Cellar Property from a Newfoundland prospector, who discovered the copper mineralization, and then to its advancement to the large gold-silver-tellurium and porphyry copper system that it has become.
References |
Dimmell, P., 2003, First Year Assessment Report, Western Feeder Property. |
Dyke, B., 2008. Satellite imagery, property tour, prospecting, rock sampling, lake sediment sampling, stream sediment sampling, soil sediment sampling, mapping, Terrasepec and trenching, Burin Gold Project. Assessment Report for Cornerstone Resources Inc., |
Noel, N., 2020, 1st Year Assessment Report on License 30828M |
Setterfield, T., 2011. Assessment Report Stewart Property, Burin Peninsula, Newfoundland for TerraX Minerals Inc |
Setterfield, T., 2016. Analysis of Radar Data, Stewart Property, Burin Peninsula, Newfoundland. Assessment Report for TerraX Minerals Inc |
Forward-Looking Statements Advisory
This news release contains statements concerning the exploration plans, results and potential for epithermal gold deposits, and other mineralization at the Company's Root & Cellar Property , geological, geophysical and geometrical analyses of the properties and comparisons of the properties to known epithermal gold deposits and other expectations, plans, goals, objectives, assumptions, information or statements about future, conditions, results of exploration or performance that may constitute forward-looking statements or information under applicable securities legislation. Such forward-looking statements or information are based on a number of assumptions, which may prove to be incorrect.
Although Northern Shield believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward looking statements because Northern Shield can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Northern Shield and described in the forward looking statements or information. These risks and uncertainties include, but are not limited to, risks associated with geological, geometrical and geophysical interpretation and analysis, the ability of Northern Shield to obtain financing, equipment, supplies and qualified personnel necessary to carry on exploration and the general risks and uncertainties involved in mineral exploration and analysis.
The forward-looking statements or information contained in this news release are made as of the date hereof and Northern Shield undertakes no obligation to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Northern Shield Resources Inc.
Northern Shield Resources Inc., Ian Bliss, President and CEO, Tel.: (613) 232-0459, Fax: (613) 232-0760, [email protected]
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