VANCOUVER, March 19 /CNW/ - Discovery Harbour Resources Corp. ("Discovery") is pleased to announce that it has entered into an option agreement with Northern Shield Resources Inc. ("Northern Shield") (TSX-V: NRN) respecting its 100% owned Wabassi property (the "Property") being explored for Nickel (Ni), Copper (Cu), Cobalt (Co) and Platinum Group Elements (PGE) south of the "Ring of Fire" area in northern Ontario.
Discovery is a private mineral exploration investment company founded by the principals of Western Potash Corp. (TSX-V: WPX) and Zimtu Capital Corp. (TSX-V: ZC). The President of Discovery is Ian Graham, an accomplished mining professional with over 20 years of experience in the discovery, evaluation and development of mineral deposits. Mr. Graham joined Discovery from Rio Tinto, where he was the Chief Geologist with Rio Tinto's Project Generation Group. Throughout Mr. Graham's career, he has been involved in the evaluation, exploration and development of numerous advanced stage projects in North America and abroad. Furthermore, Discovery's Executive VP, Michael J. Senn, is an experienced explorer with a track record of discovery. During his tenure with Kennecott/Rio Tinto (1980 - '97) Michael lead teams involved with the discoveries at the Diavik Diamond (NWT) and Eagle Deposits (MI) following a role as Regional & Project Exploration Manager for Kennecott's Flambeau Mining Group. He joined the Discovery team in November, 2009.
Under the option agreement with Northern Shield, Discovery is able to earn a 51% interest in the Property by: (i) making an immediate cash payment to Northern Shield of $50,000, (ii) purchasing 800,000 Northern Shield shares at $0.25 per share for proceeds to Northern Shield of $200,000 (iii) funding $1,250,000 of exploration expenditures on the Property and issuing to Northern Shield 100,000 common shares of Discovery on or before March 31, 2011; and (iv) funding an additional $2,150,000 million of exploration expenditures on the Property and issuing to Northern Shield an additional 150,000 common shares of Discovery on or before March 31, 2012. Upon Discovery earning a 51% interest a 51/49 joint venture to develop the Property will be formed between Northern Shield and Discovery. From inception Northern Shield and Discovery will work together to develop the exploration and scoping programs for the Property, for which the operator will be paid a fee of 10% of the exploration funds (or 5% of the development funds) paid or advanced. Northern Shield will operate the project prior to Discovery earn-in. This option agreement is subject to the approval of the TSX Venture Exchange.
The Property covers a large layered intrusion with geology ideally suited to host both reef-type PGE and magmatic Ni-Cu-PGE deposits (http://www.northern-shield.com/wabassi.html). Layers within the intrusion can be traced from outcrop and airborne magnetics for up to 8 kilometres. The drill program on the Property that was announced on March 1 has now mobilized and, as a result of the option agreement with Discovery, has been expanded from 1,300 metres (5-6 holes) to 2,300 metres (8-10 holes). The drill program will focus on four separate clusters of airborne electro-magnetic (EM) anomalies (Wabassi "A-1 thru 3", "B", "C" and "D") with signatures typical of other known magmatic nickel-copper-cobalt-PGE occurrences worldwide. The most compelling EM anomalies occur intermittently along a linear magnetic feature that has a strike length of 2 kilometres (Wabassi "A"-1 thru 3). This feature may represent a feeder conduit into the main portion of the Wabassi Intrusive Complex and as such, is an ideal location for Nickel, Copper and PGE bearing sulphides to form. Drilling of one of these VTEM targets, Wabassi A-2, in the Fall of 2008 intersected net-textured magmatic sulphides adjacent to the VTEM airborne magnetic-electromagnetic target, but did not test the main anomaly as was shown from recent modelling of these airborne data. In conjunction with this drilling program, deep-penetrating Pulse ElectroMagnetic (PEM) surveys are being conducted on surface over each of the priority targets. Also, downhole EM has been contracted for and will begin with the 2008 drill hole that intersected the magmatic sulphide mineralization. These PEM surveys, both ground and downhole, will provide the venture's exploration team with three dimensional views of the conductors.
Mr. Ian Graham, President and CEO of Discovery, stated: "The Wabassi Project fits perfectly with our business strategy of acquiring high quality exploration prospects in which we can leverage our technical expertise. We are thrilled with the opportunity to work with Northen Shield's team to advance this project."
The drill program at Wabassi will be overseen by Christine Vaillancourt, Chief Geologist for Northern Shield and a Qualified Person under National Instrument 43-101. The drilling will be conducted by Morecore Diamond Drilling Ltd. of Kelowna, British Columbia.
Discovery is a new acquisitions and investment company. Its mission is to create shareholder value through successful acquisitions of exceptional mineral properties through the employment of its technical expertise during the selection and exploration processes, through a thorough evaluation of the potential economics of these quality acquisitions, through assistance in the program's technical management and ultimately through the evolution new technical successes into economically viable projects by employing its development experience. In addition to this new venture with the Northern Shield group, Discovery is currently in advanced stages of negotiations for additional projects of merit for steel-strategic mineral commodities and gold.
Forward-Looking Statements Advisory
This news release contains statements concerning exploration plans, potential for Ni-Cu-PGE mineralization at the Wabassi property, geological, geophysical and/or geometrical analyses of the Wabassi property, and other expectations, plans, goals, objectives, assumptions, information or statements about future events, 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 Discovery Harbour 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 Discovery Harbour 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 Discovery Harbour 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 Discovery to obtain financing, equipment, supplies and qualified personnel necessary to carry on exploration and the general risks and uncertainties involved in mineral exploration.
The forward-looking statements or information contained in this news release are made as of the date hereof and Discovery Harbour 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.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE Discovery Harbour Resources Corp.
For further information: For further information: on Discovery and its properties, please contact: Discovery Harbour Resource Corp., Ian Graham, President and CEO, Tel.: (604) 689-9378, Fax: (604) 689-8199, firstname.lastname@example.org