OTTAWA, March 17 /CNW Telbec/ - Northern Shield Resources Inc. ("Northern Shield") (TSX-V: NRN) is pleased to announce that it has entered into an option agreement with Discovery Harbour Resources Corp. ("Discovery") respecting its 100% owned Wabassi property (the "Property") being explored for Nickel (Ni), Copper (Cu) and Platinum Group Elements (PGE) south of the "Ring of Fire" in northern Ontario.
Discovery is a private mineral exploration investment company founded by the principals of Western Potash Corp. (TSX-V: WPX) and Zimtu CapitalCorp. (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. 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 led teams involved with the Diavik Diamond and Eagle Deposits (MI) following a role as Regional & Project Exploration Manager for Kennecott's Flambeau Mining Group.
Under the option agreement, 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 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 development 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 in the formation of a joint venture. The 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 reef-type PGE and Ni-Cu-PGE deposits. 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 three separate clusters of airborne electro-magnetic (EM) anomalies with signatures typical of other known magmatic nickel-copper-cobalt-PGE occurrences in North America. The most compelling EM anomalies occur intermittently along a linear magnetic feature that has a strike length of 2 kilometres. 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 by Northern Shield in the Fall of 2008 intersected local patches of net-textured sulphides adjacent to the target ("Wabassi A2") but did not test the main anomaly as shown from recent modelling. In conjunction with this drilling program, deep-penetrating Pulse ElectroMagnetic surveys are being conducted on surface over each of the priority targets as well as down-hole EM. The data from these combined surveys will provide Northern Shield and Discovery with three dimensional views of the conductors.
Mr. Ian Bliss, President and CEO of Northern Shield, stated: "We are very pleased to be working with Ian Graham, Michael Senn and their team at Discovery to explore our Wabassi property. We look forward to obtaining the results from this expanded drill program at Wabassi."
The drill program 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.
Northern Shield is an innovative, results-driven Canadian company focused on Platinum Group Element (PGE) exploration in Ontario and Quebec. Its mission is to create a successful mineral exploration company through technical excellence and efficient management, where success is measured by the identification and development of high-quality mineral exploration projects, which may ultimately be optioned, sold or developed for maximum return on investment.
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 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.
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.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE Northern Shield Resources Inc.
For further information: For further information: on Northern Shield and its properties, please visit our website at www.northern-shield.com or contact: Northern Shield Resources Inc., Ian Bliss, President and CEO, Tel.: (613) 232-0459, Fax: (613) 232-0760, firstname.lastname@example.org