OTTAWA, Nov. 13, 2013 /CNW/ - Northern Shield Resources Inc. ("Northern Shield") [TSXV: NRN] is pleased to announce that it has signed an Option Agreement with Great Lakes Resources LLC ("Great Lakes"), a private US based company, regarding the Wabassi VMS project in northern Ontario. Northern Shield currently owns a 49% interest in the Wabassi Joint Venture. Under the terms of the Option Agreement, Great Lakes can earn a 24% interest in the Wabassi Joint Venture by paying $400,000 to Northern Shield on signing, incurring $1,500,000 in exploration expenditures by December 31st 2014, and paying a further $600,000 to Northern Shield on exercise of the option. On exercising the option, the Wabassi Joint Venture will be jointly held by Discovery Harbour Resource Corp. (51%), Northern Shield (25%) and Great Lakes (24%). Northern Shield will continue as operator.
A 10 to 11 hole drill program totaling 2800 meters is underway; four of these holes will test the extension of the copper-zinc-silver mineralization at Anomaly E while the remaining holes will test 4-5 regional targets with similar geophysical signatures to Anomaly E.
"While we remain a strong believer in the merits and potential of the Wabassi project, we decided to limit our expenditures given the current market conditions so we could continue to focus our resources on our strong PGE and Ni-Cu-PGE exploration projects and prospects," explains Northern Shield's President and CEO, Ian Bliss. "With concerns growing over the ability of South Africa and Zimbabwe to continue to meet the world's demand for platinum and palladium the necessity to find sources outside of these regions is becoming critical. Northern Shield is one of the few Canadian juniors that has developed a PGE exploration strategy and expertise and we believe we can use this to our benefit. We believe we have adequate cash flow for the next 12-15 months to meet our G and A requirements without going back to the markets."
The exploration program at Wabassi is being overseen by Christine Vaillancourt, a Qualified Person under National Instrument 43-101. Samples will be analyzed by ALS Global in Vancouver, BC, for Au by Fire Assay with ICP-AES finish and base metals by four acid digestion and ICP-AES.
Northern Shield is an innovative, results-driven Canadian company focused on Platinum Group Element (PGE) and nickel-copper-(PGE) exploration in Canada and Greenland and copper-zinc-silver exploration on its Wabassi and Storm properties in northern Ontario. 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. For further information on Northern Shield and its properties, please visit our website at www.northern-shield.com or contact:
Forward-Looking Statements Advisory
This news release contains statements concerning the geophysics, drilling and exploration plans, results and potential Cu-Zn-Ag-Au and other mineralization at the Wabassi property, geological, geophysical and/or geometrical analyses of the Wabassi property, Northern's cash flow and G and A expectations 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 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.
For further information:
Northern Shield Resources Inc.
President and CEO
Tel.: (613) 232-0459
Fax: (613) 232-0760