OTTAWA, Dec. 20, 2017 /CNW/ - Northern Shield Resources Inc. ("Northern Shield" or the "Company") (TSXV: NRN) is pleased to announce that, through a wholly owned subsidiary, it has signed an Option Agreement with a prospector ("Prospector") that gives the Company the right to acquire up to an 80% interest in the Shot Rock Gold Property ("Property") in Nova Scotia, which is being explored for conglomerate-hosted and epithermal-type gold mineralization.
Under the terms of the Option Agreement which is subject to TSX approval, Northern Shield can earn a 50% interest in the Property by incurring $500,000 in expenditures on the Property within two years. The Option Agreement also contains cash payments totaling $50,000 and share issuances totaling 650,000 Company shares to the Prospector over three installments during the initial two-year period.
Over an additional two-year period, Northern Shield can increase its interest to 80% by incurring $1.5M in expenditures, while making $50,000 in cash payments and issuing 500,000 Company shares to the Prospector.
The Prospector will retain a 1% NSR of which half (0.5%) can be bought back by Northern Shield for $1M.
The Shot Rock Gold Property consists of 200 claims covering a 25 kilometre strike-length of a previously unknown unconformable, quartz-pebble conglomerate (see image). While outcrop is generally poor in the area, the Prospector has consistently panned gold from streams that transect a certain area of the Property. Prospecting also resulted in the discovery of quartz-adularia-pyrite veins (see image) moderately anomalous in gold and epithermal pathfinder elements including mercury, arsenic and antimony.
Approximately 70 kilometres to the west of the Property, geologists from the Nova Scotian Department of Natural Resources have also identified epithermal-type mineralization and they have drawn similarities to the gold belts in Nevada, USA. The area in Nova Scotia has temporarily been withdrawn from staking as the DNR seeks proposals from interested mining companies. "We have all the indications that there could be something there," said a geologist for the Department of Natural Resources in a recent newspaper article, "Basically, it's the same sort of deposits as (are) down in Nevada." (The Herald Chronicle, November 23, 2017). Northern Shield believes that the rocks and mineralization discovered on the Shot Rock Gold property are part of the same system as those described by the DNR to the west.
"We felt that the 'out of the box thinking' by a local prospector provided an ideal opportunity for diversification and to become a first mover in a potentially new gold district," says Northern Shield President and CEO, Ian Bliss. "The prospector's interpretation is already being supported by similar discoveries by government geologists. As the project is held through a wholly owned subsidiary it allows Northern Shield to continue its Ni-Cu-PGE focus." Exploration work will begin immediately in the new year which will include community engagement, surficial sampling, prospecting as conditions allow, and likely an airborne geophysical survey.
The programs will be overseen by Christine Vaillancourt, P. Geo., the Company's Chief Geologist and a Qualified Person under National Instrument 43-101.
Northern Shield Resources Inc. is a Canadian-based company focused on exploring for platinum group element ("PGE") and nickel-copper-PGE deposits. It is known as a leader in grass roots exploration for Ni-Cu-PGEs and the understanding of magmatic systems as it applies to exploration.
Forward-Looking Statements Advisory
This news release contains statements concerning the exploration plans, results and potential and other mineralization at the Company's Highland Gold Property in Nova Scotia and geological, and analyses of the Highland Gold property and surrounding area 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., Ian Bliss, President and CEO, Tel.: (613) 232-0459, Fax: (613) 232-0760, [email protected]