OTTAWA, May 11, 2016 /CNW/ - Northern Shield Resources Inc. ("Northern Shield" or the "Company") (TSX-V: NRN) is pleased to announce that 2,000,000 warrants issued as part of the Private Placement announced on April 7th and April 12th have been exercised at a price of $0.05 for proceeds of $100,000. The Common Shares issued on exercise of the Warrants are still subject to a hold period ending four months from the date of original issuance.
Northern Shield is also pleased to announce that it has substantially increased the size of its Huckleberry Cu-Ni-PGE property from 57 claims to 159. Northern Shield will undertake a field visit to the Huckleberry property at the end of May immediately followed by the commencement of exploration at the beginning of June. The exploration program as currently planned will include 2-3 weeks of outcrop sampling at Huckleberry followed by an airborne EM survey over Huckleberry and the recently acquired Séquoi property located 10 kilometer east of Huckleberry. The airborne EM survey will be used to guide diamond drilling planned for later on in the year. Both properties are currently owned 100% by Northern Shield. However, Northern Shield is in the concluding stages of an agreement with a third party interested in an option on one of these properties. Northern Shield will provide further details regarding exploration on these properties this summer and any agreement concluded with such party on these properties in due course and when available.
"We are pleased with the early exercise of some recently issued warrants which shows confidence in our southern Labrador Trough projects," states Northern Shield President and CEO, Ian Bliss. "We are eager to get back on the ground at Huckleberry and to commence the airborne EM surveys over both projects. One must remember that, to date, we have only spent 5 days on the ground sampling at Huckleberry and we are very confident that we can uncover further mineralization with a more extensive program."
Northern Shield discovered significant Cu-Ni-PGE mineralization at Huckleberry in 2015 with 97 samples averaging 1.0% Cu, 0.2% Ni and 0.72 g/t PGE+Au. Huckleberry is being explored as a segregated magmatic deposit whereby the copper has separated from the nickel during cooling. The discovery of a xenolith hosting nickel-bearing semi-massive sulphides suggests that the nickel-rich portion may underlie the copper mineralization. The complexity of the geology and segregated nature of the mineralization makes a strong argument for comparison to known giant ore deposits or a Cu-Ni-PGE camp which partly lead the Company to staking the Séquoi target. Séquoi covers a large multi-lobed magnetic anomaly that Northern Shield interprets to be a flat-lying, saucer-shaped mafic-ultramafic intrusion, perhaps related to Huckleberry and part of the feeder system to the sills of the Labrador Trough. Within this anomaly are small pockets of higher magnetism, some of which coincide with electro-magnetic anomalies identified from a mid-1980s, government sponsored airborne survey. Analysis of the historic lake bottom sediment sample results and glacial history of the area provides for a compelling case to be made that Séquoi lies at the head of a very large and distinct Ni-Cu-PGE dispersion train that dominates the southern Labrador Trough.
The programs at Huckleberry and Séquoi will be overseen by Christine Vaillancourt, P. Geo., 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 Cu-Ni-PGE and other mineralization at the Company's southern Labrador Trough properties, geological, and geometrical analyses of the southern Labrador Trough properties and comparisons of the properties to known Cu-Ni-PGE deposits, and other expectations, plans, goals, objectives, assumptions, information or statements about future events (including the use of proceeds from the Private Placement), 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]