Northern Shield Resources Options New Low Sulphidation Epithermal Gold Project in Newfoundland
TSX VENTURE: NRN
OTTAWA, May 21, 2019 /CNW/ - Northern Shield Resources Inc. ("Northern Shield" or the "Company") (TSXV: NRN) is pleased to announce that, through wholly owned subsidiary Seabourne Resources, it has signed an Option Agreement with prospector ("Prospector") Jeffery Brushett that gives the Company the right to acquire a 100% interest in the Root and Cellar Gold Project (the "Property") located near the town of Creston on the Burin Peninsula, Newfoundland. The Property is being explored for low and intermediate sulfidation epithermal-type gold mineralization and also has potential for copper porphyry style mineralization.
A) Map Showing the 5 gold and 2 copper occurrences at Root & Cellar. B) Malachite and copper sulphides from Creston North. C) Bornite and Chalcopyrite from Creston. D) Visible gold from Conquest Zone. E) High grade gold and silver from Drop Zone.
Under the terms of the Option Agreement, which is subject to TSX-V approval, Northern Shield can earn a 100% interest in the Property by incurring $2,150,000 in expenditures on the Property within four years. The Option Agreement also contains cash payments totalling $165,000 and share issuances totalling 3,000,000 Company shares to the Prospector over five installments during the four year period. The Prospector will retain a 2.5% NSR of which 1% can be bought back by Northern Shield for $1.5M.
The Property consists of 12 mineral licenses covering approximately 30 square kilometres and located near Marystown and Creston on the Burin Peninsula, both of which provide deep water ports.
The Property includes six distinct showings of which five were the result of the sustained and diligent work of prospector Jeffery Brushett.
Drop Zone: a low-sulphidation setting with the three highest grab samples grading:
45.5 g/t Au and 1,365 g/t Ag;
37.8 g/t Au and 1,000 g/t Ag; and
25.8 g/t Au and 487 g/t Ag.
The host rock is a felsic to intermediate fragmental volcanic that exhibits strong silica-pyrite alteration crosscut by veining and related localized brecciation. The breccia zone appears to contain fragments rimmed by comb-textured quartz followed by pale beige chalcedonic silica which produces a "cockade"-style breccia. The above reported results are select samples and are not necessarily representative of the mineralization hosted on the property.
Conquest: a low sulphidation setting with 85 of 153 samples assaying greater than 100 ppb Au in an area measuring 550 x 650 metres, with localized higher grades including channel samples assaying 47.9 g/t Au and 5.6 g/t Au, each over 0.5 metres. Mineralization is associated with comb-textured quartz and pale beige chalcedonic silica similar to that observed at the Drop Zone.
Red Rock: up to 2.2 g/t Au hosted in a boulder adjacent to strongly hematized quartz breccia. Such rocks are often observed at the top of low-sulphidation systems.
Creston/Creston North: up to 10.5% Cu associated with anomalous Mo, Ag, Zn and Pb and hosted in epidote and hematite altered veins in what may be a porphyry style setting. Within these zones 3 sample assayed greater than 5% Cu, 11 samples between 1% and 5% Cu and 40 samples between 0.1% and 1% Cu.
Braxton-Bradley: possible intermediate-sulphidation setting with deformed silicified hydrothermal breccias and anomalous bedrock gold assays up to 0.9 g/t Au and 2.3 g/t Au in angular samples of float. Other associated assays reported from this zone include 1.8 oz/t Ag (62 g/t Ag) to 4 oz/t Ag (137g/t Ag), 0.3% Pb, 1.9% Zn, and 1.7% Cu.
Samples were analysed by Eastern Analytical Lab in Springdale, Newfoundland, and analyzed for Au by Fire Assay with ICP finish and base metals by four acid digestion and ICP finish. The assays reported were not collected or assayed by Northern Shield and hence have not been independently verified by Northern Shield.
"This is a really impressive property, it is not just the high-grade assays that catch one's attention but the extensive nature of highly gold anomalous outcrops and intense alteration," explains Northern Shield President and CEO, Ian Bliss. "We will be planning our exploration very shortly on the Root and Cellar Property. To date, Jeff has hand-trenched most of what we see and I think the project could benefit quite quickly from mechanical trenching and detailed mapping. In addition, there are some very strong similarities to what we see at Shot Rock and so both projects can benefit from each other in terms of the cumulative knowledge base."
The technical disclosure in this press release was 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 generating high-quality exploration programs with experience in many geological terranes. It is known as a leader in executing grass roots exploration program for Ni-Cu-PGEs and utilizing expertise and innovation toward working on other deposit types. Seabourne Resources Inc. is a wholly-owned subsidiary of Northern Shield focussing on epithermal gold and related deposits in Atlantic Canada and elsewhere.
Forward-Looking Statements Advisory
This news release contains statements concerning the exploration plans, results and potential for epithermal gold deposits, and other mineralization at the Company's Nova Scotia and Newfoundland properties, geological, and geometrical analyses of the properties and comparisons of the properties to known epithermal gold deposits in Nevada and elsewhere, and other expectations, plans, goals, objectives, assumptions, information or statements about future, 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.