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.
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.
SOURCE Northern Shield Resources Inc.