OTTAWA, Oct. 18, 2019 /CNW/ - Northern Shield Resources
Inc. ("Northern Shield" or the "Company") (TSXV: NRN) is pleased to
announce that Nova Scotian prospector, Mr Patrick Bellefontaine (the "Prospector"), has
discovered two new vein systems in Cape
Breton, Nova Scotia, (the "Properties") that are being
explored for low-sulphidation epithermal gold and silver. Northern
Shield, through its wholly-owned subsidiary Seabourne Resources,
has signed an Option Agreement with the Prospector that gives the
Company the right to acquire up to an 80% interest in both
properties "Properties" subject to a 30-day due diligence
period.
Northern Shield has become a leading explorer of
low-sulphidation epithermal (LSE) gold-silver systems in
Atlantic Canada and now holds a
portfolio of six such projects including three in Nova Scotia, one in Newfoundland (that hosts multiple systems),
and two in the Gaspe Peninsula of
Quebec that appears to be of
epithermal affinity.
Under the terms of the Option Agreement, which is subject to
TSX-V approval, Northern Shield can earn a 50% interest in the
Properties by incurring a total of $600,000 in exploration expenditures within two
years. The Option Agreement also requires cash payments totaling
$80,000 and share issuances totaling
1,500,000 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 a further $1.4M in
expenditures, making an additional $105,000 in cash payments and issuing an
additional 1,500,000 Company shares. The Prospector will retain a
1% net smelter returns royalty if the Company exercises the option
to acquire the 50% interest.
The Properties consists of 180 claims covering a total of 2,817
hectares.
Samples of vein material collected from outcrop by the
Prospector clearly exhibit textures consistent with LSE gold
systems as well as evidence of changing fluid conditions, which
promotes the precipitation of any gold in the system. Assays are
pending from these, and other samples that are being collected on
the Properties.
"With our growing understanding of Shot Rock over the past year,
we have maintained that the potential for district scale LSE gold
systems in Nova Scotia exists and
is significant," explains Northern Shield President and CEO,
Ian Bliss. "These new discoveries by
Patrick confirm those opportunities. It was strategically important
for Northern Shield to try and identify and acquire more LSE gold
systems prior to drilling at Shot Rock. Patrick has systematically
sifted through available databases, applied knowledge from Shot
Rock, identified LSE targets and through persistent follow-up,
proven their existence on the ground. Quite a remarkable, and
successful, modern-day prospecting story."
Drill permit application for a 2,000-2,500 metre drill program
consisting of 5-7 drill-holes is underway at Shot Rock. The program
will focus on the Highway Zone.
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 Shot Rock, the Properties
and the Company's other gold projects in Nova Scotia, Quebec and Newfoundland; geological, and geometrical
analyses of the Properties and comparisons of the Properties to
known epithermal gold deposits; 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.