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 The area in Nova Scotia has temporarily been withdrawn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.