Northern Shield Acquires Extensive Alteration System Hosting Gold-Silver in Newfoundland
Northern Shield Acquires Extensive Alteration
System Hosting Gold-Silver in Newfoundland
OTTAWA, ON
,
Aug. 4, 2020
/CNW/ - Northern Shield Resources Inc. ("Northern Shield" or the
"Company") (TSX-V: NRN) is pleased to announce that it has acquired two licences through online-
staking and, through an option agreement, also acquired the right to earn a 100% interest in an
adjacent licence (the
"Merasheen Option"
) on Merasheen Island in Placentia Bay,
Newfoundland
,
about 60 km northeast of the Company's Root & Cellar gold project. Collectively, the three licences
(the "
Merasheen Property"
or the "
Property
") cover 27 square kilometres.
Northern Shield Acquires Extensive Alteration System Hosting Gold-Silver in Newfoundland (CNW
Group/Northern Shield Resources Inc.)
The Property is being explored for gold and silver with local anomalous lead and zinc. There is very
limited information and data available on the area, but what is found in the Mineral Occurrence
Database of
Newfoundland
, and previously-filed assessment reports suggests that the target has
characteristics of both bulk tonnage high sulphidation epithermal gold-silver systems and an
Eskay
Creek
-style, precious-metal-rich, Volcanogenic Massive Sulphide deposits.
The Merasheen Option covers a gold occurrence discovered in 1998 and a nearby lead-zinc
occurrence discovered in 1953. In 2003 and 2008, limited sampling was undertaken by an
exploration company, however, the Property has seen no systematic or sustained exploration and no
diamond drilling has been reported. The Mineral Occurrence Database of Newfoundland summarizes
the occurrence as being:
"
within an extensive zone of intense sericite-silica-pyrite alteration that is well exposed
along a 1.4 km coastal section, approximately
500 m
wide
(across strike) at its southern
end. It has been traced inland to the north for approximately
3 km along strike
.
Grab
samples collected in 1998 from shoreline outcrop of pyrite-quartz veinlets hosted in semi-
massive to massive pyrite returned assays up to
6.8g/t Au
and
314g/t Ag
. Anomalous gold
values from 0.1g/t to 2.0g/t in association with anomalous As, Pb, Zn and elevated Mo and
Hg are also reported from other samples collected along the 1.4 km coastal section.
Galena and sphalerite occur in this zone associated with abundant disseminated pyrite all
hosted within a grey rhyolite or dacite have been reported."
Assays reported in this press release are not from samples collected or assayed by Northern Shield
and hence have not been independently verified by Northern Shield. In order to confirm the existence
and extent of the reported mineralization and alteration, the Property was visited last week by Mr.
Bryan Sparrow
(P. Geo., Eastern Geo Services Inc.), a registered professional geoscientist
(PEGNL) and a Qualified Person under the National Instrument 43-101, on behalf of Northern Shield,
The shoreline exposure is accessible by boat. The alteration zone extends from the shoreline
vertically upwards for ~110 m and is largely composed of deeply weathered sulphidic, gossanous
material that has been traced inland for approximately 2.5 kilometres. It has been noted to be at
least
450 m
wide, confirming historical government reporting. Abundant, intensely deformed quartz
veining and iron-carbonate alteration was also noted from the property visit.
"This is an extremely attractive precious metal target that is deserving of a thorough
investigation which we can advance steadily without impacting our other flagship
properties. The intensity of the alteration and mineralization and the reported grades from
only a handful of samples suggest to us that there is more to this occurrence than is
currently known. Mineralized systems with the apparent scale of Merasheen are not
common. Early stage investigation is logistically simple and relatively inexpensive but
could nonetheless lead to potentially rapid advancement of the project, if successful. This
project, along with the recently announced acquisition, an epithermal gold target 150 km
west of Shot Rock in
Nova Scotia
, provide the Company with a pipeline of projects that
capitalize both on our growing geological understanding of the terrane and the increasing
investor interest in these underexplored, yet accessible, regions of
Atlantic Canada
. While
remaining focused on advancing Shot Rock and Root and Cellar we felt it was important to
identify and tie down similar prospects at this time."
-
Northern Shield President and CEO,
Ian Bliss
Under the terms of the Option Agreement, which is subject to TSX-V approval, Northern Shield can
earn a 100% interest in the Merasheen Option by incurring
$2,000,000
in expenditures within four
years. The Option Agreement also contains cash payments totalling
$115,000
and share issuances
totalling 1,600,000 Company shares to the vendor over five installments during the four-year period.
The vendor will retain a 1.5% NSR of which 1% can be bought back by Northern Shield for
$2M
. The
first-year commitments are modest and can be extended at the Company's discretion.
Root & Cellar Gold - Program Update
The soil sample program at Root & Cellar is approximately three-quarters complete, with nearly 900
samples collected. Approximately 550 samples are in the lab, with the remaining samples in transit.
As soon as enough soil assays are received to make preliminary interpretations, a more detailed
update will be provided, along with an outline of the next phase of exploration at the Root & Cellar
Gold Property.
This press release and program has been reviewed
Christine Vaillancourt
, P. Geo., the Company's
Chief Geologist.
Northern Shield Resources Inc. is a Canadian-based company focused on generating high-quality
exploration programs with experience in many geological terranes. The Company is known as a
leader in executing grass-roots exploration programs using a model-driven approach. 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
gold and silver deposits, and other mineralization at the Company's Merasheen Property in
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.
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%SEDAR: 00007505E
For further information:
Northern Shield Resources Inc., Ian Bliss, President and CEO, Tel.: (613)
232-0459, Fax: (613) 232-0760, [email protected]
CO: Northern Shield Resources Inc.
CNW 09:00e 04-AUG-20