Northern Shield Options New Gold Project in Newfoundland
Northern Shield Options New Gold Project in
Newfoundland
OTTAWA, ON
,
Sept. 20, 2022
/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 prospectors
Jeffery Brushett
and
Lloyd Pike
("Prospectors") that gives the Company the right to acquire a 100% interest in the Zuleika Gold
Project (the "Property" or the "Project") located near the town of
Clarenville
in east-central
Newfoundland
. The Property is primarily being explored for sediment-hosted orogenic gold and
epithermal-type gold mineralization.
The Zuleika property is centred on a major fault splay off the Dover-Hermitage Bay Fault Zone
(DHBF), one of several suture and deformation zones than run from the North American seaboard
and reappear in the northern UK. The DHBF is parallel to the Dog Bay Line (DBL) on which New
Found Gold’s Queensway Project is located. (CNW Group/Northern Shield Resources Inc.)
Under the terms of the Option Agreement, which are subject to TSXV final acceptance, 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
$215,000
and share issuances totalling 3,500,000 Company shares to the Prospectors over five installments
during the four year earn-in period. The Prospectors will retain a 3% Net Smelter Return ("NSR") of
which 1.0% can be bought back by Northern Shield for
$1.5M
. Cash payments and share issuance
will increase by 20% if any rock outcrop samples collected before
December 31
st
2022 return assay
values equal or greater than 30 g/t Au.
The Property consists of 6 mineral licenses covering approximately 123 square kilometres and is
located near the contact of the Avalon and Gander geological terranes. The Property is centred on a
major fault splay off the Dover-Hermitage Bay Fault Zone ("DHBF"), one of several suture and
deformation zones than run from the North American seaboard through
Ireland
and into
Scotland
and
England
. The DHBF is exactly parallel to the Dog Bay Line ("DBL") on which New Found Gold's
Queensway Project is located.
The Property was originally staked as an epithermal gold target to follow up on a series of gold
anomalous till samples (up to 142 ppb Au) along a structural corridor over a 6 kilometre strike-
length. The till samples were previously collected by the Geological Survey Division of
Newfoundland
and
Labrador
. The 142 ppb Au till sample is the 8
th
highest gold in till from nearly 10,000 samples
collected during the Government's till sampling programs. Epithermal textures and mineralogy have
been observed including the presence of rhodochrosite, bladed calcite and what appears to be
acanthite (silver sulphide). However, prospecting has located one outcrop approximately 6 metres
wide, of strongly sheared quartz vein containing chalcopyrite, pyrite, galena which is more
suggestive of structurally controlled orogenic mineralization.
In addition, the expanded Property covers another Government till sample that is anomalous in nickel
(1,100 ppm). The importance of this nickel anomaly became more significant with the discovery of
gabbroic dikes on the Property by the Prospectors, which were previously unknown.
We believe this Property greatly compliments Root & Cellar and provides our shareholders with an
opportunity to be involved with another excellent grass roots discovery. The high gold-in-till
anomaly and the identification of rhodochrosite and possibly acanthite along with the recognition of
similarities between the DHBF on which the Property is centred and the DBL has really caught our
attention.
The nickel is somewhat of an enigma; its not the classic setting for a magmatic nickel deposit but
with the discovery of the gabbro dike and nearby till samples with highly anomalous nickel, is
intriguing and will definitely require a closer look.
The prospecting and till sampling carried out by the Prospectors on the Zuleika Property has been
primarily funded by the Prospectors Assistant Grant provided by the Newfoundland Government.
The conclusion of this Option Agreement is evidence that such incentive programs are effective in
attracting investors and work as they are designed."
-
Ian Bliss
,
Northern Shield President and CEO
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 and orogenic gold deposits, and other mineralization at the Company's Zuleika
Newfoundland property, 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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For further information:
Northern Shield Resources Inc., Ian Bliss, President and CEO Northern
Shield Resources Inc., Tel.: (613) 232-0459, Fax: (613) 232-0760, [email protected]
CO: Northern Shield Resources Inc.
CNW 08:00e 20-SEP-22