Northern Shield to Acquire Two New Epithermal Discoveries in Nova Scotia; Drill Permitting Underway at Shot Rock Gold Silver Property
Northern Shield to Acquire Two New
Epithermal Discoveries in Nova Scotia; Drill
Permitting Underway at Shot Rock Gold Silver
Property
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.
Examples of
quartz veins samples recently collected from the Properties where two new low
sulphidation epithermal systems were discovered by prospector, Patrick Bellefontaine. (CNW
Group/Northern Shield Resources Inc.)
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.
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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 08:00e 18-OCT-19