Northstar Closes First Tranche of $2.4M, Provides Corporate and Exploration Update
Northstar Closes First Tranche of $2.4M,
Provides Corporate and Exploration Update
Vancouver, British Columbia--(Newsfile Corp. - December 23, 2020) -
Northstar Gold Corp.
(CSE:
NSG) ("
Northstar
" or the "
Company
"),
announces the Company has closed the first tranche of its
previously announced $2.7 million non-brokered private placement of units ("
Units
") for gross proceeds
of CDN$2,415,575 (the "
Offering
").
The Offering was comprised of 4,316,250 flow through units ("
Flow Through Units
"), for a total of
$1,381,200 and 4,137,500 non-flow through units, totalling $1,034,375 (the "
Non-Flow Through
Units
"). The Flow Through Units were priced at $0.32 and comprised of one flow through common share
and one-half of one non-flow through share purchase warrant.
Each full warrant is exercisable for one
non-flow through common at an exercise price of $0.45 for a period of 18 months. The Non-Flow
Through Units were priced at $0.25 and were comprised of one common share and one-half of one
share purchase warrant. Each full purchase warrant is exercisable into common shares at a price of
$0.40 for a period of 18 months.
The Company paid a total of $143,474 in finders fees associated with the Offering and issued 608,300
finder warrants with exercise prices of $0.25 and $0.32 and expiring 18 months from the closing date of
the Offering.
The gross proceeds from the sale of the Flow-Through Units will be used to incur eligible Canadian
Exploration Expenses ("
CEE
") at the Company's 100%-owned flag-ship Miller Gold Property, situated
18 km southeast of Kirkland Lake, Ontario, and the Company's Bryce Gold Property, situated 35 km to
the southwest. The Company will renounce CEE effective on or before December 31, 2021. The
proceeds raised from the Non-Flow Through Component will also be used for exploration work on the
Miller Gold Property and general working capital purposes.
Northstar Provides Corporate and Exploration 2020 Year-End Summary
Prior to going public by way of IPO on January 2, 2020, Northstar operated as a private gold exploration
company for
11 years, spending more than $7 million on property acquisition and gold exploration in northeastern
Ontario and more recently in the Kirkland Lake District.
The Company's flagship Miller Gold Property,
situated 18 km southwest of Kirkland Lake Gold's Macassa SMC gold mine, was acquired by staking in
2012 and received more than $2 million in exploration and drilling prior to this year.
Northstar owns 3
additional properties in the region on a 100% basis, including the Bryce Gold Property where the
Company spent more than $4 million in exploration and 22,500 metres of drilling between 2009 to 2013.
Northstar's initial 2020 exploration focus at Miller was to validate and verify the historical database and
refine geological and mineralized zone models and interpretation.
This provided basis to follow-up
previous exploration results, including a historical estimate on the No. 1 Vein of the Miller Independence
Mine and new targets, by geophysics and drilling.
Miller Gold Property 2020 Diamond Drill Results
In 2020 Northstar diamond drilled 5,023 metres in 28 holes, targeting near-surface high-grade and bulk-
tonnage gold-telluride mineralization spatially related to the Allied and Planet Syenites.
Drill results were
incorporated in a 3D model that clearly illustrates the near-surface, bulk-tonnage gold potential at the
central Allied Syenite (Figure 1).
Figure 1. Allied Syenite Gold Zone 3D Model and Sections Illustrating Vein Components and
Footwall Allied Zone
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/6839/70881_figure1.jpg
For highlights and details of 2020 drill results, please click the following News Release links:
June 3, 2020
Northstar Intersects 18 g/t Gold Over 3.89 Metres and Discovers New Zones at Miller Gold Property -
Drilling to Resume in June
September 2, 2020
Northstar Intersects Near Surface High Grade Gold - 19.4 g/t Au over 4.4m within 1.4 g/t Au over 118.5m
Interval and 4.7 g/t Au over 8.0m within 1.2 g/t Au over 107.3m Interval
October 9, 2020
Northstar Intersects 31.1 g/t Au over 0.7m and 15.1 g/t Au over 0.8m at Planet Syenite
Miller Gold Property Geophysical Results
Today's explorers have a significant advantage compared to the long-ago prospectors using modern
science-based techniques such as 3D IP, gravity and AI or machine intelligence analysis. All of these
were used by the Northstar Exploration Team in 2020 with outstanding results.
In 2020, Northstar
completed a $350,000 integrated program of property-wide 3D IP, gravity and magnetic surveys to
better define known gold occurrences and deeper gold exploration targets.
The Company recently
reported IP results that define discrete, linear low-resistivity and broader chargeability anomalies in a
property-wide corridor measuring 1,600 metres X 600 metres, possibly representing hydrothermal
conduit structures and pervasive, gold-bearing alteration, respectively, spatially related to the Allied and
Planet syenite stocks.
For highlights and details of the 2020 Miller Property IP survey, please click the following News Release
link:
December 1, 2020
Northstar Geophysics Identifies Large High Chargeability Corridor at Miller Gold Property
Encompassing Known Mineralization; New Structures Delineated
Figure 2. Miller Gold Property IP Chargeability (mV/V), Resistivity (ohm-m) and Drill Targets at
100m Depth
To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/6839/70881_figure2.jpg
Figure 3. Miller Gold Property IP Chargeability (mV/V) Allied and Planet Syenite Sections
To view an enhanced version of Figure 3, please visit:
https://orders.newsfilecorp.com/files/6839/70881_figure3.jpg
These important exploration interpretations and implications will be further qualified with recently
completed gravity and magnetic survey modeling by GoldSpot Discoveries Corp. utilizing proprietary
machine-learning AI and algorithms, which will be reported early in the New Year.
2021 Exploration Plans
Northstar is now fully funded to conduct a 2021 Phase II diamond drill program at the Miller Gold Property
to follow up 2020 gold discoveries and test new targets defined by integrating 3D geological and
geophysical models.
Drilling is expected to commence in early February.
Northstar is also
commissioning a Technical Report relating to its Bryce Property to increase shareholder value and
market awareness and may advance the Bryce project through joint venture partnership or otherwise.
"2021 promises to be an exciting year for Northstar," states Brian Fowler, President and CEO of the
Company.
"Our 2020 exploration efforts at Miller resulted in a number of significant gold discoveries and numerous
new exploration targets have been defined.
We are excited to get the drill spinning again early next
year."
Qualified Person
Brian P. Fowler, P.Geo., a 'Qualified Person' (Q.P.) as defined under Canadian National Instrument NI
43-101, has prepared and reviewed technical aspects of this news release.
About the Miller Gold Property
The Miller Gold Property and the Kirkland Lake Gold camp share many important geological features
such as similar rock types, gold telluride mineralogy, timing of mineralization and large- scale
hydrothermal gold systems featuring multi-stage and long-lived alkalic magmatic gold deposition. This
strongly suggests the gold mineralization in both regions is derived from a common gold enriched
alkaline magmatic-hydrothermal reservoir at depth and channelled to surface by deep seated,
interconnected structures such as the first order Catharine Fault zone. An important difference is the
Miller Property, in addition to high-grade gold-telluride mineralization, has several near-surface broad,
low-grade bulk-tonnage drill zones (Planet and Allied Syenites) and remains un-explored at depth.
About Northstar Gold Corp.
Prior to going public on the CSE on January 2, 2020 by way of a $3 million Initial Public Offering,
Northstar operated for the past 11 years as a private company focused primarily on gold exploration in
the prolific Kirkland Lake District in northeastern Ontario (>24.5 million ounces gold produced from 7
mines since 1915). Northstar has an accomplished Board, Special Advisor and Management Group
comprised of professionals highly experienced in exploration, mining, finance and investment banking on
a global basis.
The Company's flagship property is the 100% owned Miller Gold Property, situated 18 km southeast of
Kirkland Lake and Kirkland Lake Gold's Macassa SMC gold mine. In 2020 Northstar completed a 5,023
metre, 28-hole drill program and integrated 3D IP, gravity and magnetic survey on the Miller Gold
Property, making a number of new gold discoveries.
This includes the near-surface Allied Syenite Gold
Zone, returning intercepts that include 19.4 g/t Au over 4.4m within 1.4 g/t Au over 118.5m and 4.7 g/t Au
over 8m within a 107.3m interval averaging 1.2 g/t Au.
Northstar is fully funded to resume drilling at the
Miller Gold Property in February 2021 with up to 3,000 metres of drilling in a 15-hole, Phase II drill
program.
Northstar also has 3 additional 100%-owned exploration projects in northern Ontario, including the
recently acquired 1,200 ha Rosegrove Property situated 0.5 km from the Miller Gold Property, the 5,090
hectare Bryce Property, an intrusive-gold / PME VMS project located 35 km southwest on the Ridout
Break, and the Temagami-Milestone Cu-Ni-Co Property located in Strathcona Township. Northstar is
considering options to advance the Bryce and Milestone projects through joint venture partnerships or
otherwise.
On behalf of the Board of Directors,
Mr. Brian
P. Fowler, P.Geo.
President, CEO and Director
(604) 617-8191
For further information, please contact:
Derek Wood
Conduit IR
(403) 200-3569
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain forward looking statements which involve known and unknown
risks, delays, and uncertainties not under the control of Northstar Goldcorp. which may cause actual
results, performance or achievements of Northstar Gold Corp to be materially different from the
results, performance or expectation implied by these forward looking statements. By their nature,
forward looking statements involve risk and uncertainties because they relate to events and depend
on factors that will or may occur in the future. Actual results may vary depending upon exploration
activities, industry production, commodity demand and pricing, currency exchange rates, and, but not
limited to, general economic factors.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/70881