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.
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
31st 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
8th 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.