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.
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.
