Northern Shield to Mobilize Drill to Max Property; Highbank Drilling to
Follow; Geophysics Underway at Highbank
OTTAWA, Oct. 13 /CNW/ - Northern Shield Resources Inc. ("Northern Shield") (TSX-V: NRN) is pleased to announce that Layne Christiansen Drilling Ltd have been contracted for a minimum 3000 meter diamond drill program to be split between the Max Property and the Highbank Lake property both in the James Bay Lowlands of northern Ontario.
The drill will be mobilized to the Max property later this month where two holes totaling approximately 700 meters will be drilled to test a VTEM anomaly that coincides with a magnetic feature that management interprets to be a conduit or feeder pipe. The conduit appears to link a peridotite (ultramafic) body that Northern Shield drilled in 2008 that contained very high background levels of PGEs and nickel and the Wabassi North gabbro which shows below normal levels of PGEs and nickel. The target is believed to be akin to Magma Metal's Thunder Bay North project where significant PGE mineralization is hosted in conduits that link two larger mafic/ultramafic bodies.
The Max property is currently a 50/50 joint venture between Northern Shield and Rainy Mountain Royalty Corp (formerly East West Resource Corp.) with Northern Shield as operator. Rainy Mountain has elected not to contribute to this drill program at Max and as such Rainy Mountain's interest will be diluted to 40.8% and Northern Shield's interest increased to 59.2% assuming $450,000 is spent on the Max drill program.
The Max property is located adjacent to Northern Shield's Wabassi property where Discovery Harbour Resources Corp. can earn a 51% interest in Wabassi by funding $3.4 million in exploration expenditures by March 2012. The two properties cover four lobes of the Wabassi Intrusive Complex and host numerous quality VTEM conductors as well as significant Zn-Cu-Ag mineralization at Wabassi.
"This is a target-rich environment," explains Northern Shield President and CEO, Ian Bliss, "we have a dynamic and active magma system that is extremely fertile in PGEs and nickel and an abundant source of sulphides as indicated by the drill results at Wabassi this spring and the eighteen conductors identified through airborne and ground geophysics at Wabassi alone."
In January 2011 Northern Shield plans to move the drill to the Highbank Lake property 60 kilometers to the northeast of Max to complete 5-6 drill-holes totaling 2300 meters. Much of the drilling will focus along a 17 kilometer stretch of the intrusion known as the Camp Zone where it is projected the chromite and PGE layers project to surface. No previous drilling has been undertaken in this area. The IP geophysical survey which is currently underway will help pin-point the drilling locations. Drilling in 2007 indicated that drill-holes 07HB-01 and 05 intersected what management believes to be the very top of the "Critical Sequence" which marks the transition from mafic to ultramafic rocks. It is just below this transition in the Bushveld Complex in South Africa that the two main PGE-bearing reefs and the Chromitite are located.
Previous work by Northern Shield has identified grains of sperrylite (platinum sulphide) and pentlandite (nickel sulphide) along with chromite grains and boulders in stream sediment samples immediately adjacent to the Camp Zone.
Northern Shield currently maintains a 55% interest in the PGEs at Highbank Lake property (and 100% of all other mineralization) with Impala Platinum Holdings Limited of South Africa holding the remaining 45% after having spent approximately $4 million on exploration as part of an incremental earn-in on the PGEs at Highbank Lake. Northern Shield can earn back a 100% interest in the property by incurring $2.34 million in exploration at Highbank over an indefinite period. Based on the budget for the planned drill program, Northern Shield can increase its interest in the PGEs from 55% to approximately 80% on the completion of the drill program, which is subject to financing.
All exploration programs will be overseen by Christine Vaillancourt, Chief Geologist for Northern Shield and a Qualified Person under National Instrument 43-101.
Forward-Looking Statements Advisory
This news release contains statements concerning the drilling and exploration plans, results and potential for Ni-Cu-PGE and other mineralization, at the Max, Wabassi and Highbank Lake properties, geological, geophysical and/or geometrical analyses of the Max , Wabassi and Highbank Lake properties and other expectations, plans, goals, objectives, assumptions, information or statements about future events, 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
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
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For further information:
Northern Shield Resources Inc.
Ian Bliss
President and CEO
Tel.: (613) 232-0459
Fax: (613) 232-0760
info@northern-shield.com
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