Vancouver, B.C., January 28, 2020. Northstar Gold Corp. (CSE: NSG) ("Northstar" or the "Company"), a newly listed resource company focused on exploration, development and property acquisitions in the prolific Abitibi Greenstone Belt and Kirkland Lake District provides the following Miller Gold Property exploration update.
Following the close of Northstar's recently completed IPO (See Northstar News Release dated Dec. 31, 2019) the Company has commenced the initial stages of a $1.1M Phase I exploration program on the 100%-owned Miller Gold Property, situated 18 km southeast of Kirkland Lake Gold's Macassa SMC mine. Phase I exploration will entail 2,500 m of diamond drilling, 3D modeling, geophysical surveys including 5 km2 of 3D IP, magnetics and gravity, surface stripping, mapping, and sampling.
Drilling is expected to commence in late February or early March, with a preliminary focus on confirming and expanding portions of the near surface Miller-Independence historic estimate of 270,000 ounces of gold averaging 11.5 g/t Au* to NI 43-101 Mineral Resource Estimate reporting standards and the Planet Syenite Exploration Target, consisting of approximately 100,000 to 500,000 additional ounces of gold in 3.0 – 5.0 Mt of mineralized material averaging between 1.0 – 3.0 g/t Au.** Drilling will also follow-up other known near-surface high-grade and intrusion-hosted gold targets including the Allied Syenite.
* Ontario Ministry of Northern Development and Mines Assessment report # OM87-6-L-239: AFRI file 32D04SW0265 "Mining and Geological Report on the 1987 Nortek Exploration Program" by Gordon B. French, President of French & Associates Inc., Highway 112, Tarzwell, Ontario.
A Qualified Person has not done sufficient work to classify these historical estimates as current mineral resources and the Company is not treating these historical estimates as current mineral resources. These historical estimates cannot be fully verified. These values cannot and should not be relied upon, are only referred to herein as an indication of previously defined gold mineralization. In order to verify these estimates and to upgrade to NI 43-101 compliant categories, the historical areas would need to be re-drilled with updated sampling procedures put in place.
** The potential quantity and grade of the Exploration Target is conceptual in nature and therefore is an approximation. There has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.
The Miller Gold Property
The Miller Gold Property shares numerous important geological similarities to nearby Kirkland Lake Camp gold deposits that have provided more than 24 million ounces of gold from 7 mines since 1900. Northstar acquired the 1,114 ha Miller Gold Property by staking in 2012 and since that time has spent $2 million on ground geophysics, surface stripping, geological mapping, sampling, bulk sampling and surface drilling on the Property.
The Miller Gold Property hosts unique Kirkland Lake style and high-grade gold-telluride mineralization in low angle and vertical quartz veins and shears cutting highly altered intrusive syenite stocks and mafic volcanic rocks. The similarities between the Kirkland Lake discoveries such as the lower South Mine Complex (SMC) at Macassa and the Miller Gold Property outlines the depth, high-grade and overall resource potential at the Miller Gold Property as shown below:
- Gold mineralization in the SMC is predominately hosted in calaverite, a gold telluride; the same major gold telluride mineral at Miller.
- Both the SMC and Miller feature multi-stage, long-lived alkalic magmatic gold deposition with an age of the mineralizing event of 2,680 – 2,660 Ma.
- The Catharine Fault zone on the Miller Property and the Larder Break near Kirkland Lake are both "First Order Structures", potentially sharing a gold enriched magmatic hydrothermal reservoir at depth.
- The Barry-Hollinger Shear/D-Zone (Miller Property) and the Main/'04 Breaks (Kirkland Lake) are geometrically identical, and may coincide with the same deformation event
Recent Northstar exploration results in Miller Gold Property target areas include:
No. 1 Vein
- 11.6 g/t Au over 3.95 m in DDH MG14-12 between 138.05 m and 142 m
- 86.6 g/t Au over 0.45 m in DDH MG14-02 between 49.7 m and 50.15 m
- 5.1 g/t Au in 932 tonne bulk sample with an estimated 70% dilution
- 7 Channel cuts in Trench 1 averaged 20.1 g/t Au over 2.2 m
- Channel cut in Trench 2 averaged 5.9 g/t Au over 5.0 m
- 36.1 g/t Au in 122 kg mini bulk sample
- Channel cuts in Trench 4 graded 34.8 g/t Au over 1.0 m and 27.8 g/t Au over 1.0 m
- 14.1 g/t Au over 3.05m in DDH MG15-20 between 311.85 m and 314.9 m
- 1.04 g/t Au over 97.5 m in DDH MG14-07 between 22 m and 119.5 m including 3.2 g/t Au over 14.03m between 105.47 m and 119 m
- 0.57 g/t Au over 147.19 m in DDH MG15-24 between 48.45 m and 198.64 m including 7.3 g/t Au over 4.7 m between 52.3 m and 57.0 m
- 20.8 g/t Au over 0.95 m in DDH MG15-26 between 86.55 m and 87.5 m
- 14.3 g/t Au over 1.4 m in DDH MG15-26 between 293.8 m and 295.2 m
Northstar diamond drilling in 2014 confirmed the presence of the No. 1 Vein hosting gold mineralization in the area of the Miller–Independence historic mine workings at shallow depths. The program also showed No. 1 Vein dips shallowly to the north towards the Allied Syenite where the vein system may widen and become incorporated into the Allied Syenite as multiple sub-horizontal narrow veins in a fingering manner suggestive of a genetic relationship in the gold mineralization. Gold is very widely distributed throughout Allied Syenite from 20 to 120 m vertical depth with most samples showing anomalous results. New high-grade zones were discovered at depth below the previously explored No.1 Vein within the Allied Syenite in holes MG15-18 and MG15-20 which confirmed historic reporting. The drilling results indicate the No.1 Vein zone is laterally extensive and remains open in all directions, particularly to the northeast of the Allied Syenite.
Historic drilling results on the Planet Syenite were confirmed with drill hole MG15-24 which intercepted high grade gold in a near surface stockwork zone within a larger envelope of pervasive alteration. MG15-24 returning 7.3 grams of gold per tonne over 4.7 m between 52.3 m and 57 m within a larger interval of 3.3 g/t Au over 11.55m between 48.55 m and 60 m.
On July 2nd and July 16th, 2019, the Company received 3-year permits from the Ontario Ministry of Mines for surface stripping and diamond drilling, respectively, on the Miller Gold Property. The Company plans to conduct surface stripping in multiple areas of the property where visible gold and gold tellurides have been observed to provide for geological mapping and additional sampling. Surface stripping has proven to be very effective in defining new mineralized zones on the Property as overburden is generally thin and will commence in mid-June. The Company has already completed over 40 km of line cutting to support the 3D IP, gravity and ground magnetic geophysical surveys, which are expected to commence in May.
A $1.1 million, 4,000 m Phase II drill program is contingent upon Phase I results and future financing.
Trevor Boyd, PhD, 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 Northstar Gold Corp.
Northstar has operated for the past 11 years as a private company focused primarily on gold exploration in the prolific Kirkland Lake District in northeastern Ontario (>24.5M oz gold produced from 7 mines since 1915). During this time, Northstar raised nearly $10M to acquire and advance 3-100% owned gold and base-metal properties in the Kirkland Lake region. Prior to the recently completed IPO and public listing on the CSE, Northstar consolidated its share structure and augmented and restructured the Board of Directors and Management Group with accomplished professionals with major global mining, exploration, development, finance and investment banking experience. Northstar has commenced a $1.1 million Phase I exploration program on the Miller Gold Property.
On behalf of the Board of Directors,
For further information, please contact:
Mr. Brian P. Fowler, P.Geo.
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.