Northstar Completes Miller Gold Drill Program and Closes Bought Deal Private Placement
Vancouver, December 7, 2021 - Northstar Gold Corp. (CSE: NSG) (OTCQB: NSGCF) ("Northstar" or the "Company"), announces the Company has completed a Phase IIB diamond drill program on its 100%-owned Miller Gold Property, situated 18 km southwest of Kirkland Lake, Ontario. A total of 2,495 metres were drilled in 14 holes, with 6 holes testing Allied Syenite Gold Zone extensions, 2 holes testing the recently discovered E Zone and 6 holes designed to upgrade a historic resource estimate on the recently acquired Searles Property.
Allied Syenite Gold Zone Expansion
Phase IIB Allied Syenite drilling intersected visible gold, tellurides and chalcopyrite over appreciable widths in drill holes MG21-63, MG21-64 and MG21-65 along a possible 180 metre northwestern extension of the near-surface Allied Syenite Bulk Tonnage Gold Zone (Figure 1*). Hole MG21-69 collared an additional 80 metres northwest of hole MG21-65 encountered quartz veining and quartz-chlorite breccias with anomalous pyrite and some tellurides associated with a swarm of sub vertical syenite and feldspar porphyry dikes within the Allied Deformation Zone.
Drill hole MG21-70, collared 35m southeast of hole MG21-47 (1.2 g/t Au over 107.3 metres from 4.7 metres to 112 metres) encountered anomalous pyrite mineralization between 45.5 metres and 124 metres depth with multiple quartz-chlorite breccias and occurrences of visible gold and tellurides. This includes a 9-metre-wide intercept of the Vein 1 zone from 99 metres to 108 metres depth with 4% chalcopyrite in blebs and stringers within a broad quartz-chlorite breccia. Numerous sub vertical fault breccias and quartz veins with visible gold and/or tellurides were intersected in the footwall of Vein 1 to the end of the hole at 385m depth.
While assays are pending for these drill holes, drilling indicates the presence of a significant near-surface bulk tonnage gold zone (Figures 1 and 2)*. The Allied Syenite Gold Zone remains open along strike and at depth.
*The reader is reminded that the Allied Syenite Gold Zone is conceptual in nature. There has been insufficient evidence to define a mineral resource and it is uncertain if further exploration will result in the exploration target being delineated as a mineral resource.
Figure 1. Bulk Tonnage Allied Syenite Gold Zone
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Surface Stripping, Mapping and Sampling Program
As previously reported, a total of 529 channel samples and 46 grab samples were collected from a number of trenches excavated and mapped on the Miller Gold and Searles Properties in 2021. New discoveries have been made in Areas C, E and D as illustrated in Figure 2 and the Company's website corporate presentation. The Company continues to experience assay lab delays in the reporting of results due to factors out of our control and will report same when available.
Figure 2. Bulk Tonnage Allied Syenite Gold Zone and Historic No. 1 Vein Mineral Resource Area with 2021 Drilling and Surface Stripping
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$500,000 Flow Through Bought Deal Private Placement Closed
Northstar is pleased to announce the Company has closed a $500,000 bought deal private placement of units ("Units") (the "Offering"). The Offering comprised of 2,083,334 flow through units ("Flow Through Units"), for a total of $500,000.
The Flow Through Units were priced at $0.24 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 $0.37 for a period of 24 months from the closing date of the Offering.
The Company paid a total of $40,000 in finders fees associated with the Offering and issued 166,667 finder warrants at an exercise price of $0.24 and expiring 24 months from the closing date of the Offering.
The gross proceeds from the sale of the Flow-Through Shares will be used to incur eligible Canadian Exploration Expenses ("CEE") at the Company's 100%-owned flag-ship Miller Gold Property and recently acquired Searles Property, situated 18km 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.
Qualified Person
Trevor Boyd, PhD, P.Geo., a 'Qualified Person' (Q.P.) as defined under Canadian National Instrument 43-101, has reviewed technical aspects of this news release.
About the Miller Gold Property
Northstar's flagship property is the 100% owned Miller Gold Property ("Miller"), situated 18 km southeast of Kirkland Lake and Kirkland Lake Gold's Macassa SMC gold mine. The Miller Gold Property is highly prospective for the discovery of a large-scale, higher grade gold system similar to the deposits of the Kirkland Lake camps that produced over 24 M oz. of gold from 7 mines (Clark 2013). Geologically, Miller is believed to be a close analog to Kirkland Lake Gold's Macassa SMC gold mine, given the numerous geological similarities. Both Miller and the newly discovered lower SMC at Macassa share the similar formation, age and minerization style (gold-telluride vein system with calaverite the main gold mineral). Both deposits are also located next to a First Order fault structure (Catharine Fault Zone at Miller Property and the Larder Break at Kirkland Lake) potentially sharing a gold enriched magmatic hydrothermal reservoir at depth.
The Miller Gold Property also hosts near-surface, lower-grade, syenite intrusive hosted bulk-tonnage mineralization (similar to Sigma/ Lamaque). Drilling to date has already yielded long intercepts (50m to 150m) of near surface, lower grade (0.5 to 1.5g/t) mineralization at two separate known Syenite intrusions (Allied, Planet) with a 100m wide stockwork zone in the Meilleur Syenite yielding 2.13 g/t Au over 13.05m in one exploration hole to date.
The recently completed Miller surface exploration and drill program was partially designed to confirm and expand a historical Miller-Independence mineral resource (NI:43-101 non-compliant 270k ozs (0.73Mt at 11.5 g/t Au on 37 drill holes)* to facilitate a future compliant resource estimate. This resource straddles the southern part of the Miller Gold Property and includes part of the newly optioned Searles Property.
*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 this historical estimate as a current mineral resource and the Company is not treating this historical estimate as a current mineral resource. The historical estimate cannot be fully verified. These values cannot and should not be relied upon and are only referred to herein as an indication of previously defined gold mineralization. In order to verify the estimate and to upgrade to NI 43-101 compliant categories, the historical area would need to be re-drilled with updated sampling procedures put in place.
The Kirkland District is being explored by major and junior gold companies with recent and pending consolidation transactions. Northstar spent $2 million in exploration at Miller in 2020, resulting in the expansion / discovery of four new high-grade vein structures (Vein 1, 2, 3 and 4) and the near-surface bulk-tonnage Allied Gold Zone. Northstar completed a 1,990-metre Phase IIA follow up diamond drill program at Miller in late April, 2021, focused primarily on testing outboard GoldSpot AI gold-in-syenite geophysical targets. The Company is currently awaiting assay results from a recently completed surface exploration stripping, mapping, sampling program and a 14 hole, 2,495 metre, 2021 Phase IIB drill program which appears to have significantly expanded the Bulk Tonnage Allied Syenite Gold Zone.
About NorthStar Gold Corp.
Northstar'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. The Kirkland District is being explored by major and junior gold companies with recent and pending consolidation transactions. Northstar completed property wide integrated geophysics and 28 hole, 5,023 metre Phase I diamond drill programs on the Miller Property in 2020, resulting in the expansion / discovery of four new high-grade vein structures (Vein 1, 2, 3 and 4) and the near-surface bulk-tonnage Allied Gold Zone. More recently, Northstar completed a 14 hole, 2,495 metre Phase IIB diamond drill program at Miller on November 27th, 2021, following up a previous 8 hole, 1,990 metre Phase IIA drill program completed in late April, 2021. An enhanced 2021 Miller surface exploration stripping, mapping and sampling program was also completed at Miller this Fall. The Company continues to experience assay delays and complications and will report all results as they come available.
Northstar 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 4,500 ha Bryce Property, an intrusive-gold / PME VMS project located along the projected east extension of the Ridout Break, and the recently expanded Temagami-Milestone Cu-Ni-Co Property located in Strathcona Township. Northstar is advancing all 3 properties to the NI 43-101 Technical Report stage to maximize geological understanding, increase investor awareness and optimize monetization opportunities.
On behalf of the Board of Directors,
Mr. Brian P. Fowler, P.Geo.
President, CEO and Director
(604) 617-8191
bfowler@northstargoldcorp.com
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.
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