Northern Shield and Discovery Harbour Announce Significant Copper-Zinc and, New Shear Hosted Gold Mineralization Intersections at Wabassi, N.w. Ontario

OTTAWA, Aug. 22, 2012 /CNW/ - Northern Shield Resources Inc. ("Northern Shield") (TSXV: NRN) and its partner Discovery Harbour Resources Corp. ("Discovery Harbour") are very pleased to announce the results of the 12-hole drill program completed at Wabassi in July. Results include the intersection of 37.75% zinc over 1.9 meters and over 95 meters of stringer copper mineralization at Anomaly E, and the intersection of 16.3 g/t gold in the A1 Zone. The drilling is clearly beginning to define a significant copper-zinc VMS body at Anomaly E and reinforce the potential of other targets of the Wabassi and Tempest properties to also host copper, zinc and silver mineralization. It also confirms the potential for lode gold mineralization within the greenstone belt.

Drilling - Anomaly E
Four drill-holes were completed at Anomaly E. Three of these holes (12WA-25, 26 & 27) were designed to test the near surface extension of the copper-zinc-silver mineralization intersected last year. The fourth hole (12WA-28) tested the down plunge continuation of the mineralization as interpreted from the modeling of ground geophysical data.

Drill-hole 12WA-27 intersected 24.95 meters averaging 4.14% zinc, 0.22% copper and 10.9 g/t silver, including a higher grade core of 6.08 meters grading 15.47% zinc, 0.45% copper and 15.7 g/t silver, which also includes a 1.9 meters intersection grading 37.75% zinc. This zone was intersected about 100 meters above drill-hole 11WA-17 and indicates that the zinc-rich zone becomes thicker and higher grade towards the surface. Fourteen meters down-hole from this zinc-rich zone, a second zone of mineralization was intersected that included 1.1% copper and 41.3 g/t silver over 3.95 meters.

Drill-hole 12WA-28 intersected over ninety-five meters of stringer chalcopyrite and bornite mineralization hosted within chlorite altered quartz-eye rhyolites, including 84.48 meters grading 0.42% copper. Such stringer-type mineralization is characteristic of the feeder systems that underlie VMS deposits. Although the true width of the stringer zone is not yet known, the presence of stringer-type copper mineralization over a ninety-five meter intersection is suggestive of a large feeder system. Drill-hole 12WA-28 is the most easterly hole drilled to date on Anomaly E and strongly supports the geophysical model that shows the conductor extending to depth towards the northeast.

"These are very positive results," explains Northern Shield President and CEO, Ian Bliss, "we see some spectacular high grades of zinc extending closer to surface than first anticipated. Zinc is a very poor conductor so at these sorts of grades, it will not show up on airborne or ground EM surveys and hence it is possible that the zinc extends to sub-surface. The intersection of the feeder zone not only provides significant copper mineralization but vectors us towards the anticipated center of the mineralized system. It strongly reinforces geophysical modeling, which suggests that the body extends to depth towards the northeast."

Drill-holes 12WA-25 and 26 were both drilled on the western edge of the conductor. Hole 12WA-25 intersected lower levels of copper-zinc mineralization (5.42 meters grading 2.4% zinc and 10 g/t silver followed by 9.98 meters grading 0.36% copper and 20.4 g/t silver) and 12WA-26 intersected extensive silver mineralization (39.3 meters grading 11.4 g/t silver). Silver commonly forms a halo around the VMS deposits in the Wabassi-Tempest area.

Drilling - A1 Zone
Hole 12WA-30 intersected 8.08 g/t gold over 2.03 meters, including 16.3 g/t gold over 1.02 meters hosted within a shear zone in the A1 Zone. This is the fourth intersection of gold at the Wabassi-Tempest properties while drilling the VMS targets, which highlights the potential for lode gold mineralization in this portion of the greenstone belt as well.

Drilling - A2 Zone
Hole 12WA-32 intersected 59.95 meters of volcanic rocks at the margin of the Wabassi Intrusive Complex, including 2.35 meters of massive sulphides grading 0.76% copper and 16.7 g/t silver over 2.2 meters, and a mineralized breccia bearing 1.78% zinc over 2 meters. This new drilling confirms the presence of volcanogenic massive sulphide zinc-copper-silver mineralization at the A2 target immediately adjacent to the contact with the Wabassi Intrusive Complex.

Drilling - Regional Targets, Wabassi West-F and H
Drill-holes 12WA-21 to 24 tested two regional VTEM targets, WW-F and WW-H, with two drill-holes each. This drilling intersected massive and semi-massive pyrrhotite hosted within brecciated quartz-eye rhyolites, with slightly elevated silver values (up to 3.9 g/t) and intense manganese garnet alteration. Quartz-eyes rhyolites and brecciated rhyolites are the host rock-types for the mineralization at the A2 Zone, Anomaly E and Tempest 1 VMS discoveries.

Manganese garnet is an alteration mineral commonly found in the halo surrounding VMS deposits. Given the rhyolitic host rocks and the prevalence of rhyolite breccias hosting this mineralization, these geologic features imply that this mineralization is distal and peripheral to the site(s) of a VMS vent system. Additional drilling on these two targets will be preceded by ground and downhole geophysics (EM, IP).

"The venture is pleased and excited that the testing of these new regional targets indicates that the geology contained within the new Wabassi claims is fertile for hosting another or multiple new VMS discoveries. To date, our drilling has intersected mineralization along 250 meters of strike length in a northeast-southwest direction and has intercepted mineralization from -70 meters to -350 meters below surface. Based on our ground and downhole electromagnetic and IP data, the mineralization could continue another 150 meters along strike to the southwest and an additional 200+ meters to the northeast, plunging to depths below 800 meters to the northeast. Furthermore, the results from drilling at the A2 Zone and the intercept of 16.3 g/t gold in the A1 Zone all continue to bolster the economic potential of the portion of the volcanic belt contained within the joint venture's claims groups. We are most pleased to be involved in this exciting project with Northern Shield and look forward to our next phase of drilling", stated Michael Senn, Executive Vice President of Discovery Harbour.

Eighteen other high priority VTEM targets remain to be tested within the Wabassi property.

Significant assay results include:

*All intervals composed of multiple samples are weighted averages. Intervals given are the length of core intersection and may not represent true widths.

The drill program was overseen by Christine Vaillancourt, Chief Geologist for Northern Shield and a Qualified Person under National Instrument 43-101. The drilling was conducted by Vital Drilling Ltd of Sudbury, Ontario. Samples were analyzed by ALS Minerals laboratories in Vancouver, BC for Au by Fire Assay with ICP-AES finish and base metals by four acid digestion and ICP-AES.

Northern Shield is an innovative, results-driven Canadian company focused on Platinum Group Element (PGE) exploration in Canada and Cu-Zn-Ag at its Wabassi and Tempest properties. Its mission is to create a successful mineral exploration company through technical excellence and efficient management, where success is measured by the identification and development of high-quality mineral exploration projects, which may ultimately be optioned, sold or developed for maximum return on investment.

Forward-Looking Statements Advisory

This news release contains statements concerning the drilling and exploration plans, results and potential for Cu-Zn-Ag-Au and other mineralization at the Wabassi property, geological, geophysical and/or geometrical analyses of the Wabassi property 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

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.