Northstar Gold Corp. Signs MOU with Hunan Nonferrous Ltd. to Develop Gold Resource at Miller Copper-Gold Property
2024-09-19 08:02 ET - News Release
Vancouver, British Columbia--(Newsfile Corp. - September 19, 2024) - Northstar Gold Corp. (CSE: NSG) ("Northstar" or the "Company"), is pleased to announce the signing of a non-binding memorandum of understanding ("MOU") with China-based Hunan Nonferrous Geological Exploration Institution Pvt. Ltd. ("Hunan Nonferrous"), a subsidiary of the Remote Sensing Geological Survey and Monitor Institute of Hunan Province (RSGSMI). The MOU grants Hunan Nonferrous the opportunity to explore and develop a near-surface NI43-101 gold mineral resource at Northstar's 100%-owned Miller Copper-Gold Property (the "Property" or "Project"), located 18 kilometers southeast of Kirkland Lake, Ontario. This will be achieved by diamond drilling up to 10,000 meters, allowing Hunan Nonferrous to earn a negotiated interest in the resultant NI43-101 gold resource.
Early this month, Northstar provided Hunan Nonferrous access to the Company's Miller Property gold exploration database by way of confidentiality agreement ("CA"), for due diligence purposes. Hunan Nonferrous has since formally accepted an invitation letter from Northstar and has assigned a team of specialists to mobilize to Canada to conduct due diligence site inspections of Northstar's New Liskeard and Earlton, Ontario offices, core shack facilities and nearby Miller Copper Gold Property in early October, at its own expense. Immediately following these site visits, Northstar and Hunan Nonferrous will enter good faith negotiations to finalize the Project's earn-in terms, scope, and timeline, with the goal of formalizing a binding "Cooperative Agreement" for the development of the gold mineral resource at the Miller Copper-Gold Property.
"This is a milestone development for Northstar," states Northstar President and CEO Brian Fowler. "Hunan Nonferrous' intentions are to earn an interest in Northstar's Miller Alkalic Intrusive Complex, bulk tonnage gold-telluride mineralizing system centred over the near-surface Allied Gold Zone, by undertaking a substantial expansion diamond drill program. This drilling will provide for an inaugural NI43-101 mineral resource estimate, supplementing SRK Canada's 2022 Exploration Target Study that defined an upper range exceeding 500,000 oz of near-surface gold averaging 2.04 g/t gold at the Allied Gold Zone - Please see Northstar News Release dated July 26, 2022."
Fowler added, "The MOU with Hunan Nonferrous significantly enhances Northstar's prospects to advance and develop the Allied Gold Zone, along with other gold exploration targets within the Miller Alkalic Intrusive Complex, through collaboration with a senior partner."
Allied Gold Zone
Since going public by IPO in late 2020, Northstar has spent over $5.6 million in exploration at Miller, resulting in the discovery of a series of broad, near-surface, shallow dipping sheeted quartz-gold-telluride vein structures in the Allied Syenite (Allied Gold Zone or AGZ) and Planet Syenites, returning numerous 70 - 750 gold gram/metre drill hole intercepts. Drilling to date at the AGZ has returned near-surface gold intercepts that include 6.6 g/t Au over 117.0 metres, 4.0 g/t Au over 50.6 metres, 1.4 g/t Au over 118.5 metres, and 1.2 g/t Au over 107.3 metres. Step out AGZ drilling in 2021 intersected peripheral steeply dipping copper-gold bearing structures (CG1 and CG2 Zones) returning intercepts that include 9.41 g/t Au, 1.03% Cu over 3.0m. The AGZ shares numerous compelling similarities to Agnico Eagle's nearby Upper Beaver Deposit, currently in the pre-development stage.
In April, 2022, as a precursor to a Mineral Resource Estimate and for reporting purposes, the Company commissioned Ronacher Mackenzie Geoscience and SRK Consulting (Canada) to conduct an Exploration Target Study of the Miller Property Allied Gold Zone and No. 1 Vein. An upper range exceeding 500,000 ounces of gold averaging 2.04 g/t Au has been referenced in this study. Reported results (Northstar News Release dated July 26, 2022) verify the significance, size and gold grade potential of the Allied gold mineralizing system. Results provide the Company and investors a fact-based conceptual tonnage and gold grade range for the Allied Syenite Gold Zone, and basis for continued expansion drilling and mineral resource development. Northstar is focused on seeking a senior gold exploration partner to conduct Allied Gold Zone lateral and depth expansion diamond drilling and development on the Miller Property.
High-Grade VMS Copper at the Miller Copper-Gold Property: the Historic High-Grade Cam Copper Mine and the Boston Creek Copper Belt
On November 23rd, 2023 Northstar announced results from a 720 metre, 4-hole diamond drill program completed on the historic high-grade Cam Copper Mine, located 2.5 kilometres southwest of the Allied Gold Zone and also on Northstar's 100%-owned Miller Property. The Company reported all drill holes intersected lenses of Cu-rich volcanogenic massive sulphides, including massive and stringer chalcopyrite in drill hole CC03-23 grading 14.8% Cu over 2.45m from 116.55m to 119m in Zone 2 (See Northstar News Release dated November 23, 2023). These results suggest Zone 2 is thickening in a southeast and down-plunge direction. Zones 1, 3 and 4 also remain open along strike and at depth.
Northstar exploration confirms Cam Copper is centred on a newly recognized high-grade "Besshi-type" volcanogenic massive sulphide (VMS) copper system situated at the northwest end of a 0.9 km long southeast trending belt of VMS horizons on the Miller Copper-Gold Property. Besshi-type VMS deposits are an important global source of base metals, simplistically characterized as vented, broad sheet-like layers of magnetite, iron-copper-lead-zinc-arsenic sulphides, cobalt, sulphosalts, silver and possibly gold deposited on an ancient sea floor, hosted in volcano-sedimentary rock packages.
Northstar's Cam Copper Mine is the southernmost of 3 road accessible, historic shaft mines and small-scale past producers of high-grade 'direct shipping' copper ore over a 4-kilometre segment of the historic Boston Creek Copper Trend. In May 2024, Northstar consolidated these 3 mines and mineralized VMS extensions by signing Letters of Intent with owners of the neighboring and adjacent Boston Creek Mines to the northwest and Philip Property to the southeast. Northstar is positioning to drill test a newly defined, 350 metre, 200 Siemens surface EM conductor south of Cam Copper Mine and is in advanced discussions with a potential partner that specializes in surgical rotary drill hole mining of Boston Creek Copper-style direct shipping, high-grade, steeply dipping mineralized horizons.
About Northstar
Northstar's primary exploration focus is to advance and expand the near-surface, Allied Gold Zone bulk-tonnage gold-telluride deposit and more recently discovered VMS copper mineral deposits on the Company's flagship, 100%-owned Miller Copper-Gold Property, situated 18 km southeast of Kirkland Lake, Ontario. The Company's strategy is to develop a material (+1M ounce gold / high-grade copper) mineral resource base to either supplement a nearby mining operation or support stand-alone mining operations at the Property.
Northstar's 3 additional 100%-owned exploration projects in northern Ontario, include the recently acquired 1,150 ha Rosegrove Property situated 0.5 km from the Miller Property, the 4,650 ha Bryce Gold Property (includes the recently optioned Britcanna Lease), 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 Critical Minerals Property located in Strathcona Township. Northstar is seeking exploration partners to advance all 3 properties.
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