Northern Shield Resources Inc. (TSXV:NRN) announced drill results from its Huckleberry project located in the Labrador Trough in Quebec. The program
consisted of 7 holes, totalling 2,053m, of which all but one intersected copper-nickel-PGE mineralization. The drill program was accomplished under
the option agreement signed with South32 in June 2016 under which South32 (ASX:S32, LSE:S32) can earn a 50% interest in Huckleberry by spending C$2.5
million on exploration over the first two years, thereof C$1.2 million in the first year. While it is early days, we find these initial results encouraging
as they provide an early indication of that there could be a large deposit at Huckleberry. As well, these results are also a positive indicator for
Northern Shield’s wholly owned Séquoi property which is adjacent to Huckleberry, where drilling is planned to commence this month.
Drilling highlights continuity of Huckleberry mineralization. All but one of the seven holes, totalling 2,053m, intersected Cu-Ni-PGE,
which in our view is encouraging. The mineralization’s continuity is suggested by the geological and mineral similarities of the holes along the Western
Zone which suggests that the mineralization continues for ~2km while remaining open along strike to the North and South, and down-dip to the East.
Results were highlighted by 0.34% Cu, 0.19% Ni and 0.34 g/t PGE+Au over 9.0m intersected in hole 16HK-01 which targeted the Western zone’s main mineralization.
The results’ overall weighted average grade measured 0.28% Cu, 0.15% Ni and 0.32 g/t PGE+Au over 9.9m. The geological similarities between two holes
along the Eastern zone that are 2.4km apart, 16HK-03 which returned 0.36% Cu and 0.1% Ni over 4.0m and 16HK-04 which returned 0.36% Cu and 0.1% Ni
over 4.6m, provide another indication of that the mineralization is continuous. In our view, these initial results are encouraging. Northern Shield’s
plans to conduct follow-up drilling and ground geophysics at Huckleberry in 2017.
Company description: Northern Shield Resources Inc (TSXV:NRN) is an exploration company and wholly owns four drill ready Cu-Ni-PGE projects
in the Labrador Trough in Quebec. The company has an option agreement with South32 on its Huckleberry property, and is the whole owner of the adjacent
Derek Macpherson | VP Mining Analysis
Sunneva Bernhardsdottir | Associate, Mining Analysis
Victoria Ellis Hayes | Associate
Red Cloud Klondike Strike Inc.
79 Wellington St. W. Suite 1630, PO Box 148,
Toronto ON., M5K 1H1
Red Cloud Klondike Strike Inc. is registered as an Exempt Market Dealer in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New
Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador, and the Yukon. Part of Red Cloud Klondike Strike Inc.'s business is
to connect mining companies with suitable investors that qualify under available regulatory exemptions (the "Red Cloud KS Business").
Red Cloud Klondike Strike Inc., its affiliates and associates, and their respective officers, directors, representatives, researchers and members
of their families (collectively, "Red Cloud KS") may hold positions in the companies mentioned in this publication and may buy
or sell, or buy and sell their securities or securities of the same class on the market or otherwise. Additionally, Red Cloud KS may have provided
in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers
as consideration for the provision of such services.
Red Cloud KS has prepared this publication for general information purposes only, NOT as part of the Red Cloud KS Business.
This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information
provided by Red Cloud KS for the purposes of this publication has been derived from sources believed to be accurate, but cannot be guaranteed.
Opinions or analysis contained in this publication may be subject to change and Red Cloud KS does not undertake to advise the reader of such changes.
This publication does NOT take into account the particular investment objectives, financial situations, or needs of individual
recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients
should rely on their own investigations and take their own professional advice before investment. Red Cloud KS will not treat recipients of this
publication as customers or clients by virtue of having viewed this report.
Company Specific Disclosure Details Northern Shield Resources Inc. - TSXV:NRN - 2
South32 Ltd - ASX:S32, LSE:S32 - None
1) A member of Red Cloud KS team has visited/viewed material operations of the issuer.
2) In the last 12 months, Red Cloud KS has been retained under a service or advisory agreement by the subject issuer.
3) In the last 12 months, Red Cloud KS has received compensation for investment banking services.
4) Red Cloud KS or a member of the Red Cloud KS team or household, has a long position in the shares and/or the options of the subject issuer.
5) Red Cloud KS or a member of the Red Cloud KS team or household, has a short position in the shares and/or the options of the subject issuer.
6) Red Cloud KS or a member of the Red Cloud KS team own more than 1% of any class of common equity of the subject issuer.
7) A member of Red Cloud KS team or a member’s household serves as a Director or Officer or Advisory Board Member of the subject issuer.