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Tuesday, November 08, 2016 Derek Macpherson

NRN’s Initial Drill Results Demonstrate Huckleberry’s Potential


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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 Séquoi property.

Derek Macpherson | VP Mining Analysis
Sunneva Bernhardsdottir | Associate, Mining Analysis
Victoria Ellis Hayes | Associate
 
Red Cloud Klondike Strike Inc.
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Northern Shield Resources Inc. - TSXV:NRN - 2
South32 Ltd - ASX:S32, LSE:S32 - None

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