Northern Empire Acquires 100%-Interest in Historic Goldspar Mine
- Acquisition of a strategic inlier property with significant gold intercepts in close proximity to the permitted Sterling Mine.
- New and increased ability to explore highly prospective range-front fault structures near the Sterling Mine.
- Highlighted historic drilling from new acquisition:
- 38.10 meters of 3.03 g/t Au starting at surface
- 24.39 meters of 2.77 g/t Au starting at 35.05 meters
Vancouver, B.C. – June 19th, 2018 – Northern Empire Resources Corp. (TSX.V: NM, USOTC: PSPGF) (the “Company” or “Northern Empire”) today reported it has entered into a Lease Purchase Agreement (the “Agreement”) to acquire 100% interest in the Mary-Goldspar property (“Goldspar”) from a Nevada-based private company. The property is an inlier to Northern Empire’s claims in the Bare Mountains District, Nye County, Nevada.
Michael G. Allen, President and CEO stated, “This acquisition provides further consolidation of the Company’s already dominant land position in the Bare Mountains District. Goldspar has the potential to add value to the Sterling Mine, which is fully permitted for restart. This key property will allow for effective exploration of newly identified targets on the Sterling Mine, and any additional resources delineated could potentially be processed at the permitted facilities.”
Figure1. Goldspar claims location map
Click to enlarge
Goldspar Select Historic Drilling Results.
|Hole ID||From (m)||To (m)||Length (m)||g/t Au|
- Insufficient data available to estimate true thickness
- Various assay techniques from multiple labs used
- No verification of the data has been undertaken by Northern Empire
Drilling data was acquired by Northern Empire from the vendor and occurred at Goldspar in the late ‘80s and early ‘90s. The data has not yet been verified by the Company.
Pursuant to the Lease Purchase Agreement, a wholly-owned subsidiary of the Company will acquire 100% interest in the Goldspar Mine under the terms as follows:
- 10-year Lease to Purchase Agreement
- US$50,000 upon signing
- Lease payments of US$2,500 per month for Years 1 to 5, beginning on January 1st, 2019
- Lease payments of US$5,000 per month for Years 6 to 10
- Work commitments of US$150,000 in Year 1 and US$100,000 in Year 2
- Option to extend the lease for an additional ten years
- Option to purchase the property outright for US$1.5M (inclusive of all payments)
- Net smelter royalty (“NSR”) of 5% where 3% is purchasable for US$50,000 per 1%
About the Goldspar Mine
The Goldspar property totals approximately 2.1-square-kilometers in size, where historically minor amounts of fluorite were mined. It is accessible from established Sterling Mine roads and located approximately 600 meters from the permitted leach pad and associated processing facilities.
In the Bare Mountains, gold is shown to occur in proximity to fluorite, leading to the hypothesis that multiple generations of fluids exploit long lived structures. The Daisy deposit, located in the Crown of the Sterling Project, exhibits a similar spatial relationship between gold and fluorspar, with the past producing Crowell Fluorite mine being in close proximity to the Daisy Deposit and additional gold intercepts. Inferred resources at the Daisy deposit consist of 232,000 oz Au in a resource grading 1.34 g/t.
About the Sterling Mine
The Sterling Gold Mine is fully permitted for re-start and hosts an NI 43-101 pit-constrained, inferred resource of 231,000 ounces of gold at 3.67 g/t using a 1.0 g/t cut-off. There is an additional non-pit-constrained resource of 38,000 ounces of gold at 3.38 g/t using a 1.7 g/t cut-off. Gold recovery facilities at the Sterling Mine were constructed in 2010 and the mine last in production in 2015. The processing facilities on site are currently being operated and the Company recently completed a program to increase recoveries from the existing, active leach pad.
About Northern Empire
Northern Empire Resources Corp. (TSXV: NM) (OTC: PSPGF) is expanding and discovering heap leach gold deposits in Nevada. The Company presently has initial resource statements on four potentially heap-leachable deposits, three of which are past producing, at the 100%-owned Sterling Gold Project. This includes the high-grade, fully permitted Sterling Mine (231,000oz at 3.67g/t Au) which was in continuous production between 1980 and 2015 as a heap leach operation. The global, pit-constrained resource for the entire project is 924,000oz at 1.28 g/t gold (cut-off varies by deposit). The Company is well-financed and is aggressively drilling all four deposits in 2018 to increase resources and explore for new discoveries on the district-scale land package. Founders and management have a track record of increasing shareholder value through discovery, project development and M&A with successes that include Newmarket Gold, Kaminak Gold, Underworld Resources and International Royalty Corp. For further information on the Sterling Project, please refer to the technical report on the Sterling Project dated July 12, 2017, found on the Company’s website (www.northernemp.com) and SEDAR.
Michael G. Allen, P. Geo., President & CEO of Northern Empire, and a Qualified Person as defined by NI 43-101, has reviewed the technical information contained in this news release. He is the non-independent qualified person for this news release and has verified the data.
ON BEHALF OF THE BOARD OF NORTHERN EMPIRE RESOURCES CORP.
“Michael G. Allen”
President, CEO and Director
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.
Certain information set forth in this news release contains “forward-looking statement”, and “forward-looking information” under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, which include the Company’s expectations about the future performance based on current results and expected cash costs and are based on the Company’s current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as “will”, “expects”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which, may cause the Company’s actual performance and financial results in future periods to differ materially from any projects of future performance or results expressed or implied by such forward-looking statement. These risks and uncertainties include but are not limited to: liabilities inherent in mine development and production; geological risks, the financial markets generally, the results of the due diligence investigations to be conducted by the Company. There can be no assurance that forward-looking statement will prove to be accurate, and actual results and future events could differ materially from those anticipate in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
For further information contact:
Michael G. Allen, President, CEO and Director
Tel: +1 (604) 646-4522
Dylan Berg, Manager, Investor Relations
Tel: +1 (604) 646-4520