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Northern Empire Expands Potential of Permitted Sterling Gold Mine, Reports Positive Metallurgical Results and Step-out Drilling

  • Ten targets newly identified, each with the potential for a new Nevada gold discovery
  • High priority targets already permitted for drilling
  • New targets proximal to existing resources indicate potential for near-surface expansion

Vancouver, B.C. – Wednesday, June 27th, 2018Northern Empire Resources Corp. (TSX.V: NM, USOTC: PSPGF) (the “Company” or “Northern Empire”) today reported on the status of its regional exploration program, including mapping, sampling, geophysics and new target identification at the Sterling Gold Project located in Nye County, Nevada.

Michael G. Allen, President and CEO stated, “Northern Empire is working to grow the Company in three ways: advance development of the permitted Sterling Mine, expand gold resources in the Crown deposits, and demonstrate blue-sky potential with regional exploration. Since acquisition, 17 new, undrilled targets have been identified on this underexplored, district-scale land package where mapping and sampling has now covered 70% of the property. Several of these new targets can be drilled from existing permits and they give the Company and its shareholders additional opportunities to make new Nevada gold discoveries.”

Regional Exploration & New Targets

Shortly after acquiring the Sterling Gold Project from Imperial Metals in June 2017, Northern Empire began a methodical, regional exploration program that resulted in the identification of several areas of interest and three rounds of staking that took the original land package of 55-square-kilometers to today’s 143-square-kilometers. Over 600 grab samples have been taken and analyzed along with three separate geophysical surveys. Numerous regional and prospect-level structures have been identified and traced at surface where gold anomalies and an updated understanding of the geologic setting have shown the Sterling Gold Project to be highly prospective.

Figure 1. Regional geophysical exploration map

Figure 2. Regional geochemical exploration map

Tungsten Canyon (permitted for drilling): Surface samples ranging from 0.05 to 35.80 g/t Au were reported from a structural complex traceable for several kilometers on geophysical and geological maps both north and south. This structural complex extends from Tungsten Canyon north approximately 9 kilometers to the SNA deposit, and hosts newly identified targets Diamond Queen and Telluride. Mineralization at Tungsten Canyon is hosted in Cambrian-Precambrian Wood Canyon phyllites and carbonates coincident with Oligocene diorite dikes.

Figure 3: Tungsten Canyon Exploration Map

Goldspar (permitted for drilling): Surface samples ranging from 0.05 to 1.68 g/t Au have been reported from the Company’s newly acquired Goldspar claims where historic drilling encountered 38.10 meters of 3.03 g/t Au staring from surface (see news release dated June 19th, 2018). The primary feature at Goldspar is the intersection of the Bare Mountain Fault and smaller listric-normal faults in an area of outcropping formations within which are several permissive rock types, i.e. thinly laminated silty limestones and calcareous sandstones such as are found within the Ordovician Pogonip Group and the Silurian Roberts Mountain Formation.

The Bare Mountain Fault is the northward extension of the Reudy Fault, which is also the host or probable mineralizing structure of the 144-zone gold deposit, which was successfully mined by Imperial Metals. The Bare Mountain Fault extends the length of the east side of the Bare Mountain Range and north into the Timber Mountain Caldera complex. Tertiary Latite dikes are located along this feature, and a prominent linear magnetic anomaly is coincident with it.

The Bare Mountain Fault, which is interpreted to have developed during the collapse of the Crater Flat caldera complex, is associated with several younger listric-normal/detachment or block faults that caused) blocks of the various formations to drop eastward towards the valley. Goldspar is coincident with at least one of these fault intersections. The intersections and their attendant eastward-dipping breccia zones provided a great deal of structural preparation for upward-migrating fluids to mineralize permissive host rocks for Carlin-type mineralization including the Roberts Mountain and Pogonip Formations. There is also a strong high correlation of gold mineralization with the presence of Miocene latite dikes, which can be found in many of the existing mineralized drill holes, as well as along the fault features at the surface. For further information on Goldspar, please refer to the Company’s June 19, 2018 news release.

Figure 4: Goldspar Exploration Map

Burro (permitted for drilling): Surface samples up to 3.51 g/t Au were reported from north and east of the Sterling Mine’s permitted open pit. This is an area of sparse drilling, highlighted by the following results:

Hole ID From (m) To (m) Length (m) g/t Au*
SV88128 15.24 22.86 7.62 0.71
SV88130 6.096 15.24 9.144 0.73
SV88132 21.336 28.956 7.62 1.17

*Cyanide soluble gold grades reported
Insufficient data exists at this time to estimate true width

Wildcat: Located at the base of the Carerra Formation along a district-scale lineament which also hosts the Sterling Mine and Goldspar Target and 10 kilometers to the north, the Crystal target. Surface sampling reported gold grades ranging from <0.05 ppm to 2.68 g/t Au.

Crystal: Two distinct jasperoid occurrences have been identified proximal to the SNA deposit. Carlin-style deposits are often associated with jaserpoids and the Crystal Target is yet another undrilled Carlin-style target found in this area. Surface sampling reported gold grades ranging from <0.05 g/t to 2.0 g/t Au.

Diamond Queen: Located 1.5 kilometers north of the Sterling Mine, and at the confluence of three major regional structures (Burro Fault, Sterling Thrust, which hosts the Sterling Mine, and Reudy Fault) where surface sampling reported gold grades up to +3.0 g/t. The Miocene latite dikes at Diamond Queen are intensely altered.

Yucca: Located at the intersection of the Fluorspar Canyon Detachment and the Yucca magnetic lineament, the target is covered by overburden. Surface sampling returned anomalous gold with highly elevated levels of mercury and arsenic, indications of a possible buried Carlin system. The Yucca target’s structural setting appears to be analogous to the nearby Mother Lode deposit and is located only four kilometers south of the Silicon Project which is being drilled by AngloGold Ashanti NA (optioned from Renaissance Gold).

Daisy Resource Expansion Targets: Surface sampling proximal to the Daisy deposit has identified three new targets for drilling which includes the Daisy and Crowell targets that appear to be east-west trending and subparallel to the regional Fluorspar Canyon Detachment Fault, and the Kavu target that appears related to the north-south oriented Gold Ace Fault (hosts nearby Gold Ace and Reward deposits).

Secret Pass Resource Expansion Targets: Surface sampling up-dip of the Secret Pass deposit all returned anomalous arsenic and mercury with gold grades of up to 0.3 g/t Au at the new Tate target located approximately 1.5 kilometers east. Recent step-out drilling and the current sampling program indicate Secret Pass remains open up-dip to the south and east-west along strike. Prior tenure constraints limited up-dip drilling by previous operators.

The Company is pleased with the progress that has been made on advancing the Sterling Project since acquisition. The targets identified to date have identified some of the potential for this district scale land package. Within the Project the Company has the permitted Sterling Mine, three additional resources, and significant upside potential through exploration.

Sterling Project Resource Summary:

Deposit Claim Block Cut-off
(g/t Au)
Tonnes Grade
(g/t Au)
Contained
Gold (oz)
Sterling Mine (Pit-Constrained)* Sterling 1.0 3,081,000 3.67 231,000
Sterling Mine (Non-Pit Constrained)* Sterling 1.7 350,000 3.38 38,000
Daisy Crown 0.3 5,362,000 1.34 232,000
Secret Pass Crown 0.3 11,143,000 0.93 335,000
SNA Crown 0.3 3,875,000 1.03 126,000
Global Pit-Constrained Resource: 23,461,800 1.28 924,000

* Resource calculated based on CN soluble assays.

  1. CIM definitions are followed for classification of Mineral Resource.
  2. Mineral Resource surface pit extent has been estimated using a gold price of US$1,200 per ounce and a US$2.10 per ton mining cost with gold recovery ranging from 80 – 88% depending upon rock type.
  3. Sterling non-pit constrained resources below the surface pit and targeted for underground mining are based on a gold price of US$1,200 per ounce and mining costs of $US45 per ton. Other modifying factors remain unchanged.
  4. Gold recovery estimated to range from 80 – 88% depending upon rock type.
  5. The Mineral Resource estimate has been prepared by Derek Loveday, P. Geo. of Norwest Corporation in conformity with CIM “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines and are reported in accordance with the Canadian Securities Administrators NI43-101. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

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.

Sampling and QAQC Procedures

Samples were submitted to ALS Global in Reno, Nevada. Gold grade was determined by Fire Assay with Atomic Absorption, and Gravimetric Finish as well as Cyanide Soluble methods. Most ALS geochemical laboratories are registered or are pending registration to ISO 9001:2008, and several analytical facilities have received ISO 17025 accreditations for specific laboratory procedures. Northern Empire inserts a series of standards, blanks and field duplicates into the sample stream as part of its quality assurance and quality control procedures which are continually monitored by the Company.

Qualified Persons

Michael G. Allen, P. Geo., President & CEO of Northern Empire, and a Qualified Person as defined by NI 43-101, has reviewed and verified the drilling information contained in this news release. He is a non-independent qualified person for this news release and has verified the drilling data.

Paul M. Sterling, P.Eng., is an independent consulting metallurgist who has worked at the Sterling Mine and is a Qualified Person as defined by NI 43-101, has reviewed the metallurgical information in this news release. He is an independent qualified person for this news release and has verified the metallurgical 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

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