Mr. Michael Allen reports
NORTHERN EMPIRE ACQUIRES 100%-INTEREST IN HISTORIC GOLDSPAR MINE
Northern Empire Resources Corp. has entered into a lease purchase agreement to acquire 100-per-cent interest in the Mary-Goldspar property 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 chief executive officer, 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."
GOLDSPAR SELECT HISTORIC DRILLING RESULTSHole ID From To Length Au (m)(m)(m)(g/t)MRY87-030.0033.5333.53 1.25MGS88-02 59.4462.48 3.05 2.18MRY88-030.0038.1038.10 3.03MGS89-010.0010.6710.67 0.58MGS89-02 10.6725.9115.24 1.15MGS89-031.5215.2413.72 0.73MGS89-057.6224.3816.76 1.97MGS89-069.1428.9619.82 1.84MGS89-08 36.5848.7712.19 0.82MG90-0632.0053.3421.34 1.99MG90-0716.7627.4310.67 0.74MG90-08 7.6212.19 4.57 1.67MG90-1354.8677.7222.86 1.50MG91-13 0.00 9.14 9.14 1.23MG92-0499.06 108.20 9.14 1.39MG92-1260.9677.7216.76 1.67MG92-1525.9130.48 4.57 1.03and53.3464.0110.67 0.81MG92-1851.8288.3936.57 1.79MG92-2048.7764.0115.24 2.13MG92-2135.0559.4424.39 2.77and77.2486.87 9.63 1.24MG92-2273.1591.4418.29 1.89MG92-2397.54 108.2010.66 2.35MG92-24 138.68 146.30 7.62 1.30MG94-0185.34 108.2022.86 0.51and 155.45 161.54 6.09 1.13MG94-0273.1580.77 7.62 0.94Insufficient 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 were acquired by Northern Empire from the vendor and occurred at Goldspar in the late 1980s and early 1990s. The data have not yet been verified by the company.
The agreement
Pursuant to the lease purchase agreement, a wholly owned subsidiary of the company will acquire 100-per-cent interest in the Goldspar mine under the terms as follows:
10-year lease to purchase agreement;$50,000 (U.S.) upon signing;Lease payments of $2,500 (U.S.) per month for years 1 to 5, beginning on Jan. 1, 2019;Lease payments of $5,000 (U.S.) per month for years 6 to 10;Work commitments of $150,000 (U.S.) in year 1 and $100,000 (U.S.) in year 2;Option to extend the lease for an additional 10 years;Option to purchase the property outright for $1.5-million (U.S.) (inclusive of all payments);Net smelter royalty (NSR) of 5 per cent where 3 per cent is purchasable for $50,000 (U.S.) per 1 per cent.
About the Goldspar mine
The Goldspar property totals approximately 2.1 square kilometres in size, where historically minor amounts of fluorite were mined. It is accessible from established Sterling mine roads and located approximately 600 metres 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 ounces gold in a resource grading 1.34 g/t.
About the Sterling mine
The Sterling gold mine is fully permitted for restart and hosts a National Instrument 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 Resources Corp.
Northern Empire is expanding and discovering heap leach gold deposits in Nevada. The company presently has initial resource statements on four heap leachable deposits at the 100-per-cent-owned Sterling gold project, including the high-grade, fully permitted Sterling mine (231,000 ounces at 3.67 g/t Au). The pit-constrained inferred resources on the property total 924,000 ounces Au at an average grade of 1.28 g/t Au.
Qualified person
Mr. Allen,a qualified person as defined by National Instrument 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.
We seek Safe Harbor.
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