Northstar Gold consolidates its ground at Miller gold property with Searles acquisition

Northstar Gold Corp (CSE:NSG) (OTCMKTS:NSGCF) (FRA:3WV) said it has consolidated its ground at the flagship Miller gold project by buying, for cash and shares, the 64 hectare (Ha) Searles property, which is 18 kilometers (km) southeast of Kirkland Lake, Ontario.

The 1987 resource estimate for the No. 1 Vein of the Miller Independence mine is straddled by both the Searles property and Northstar’s adjoining Miller asset, so Seales represents a portion of that estimate.

George Pollock, Northstar’s vice-president of exploration, said the latest acquisition had been a “long time coming” and was a key part of the company’s Miller gold property consolidation strategy.

READ: Northstar Gold says drill results from Miller gold property in Ontario underscore potential of Allied Syenite Gold Zone

“Northstar can now focus on validating the No.1 Vein historic results on the Searles Property quickly by drilling a limited number of short, confirmatory twin holes and step-outs along the shallow, north-dipping high-grade gold-telluride mineralized structure,” Pollock said.

“The Allied Deformation Zone extends southeast onto the Searles property and is host to numerous syenitic intrusions that remain largely unexplored. Exploration potential for deeper, sheeted gold-telluride bearing quartz veins and gold-bearing syenite on the Searles Property is excellent.”

Historic and recent drilling by Northstar has defined the No.1 vein as high grade and a continuous structure ranging in true width from 0.5 metres (m) to 15m, spanning a 1 km northeast strike length and extending 750m down dip to the northwest.

No. 1 Vein bisects the Allied Syenite at depth, where it expands in width and forms a major part of the newly defined bulk-tonnage Allied Gold Zone.

Northstar told investors it expects to resume drilling at the Miller gold property in late July, 2021 with a planned 4,600m, phase IIB drill program. This work is aimed at expanding the recently discovered Allied Syenite Gold Zone, testing several 3D IP geophysical anomalies, and expanding and confirming the No. 1 Vein historic estimate. It will also explore the recently acquired Searles property.

The firm said that in early July this year it will also carry out surface stripping in multiple areas of the Miller property.

For the Seales purchase, Northstar will pay C$75,000 to the vendors and issue 250,000 Northstar shares on signing the option agreement.

To gain 50%, Northstar must pay C$75,000, issue 200,000 Northstar shares and spend C$100,000 on exploration by the first anniversary of striking the deal. To acquire 100%, the company must pay C$150,000 in cash, issue 200,000 shares and complete C$100,000 in exploration expenditures by the second anniversary.

The vendors retain a 2.5% net smelter return (NSR) on the asset and Northstar has the right to purchase 1% back for C$1.5 million and an additional 0.5% NSR for C$1 million.

Northstar retains a standard right of first refusal on any proposed sale or transfer by Searles of the remaining 1% of the NSR.

In addition, Northstar will pay the vendors US$20 per ounce for any NI 43- 101 measured, indicated, and inferred resource delineated at Searles, determined as at and payable upon the commencement of commercial production, subject to a maximum payment of US$15 million. The parties agree that the ounces shall be verified by a formal feasibility study initiated by Northstar at the time of production.

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Story by ProactiveInvestors