Northern Lights Announces Acquisition of the Secret Pass Gold
Project in Arizona
Vancouver, British Columbia, Canada -- July 16, 2019 --
InvestorsHub NewsWire -- Northern Lights Resources
Corp. (CNSX:NLR.CN) (the "Company" or
"Northern Lights") is pleased to announce that it has entered into
a definitive agreement to acquire a 100% interest in the Secret
Pass Gold Project ("Secret Pass Gold Project" or the "Property")
located in Mohave County, northwestern Arizona (the "Transaction")
as shown on Figure 1.
Secret Pass consists of 84 unpatented lode mining claims
comprising 655.6 hectares (1,620 acres) of claims under the
administration of the US Bureau of Land Management ("BLM") and
212.4 hectares (524.9 acres) for a total of 868 hectares (2,145
acres).
Figure 1: Location Map Secret Pass Gold
Project
The Transaction
Northern Lights entered into a definitive agreement, executed on
July 12, 2019, with a private Arizona resident (the "Seller") to
acquire 100% interest in the Secret Pass Gold Project (the
"Agreement").
Under the terms of the Agreement, Northern Lights holds an
exclusive option to acquire the Project (the "Option") up until
midnight Pacific daylight time on August 21, 2019 (the "Option
Expiry Date"). Northern Lights is planning to complete its due
diligence on the project prior to the Option Expiry Date. Company
management is planning to be on site at the Project during the week
beginning July 15, to conduct due diligence.
Upon exercise of the Option, Northern Lights Resources agrees to
make the following consideration payments:
a) Within 5 working days following
the exercise of the Option, Northern Lights will pay the Seller a
cash consideration of US$75,000;
b) Within 30 days following the
exercise of the Option, Northern Lights will issue 2,000,000 common
shares of Northern Lights to the Seller; and
c) Under the terms of the Agreement
Northern Lights will make the following additional payments:
i) On or
before August 28, 2019, a payment of US$150,000; plus
ii) On
or before October 15, 2019, a final payment of US$125,000.
Upon completion of the final payment on or before October 15,
2019, 100% ownership of the Project will be transferred to Northern
Lights or its nominee free of any third party royalties.
Other than the applicable Arizona State and BLM mineral
production royalties there are no third party royalties payable on
revenues produced from the Secret Pass Gold Project.
Completion of the Transaction is subject to approval of the CSE
and other regulatory bodies as required.
In summary, Northern Lights has the option to acquire
the 100% ownership of the Secret Pass Gold Project for total
consideration payments of US$350,000 cash and 2,000,000 million
shares of Northern Lights.
Northern Lights Chief Executive Officer, Jason Bahnsen
commented: "The Secret Pass Gold Project Transaction
represents an excellent opportunity for Northern Lights to acquire
a high value exploration gold project at a very attractive price.
The property will be 100% owned by Northern Lights and is free of
third party royalties. Only 10% of the license area has been
explored. There are over 13 km of gold bearing structures offering
significant exploration potential for the project. Management
believes this acquisition will generate significant value for
Northern Lights shareholders."
The Secret Pass Gold Project
1) The Oatman-Katherine Gold
District - a Prolific Historic Gold Mining District
As illustrated on Figure 2, the Secret
Pass Project is located in the famous Oatman-Katherine Gold
District of northwestern Arizona, close to the Nevada and
California State borders. The Oatman-Katherine Gold District was
established in 1863 and historically is Arizona's third largest
gold producing area. Between 1870 and 1980 it is estimated the
district produced over two million ounces of gold and one million
ounces of silver. The district includes many historic mines and
workings with over 80 separate mines reporting production. Current
operating mines in the area include the Moss mine owned by Northern
Vertex Corp., an open pit heap leach operation that reached
commercial production in September 2018, and Para Resources Inc.
that reported starting underground production at its Gold Roads
Project in February 2019.
Figure 2: Oatman-Katherine
Gold District, Arizona
2) Geology, Previous
Production and Exploration Work
The main structural feature in the region is an imbricated
system of shallow to steeply dipping faults that trend
north-northwest. With reference to Figure
2 this fault system has been traced for approximately
65 km extending from the Oatman District in the south, through the
Secret Pass-Frisco Mine area, into the Katherine Gold District. As
illustrated on Figure 3, two regional
structures, the Union Pass and the Frisco Mine faults, transect the
Secret Pass property. Numerous gold showings and prospects are
associated with the Union Pass and Frisco Mine faults, and some
have reported limited gold production. The Oatman District is
located approximately 13 km south of Secret Pass property, and has
produced over two million ounces of gold.
Figure 3: Secret Pass
Project Geology and Historic Mine Workings
Mining records indicate that there are 10 historic mine workings
located in the Secret Pass license area. The Tin Cup and the FM
gold prospects were extensively explored and drilled by Santa Fe
Mining and Fischer-Watt from 1984 to 1991. A total of 14,000 metres
of drilling was completed in 126 holes including 114 reverse
circulation and 12 core holes.
The Tin Cup Gold Zone is localized
along the steeply northeast-dipping Frisco Mine Fault. The gold
mineralization is hosted by Tertiary andesite and associated with
the margins of rhyolite dykes that occur as lenses within the
Frisco Mine Fault. A few of the deepest drill holes intersect gold
mineralization in the Proterozoic basement granite.
The mineralized zone has a strike length of approximately 245
metres and a drill-indicated depth of up to 180 metres, both open
along strike and depth. High-grade mineralization greater than 3
g/t Au, is localized in a 3.0 to 7.6 metres wide, steeply
northeast-dipping structure that occurs within a much wider
mineralized fault zone that ranges from 30 to 45 metres in width.
The mineralization has a northwest plunge and is considered to be
open at depth. Surface oxidation extends to a depth of up to
approximately 120 metres.
The FM Gold Zone is also controlled
by the northwest-trending Frisco Mine Fault that dips steeply to
the southwest. Gold mineralization at the FM zone is hosted
exclusively by granite and rhyolite and has a strike length of
approximately 200 metres and extends to a depth of up to 120
metres, open along strike and depth.
The zone of mineralization ranges from 13 to 30 metres in width
at the surface and then transitions into distinct 3.0 to 8.0 meter
near-vertical, low-grade (
Two geological models have been proposed for the Secret Pass
gold mineralization. The first model is the epithermal bonanza
style veining and hanging wall stockwork setting, with gold
mineralization the result of repeated boiling events. This style of
mineralization is prevalent in the Oatman Gold District. The second
model is a low-angle detachment fault setting, with gold deposition
occurring at an oxidation-reduction boundary. This style of
mineralization is present at the Union Pass located approximately
6.4 km to northwest of the Secret Pass Gold Project.
Tin Cup Mine
The Tin Cup mine reportedly produced several hundred tons of
mineralized material grading 15 g/t (0.5 oz/t) to 31 g/t (1 oz/t)
of gold. Historic workings from the 1930's included an open pit and
an inclined shaft to a depth of 21 metres (70 ft) with minor
underground level workings. There has been no known production from
the Tin Cup Mine since the 1930's.
During the period from 1984 to 1991 drilling program,
significant gold mineralization was intersected in a number of
holes in the Tin Cup Gold Zone. As illustrated in Figure 4,
gold assays ranging as high as 40 g/t Au over significant widths at
depths ranging from 30 to 180 metres below surface. These results
are historical in nature and a qualified person has not done
sufficient work to verify these previous drilling
intersections.
Figure 4: Historical Cross
Section of Tin Cup Gold Zone
(Modified from Arrowstar
Resources NI 43 - 101 Report, May 4, 2016. Note this information is
historical and has not been verified by a qualified person under
the guidelines of NI 43-101)
In summary, the Secret Pass property is transected by two major
gold bearing regional structures, the Frisco Mine and Union Pass
faults. These faults have combined strike length in excess of 13 km
on the property. The last exploration program was completed on the
Secret Pass property was in 1991 and was entirely focused on the
Tin Cup and FM gold zones which accounts for less than 10% of the
total license area. Only the area between Tin Cup and FM gold zones
has been drill tested over a strike length of 1.2 km. and very
limited surface exploration was conducted on the structures located
outside of Tin Cup and FM gold zones.
The scientific and technical data contained in this news release
was reviewed and approved by Gary Artmont (Fellow
Member AUSIMM #312718), Head of Geology and qualified
person to Northern Lights Resources, who is responsible
for ensuring that the geologic information provided in this
news release is accurate and who acts as a "qualified person" under
National Instrument 43-101 Standards of Disclosure for Mineral
Projects.
For further information, please contact:
Albert Timcke, Executive Chairman and
President
Email: rtimcke@northernlightsresources.com
Tel: +1 604 608 6163
Or
Jason Bahnsen, Chief Executive Officer
Email: Jason@northernlightsresources.com
Tel: +1 604 608 6163
About Northern Lights Resources Corp.
Northern Lights Resources Corp is a growth oriented exploration
and development company that is advancing the Medicine Springs
Project located in Nevada. Northern Lights is earning a 100% equity
interest in the Medicine Springs Project, a prospective silver -
zinc - lead property located in southeastern Elko County,
Nevada.
Northern Lights Resources trades under the ticker of "NLR" on the CSE. This and other
Northern Lights Resources news releases can be viewed
at www.sedar.com and www.northernlightsresources.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION: This news release includes certain
"forward-looking statements" under applicable Canadian securities
legislation. Forward-looking statements include, but are not
limited to, statements with respect to: the terms and conditions of
the proposed private placement; use of funds; the business and
operations of the Company after the proposed closing of the
Offering. Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered
reasonable, are subject to known and unknown risks, uncertainties,
and other factors which may cause the actual results and future
events to differ materially from those expressed or implied by such
forward-looking statements. Such factors include, but are not
limited to: general business, economic, competitive, political and
social uncertainties; delay or failure to receive board,
shareholder or regulatory approvals; and the uncertainties
surrounding the mineral exploration industry. There can be no
assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward looking statements. The Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
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