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Northern Sun Mining Signs Milling Agreement with Wallbridge’s Broken Hammer Mine

By Frank Giorno

Dec 13, 2013

Northern Sun Mining Corporation, a new player in the Timmins mining camp having purchased the old Liberty Mine in November, has announced it has signed a tentative milling agreement with Wallbridge Mining Company Limited to mill ore from its Broken Hammer Mine.

Under the proposed one year agreement, Northern Sun will be responsible for milling a minimum of 800 tonnes of ore per day. The agreement is contingent on the signing of a definitive agreement between the parties on or before February 7, 2014. The transaction also remains subject to the receipt of all necessary environmental regulatory approvals.

 "We are excited to have entered into this binding term sheet which will provide the Company (Northern Sun Mining) with the means to generate positive cash flow to support our regional activities” said David Rigg, President and CEO of Northern Sun. “We believe this is a well-timed opportunity to coincide with the reopening of the Mill due to our successful remediation activities.. Our toll milling arrangement represents a new start for the Redstone mill and a new employment opportunity in the Timmins area."

If all goes according to plan, milling is expected to start on or about the first week of May, 2014. Northern Sun will produce concentrates by using both gravity and flotation methods. The concentrates then will transported to other smelters and refineries for further processing.

Waste from the ore after processing will be disposed of in the current tailings compound at the Redstone Mill site in Timmins, Ontario.

Wallbridge Mining Company Limited (WM:TSX) is an established junior company, formed in 1996, to explore and develop platinum group metals, copper and nickel mineral projects in North America.  The Broken Hammer mine development project is located near Sudbury, Ontario and marks a unique arrangement whereby a Sudbury based mining coming is shipping its ores north to Timmins for milling.

Wallbridge is also involved in significant exploration joint ventures with partners Lonmin Plc, Impala Platinum Holdings Limited and Glencore in Sudbury.

Two days prior to announcing the signing of the agreement, Northern Sun Mines announced that it had fully complied with the asbestos cleanup order and remediation program on its two Timmins properties Redstone Mill and McWatters Mine site that it acquired in November from Liberty Mines on November 1, 2013. With the asbestos removal completed at the two sites the Ontario Ministry of Labour announced it had lifted its stop work order at the two locations.

While the signing of the agreement with Wallbridge indicates that Northern Sun Mines intends to continuing milling operations in Timmins, its nickel mining operation at McWatters Mine will be shutdown in 2014 and site rehabilitation will commence funded by reclamation bonds that are currently on deposit with the Ministry of Natural Resources.

Northern Sun owns two former producing nickel mines and a large prospective land package in the Shaw Dome area, a prospective nickel belt near Timmins, Ontario. Northern Sun also owns the Redstone Mill which has operated as the only nickel concentrator in this Region. The Mill was designed with two processing circuits which is permitted to operate in tandem at 1,500 tonnes per day ("tpd"), but with the flexibility to operate independently processing two different ore types, each at 750 tpd. In 2014, the Company intends to re-open the mill to offer toll milling services to a variety of deposits in the Timmins Camp and general area.

For additional information visit www.northernsunmining.ca and http://www.wallbridgemining.com