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Northstar Engages Boart Longyear for Miller Gold Drill Program and Closes Private Placement

Sep 14, 2021

Northstar Gold Corp. has engaged Boart Longyear Canada to conduct a 2,400 metre Phase IIB diamond drill program on the Company's 100% owned Miller Gold Property, situated 18 km southeast of Kirkland Lake and Kirkland Lake Gold's Macassa SMC gold mine.

Drilling is scheduled to commence in late September, with a focus on step outs from the Phase IIA Allied Gold Zone high-grade gold-telluride intercepts (117 metres of 6.6 g/t Au in drill hole MG20-56) and No. 1 Vein historic resource estimate confirmatory and step-out holes on the recently acquired and adjacent Searles Property. Drilling to date along the Allied Deformation Zone (or ADZ) has defined a broad alkaline intrusive related gold system measuring >1.8 km in strike and 600 m wide, with numerous near-surface 1 gram+ gold intercepts measuring 100 metres or more in drill core in the vicinity of the Allied Syenite. 

Miller Gold Surface Exploration Program 

Owing to excellent progress and broad, new surface mineralization discoveries, the on-going excavator assisted overburden stripping, bedrock washing, mapping and sampling program has been intensified. New silicified / oxidized sulphide exposures uncovered in 5 areas proximal to the Allied Syenite and within the Allied Deformation Zone is indicative that the alkaline intrusion related gold system is much larger than initially thought. Channel sampling is ongoing and more than 250 samples have been submitted to ALS Geochemistry, a subsidiary of ALS Global for analysis, with a number on a rush basis. Results will bear upon Phase IIB drill hole targeting. 

Northstar closes Private Placement

Northstar Gold Corp. also announces the Company has closed its second and final tranche of its previously announced $2.5 million non-brokered private placement of units ("Units") for gross proceeds of CDN$104,000. (the "Offering"). A total of $1,676,220 was raised in both tranches. 

The final tranche was comprised of 64,516 flow through units ("Flow Through Units"), for a total of $20,000 and 300,000 non-flow through units, totalling $84,000 (the "Non-Flow Through Units"). The Flow Through Units were priced at $0.31 and comprised of one flow through common share and one-half of one non-flow through share purchase warrant. Each full warrant is exercisable for one non-flow through common at an exercise price of $0.42 for a period of 24 months. The Non-Flow Through Units were priced at $0.28 and were comprised of one common share and one-half of one share purchase warrant. Each full purchase warrant is exercisable into common shares at a price of $0.42 for a period of 24 months. 

The Company paid a total of $5,140 in finders fees associated with the Offering, issued 18,000 finder warrants with exercise prices of $0.28 expiring 24 months from the closing date of the Offering. The Company previously issued 150,000 common shares to Canaccord Genuity Corp. who assisted the Company as a financial advisor in connection with the Offering. All securities issued under the Offering are subject to a statutory four month hold period. 

The gross proceeds from the sale of the Flow-Through Shares will be used to incur eligible Canadian Exploration Expenses ("CEE") at the Company's 100%-owned flag-ship Miller Gold Property and recently acquired Searles Property, situated 18km southeast of Kirkland Lake, Ontario, and the Company's Bryce Gold Property, situated 35 km to the southwest. The Company will renounce CEE effective on or before December 31, 2022. The proceeds raised from the Non-Flow Through Component will also be used for exploration work on the Miller Gold Property, the recently acquired Searles Property and general working capital.

Phase IIA Miller Drill Program Assay Delays Continue

Northstar continues to wait for final drill hole assay certificates from 7 of 8 holes diamond drilled on the Miller Gold Property during the period March 15th - April 27th, 2021. The Company has been in close contact with the assay laboratory, who continue to experience significant analytical issues and delays owing primarily to staffing and QA/QC problems. 

Northstar has been repeatedly assured by the laboratory that all that can be done is being done to provide certified analyses for remaining Phase IIA drillholes as soon as possible. A number of target dates have come and gone and the Company does not know when these issues will be resolved. Northstar will engage another accredited assay laboratory to complete Phase IIA drill core analysis if certified assay results are not received in the very near term. The Company appreciates shareholder patience in this regard.

Northstar drilled 1,990 metres (8 holes) in the Phase IIA program following up the 2020 near-surface bulk-tonnage Allied Syenite Gold Zone discovery (2 holes), near-surface confirmation drilling of the historic gold-telluride No. 1 Vein (2 holes) and 4 holes targeting geophysical and machine learning anomalies. Mineralized intercepts were obtained in all 8 Phase IIA drill holes.

Northstar Announces Grant of Stock Options 

Northstar also announces the Company has granted an aggregate of 800,000 stock options to certain directors, officers, employees and consultants of the Corporation, at an exercise price of $0.30. The stock options are subject to the Company's stock option plan and 1/3 of the stock options shall vest immediately, subject to a statutory four month hold period, and the remainder in two additional and equal allotments one and two years after the date of grant. 

About the Miller Gold Property

The Company's flagship property is the 100% owned Miller Gold Property, situated 18 km southeast of Kirkland Lake and Kirkland Lake Gold's Macassa SMC gold mine. Northstar drilled 5,023 metres in 28 holes at Miller in 2020, targeting near-surface high-grade and bulk-tonnage gold-telluride mineralization at Miller. Four new high-grade vein structures (Vein 1, 2, 3 and 4) (86.6 g/t Au / 0.5 metres and 18.0 g/t Au / 3.9 m; incl. 100.0 g/t Au / 0.6m) and the bulk-tonnage Allied Gold Zone (1.4 g/t Au over 118.5m and 1.2 g/t Au over 107.3m) were expanded / discovered and 3D modeled. Northstar also commissioned a $350,000 property-wide 3D IP, gravity and magnetic geophysics program on the Miller Gold Property in 2020 to further define gold mineralization controls at depth.

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