Northern Lights Resources

Base Metal Exploration in Nevada

This Northern Lights Resources profile is part of a paid investor education campaign.*

Overview

Northern Lights Resources Corp. (CSE:NLR) is a growth-oriented exploration and development company with promising projects in Nevada and Arizona.

Northern Lights Resources’ Medicine Springs project in Nevada is a historical producer of lead, zinc and silver. The mineralization at Medicine Springs is categorized as a carbonate replacement setting, which occurs at high-angle veins and breccias. It is also categorized as shallow dipping stratiform replacement and intensively oxidized mineralization, which occurs at depths exceeding 180 meters. There are two key exploration targets on the property: a large-scale zinc oxide surface deposit and a large-scale zinc sulfide carbon replacement deposit similar in style to Arizona Mining Inc.’s (TSX:AZ) Taylor Deeps deposit.

Significant exploration work was completed on the property in the 1980s and 1990s by US Minerals Exploration, USAX Cominco and Silver Resources, forming the basis for the company’s ongoing exploration. Northern Lights Resources has identified a large iron-titanium mineralization footprint on the property, including the presence of significant base and precious metals in near-surface trenching. The mineralization hosts a titanium feedstock mineral called leucoxene, which commands premium prices in the titanium feedstock market. The project holds the potential for a large-scale surface ferro titanium deposit that can produce a high-grade leucoxene concentrate for the growing Chinese titanium and specialty steel market.

In 2018, Northern Light Resources identified six additional areas of mineralization that require further exploration. Through the company’s geochemical sampling program, Northern Lights Resources was able to narrow down the targets to four. The company intends to test these targets in its upcoming 4,900-meter drill program.

Northern Lights Resources also owns the Secret Pass gold project in northwestern Arizona. The project is located 13 kilometers south of the Oatman-Katherine gold district, which has reportedly produced over two million ounces of gold and one million ounces of silver between 1870 and 1980. The property host two targets: Tin Cup and FM.

The Tin Cup has a strike length of approximately 245 meters and a depth of up to 180 meters and the FM zone has a strike length of approximately 200 meters and a depth of up to 120 meters. Both zones remain open along strike and at depth. They two zones also only cover 10 percent of the property, providing Northern Lights Resources with discovery potential.

Northern Lights Resources’ management team and insiders, currently own a 40 percent stake in the company. The company is led by an experienced board with strong capital markets and project development expertise.

Northern Lights Resources Company Highlights

  • Both exploration projects are situated in mining-friendly jurisdictions in the US.
  • Global supply deficit for zinc expected in coming years.
  • Growth in Chinese titanium demand.
  • Strong, experienced management team and board.
  • Potential for high-grade carbon replacement zinc sulfide and zinc oxide deposits at Medicine Springs.
  • Pre-existing infrastructure at the Medicine Springs property aids in keeping overhead costs low.

Northern Lights Resources Medicine Springs project

Comprised of 149 unpatented mineral claims and totaling 1,206 hectares in Elko, Nevada, the Medicine Springs project is focused on targeting the property’s silver-lead-zinc deposits. Northern Lights Resources holds an option to acquire a 100 percent interest in the project over a six-year term. Between 1910 and 1956, the project produced 160 tonnes of lead, 800 kilograms of zinc and 500 kilograms of silver from its mine shafts and shallow surface digging.

northern-lights-medicine-springs-project

Infrastructure and climate

Found in the Medicine Range foothills, the Medicine Springs project is 160 kilometers southeast of Elko, Nevada. The project approaches 2,000 meters elevation and is easily accessible by a plethora of county and local access roads which all lead directly to the Golden Pipe headframe and its drill sites.

The site’s climate, dry warmth in the summer and cool winters, is typical for northeastern Nevada. Precipitation is sporadic, with light rains and mild snow in winter and periodic thunderstorms in summer. Weather conditions, such as spring thaw, can occasionally affect dirt access roads, but exploration work can be conducted all year.

Historical exploration

Substantial exploration had previously been conducted on-site and identified a mineralized zone 3,400 meters in length and over 1,400 meters in width alongside numerous other sub-parallel northeast-trending structures. Between 1982 and 2008, a total of 125 drill holes across 5,442 meters were drilled by USMX, USAX and Silver Reserve.

USAX, which held an option on the south half of the claim area between 1980 and 1994, carried out additional mapping, bulldozer trenching and prospecting in addition to drilling. This exploration identified a large area of iron oxide-silica-carbonate-barite alteration over an approximate strike length of 1,600 meters at minimum extending northeast from the Silver Buttes project. The alteration seemed to be developed between prominent faults which run sub-parallel to the western fault, containing the Golden Pipe vein and breccia mineralization. Analysis shows the alteration area to contain various prospecting pits and shallow mining shafts, while sampling has indicated anomalous base metal and silver values.

One hole drilled by USMX 900 meters to the northeast of the Golden Pipe mine, in an area covered by post-mineral tertiary pyroclastics and pediment cover, intersected decalcified and mineralized limestone and included values of 2.06 percent lead, 2.8 percent zinc and 76.2 g/t silver at a depth of 42.5 meters and 1.5 meters across. Other holes reported grading as high as 4.59 percent lead, 0.02 percent zinc and 101.9 g/t silver. Drilling at nearby analogous geological sites has shown 63.2 million tonnes grading at 34.3 g/t silver and 0.31 g/t gold with inferred resources of 77.6 million tonnes at 34 g/t silver and 0.31 g/t gold.

Historical exploration

Substantial exploration had previously been conducted on-site and identified a mineralized zone 3,400 meters in length and over 1,400 meters in width alongside numerous other sub-parallel northeast trending structures. Between 1982-2008, a total of 125 drill holes across 5,442 meters were drilled by USMX, USAX and Silver Reserve.

USAX, which held an option on the south half of the claim area between 1980-1994, carried out additional mapping, bulldozer trenching and prospecting in addition to their drilling. This exploration identified a large area of iron oxide-silica-carbonate-barite alteration over an approximate strike length of 1,600 meters at minimum extending northeast from the Silver Buttes project. The alteration seemed to be developed between prominent faults which run sub-parallel to the western fault, containing the Golden Pipe vein and breccia mineralization. Analysis shows the alteration area to contain various prospecting pits and shallow mining shafts, while sampling has indicated anomalous base metal and silver values.

One hole drilled by USMX 900 meters to the northeast of the Golden Pipe mine, in an area covered by post-mineral tertiary pyroclastics and pediment cover, intersected decalcified and mineralized limestone and included values of 2.06 percent lead, 2.8 percent zinc and 76.2 g/t silver at a depth of 42.5 meters and 1.5 meters across. Other holes reported grading as high as 4.59 percent lead, 0.02 percent zinc and 101.9 g/t silver. Drilling at nearby analogous geological sites has shown 63.2 million tonnes grading at 34.3 g/t silver and 0.31 g/t gold with inferred resources of 77.6 million tonnes at 34 g/t silver and 0.31 g/t gold.

northern-lights-silver-reserve

Ongoing exploration

Northern Lights Resources’ exploration program for 2018 was focused on developing drill targets to identify large-scale near-surface oxide and deeper sulfide zinc-lead-silver carbonate replacement mineralization. Over the course of the program, the company completed a NI 43-101 technical report, detailed geological mapping and surface sampling, a geochemical soil survey, an aeromagnetic survey and the reinterpretation of a historical CSAMT geophysical survey. The company also created a GID database comprised of all the historical information on the property.

Through geophysical and geological work, the company was able to identify six targets on the property. Each target is near the Golden Pipe trend and surface sample assays returned a unique geochemical signature that includes lead, zinc, silver, barium, arsenic, antimony and manganese. The sampling program returned values of up to 559 g/t silver, 10.1 percent lead and 6.2 percent zinc.

NLR-medicine-springs-table-1

“The geological and geochemical characteristics of the Medicine Springs mineralization strongly suggest a distal carbonate replacement setting related to a concealed molybdenum porphyry system. The geochemical signature and style of mineralization observed at Medicine is similar to other carbonate-hosted, silver-rich base metal veins, CRD and skarns deposits developed peripheral or above copper-molybdenum porphyry stocks,” said Northern Lights Resources Head Geologist Gary Artmont.

From these results, Northern Lights Resources narrowed down the drill targets further, establishing four areas of interest. The first target is an anomaly centered on the Golden Pipe prospect that contains early flat-lying oxide zinc-lead-silver replacement mineralization. The second target is a prospective 1,800-meter-long by 550-meter-wide zone of mineralization.

The third target is a weakly defined anomalous base metal with copper-gold-molybdenum and Carlin-style geochemistry. The final target hosts a north-trending linear anomaly that has not been developed yet. These last two drill targets are lower on the company’s list of drilling priorities.

Northern Lights Resources intends to follow up its results from 2018 with a 4,900-meter drill program focused on the four targets. The company hopes to identify Taylor-Hermosa-style silver-rich base metal mineralization as well as confirm the presence of the oxide mineralization zone, which was identified in previous historical drill campaigns.

Secret Pass Gold Project

In July 2019, Northern Lights Resources acquired the 868-hectare Secret Pass gold project in Mohave County, northwestern Arizona. The project is located 13 kilometers south of the Oatman-Katherine gold district. Established in 1863, the district is Arizona’s third-largest gold-producing area. It is reported that the region produced over two million ounces of gold and one million ounces of silver between 1870 and 1980.

The Oatman-Katherine district is home to numerous historic mines and workings with over 80 mines reporting production. Current operating mines in the area include Northern Vertex Corp.’s Moss mine, an open-pit heap leach operation, and Para Resources Inc.’s (TSXV:PBR) Gold Roads project, which was recently put back into production in February 2019.

Historical Exploration

Mining records indicate that there are 10 historic mine workings on the property. Between 1984 and 1991, Santa Fe Mining and Fischer-Watt extensively explored and drilled the Tin Cup and FM gold prospects. A total of 14,000 meters of drilling were completed during this period.

The Tin Cup gold zone resides along the Frisco mine fault. The mineralized zone has a strike length of approximately 245 meters and a depth of up to 180 meters. The zone remains open along strike and at depth. The Tin Cup mine reportedly produced several hundred tons of mineralized material grading 15 g/t gold to 31 g/t gold leading up to the 1930s, when production ceased.

Between 1984 and 1991, significant gold mineralization was intersected in numerous holes in the Tin Cup gold zone. Gold assays ranging up to 40 g/t gold over significant widths were recovered on the property from depths ranging from 30 meters to 180 meters.

The FM gold zone is also controlled by the Frisco mine fault. The area has a strike length of approximately 200 meters and a depth of up to 120 meters. It also remains open along strike and at depth. The Tin Cup and FM gold targets only make up 10 percent of the overall property, leaving Northern Lights Resources with the opportunity to make additional discoveries.

Northern Lights Resources’ Management Team

Albert (Rick) Timcke — Executive Chairman, President and Director

Rick Timcke is a Vancouver-based entrepreneur and financier who has been involved in public equity market roles for more than 30 years. Specializing in the marketing, funding, restructuring and formation of Canadian-based resource issuers listed on both Canadian and US exchanges. Over his career, he has held senior roles in listed public companies ranging from Investor Relations to being an Officer and Director. Previously held positions include: CEO of Northern Lights Resources Corp., Director of LiCo Energy Corp., Investor Relations of Nevada Energy Metals Inc., Corporate Development and Investor Relations of Auracle Resources Ltd., President, CEO and Director of Tajiri Resources.

Jason Bahnsen, B.Sc. (Mining Engineering), MBA — CEO and Director

Jason Bahnsen is a mining engineer with over 30 years of experience in natural-resources finance and operations. Prior to joining Northern Lights, he was CEO of Falcon Isle Resources (private), CEO of Strata Minerals Inc a TSXV-listed phosphate explorer, CEO of Gobi Coal and Energy (private) Mongolian coal development company and director at Deutsche Bank AG, including serving as the head of Deutsche Bank’s Metals and Mining investment banking practice in Asia.

Gary Artmont — Head Geologist

Gary Artmont is a senior exploration geologist with over 40 years of international experience in regions including Canada, USA, Mexico, South America, Indonesia, Africa, Russia, China and Mongolia. He is a fellow member of AUSIMM and qualified to write NI 43-101 or JORC Competent Person reports for various exchanges. His exploration background extends from grassroots to project pre-feasibility studies. His working experience related to a wide variety of mineral settings that include, precious metals, ferrous and non-ferrous metals, industrial and energy commodities. He has held senior positions with Rio Tinto, Kennecott Australia, Freeport McMoran Indonesia, Union Carbide, Norilsk Nickel and Ivanhoe Mining. From 1989 to 1995, he served as the chief exploration geologist for Freeport responsible for conducting exploration over a 57,000-square-kilometer contract of work surrounding the world-class Grasberg deposit.

Leon Ho Interim, CPA — CFO

Leon Ho is a chartered professional accountant working at Cross Davis & Company LLP, a chartered professional accountant firm providing accounting services to publicly-listed entities, primarily in the mining sector. He works directly with mining CEOs and directors assisting with their regulatory and accounting needs.

Richard A. Kelertas, BscF, MscF, RPF — Independent Director

For over 35 years, Richard Kelertas has held various positions in corporate Canada, encompassing sales, marketing, corporate development, corporate banking and equity capital markets. For 25 years, he has been a top ranked equity analyst and worked for various national and international firms. He was recently manager – special projects (Pulp & Paper) at Resolute Forest Products Ltd, and before that served as senior vice president of corporate development at Allana Potash Corp from May 1, 2012 to July 28, 2015. Previously he served as vice president and senior financial analyst at Dundee Canada and Scotia McLeod. He has also held senior corporate banking positions at National Bank of Canada and the Mercantile Bank of Canada. Before that he worked in the resources division of Noranda Inc and held various sales, marketing and corporate development positions. He has served as a director of Strata Minerals Inc from July 24, 2012 to April 01, 2016 and was CEO of Celeste Mining Corp from March 2013 until November, 2015.

Gordon Tainton—Independent Director

Gordon Tainton has over 25 years of experience at senior management levels in various sectors of the natural resources industry, including distribution, port and terminal development, trading, shipping, off-take agreements, and project finance. Within management teams, he has financed and developed port and terminal projects in the Americas, Asia and Oceania. He spent eight years with Sumitomo Corp of Tokyo sourcing, purchasing and delivering key intermediate bulk and bagged industrial mineral products. He is currently president and director of Focus Ventures Ltd, a TSXV-listed company developing a large-scale phosphate project in Peru.

Graham Keevil — Non-Executive Director

Graham Keevil brings 13 years of public company experience; specifically, in the funding and management of publicly traded resources issues. He has worked with Teck Resources, Selkirk Metals, Pure Diamonds, Cross Lake Minerals and a variety of other public ventures. He is currently president of Tajiri Resources, a TSXV junior explorer with projects in Guyana and Burkina Faso.


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