Sudbury, Ontario (August 23rdth, 2010) Northern Superior Resources Inc. (“Northern Superior” or the “Company”) is pleased to announce that it has signed a formal option agreement (the “Option Agreement”) with GL Geoservice Inc. and Marc Bouchard of Chapais, Québec (collectively the “Optionors”) who granted Northern Superior an option to acquire 100% of the Croteau Est gold property.
Dr. T.F. Morris, President and CEO of Northern Superior states: “The Croteau Est property consists of drill ready targets including the new Patrick and Dédé gold showings which are located within highly deformed and altered (ankeritized, sericitized, quartz veined and pyritized) basalt. Grab samples collected from these showings returned values up to 15g/t Au. These showings occur within major east-west structures south of the Faribault fault, which may be associated with the Gwillim Mine located 8.0 kilometers to the east. The Croteau Est property ties onto the Gwillim Mine property.”
Since signing the Letter of Intent in July, 2011, Northern Superior through the Optionors has been aggressively exploring the property. Several areas have been stripped and are currently being mapped and sampled. Four hundred and eighty-eight (488) channel and grab samples have been collected from the first four trenches and submitted for analysis (results are pending). This work is being completed to prepare sites for diamond drilling this fall.
Following the terms set out in a letter of intent signed by the parties in July 2011 (see press release July 20th, 2011), Northern Superior has the option to earn a 100% interest in the Project by meeting the following obligations:
- spending an aggregate of $1.7 million on exploration on the property over four years: $200,000 in year 1, $300,000 in year 2, $400,000 in year 3 and $800,000 in year 4;
- making cash payments to the Optionors totaling $350,000: $35,000 upon signing the Letter of Intent, $35,000 by the end of years 1, $40,000 by the end of year 2, $80,000 by the end of year three and $160,000 by the end of year 4;
- issue to the Optionors, $280,000 worth of common shares of the Company: $40,000 at the end of year 2, $80,000 by the end of year 3 and $160,000 by the end of year 4. The number of common shares issuable shall be based on the market price of the Company’s shares at the time of issuance.
Northern Superior retains the right to accelerate any of the obligations.
Upon exercise of the option, the Optionors shall retain a 1.0% NSR on any commercial production with Northern Superior having the right to buyback 0.5% of the NSR for $1.5 million, at any time. The parties have agreed that and further claims which are staked within 1.5 km of the property, shall form part of the option and any production therefrom shall be subject to the NSR.
The transaction is conditional upon Northern Superior obtaining board and TSX Venture Exchange approval.
About Northern Superior Resources Inc.
Northern Superior is a junior exploration company focused on exploring for gold and diamonds in the Superior Province of the Canadian Shield. The Company is actively exploring for gold within two important gold districts: the Stull-Wunnimun in Ontario and the Chibougamau in Quebec. The Company has a number of 100% owned properties (see Company web site, www.nsuperior.com) within these districts that were identified and developed from the Company’s extensive geoscientific data base and from which additional gold exploration projects are being generated. The Company is currently seeking to option-out a number of these properties.
Northern Superior is a reporting issuer in British Columbia, Alberta, Ontario and Quebec, and trades on the TSX Venture Exchange under the symbol SUP. For further information contact:
Thomas F. Morris PGeo., PhD., FGAC
President and CEO
Tel: (705) 525 ‐0992
Fax: (705) 525 ‐7701
Forward looking statements: This news release includes certain “forward‐looking information” within the meaning of Canadian securities legislation and “forward‐looking statements” within the meaning of the United States Private Securities Litigation Reform Act or 1995 (collectively, “forward looking statements”). Forward looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “ forecast”, “ expect”, “ potential”, “project”, “target”, “schedule”, “budget” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved or other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, exploration results, interpretation of results, the timing and success of exploration activities generally, the timing and results of future resource estimates, and future plans and objectives of Northern Superior or Rainy River are forward‐looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Northern Superior’s expectations include exploration risks, changes in project parameters as plans continue to be refined, results of future resources estimates, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, delays in receiving government approvals, unanticipated environmental impacts on operations and costs to remedy same, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.