Wabassi

Summary

The Wabassi Property is located in North-Western Ontario, 60 km south of our Highbank Lake project and 100 km south of the Ring of Fire Ni-Cu-PGE and Chromite deposits. The property is being explored for reef-hosted PGE and massive sulphide Ni-Cu-PGE deposits as well as Cu-Zn-Ag-Au volcanogenic massive sulphides (VMS). The proposed road, which will access the Black Thor and Black Label chromitite deposits in the “Ring of Fire,” and now owned by Cliffs Natural Resources, passes near the Wabassi property.

The Wabassi property is currently 100% owned by Northern Shield, with Discovery Harbour Resource Corporation earing into a 51% interest by spending $3.4 million in exploration expenditures by March 2012.

The 2010 drill program resulted in the discovery of high-grade zinc-copper-silver mineralization in a VMS setting on the edge of the Wabassi Intrusion (A2 Zone) and copper-nickel-silver at the A1 Zone. Follow-up drilling in 2011 resulted in the discovery of another VMS occurrence at Anomaly E. The two discoveries strongly suggest the existence of a new VMS camp at Wabassi.

Northern Shield has since expanded its land position and currently has an interest in over 600 square kilometers of claims at the heart of the Wabassi VMS camp including a 40 km stretch of the stratigraphy that hosts the two VMS occurrences discovered to date.

Drilling to date has identified two distinct rock types and styles of mineralization: volcanic rocks and volcanogenic massive sulphide (VMS) zinc-silver-copper mineralization has been intersected in the A2 and E Zones; and rock types predominantly consisting of mafic and ultramafic intrusive lithologies belonging to the Wabassi Intrusive Complex and containing net-textures sulphides are seen in the A1 Zone.

A1 Zone

Drill-holes 10WA-05,06, 08, 09, 10 and 12 targeting the A1 anomalies, intersected pyrrhotite-dominated massive, semi-massive and disseminated and net-textured sulphides containing copper, silver, zinc and nickel mineralization. Eighty-five of the one hundred and thirty-four samples assayed from drill-hole 10WA-05 returned greater than 5 g/t silver. The assay results, mineralogy and textures suggest that the A1 Anomaly may be hybrid mixing of VMS and magmatic (nickel-copper) systems.

Highlights from the A1 zone include a drill-hole that encountered two mineralized zones. The upper zone contained 0.48% Cu and 35.6 g/t Ag over 22 meters, including a higher-grade interval of 1.14% Cu and 97.4 g/t Ag over 6.93 meters. The lower zone graded 0.86% Cu and 6.4 g/t Ag over 8.5 meters.

Recent modeling of the geophysical datasets has shown the A1 Zone to be comprised of eleven conductors identified from the ground Electromagnetic (EM) survey and seven conductors from the airborne VTEM survey. The most notable outcome of the modeling from this area is the identification of two deeper and much larger conductive bodies in the A1 zone, which were not intersected in the first phase of drilling that was completed in May and lie at the southern end of the zone where nickel and copper become more prevalent. Ten other conductors within the A1-A2 zones also remain untested.

Significantly, one sample interval from drill-hole 11WA-11 assayed 4.5 g/t Au and 0.47% Cu. The sample interval measures 0.5 meters and contains a 5-10 centimeter diameter fragment (xenolith) of volcanic rock containing veinlets of chalcopyrite (copper sulphide). The fragment, which is likely the source of the high copper and gold values in the sample interval, was likely derived from the surrounding country rock. This suggests that higher grades of copper-gold mineralization may occur in the volcanic rocks adjacent to this part of the intrusion.

Drill-hole 11WA-15, located 100 meters west of 11WA-14, targeted a near-surface anomaly that is one of the strongest conductors on the property. The drill-hole intersected disseminated chalcopyrite hosted within volcanic rocks, which alone cannot explain the strength of the conductor. Partial assays received to date indicate a 30 meter intersection grading 0.23% Cu. It is believed that the disseminated copper mineralization encountered may be part of a copper-rich sulfide system that is causing the strong electromagnetic response nearby.  Additional drilling should explain the cause of this very strong anomaly (23,000 siemens).

A2 Zone

The first hole drilled into the A2 anomaly intersected 2.25% zinc (Zn), 31.7 g/t silver (Ag) and 0.17% copper (Cu) over 49.5 meters, including a higher grade section of 7.07% Zn over 7 meters. Three sample intervals from this drill-hole also contained over 100 g/t Ag including a 0.7 meter interval grading 536 g/t Ag (15.66 oz/ton) and three other intervals contained over 12% Zn. A second drill-hole encountered a high of 705 g/t Ag and 1.8% Cu over 0.6 meters, which was contained within a 33 meter intersection averaging 32 g/t Ag, 0.18 g/t Au, 0.43% Cu and 0.55% Zn, including a higher grade section with 0.82% Cu, 30.5g/t Ag and 0.44 g/t Au over 8.9 meters

E Zone

Following the discovery of the new VMS and Ni-Cu occurrences at Wabassi during the initial drill program, a small VTEM survey was completed to the south and west of the A1-A2 Zones between the Wabassi and Max properties. The survey revealed two significant EM anomalies: The strongest and largest of these is Anomaly “E”. A ground EM survey was subsequently completed over the target and the conductor can be traced over all seven lines of the grid and has a strike length of 600 meters.

Drill-hole 11WA-16 intersected 1.1 % Cu, 2.3% Zn, 54 g/t Ag and 0.14 g/t Au over 20.05 meters, which included a higher grade section of 1.5% Cu, 3.3 % Zn, 76 g/t Ag and 0.2 g/t Au over 13.1 meters, also including 7.7 meters of 1.7% Cu, 4.5% Zn and 91 g/t Ag. This was followed by a zinc-rich zone grading 1.2% Zn over 9.3 meters.

Drill-hole 11WA-17, located 100 meters to the northeast along strike, intersected 1.4 % Cu, 2.1% Zn, 35 g/t Ag and 0.1 g/t Au over 30.24 meters, which included a higher grade section of 2.6 % Cu, 4.8% Zn, 66 g/t Ag and 0.2 g/t Au over 12.7 meters, including 3.6 meters of 5.7% Cu, 9.9% Zn and 150 g/t Ag.

Two other holes have since been completed on this target: 11WA-19 appears to have undercut the target and 11WA-20 deflected slightly but still intersected the edge of the conductor.