Northern Rand Resource Corp.

April 26, 2010 19:46 ET

Northern Rand Reports High "Gold-in-Till" Values in Phase III RC Drill Program on its Whitemouth Lake Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 26, 2010) - Northern Rand Resource Corp. (TSX VENTURE:NRR) ("Northern Rand" or the "Company") is pleased to report that high "gold-in-till" values were recorded from a 12-hole Phase III reverse circulation drilling program completed this past January on the Company's 63-claim, 14,832 hectare Whitemouth Lake gold project situated in south-eastern Manitoba, adjacent to the western Ontario border. The high "gold-in-till" values appear to be associated with a large syenite stock, the Boundary Stock, located near the Manitoba-Ontario boundary.

The Whitemouth Lake Property appears to overlay a "hidden" gold target lying in the southern extension of the Lake of the Woods Greenstone Belt. The Geological Survey of Canada and the Manitoba Geological Survey discovered anomalous "gold-in-till" concentrations in the basal tills in the Whitemouth Lake area during a regional drilling program for diamond indicator minerals. Subsequent phases of reverse circulation overburden drilling conducted in 2007, 2008 and by the Company in 2010 focused on tracing the "gold-in-till" up ice toward a suggested bedrock source.

The objective of the Phase III drilling program was to establish the limits of the syenitic Boundary Stock and determine whether the supracrustal rocks up ice from the 2008 reverse circulation drill program were gold-bearing. Although the new drilling did not test the targeted supracrustal rocks directly, it did reveal evidence that they are mineralized. As well, the Phase III drilling confirmed that the high gold values noted in the north-easternmost drill holes continue to build north-eastward with a ~30 percent rise in the pristine to modified gold grains, suggesting a potential bedrock source within one kilometre up ice and confirming the area immediately north-east of the Boundary Stock as an attractive gold exploration target.

By agreement made effective as of March 1, 2010 with Mr. William Hood, the underlying vendor of the Whitemouth Lake Property, the Company has acquired three mineral claims in Manitoba and four mineral claims in Ontario totalling 1,058 hectares. This claim block is adjacent to the north-eastern boundary of the Whitemouth Lake Property and incorporates that area which is thought to host the potential bedrock source suggested by the Company's Phase III reverse circulation drilling program. 

The Company is also pleased to announce that it has obtained agreement to extend by one year the payment dates of certain option and assignment payments previously due on February 15, 2010 and March 1, 2010 in relation to the Whitemouth Lake Property. Pursuant to the option agreement by which Mr. Hood granted the underlying option (the "Option") on the Whitemouth Lake Property now held by the Company, the Company was required to make a payment to Mr. Hood of $100,000 on March 1, 2010 in order to maintain the Option. Mr. Hood has agreed with the Company to extend the date of payment to March 1, 2011 in consideration of $20,000 to be paid to him by the Company.

Pursuant to the assignment agreement by which the Company took an assignment of the Option from Range Rider Resources Ltd. ("Range Rider"), the Company was to make payments to Range Rider of: (a) $150,000 and 2,500,000 common shares of the Company on February 15, 2010; and (b) $100,000 and 2,500,000 common shares of the Company on February 15, 2011. Range Rider has agreed to extend to March 1, 2010 the payments previously due on February 15, 2010, and to extend to March 1, 2012 the payments previously due on February 15, 2011. The Company has agreed to pay Range Rider $20,000 in consideration of these extensions.

Qualified person

Nelson W. Baker, PEng, is a director of the company and is a 'qualified person' for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Properties of the Canadian Securities Administrators. He has verified the data (including sampling, analytical and test data) and prepared or supervised the preparation of the information contained in this news release.

Contact Information

  • Northern Rand Resource Corp.
    Mr. Craig Dalziel
    President and CEO