NSR Resources Inc.

November 30, 2011 15:04 ET

NSR Resources Inc. Files 43-101 Report and Provides Corporate Update-Deposit Modeling and Resource Estimates Increases Resource Potential on NSR Resources Inc.'s Rand Malartic Property, Malartic

TORONTO, ONTARIO--(Marketwire - Nov. 30, 2011) - NSR Resources Inc. ("NSR" or the "Company") is pleased to announce the completion of Deposit Modeling and a NI 43-101 Resource Estimate (the "Technical Report") on its Rand Malartic Property (the "Rand Property"), Malartic, Quebec. The Technical Report was prepared by Southampton Associates Inc. as an integral part of the Company's evaluation of the exploration and development potential of the Rand Property.

Technical Report Highlights:

  • The Rand Property is situated in the heart of the Malartic Gold Camp and consists of 12 contiguous mineral development licenses covering 644.44 hectares, strategically located along an 8km strike length of the Malartic-Val d'Or gold belt, Northwestern Quebec;
  • Past producing gold mines in the Camp include the Canadian Malartic, Barnet, Sladen, East Malartic, Malartic Gold Fields and Camflo, which collectively produced over 8 million ounces from 1926 to 1992;
  • The Rand Property abuts Osisko Mining Corporation's development gold property and is located approximately 3,000 metres east of Osisko's Property reporting measured + indicated in-pit resources for the Canadian Malartic and South Barnet deposits totalling 238.1 million tons at an undiluted grade of 1.2gpt gold, representing 9.17 million ounces of gold;
  • The Rand Property also abuts the past producing Malartic Gold Fields property which produced 9,874,175 tons of ore averaging 0.172 opt gold, equating to approximately 1.7 million ounces, from two gold deposits, the largest being located 915 metres east of the Rand Property;
  • The total past and potential future gold production for the Malartic camp approximates 17 million ounces of gold from six (6) mines;
  • The Rand Property hosts the 67 Gold Zone Deposit and the 39 Gold Zone Deposit estimated to contain
NI 43-101 Resource Estimate
NSR Resources Inc- Rand Malartic Property
Zone Resources Tonnes Grade***
gpt/ Au
67 Zone Indicated* 641,115 2.96
Inferred** 288,317 1.84
39 Zone Inferred** 2,815,269 2.28
* (10m x 10m x 10m SEARCH RADIUS)
** (40m x 40m x 13m SEARCH RADIUS)
*** (Cut-off grade 0.5gpt Au)
  • The deposit modeling indicates that both the 39 and 67 Gold Zone Deposits continue to depth;
  • The deposit modeling also indicates the 39 Gold Zone Deposit continues along strike to the northwest and to the southeast along the Sladen Malartic Fault, which marks the contact with the Pontiac meta-sediments and hosts the past producing Canadian Malartic, Sladen Malartic and East Malartic gold mines;
  • Southampton believes a potential mineral deposit exists on the NSR Property in a similar host deposit ratio (30% Porphyry 70% Sediments) that exists on Osisko's Canadian Malartic Project. This belief is rooted in extensive research into the geological setting, alteration, mineralization and deposit model similarities which exist between the two properties;
  • The porphyry hosted gold mineralization on the Rand Property is approximately 3.7 million tonnes averaging 2.36 gpt Au [indicated + inferred-reference NI 43-101 Part 2, Section 2.3 (2) and (3)]. Southampton has assumed that this prophyry hosted resource equates to 30% of the potential mineral deposit. The remaining 70% would be sediment hosted, which equates to 8.7 million tonnes averaging 2.36gpt Au for an aggregate total resource of 12.5 million tonnes similar grade;
  • In addition to the 39 and 67 porphyry hosted gold zones on the Rand Property, several other gold bearing porphyries were intersected in drilling, but not to the extent of identifying a resource. Southampton believes that these porphyries could add an additional 25% to the global prophyry hosted gold resources, which would raise the 30% portion of the deposit ratio to 4.7 million tonnes and a 70% sediment hosted component to 10.9 million tonnes for an aggregate total of 15.6 million tonnes of similar grade;
  • Given the scenario presented above, a potential mineral deposit on the Rand Property could contain between 12.5 and 15.6 million tonnes averaging between 1.2 gpt Au and 2.3gpt Au; however, further drilling is required to define a resource;
  • Caution: potential quality and grade of the potential mineral deposit is conceptual in nature, and there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.
  • Southampton recommends that the historic decline be dewatered and that 5,000 metres of underground diamond drilling be carried out to test the on strike continuation of the 39 Gold Zone Deposit; and
  • The total cost of the work is estimated to be $2.0 million.

For further information please reference the NI 43-101 report entitled "Technical Report: Deposit Modeling and NI 43-101 Resource Estimate for NSR's Rand Malartic Property, Malartic, Quebec" and date October 1, 2011 filed on SEDAR. David G. Wahl, P.Eng., P.Geo., ICD.D, President of Southampton, is a Qualified Person under NI 43-101 and prepared and approved the scientific information contained in this News Release.

NSR Provides Update on Listing Status:

The Corporation was delisted from Tier Three of the TSX Venture Exchange (NEX) in September 2011 for failing to meet the continued listing requirements of incurring sufficient exploration expenditures over a prescribed time period. With the NI 43-101 Report in hand, the Corporation chose not to re-activate its Tier 3 (NEX) listing on the TSX Venture Exchange because the maximum capital raise is limited to $500,000 on NEX, and the Corporation's proposed exploration program is $2 million. The Corporation has received conditional approval to list on the Canadian National Stock Exchange (CNSX) and expects to be posted for trading in December 2011, subject to filing of customary documentation including confirmation of sufficient working capital to undertake our drill program. CNSX has no restriction on the amount of capital raised.

NSR Board Approves $3 Million Private Placement:

In order to re-capitalize the Corporation, the Board of Directors have approved a private placement of up to $3 million at a price of $0.05 per share to be comprised of a combination of Units and Flow-Through Units. Closing of the private placement is anticipated to occur prior to year end. Subscribers under the private placement may include participation from the Corporation's principal shareholder, incoming directors and other accredited investors. Proceeds from the placement will be used for the drilling program, general working capital and repayment of outstanding indebtedness.

Corporate Update

NSR is also pleased to announce the following Management appointments following its Annual Shareholders Meeting which took place in Montreal on October 31, 2011. Mr. Robert Spiegel, who has been a director of the Company since 2002 and has served as legal counsel to the Company, has been appointed Chief Executive Officer and will be responsible for managing NSR's Canadian operations and planning and development with respect to its principal Canadian asset, the Rand Malartic property in Val d'Or, Quebec. Mr. Ross Abbott will continue as Secretary-Treasurer.

Mr. Juan Enrique Rassmuss has been appointed Chairman of the Board, and Mr. Juan Rassmuss, the controlling shareholder, has been appointed Chairman Emeritus. Messrs. Rassmuss will continue to provide NSR's Management Team with strategic direction and support as the Company executes on its plan to evaluate the potential of its Rand property.

NSR also welcomes two new directors to its Board. Mr. Ricardo Landeta brings many years of large mine operational experience to NSR, having served as manager of Codelco's largest Chilean mine. Mr. Brock Bundy, CMA, brings banking and financial services expertise to the Board, having served overseas as a Managing Director at a major Canadian bank as well as managing several private equity investments and publicly held investments on behalf of a Toronto-based merchant bank.

Contact Information

  • For further details concerning the content of this News
    Release, please contact NSR Resources Inc.
    Robert Spiegel
    Chief Executive Officer

    NSR Resources Inc.
    W. Ross Abbott