World Wakes Up to Potential of Co.'s Root and Cellar Project in Newfoundland
Contributed Opinion

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Northern Shield Resources Inc. (NRN:TSX.V) stock has taken off higher in the recent past as the investment world starts to wake up to the prospect of the company sitting on a potentially massive gold resource in Newfoundland which has the rather odd name “Root and Cellar,” where a diamond drill program is just commencing.

Before we review the latest stock charts we will consider the fundamentals of the company using pages from its latest investment deck.

As it says on the following introductory page, “We believe Root & Cellar is well positioned to become the next significant discovery in Canada, and has all the ingredients to form a giant and high-grade epithermal gold system.”

The Root and Cellar Project is located in the Avalon Terrane on a large peninsula in southeast Newfoundland. Although broadly similar to BC’s Golden Triangle, the area is underexplored, and despite its seemingly remote location, it has good infrastructure…

The zone of interest within the peninsula in which Root and Cellar sits is shown on the following page…

The existence of significant commercially viable quantities of the critical metal tellurium at Root and Cellar is a strong indication of the presence of very large and high-grade epithermal gold deposits and related copper porphyry, because where it exists, so do they…

Whilst the main focus is the gold in the Conquest Zone, a very substantial copper deposit may exist a little to the southwest in the large Creston Zone and silver is present in significant quantities too…

A closer look at the Conquest Zone…

Impressive gold grades found in the Trench area…

The gold system at Conquest looks like it is BIG, DEEP and RICH, and judging from the recent action in the stock price, the word seems to be spreading…

More details of geology of the gold system at Conquest, which are not included for reasons of space, may be viewed in the investment deck.

The planned diamond drilling has just begun and the results could be impressive!...

What has been found at and near-surface is just the tip of the iceberg — this could turn out to be a really big rich gold bearing system…

While the emphasis so far has been on the gold at Conquest, for obvious reasons, we should keep in mind that Conquest also hosts copper and also the potential for a big copper porphyry system at Creston within the Root and Cellar Project area, not far away to the southwest…

There are strong indications of a big copper porphyry system at Creston…

There are good Tellurium grades across the project which is a positive indicator for a big gold system as mentioned above. This page gives details…

Lastly, the Capital Structure of the company is shown on this page. There are a reasonable 93.8 million shares in issue and no debt…

Now to consider the latest charts for Northern Shield.

We will start with the very long-term chart going back to 2002 because this shows the entire history of the stock and thus gives us an overall perspective. Rather amazingly, this reveals that, notwithstanding some rather dramatic spikes along the way, the stock was stuck in a long and erosive bear market since as far back as the 2006 high above CA$7.00. This bear market finally ended at the early 2024 low at just 2.5 cents (although it did form a bottom in 2014 and 2015 at 5 cents). So we see that it became virtually worthless compared to the highs in the 2000s by the time this bear market ended.

Now we will zoom in to look at the sub-bear market from the 2020 highs at about 87 cents on a seven-year chart. On this chart we can see that this sub-bear market had essentially run its course by the end of 2022, although the price did drop a little more by the time it hit its final low early in 2024. However, it is clear that a basing process began from the late 2022 lows. After an attempt to break out of a smaller Pan base in mid-2023 failed, the price dropped back to do more basing work and marked out another low Pan base through 2024 and into the first part of this year which it is right now breaking out of. This chart is very useful as it shows us that the resistance associated with the base pattern extends up to 13 cents and it can be traced back to the early basing action in the Spring and Summer of 2022. So a clear breakout above this level should lead to acceleration to the upside as the price targets the next zone of stronger resistance shown in the CA$0.24 – CA$0.28 price zone. The strong upside volume on the current advance, that is causing the Accumulation line to skyrocket is a clear indication that this stock “means business” and is going to get on with it, break above the resistance and continue on towards the next target.

Now we move on to consider recent action in more detail on the 30-month chart. Here we can see the impressive rally from early April. However, after such a strong rally the stock is clearly overbought and is thus entitled to consolidate its gains and perhaps react back some, especially as it has arrived at the resistance zone shown and has opened up a very big gap with its 200-day moving average, but there are signs that it could press on regardless which fundamentally would be due to a growing appreciation of the potential magnitude of the company’s gold resource at — that could be huge.

Zooming in still further via the three-month chart enables us to break down the action during the strong uptrend from early May. This enables us to see that, although the ascent looks almost vertical on longer-term charts, it has actually taken the form of the orderly uptrend shown. We have just seen a strong 2nd upleg out of the fine bull Pennant delineated (earlier predicted by this writer) that has taken the price up to a short-term target at the upper boundary of the channel shown. Whilst there is some chance that the price could even further ahead and the uptrend get even steeper, it is considered more likely that it will consolidate within the channel, perhaps reacting back some short-term, before a third upleg gains traction.  Everything about this chart is bullish, although we are cognizant of the current overbought status of the stock.

Conclusion: Northern Shield Resources is on the verge of breaking out of a large base pattern that started to form in early to mid-2002, and although it may pause for a little while here at resistance before it does so, it is set up to overcome this resistance and then advance swiftly to a first target at the next significant resistance at the CA$0.24 – CA$0.28 zone.  The next target is resistance in the CA$0.50 zone and once above that it should advance to the CA$0.80 – CA$0.90 area with long-term charts showing much higher targets possible.

Northern Shield Resources' website.

Northern Shield Resources Inc., NRN.V, C$0.12, NSHRF on OTC, $0.077  FRA: N9SA. Prices for close of trading on June 12, 2025