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Northern Gold Initiates a New Mineral Resource Report and Preliminary Economic Assessment on the Garrcon Deposit, Grants Stock Options
9:15a ET December 29, 2010 (Market Wire)
Northern Gold Mining Inc. (TSX VENTURE: NGM) ("Northern Gold" or "the Company") is pleased to announce that it has retained A.C.A. Howe International Ltd. ("Howe"), a leading geologic and mining engineering consulting group, to complete a National Instrument 43-101 Technical Report ("NI 43-101 Report") to update the resources announced for the Garrcon Deposit at the Garrison Township Gold Project in its September 23, 2010 Press Release. That disclosure was an indicated resource containing 144,000 ounces of gold in 3.8 million tonnes grading 1.2 grams per tonne and an inferred resource containing 530,000 ounces of gold in 18.5 million tonnes grading 0.9 grams per tonne, outlined in more detail in an NI 43-101 Technical Report filed on SEDAR on November 5, 2010. None of Northern Gold's 2010 diamond drill results were used in calculating those resources. As of December 1st, 2010, approximately 10,114 meters of additional drilling had been completed in 41 drill holes. Howe will also complete a first time Preliminary Economic Assessment for the Garrcon Deposit.
This NI 43-101 report will incorporate the data from the 16,891 meters of drilling in 65 holes used to calculate the first resource as well as the additional 10,114 meters completed in 41 drill holes through December 1, 2010 by Northern. Scoping study level metallurgical test work is being completed by SGS Minerals Services at its Lakefield, Ontario metallurgical test facilities. The additional drilling increases the available data by approximately 60% and in combination with the metallurgical testwork a Preliminary Economic Assessment can now be completed that will help the Company focus more closely on those process and operating alternatives that make the most economic sense.
"This is a very important phase in the ongoing definition and development of the Garrcon Deposit as it will further define the target resource within the 760 meter by 275 meter footprint identified in the NI 43-101 Report filed on SEDAR November 5, 2010" stated Martin Shefsky, President and CEO of Northern Gold Mining Inc. "Based on our continuing evaluation of drill results from the Garrcon Deposit we become more convinced that the deposit has the potential to host a bulk tonnage, open-pit mining operation.
The Company is also pleased to announce that it has granted 1,000,000 stock options under the Company's incentive stock option plan, which was approved by shareholders at their annual meeting held September 23, 2010. These options were granted to management and directors, with an exercise price of $0.32 and an expiry date of December 29, 2015.
Quality Assurance/Quality Control
The Company has established a QA/QC program for its various exploration activities, which has been previously disclosed in its news releases. All QA/QC relating to the previously announced mineral resource estimate can be found in the NI 43-101Techncal Report filed on SEDAR on November 5, 2010.
About Northern Gold Mining
Northern Gold Mining Inc. is a TSX-V listed, publicly traded junior resource company based in Toronto, Ontario, dedicated to the discovery and development of high value mineral deposits in the proven mining camps of Kirkland Lake and Timmins in North Eastern Ontario. Northern Gold is focused on developing two advanced stage gold deposits on the Garrison Gold Property. The Property is located within the Abitibi greenstone belt along the Porcupine-Destor and the Munro Fault systems. The Property hosts several gold mineralized showings in addition to the two advanced stage exploration targets, the Jonpol and Garrcon Deposits, for each of which NI 43-101 compliant mineral resources have been calculated, and the less advanced 903 gold mineralized area. Historic diamond drilling by previous operators was completed in all three referenced areas. The Jonpol Technical Report was posted on SEDAR October 21, 2009 and the Garrcon Technical Report was posted on SEDAR November 5, 2010. The Garrison Gold Property has historic mining infrastructure at both the Jonpol and Garrcon Deposits and producing mines are located in close proximity to the property. The Company is in the second year of an option agreement under which it may earn up to an 80% interest in the Garrison Gold Property from ValGold Resources Ltd. ("ValGold") (TSX VENTURE: VAL). For more information on the option agreement, please see the Company's news release dated 14 September 2009.
The technical aspects of this press release has been reviewed by Michael Gross M.S., P.Geol., Vice President Exploration for Northern Gold, who is the "Qualified Person" as defined by NI 43-101 for this project.
CAUTIONARY STATEMENT: This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, future plans and objectives of Northern Gold Mining Inc., 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. Important factors that could cause actual results to differ materially from Northern Gold Mining Inc.'s expectations are the risks detailed herein and from time to time in the filings made by Northern Gold Mining Inc. with securities regulators.
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. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Contacts:
Northern Gold Mining Inc.
Martin R. Shefsky
President and CEO
416.366.7300
416.366.7301 (FAX)
mshefsky@northerngold.ca
www.northerngold.ca
SOURCE: Northern Gold Mining Inc.
mailto:mshefsky@northerngold.ca
http://www.northerngold.ca
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