NFX Gold Inc.

NFX Gold Inc.
Maximus Ventures Ltd.

Maximus Ventures Ltd.

June 05, 2006 11:23 ET

NFX and Maximus Resume Drilling at Larder Lake Gold Project, Ontario


Not for dissemination in the United States

Up to 16,000m of drilling in 24 holes To Test Historic Resources & New Targets

NFX Gold Inc. (TSX VENTURE:NFX) and Maximus Ventures Ltd. (TSX VENTURE:MXV) announced today that diamond drilling has commenced at the Larder Lake gold project near Larder Lake, Ontario. The 2006 drill program has located sites for an initial 10 holes, with up to 24 holes possible by the end of the year (6,600 to 16,000 meters), all focused on resource expansion and regional exploration around the historic Cheminis gold mine. The Cheminis gold mine is hosted in similar rocks and is on the same zone of faulting as the Kerr Addison gold mine and the Kirkland Lake district (respectively 2 kilometers east and 19 kilometers west of the property), which in the aggregate have produced approximately 37 million ounces of gold.

2006 Exploration Objectives

The objectives of the 2006 drill program are to test:

1. For high grade gold mineralization below and adjacent to the Cheminis gold mine, as well as the Fernland and Bear Lake prospects;

2. Several shallow, near-surface zones of gold mineralization for their potential to host resources that might be amenable to open pit mining; and

3. Shallow and deeper gold targets on three regional-scale fault zones north of the Cheminis mine for Kerr Addison type deposits.

The regional scale faults are part of the Larder Lake Break, a larger zone of connected faults that extends over 200 kilometers east from Kirkland Lake, through Larder Lake, to Val d'Or, along which numerous large gold mining districts are located. Target areas for the drilling are shown on the map at the end of this release.

"The presence of three essentially untested faults, close to zones of known gold mineralization, enhances the potential for new discoveries on the Larder Lake property," said Frederick Graybeal, President & CEO of Maximus. "Further exploration for new ore zones near the existing Cheminis resource is justified by improved gold prices, a better understanding of potential geologic controls on gold mineralization within the region and the recognition of three parallel, essentially untested, Kerr-Addison style, regional faults that appear to act as the pathways for mineralizing fluids."

Cheminis Mine

The Cheminis mine hosts an in situ Measured and Indicated Mineral Resource of 1,619,082 tons grading 0.175 oz/ton gold and an in situ Inferred Mineral Resource of 924,275 tons grading 0.189 oz/ton gold (see NFX's National Instrument 43-101 Technical Report dated November 20, 2003, prepared by MRB & Associates, available on SEDAR). These estimates were prepared by G. M. Hogg in 1998, in accordance with National Policy 2A, the requirement in 1998 when the resource estimates were made, and as such, are not NI 43-101 compliant.

Most of the 876 holes drilled previously at Larder Lake have focused on the fault strand that controls gold mineralization at the Cheminis mine and Fernland, Bear Lake and Barber Larder prospects. However, an analysis of assays and geologic information in the property database by consultants to NFX and Maximus has identified 3 additional altered and mineralized fault zones north of the Cheminis mine. These three fault zones extend across a cumulative 11 kilometers of the project and a compilation of historic data indicates very limited drilling along these important, ore controlling structures. The northernmost of these structures may extend through the site of the now-closed Kerr Addison mine (11 million ounces of gold produced at a grade of 0.29 oz Au), located 2 kilometers to the east of the project property boundary.

Further information on the Larder Lake Property can be found in a Maximus report titled "Technical Report, NI-43-101 & 43-101F1, LARDER LAKE PROPERTY, Larder Lake, Ontario", dated February 20, 2006, prepared by MRB & Associates, and also filed on SEDAR.

Larder Lake Property

The Larder Lake project consists of the Cheminis, Bear Lake, and Fernland properties (all 100% NFX owned) and the Barber Larder property (75% NFX owned). Under the joint venture option letter agreement between NFX and Maximus signed on November 24, 2005, and closed on March 3, 2006 Maximus acquired the right to earn a 60% interest in NFX's interest at Larder Lake by expending $6 million on exploration thereon by December 31, 2008. Minimum expenditures must total $700,000 by July 31, 2006 to continue the option. As part of the option and joint venture agreement, NFX has issued to Maximus 8,000,000 NFX warrants expiring in annual blocks or under certain NFX market share price thresholds, as described by Maximus in an April 21, 2006 news release.

This release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, are forward-looking statements. Forward-looking statements reflect the current internal projections, expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by the Company with securities regulatory authorities, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company.

55 Adelaide Street East, Suite 410
Toronto, ON M5C 1K6 Canada
Tel: (416) 360-8006 Fax: (416) 361-1333

Suite 202, 837 West Hastings Street,
Vancouver, BC V6C 3N6 Canada
Tel: (604)684-6264 Fax: (604) 684-6242

Please note: There is a map available on CCNMatthews' website at the following link:

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • NFX Gold Inc.
    Thomas G. Larsen
    President and CEO
    (416) 360-8006 or Toll Free: (800) 360-8006
    (416) 361-1333 (FAX)
    Maximus Ventures Ltd.
    Frederick T. Graybeal
    (973) 635-8262
    (973) 635-4991 (FAX)