New Guinea Gold Corporation

New Guinea Gold Corporation

June 05, 2007 14:11 ET

New Guinea Gold Corporation: First Gold Pour at Sinivit Delayed Several Weeks

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 5, 2007) - New Guinea Gold Corporation ("NGG" or the "Company")(TSX VENTURE:NGG) reports that the vat leach and gold recovery to activated carbon has been successfully commissioned, but mechanical problems with the elution circuit prevented the first gold pour being completed last week. Leaching of gold from the vat, and adsorption of gold to carbon in carbon columns is continuing, but gold is now unlikely to be produced in dore bar form for several weeks.

In the meantime, the inventory of gold will continue to build within the carbon columns.

The process from mining to production of gold bars is as follows:

- Gold mineralisation is mined by open pit methods and crushed to less than 10mm. Prior to mining the mineralisation to be mined is defined by R.C. or blast hole drill holes so that gold mineralisation can be separated from waste. Mining, grade control and crushing have all been successfully commissioned.

- The crushed gold mineralisation is placed in double (high density plastic) lined vats and soaked in a high PH and weak cyanide solution. The cyanide dissolves the gold over a period of months with approximately 50% of the recoverable gold passing into solution in the first two weeks. The initial Vat, 1A, has been successfully commissioned with more than 50% of the expected recoverable gold either in solution or precipitated to carbon in the carbon column. Vat 1C will be filled and leaching will commence in the near future. Crushed ore is already stockpiled to fill this vat. In the longer term it is envisaged that two or more vats will be leaching at the same time.

- The gold in leach solution (pregnant leachate) is pumped through steel columns loaded with activated carbon. The gold adsorps to the carbon. This has been successfully achieved.

- The gold is then redissolved or stripped from the carbon in an "elution circuit", electrowon onto steel wool, which is then smelted to produce a gold dore bar. The stripping solution is a high temperature (100 degrees) caustic solution containing cyanide. During the current stripping of the carbon the seals failed on the pumps. Seals were replaced and further failed after a few hours necessitating the shut down of the elution plant. The pumps were apparently supplied with incorrect seals and until the correct seals are obtained stripping cannot resume.

- After a gold dore bar is produced (a mixture of gold, silver and other metals), the dore is shipped to a gold refinery for final production of high purity gold.

Mr. McNeil CEO and Chairman of NGG commented "although disappointing in that we did not achieve a gold pour by the end of May, the breakdown in the elution circuit should only be temporary and in the meantime gold inventory is continuing to build up on carbon in the carbon columns. Gold production and cash flow in the longer term should not be affected".

The development of Sinivit is proceeding in the absence of a full feasibility study. These evaluations are preliminary in nature and are based entirely on indicated mineral resources, which have not been categorized as mineral reserves. There is no assurance that the operating and financial projections in the preliminary assessment will be realized. Mineral resources that are not reserves do not have demonstrated economic viability. Measured and indicated mineral resources are that part of a mineral resource of which quantity and grade can be estimated with a level of confidence sufficient to allow the application of technical and economic parameters to support mine planning and evaluation of the economic viability of the deposit.

The technical data in this release was prepared by or under the supervision of Robert D. McNeil, CEO of New Guinea Gold Corporation. Mr McNeil has an MSc in Geology, 45 years mining industry experience, is a Fellow of the Australian Institute of Mining and Metallurgy, and meets the requirements of NI 43-101 for a qualified person.


R.D. McNeil, CEO/ President

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

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

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