New Guinea Gold Corporation

New Guinea Gold Corporation

May 18, 2006 14:40 ET

New Guinea Gold Corporation: Further High Grade Gold to 16.05g/t & Silver to 91g/t Intersected in Drill Holes at Imwauna

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 18, 2006) - New Guinea Gold Corporation (TSX VENTURE:NGG) -

Results for a further four holes of diamond core drilling have now been received for the resource definition drilling at the Imwauna Project within the Normanby Property, Papua New Guinea. A total of 94 holes have now been completed on the project.

Sixteen holes totaling 1,695m have been completed since drilling resumed in March 2006. Results are pending for 12 of these holes and drilling is continuing. Further results are expected to be released on a monthly basis for the remainder of 2006.

The results are as expected in this part of the system, with apparent widths of the main vein varying from 0.85 to 1.80m, gold values from 6.06g/t to 16.05g.t and silver values from 15.7g/t to 91g/t. True widths may be slightly less than the widths quoted above. However, in Hole IMH062 the results are enhanced with the intersection of 3 separate intersections in addition to the main vein with results shown in the table below. These additional intersections are encouraging in that it may be possible to plan a substantially wider open pit in this part of the system and each of the individual intersections (known as splits) may lead to a more substantial mineralisation.

Hole No Northing Easting EOH Azi Dip
(amg) (amg) (m) (mag) (deg)
IMHO59 8887078.0 289176.4 82.60 280 -50
IMHO60 8887051.9 289171.1 91.00 280 -50
IMHO61 8886964.7 289125.8 82.50 280 -50
IMH062 8886959.8 289140.7 160.00 280 -50

Hole No From To Interval Au Ag
(m) (m) (m) (g/t) (g/t)
IMH059 51.4 52.60 1.20 14.65 31.0
IMH060 60.60 61.50 0.90 15.93 31.5
IMH061 79.65 80.50 0.85 6.06 15.7
IMH062 14.90 16.70 1.80 8.65 91.0
31.40 32.30 0.90 16.95 24.0
32.30 33.20 0.90 2.28 15.0
42.40 42.90 0.50 4.10 8.0
45.70 47.40 1.70 8.18 9.0
98.00 99.00 1.00 6.80 21.0
All assays were completed at accredited laboratory ALS-Chemex in


The Imwauna project is located within the Normanby Property, SE Papua New Guinea. The Company owns 100% of this property. Imwauna is the second of the Company's key gold projects. Management's objective is to define 43-101 compliant resources in 2006.

The Imwauna project contains defined gold mineralisation scattered over approximately 10 sq kilometers, has some key geological similarities to Placer Dome's former Misima Mine (plus 4M ozs gold), and has been selected by management for a major evaluation program in 2006 to extend the known mineralisation and to build a substantial resource base. It is expected that one drill rig will be employed continuously on this project (wholly owned by the Company) throughout 2006.

94 holes for 6493m have been drilled at this project, with most results available on NGG's web site (all except most recent drill holes yet to be announced).

The project can be summarized as follows:

- Management believes the target is similar to Placer Dome's Misima Mine which was a plus 4M oz system.

- Historical inferred resource, based on initial 15 drill holes, of 990,000t @ 6.1g/t gold and 12g/t silver for 194,000 oz gold and 382,000 0z silver. Investors are cautioned that this historic resource is not 43-101 compliant and as such, should not be relied upon.

- Drilling to define resources and the potential of the property is in progress and will continue throughout 2006.

- Best drill results such as 3.7m @ 94.4g/t gold and 7.2m @ 16.5g/t gold.

- Trial mining completed - had an average grade of 14.1g/t gold over a 2.2m mining width.

- Bulk sampling of 38 excavator trenches over 1240m strike length averaged 26.4g/t gold over an average of 1m width in central high grade part of the system with likely open pit mining width defined as 3 to 4 metres

- Recent drilling suggests possible open pit grade of 8g/t gold and underground grade of 15.5g/t gold.

NGG is in the process of developing the Sinivit Property (see NI 43-101 Report dated 30th January 2006). In addition NGG has a comprehensive drilling program in place for 2006 to define gold resources at other key gold properties, Normanby (Imwauna), Mt Penck, and Sehulea (Weioko). See Management Discussion dated April 20th 2006 for an update on NGG and other details on gold production.

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, 44 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.

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.



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