Novus Gold Corp.

Novus Gold Corp.

January 15, 2010 03:25 ET

Novus Gold Corp.: Seven Kilometre Long Gold Zone Identified

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 15, 2010) - Novus Gold Corp. (TSX VENTURE:NOV.H) ("Novus" or "the Company") is pleased to announce surface sampling results from its REN gold property in the Northwest Territories carried out in partnership with Terra Ventures Inc. ("Terra") (TSX VENTURE:TAS). This sampling program traced gold mineralization and iron formation over a length of 7 kilometres. 

Just prior to freeze-up, a limited prospecting program was completed on the REN property. A total of 83 samples were collected and submitted for gold analysis. The samples were collected along the more than seven kilometre long iron formation within the REN property that includes the Main occurrence where a recent drill program was carried out. Most of the samples came from known occurrences other than the Main occurrence, however, five samples collected 400 metres northwest of the most northerly gold occurrence, Grizz, reported values between 1.51 and 6.25 g/t and represent a new gold discovery. Grab samples (7) of the Grizz occurrence ranged from 3.10 to 38.40 g/t gold and grab samples (3) collected 300 m south of the Grizz occurrence ranged from 0.02 to 2.13 g/t gold. Two more grab samples were collected a further 500 m south, ranged from 0.53 to 5.27 g/t gold, and were located approximately 300 m north of the geophysical anomaly coincident with the Main occurrence.

The Banner, Flag and Gord occurrences are located along the southern half of the iron formation, more than 3 kilometres south of the Main occurrence. Grab samples (17) collected from the Banner occurrence ranged from 0.07 to 205.00 g/t gold and grab samples (12) collected from the Flag occurrence ranged from 0.02 to 22.40 g/t gold. No samples were collected from the most southerly located Gord occurrence (approximately 5 kilometres south of the Main occurrence), however, previously completed sampling reported a chip sample value of 17.5 g/t across 0.8 metres. The Moore occurrence is situated approximately 1 kilometre south of the Main occurrence. Grab samples (9) collected from the Moore occurrence varied from 0.06 to 2.88 g/t gold. The remaining 33 samples collected ranged from 0.01 to 2.66 g/t gold.

Ongoing reinterpretation of the associations and controls related to the gold occurrences of the REN property has discovered the potential for a high-tonnage low-grade deposit along a more than seven kilometre strike of iron formation. Previous exploration had focused on Lupin-style gold mineralization where gold occurs concentrated in the "nose" of a folded iron formation. Recent drill results acquired from the Main occurrence indicate that significant gold is present in the host rocks adjacent to the iron formation. As a result, the main zone of gold mineralization is now considered to have an apparent width of 8 to 30 metres with gold grades ranging from 2 to 3 g/t. Grab samples collected while prospecting demonstrate that at least portions of the entire seven kilometre long iron formation is associated with significant gold mineralization. As with the exploration completed at the Main occurrence, much of the work evaluating the gold potential of the iron formation focused strictly on high-grade gold in the iron formation, including the recently reported grab samples reported above. The host rock along the seven kilometre long iron formation has not been adequately sampled so as to assess the potential for wide, low-grade gold zones.

Drill hole results from the Main occurrence within the REN property clearly indicate a previously unrecognized wide, low-grade gold zone associated with the iron formation. Gold assay values ranging between 2 to 3 g/t were reported for intersections that ranged from 10.62 to 32.77 metre. Based on previously completed geophysical work, the magnetic and electromagnetic anomaly directly associated with the wide, low-grade gold mineralization, is more than 700 metres long. Drilling has shown the zone to be open at depth.

The REN property hosts banded iron formation gold showings in the Point Lake area, approximately 90 kilometres southwest of the formerly producing Lupin gold mine owned by Echo Bay Mines. Approximately 30 drill holes were completed on gold showings on the REN property between 1974 and 1990 by Texasgulf, Cominco and Westview.

All samples were submitted to ALS Laboratory, North Vancouver, an ISO 17025-accredited laboratory that includes the determination of gold by fire assay and atomic absorption as part of its scope of accreditation. Blanks were added to the submitted samples to test for cross contamination and all samples submitted were reported within acceptable levels.

Novus has granted Terra an option to earn a 51-per-cent interest in the REN property. In order to exercise the option, Terra needed to incur $1.5-million in expenditures on the REN property by Dec. 31, 2009. Terra is in the process of giving Novus confirmation that this has been done. Once Terra formally exercises its option, Novus will have the option to repurchase Terra's 51-per-cent interest by issuing 7.5 million shares to Terra. Based on Novus's current 33,585,000 issued shares, if Novus exercises its option, Terra would have 18.25 per cent of Novus's shares.

Maps are available for viewing on the company website at

Mike Magrum, PEng, a qualified person under National Instrument 43-101, has approved the technical content of this news release.

For further information visit the company's website at

On behalf of the board of directors of NOVUS GOLD CORP.

Mike Magrum, President

This News Release contains forward-looking statements. Forward-looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.


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