New Guinea Gold Corporation

New Guinea Gold Corporation

July 10, 2008 10:30 ET

Dual Track Strategy for Imwauna Project Papua New Guinea

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 10, 2008) - New Guinea Gold Corporation (NGG) (TSX VENTURE:NGG)(FRANKFURT:NG8), on 13th June 2008 released an Inferred Resource for its 100% owned Imwauna Project of 1,800,000 tonnes at 12.2g/t gold and 20g/t silver for contained metal of 706,000 ozs gold and 1,160,000 ozs silver.

The resource commences at ground surface and has been defined to varying depths from between 50 and 150 metres below ground surface. It is open in most directions and in addition, in the event that further studies show the resource can be developed, a large part would be "open pittable". Preliminary metallurgical and mineralogical studies suggest that the gold can be extracted by conventional cyanide leach and/or inpart by gravity. Exploration results from elsewhere in the Normanby Property, but excluding the Imwauna Project, indicate several additional prospects that individually have potential for moderate sized gold deposits and require further exploration.

NGG has developed a dual track strategy for the Imwauna Project as follows:

1. Complete a Preliminary Assessment Study to determine broad economic parameters for the development of the Project; upgrade all or part of the Inferred Resource to higher categories; apply for a mining lease from the Papua New Guinea Government (expected to take nine months); complete financing and commence construction by 2010 and gold production by 2011.

2. While the Preliminary assessment is proceeding, increase the rate of drilling/trenching with the objective of substantially increasing the present resource. It is anticipated that a substantial increase in resources at Imwauna would place NGG as an attractive acquisition target for a major gold producer.

An Independent Technical Report titled "Independent Resource Report on the Imwauna Prospect, Normanby Property- Milne Bay Province, Papua New Guinea" prepared by Ralph N. Stagg of Project Geosience Pty Ltd" was filed on Sedar and at on 10th July 2008. This report has been prepared following the format and guidelines of Form 43-101 F1, Technical Report for National Instrument 43-101 Standards of Disclosure for Mineral Projects and Companies Policy 43-101 CP as amended on 23rd December 2005.

The principal author, Ralph Stagg B Sc, M Sc, DIC, FAusIMM, MIMMM, C Eng. Is a "qualified person" and is independent of NGG.

The Report supports the principals behind the above strategy. The Conclusions and Recommendations of the report are as follows:

"An Inferred Resource, a part of which has potential to be extracted using open pit mining methods has been estimated at the Imwauna Prospect. The mineralised system is open in most directions. In addition other prospects and anomalies, considered to have moderate size potential, remain to be fully explored. Gold is widespread in surface rock samples, trenches and drill holes.

A Preliminary Assessment is recommended for the Imwauna Resource to determine economic parameters for possible development in Year 1. Continued exploration is also recommended to determine the full potential of Imwauna as well as other prospects and anomalies subject to available finance.

- Drilling should continue on a two or three drill rig basis for the next twelve months (approximately 15,000m) at an estimated budget cost, including associated costs such as assay, support etc of C$3M.

- Trenching associated with the drilling program at a budget cost of C$400,000.

- A preliminary assessment including environmental studies and metallurgical testing at a budget cost of C$400,000.

- Capital Items budget - $C500,000.

- Administration/Contingency budget - C$500,000.

Total budget cost for program in year one is C$4.8M.

The second year program is contingent on the results of the first year program including the Preliminary Assessment. Such a program could include further drilling leading to a Feasibility Study and a development decision. It is not possible at this stage to estimate accurately the cost of such a program, but it could range from C$3M to as high as C$10M depending on program details.

The writer is of the opinion that the recommended programs are warranted and the project is of sufficient merit to justify the investment in exploration/pre-development."

Mr Stagg also makes the following relevant comments in his summary in the above report.

"New Guinea Gold Corporation (NGG) has been actively exploring at its Normanby Property and Imwauna Prospect since 1996, initially in joint venture with Macmin Silver Ltd and since 2002 as the sole owner of the property.

Minimal exploration only took place between 1998 and 2003, with exploration activity gradually increasing after 2003. At present, NGG has two company owned and operated diamond drills, a 14t excavator and D6 bulldozer active on the site.

The Normanby Property has been the subject of three earlier independent technical reports, in 1996, 1998 and 2002 by Peter Christopher and Associates Inc. The report in 2002 was prepared to NI 43-101 guidelines and filed on SEDAR.

The Imwauna Prospect is a part of an 8 to 10 sq km area which hosts numerous quartz veins, often with high grade gold, and disseminated gold mineralisation associated with Recent/Pleistocene volcanics. Only a small part of this large prospective area has been tested by drill holes and there is potential to locate additional moderate sized resources at other prospects in addition to Imwauna.

An Inferred Resource of 1,800,000t at 12.2 g/t gold and 20.0 g/t silver has been estimated for the Imwauna Prospect. The resource has been estimated from extensive surface trenching and approximately 137 drill holes. This report described the work that was undertaken.

The mineralisation is low sulphidation, epithermal mineralisation, and consists of relatively narrow, steeply dipping quartz veins, from a few mms to 10m width. The main vein averages of the order of 1m, with relatively high gold grades and extensive visible gold. The mineralisation has been defined by drilling over a strike length of 1,500 - 1,600m, is open both to the north and south and to depth. The drilled depth extent of the mineralisation varies from 50 to 200m below surface.

There is potential for bonanza zones. One trench bulk sample of 82 kg returned an assay of 424.0 g/t Au. Similar grades have been noted in some drill holes as summarised below. The full results are listed in Table 19 of the Technical Report.

Hole From To Interval Gold Silver
Number (m) (m) (m) g/t g/t
IMH 067 120.20 126.20 6.00 68.0 68.0
Including 123.20 126.20 3.00 106.0 95.0
IMH 068 39.80 42.20 2.40 13.7 65.0
IMH 069 99.10 109.10 10.00 18.1 31.0
Including 105.40 107.60 2.20 32.5 49.0
IMH 074 63.00 69.45 6.45 20.9 49.0
IMH 082 80.80 86.40 5.60 36.2 44.0
IMH 091 8.30 12.10 3.80 21.1 44.0

The drilling has demonstrated continuity of mineralisation within the known deposit to the extent which allows categorisation of the estimate as an Inferred Mineral Resource. Some parts of the drilling has been undertaken on sufficiently close spaced sections which could allow that part of the resource to be categorised as Indicated. Because of the quality of the downhole surveying data, the bulk density data, and the core recovery along the known zone of mineralisation it is appropriate to use the Inferred category for the entire resource until further data is gathered that verifies the validity of the data used. This work is currently in progress."

New Guinea Gold is the premier junior explorer and miner in Papua New Guinea, with interests in ten gold and two porphyry copper-gold-molybdenum properties. With 75,000 + metres of drilling completed, extensive gold or copper-gold-molybdenum mineralisation has been discovered at 11 of the properties while the 12th contains widespread and extensive alluvial gold. The Company's outstanding shares are traded on the TSX-Venture, Frankfurt, and Berlin Stock Exchanges.

In addition to the Imwauna Project the Company has commenced gold production at its Sinivit Gold Mine, in East New Britain, Papua New Guinea. The Company also owns an approximate direct 46% interest in Australian Securities Exchange listed company, Coppermoly Ltd and 30% in Pacific Kanon Gold Corporation (after proposed IPO) which is intended to list on the TSX-V in the near future.

Full details of the Sinivit Project are described in an Independent N1 43-101 report dated January 2006 which is available at

The information in this release was prepared under the direction of Robert D. McNeil (F Aus IMM) a "qualified person" as defined by National Instrument 43-101. NGG follows a rigorous QA/QC protocol on all of its exploration projects.

This news release may contain forward-looking statements, which are subject to certain risks, uncertainties and assumptions. A number of factors could cause actual results to differ materially from the results discussed in such statements, and there is no assurance that actual results will be consistent with them. Such forward-looking statements are made as at the date of this news release, and the company assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances, except as may be required under applicable securities law.

For further information on this release or on other NGG projects such as the Sinivit Gold Mine, contact Forbes West toll free at 888 655 5532, email or Judith O'Quinn at 604 662 3598, email or access our website -



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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