FDG Mining Inc.

FDG Mining Inc.

June 06, 2012 14:38 ET

FDG Announces Completion of All Weather Road to Topacio Property, Nicaragua

TORONTO, ONTARIO--(Marketwire - June 6, 2012) - F.D.G. Mining Inc. (TSX VENTURE:FDG) ("FDG" or the "Company") is pleased to announce the completion of a 16 kilometre all-weather access road from the town of Muelles de los Bueyes to the Topacio gold property in eastern Nicaragua. The road will facilitate year round access to the property and allow FDG's development program to continue through the May to October rainy season. A previously unknown vein, now called the Gallina Vein, was discovered two kilometres northwest of the Topacio vein during road construction. As previously reported in the Company's press release dated September 30, 2011, initial sampling of this vein returned 19.6 g/t gold over 2.0 metres.

Exploration work is ongoing on the Topacio concession with geological mapping, soil geochemical sampling and trenching being carried out. This work is increasing the known dimensions of the 21 auriferous, low sulphidation, epithermal quartz veins present in the central part of the property and is testing eight large silicified areas peripheral to the central vein area. Seven of the peripheral silicified areas have returned values in prospecting samples > 0.1 g/t gold with three of these areas returning values > 1.0 g/t gold. Multiple drill targets have been developed and will be tested in the near future. Additional new veins have been identified to the west of the Topacio vein and to the southeast. Initial chip samples have returned multiple gold assays greater than 10 g/t gold and up to 32 g/t gold.

The results of the recently completed 23 hole diamond drill program are being integrated with the 40 historic holes, 135 historic trenches and 52 check and new trenches completed by FDG to update the resource estimate on the Topacio property. Accurate satellite based topographic data has been received in order to include the historic and new trench data in an updated resource estimate. This Company anticipates completion of the updated resource estimate by the end of June 2012.

Management is very pleased with the progress on the property and looks forward to rapid advancement now that access has been greatly improved. This year's program should provide sufficient information for the Company to proceed with an open pit operation on the tops of the veins in advance of underground mining. Engineering plans are being prepared to outline the necessary work to increase FDG's confidence in the surface accessible resource and to quantify costs for this type of operation.

Pursuant to the Company's quality-control, quality assurance procedures, samples will be submitted for re-analysis based on their proximity to a certified reference standard that returned a gold value greater than three-standard deviations higher or lower than the mean value for that standard. In addition, any two consecutive reference standards falling outside the two-standard deviation threshold will be considered to have failed. Since every twentieth sample is a reference standard, ten samples above and below a failed standard will be re-analyzed. The same protocol will be applied to duplicate samples considered to have unacceptably divergent gold values. Periodically, random samples will be submitted to another laboratory as an external check on the results provided by the primary lab. The scientific and/or technical information relating to the property disclosed in this news release have been reviewed by Robert Suda, P.Geo., Vice-President Exploration of FDG and a Qualified Person as defined under National Instrument 43-101.

On Behalf of the Board of Directors

David St. Clair Dunn, P.Geo., President and CEO

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • FDG Mining Inc.
    David St. Clair Dunn, P.Geo.
    President and CEO