F.D.G. Mining Inc.

F.D.G. Mining Inc.

September 30, 2011 08:00 ET

FDG Identifies New Veins at Topacio

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 30, 2011) - F.D.G. Mining Inc. ("FDG" or the "Company") (TSX VENTURE:FDG) is pleased to announce encouraging results in the initial assays from soil samples collected on the company's Topacio property in Nicaragua. In addition, FDG's regional exploration has identified a number of veins in two new areas on the concession as well as extensive zones underlain by silicified breccia. Selected grab samples from silicified breccia carry multi-gram amounts of gold and silver (up to 32.1 g/t Au, 842.6 g/t Ag). Results from chip and grab samples collected from newly identified veins are still pending. Fourteen old trenches have been re-opened and sampled. With the exception of one trench (6.7 g/t over 3.5m on the Mico Vein), trench results are pending. The drill contractor, R&R Drilling of Nicaragua, continues to await completion of the 16km road into the property, which was delayed by heavy rains in July and August. FDG anticipates that drill mobilization will commence as soon as one remaining river crossing is complete.

Mr. Mit Tilkov, President & CEO, stated, "The first results from our soil sampling program suggest that this is a viable method for discovering mineralized veins under cover. We look forward to receiving the remaining assays and to the opportunity to drill test those results. The outstanding work by FDG geologists as they continue to uncover new areas of veining, silicification and alteration only reinforces our opinion that the Topacio property has the potential to host a substantial gold ore body."

Soil Results – Western Extension

The soil sampling program at Topacio consists of a set of north-south sample lines west of and along the projected trend of the Mico-Topacio vein swarm. The program was designed to determine if soil sampling can identify gold mineralization under cover. Lines were spaced at 200 and 100 metres. Samples were taken every 30 metres. In the first phase of the program the company collected 543 B-horizon soil samples using a hand-operated auger at depths up to 3 metres below the surface. Results have been received for 103 samples of which 44 carry detectable gold. Values range from 5 ppb Au to a high of 882 ppb Au.

Three zones with elevated gold values correspond to the projected trend of 3 known mineralized veins. Approximately 560 metres west of the mapped western end of the Chicago vein 4 contiguous soil samples carry values that range from 8 to a high of 41 ppb gold over a width of 90 metres. Two contiguous samples collected 30 metres apart carry 309 and 882 ppb Au and are located 640 meters west of the western terminus of the past-producing Mico vein. Finally, 690 metres west of the western end of the Dos Amigos vein, 3 contiguous samples collected over 90 metres carry 9, 11 and 626 ppb Au.

The Company anticipates that results from the remaining samples will further define these trends, identify additional hidden mineralization and provide a number of new drill targets.

Regional Exploration

FDG has identified 3 new areas of extensive veining and silicification. Northwest of the Mico and Chicago veins, the Gallina vein was exposed during construction of FDG's 16 km all-weather road into the property. Six channel samples were collected from the exposure; two carried significant gold and silver values (32.1 g/t Au, 842.6 g/t Ag – 7.1 g/t Au, 16.6 g/t Ag). The remaining four samples ranged from 0.15 g/t Au and 2.5 g/t Ag to a low of 0.022 ppm Au and 0.7 ppm Ag. Additional rock and soil sampling is planned for the area.

Approximately 1 km west of the western terminus of the Mico vein in the Western Extension area, and on the same trend as the soil anomaly described above, quartz veins and silicified breccia crop out in a stream bed. Eight channel samples collected over 65 metres of exposure carry values that range from 1.1 g/t Au and 0.2 g/t Ag to 16.6 g/t Au and 31.4 g/t Ag. To the west, 250 metres along the same trend and in the same drainage, a sample from an exposure of silicified andesite carries 2.0 g/t Au and 11.5 g/t Ag. Additional sampling and trenching will further define the mineral potential of this intriguing area.

Beginning 1.5 km east of the Topacio vein inferred resource and extending an additional two kilometers to the east, FDG geologists have significantly extended 3 veins that strike NW-SE, roughly orthogonal to the strike of the Mico-Topacio vein swarm. The Rebeca system as currently mapped consists of two parallel veins approximately 400 metres apart with a total strike length of two kilometers. Roughly 500 metres east of La Rebeca, the Chocorron vein crops out as a series of veins and breccias extending NW-SE for 600 metres. Two hundred fifty metres further east the Palmita vein as currently mapped extends for 1600 meters. Vein composition, textures and associated alteration are typical of low-sulfidation epithermal systems as recognized at the Topacio vein. Historical sampling by previous operators in the 1990s confirms the presence of gold. Results from recent FDG sampling are still pending.


Partial results of the second phase of hand reopening of trenches were received in September. Trench FT -201 returned an interval of 3.5 metres averaging 6.7 g/t gold supporting the presence of significant gold values in the western continuation of the past producing Mico vein. This interval conforms to a metre-wide quartz vein and adjacent clay alteration with stockwork quartz veining. All other trench results are pending.

Quality Assurance – Quality Control Procedures

Quality assurance and quality control measures employed in the trench sampling program included insertion of blank and duplicate samples in the sample stream. Samples were sealed in bags on site and stored in a secure locked office. The samples were then collected from the project office by Inspectorate and transported to their sample prep laboratory in Managua, where they were prepared and shipped on to the Inspectorate assay lab in Vancouver, B.C. The samples were analyzed by fire-assay AA methods for gold and silver, and by 30-element ICP analysis for trace elements. The analytical results received from Inspectorate and disclosed in this news release have been reviewed by Robert Suda, P. Geo., FDG's Vice-President of Exploration and a Qualified Person as defined under NI 43-101.

About F.D.G. Mining Inc. (www.fdgmining.com)

F.D.G. Mining Inc. is a Canadian junior mining company engaged in acquisition, exploration and development of precious metal properties in Nicaragua. The Company is currently focused on advancing its core property, the past-producing 93 sq km Topacio gold concession. Topacio has an NI 43-101 compliant inferred resource of 680,000 tonnes grading 5.2 g/t gold and 34 g/t silver, and a similar geological setting to B2Gold's La Libertad and El Limon mines to the northwest. FDG trades on the TSX Venture Exchange under the symbol FDG.

On Behalf of the Board of Directors

Mit D. Tilkov, President and Chief Executive Officer

This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. See the cautionary statement "Forward-Looking Statements" and "Risk Factors" in the Company's prospectus dated April 14, 2011 available on SEDAR at www.sedar.com. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. References to historical data and information in this news release are not National Instrument 43-101 ("NI 43-101") compliant and should not be relied upon for evaluation purposes. The Company uses historical data and information solely as a guide to future exploration and development activities. The technical disclosure in this news release has been prepared by or under the supervision of Robert Suda, P. Geo., the Vice-president of Exploration of the Company and a Qualified Person as defined by NI 43-101 of the Canadian Securities Administrators.

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 news release.

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