FDG Mining Inc.
TSX VENTURE : FDG

FDG Mining Inc.

January 20, 2012 11:46 ET

FDG Mining Announces Deployment of a Second Core Drill on the Topacio Concession, Nicaragua

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 20, 2012) - FDG Mining Inc. ("FDG" or "Company") (TSX VENTURE:FDG) is pleased to announce the deployment of a second diamond core drill for its Topacio Project exploration drilling program. Encouraging assay results from the first core hole DDH11-01 (see FDG news release dated January 16, 2012) led management to accelerate the drill program in order to quickly verify and expand the inferred resource and to begin initial testing of highly prospective gold results from trench and surface sampling on vein systems other than the Topacio Vein. Adding a second drill allows FDG to ramp up the Phase I program and begin the Phase II program. The Phase I drill program consists of 1800 meters of drilling in 13 holes. To date, three holes have been completed. Phase II comprises an additional 2200 meters in 13 holes. The second drill also allows the company to take better advantage of the December to May dry season when the logistical problems encountered during the rainy season are minimized. FDG has contracted R & R Drilling based in Tegucigalpa, Honduras. R&R has extensive experience in Nicaragua and in similar vein system drilling.

Purpose of the Phase I and II Drill Program

The primary objective of Phase I is to increase the inferred resource. Drilling will first confirm and, if possible, improve drill results from the previous operator, Triton, which were used by FDG to calculate the inferred resource. Difficult drilling conditions experienced by the Triton drill program resulted in poor core recovery in many of the holes, particularly in the quartz veins and associated stockwork and argillic alteration which hosts gold mineralization. The initial holes in the FDG Phase I program are designed to improve recoveries from Triton and attempt to improve gold and silver grades through the important vein intervals. FDG is encouraged by the results from the first hole, DDH11-01, (see FDG news release dated Jan. 16, 2012) which effectively doubled gold and silver values from the twinned Triton hole 96-15 by improving recovery in the mineralized interval. The Phase I program will also attempt to expand the inferred resource with drill holes that undercut ore-grade intercepts within the resource and by testing prospective areas to the southwest where the resource is open along strike and where surface sampling in trenches and in outcrop has returned multi-gram gold values.

The Phase II program is designed to begin drill testing very encouraging gold values recovered during trench sampling on veins other than the Topacio Vein where little or no previous drilling exists. Three holes will test ore-grade gold mineralization identified in FDG trenches on the Brasil Vein located roughly 500 meters south of the Topacio Vein. FDG Trench FT 211 encountered 12.5 meters of 7.28g/t gold, and Trench FT 212 encountered 13.0 meters of 2.84 g/t gold (see FDG news release dated November 16, 2011). Eight holes will test encouraging gold values found in seven recent trenches cutting the Mico Vein approximately one kilometer northwest of the Topacio Vein. Two holes will test the southwestern portion of the Dos Amigos Vein 250-300 meters northwest of the Topacio Vein.

Additional Information

In addition to increasing the defined NI 43-101 compliant inferred resource hosted by the Topacio Vein (680,000 tonnes grading 5.2 g/t Au and 34 g/t Ag) by improving recoveries and by expanding the resource at depth and along strike, FDG has also contracted PhotoSat to collect high resolution satellite imagery of the property and produce a digital elevation model (DEM) and a detailed contour map. Accurate elevation data provided by the DEM will allow FDG to incorporate its recently acquired trench data from the Topacio vein (see FDG news release dated May 18, 2011) into an updated calculation of the inferred resource which the company believes will result in an increase in both the grade and tonnes of the resource. Note that data used to calculate the current inferred resource (dated February 3, 2011 by D. Dunn and W. Tanaka) did not include Triton trench data because assay certificates and accurate surface elevations were not available.

This news release has been reviewed by Robert Suda, P. Geo., FDG's Vice President of Exploration and a Qualified Person as defined under NI 43-101.

About FDG Mining Inc. (www.fdgmining.com)

FDG 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 9300 hectare 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

Daniel T. Farrell, President and Chief Executive Officer

Contact Information

  • FDG Mining Inc.
    Casey Moulton
    Manager of Corporate Communications
    416.479.4433 or 778.330.2731
    cmoulton@fdgmining.com