FDG Mining Inc.

FDG Mining Inc.

March 14, 2012 09:35 ET

FDG Mining Inc. Expands Mineralization to Depth at the Topacio Concession, Nicaragua

TORONTO, ONTARIO--(Marketwire - March 14, 2012) - FDG Mining Inc. ("FDG Mining" or the "Company") (TSX VENTURE:FDG) is pleased to provide an update on the progress of the ongoing diamond drill program and announce the assay results from five additional diamond core holes drilled at the Topacio Concession. Four holes drilled below the inferred resource of 680,000 tonnes of 5.2 g/t gold and 34 g/t silver, extended the mineralization by an additional 60 meters.

Four of the five holes were drilled to test mineralization outside of the known resource in an effort to define the limits of the Topacio system. All thicknesses quoted here are based on downhole depth measurements and therefore represent apparent thickness. True thickness of the intercepts may be somewhat less.

Hole 12-03 twinned historic Triton Mining Corporation ("Triton") hole 96-02 which contained 5.99 meters of 4.83 g/t gold and 41.19 g/t silver. Drilling problems encountered in hole 12-03 resulted in core recovery as low as 30% through the quartz vein host. Based on earlier favorable comparisons with poorly recovered Triton holes (see press releases dated January 16, 2012 and January 31, 2012) the Company believes that assay values from hole 12-03 may not be representative of gold values within the mineralized interval.

Results reported herein include Hole 12-05 which confirmed significant gold mineralization below high grade Triton hole 96-29 (3.7m of 10.83g/t gold, 74.02 g/t silver) to a depth of approximately 75 meters below surface. Hole 12-04 tested the Topacio vein below strongly mineralized Triton hole 96-18. Hole 12-06 undercut mineralization drilled at hole 12-05. Hole 12-08 attempted to extend the significant gold grades intercepted in Triton's 96-33A. Drill holes 12-04, 12-06 and 12-08 all intercepted relatively thick zones of alteration and mineralization.

Drill Hole From(m) To(m) Interval(m) Au g/t Ag g/t
12-03 63.40 66.40 3.00 1.8 12.4
76.40 79.40 3.00 1.3 10.8
12-04 153.00 157.00 4.00 0.8 3.0
includes 154.00 155.00 1.00 1.4 3.8
12-05 78.50 85.50 7.00 2.1 56.8
includes 79.50 82.50 3.00 3.5 114.5
12-06 122.00 134.50 12.50 0.4 5.1
includes 122.00 122.50 0.50 1.1 4.7
and 129.25 130.25 1.00 1.0 27.8
12-08 49.90 50.50 0.60 13.8 158.5
and 55.50 67.60 12.10 0.8 7.2
includes 57.50 58.50 1.00 1.3 13.0
and 63.50 67.60 4.10 1.6 6.3
and 92.00 93.00 1.00 0.9 3.7
and 111.00 111.75 0.75 0.4 8.4

FDG Mining has thus far completed 16 core holes (2,034 meters) of the planned 26 drill hole (4,000 meters) program on the Topacio, Brasil and Mico veins. The first phase, which is in progress, consists of 20 diamond drill holes meant to confirm the 1996 Triton drill results on the Topacio vein and to test the Topacio vein beyond the known resource limits as defined by the Triton drill program. At present, the resource is open along strike to the NE and SW. At its deepest, the inferred resource extends to a depth of 200 meters from surface and, as currently defined, is open at depth.

The second phase of the drill program will test high grade gold mineralization identified in FDG trenches that cut the Brasil and Mico veins. On the Brasil vein, one hole will test mineralization below trench FT 211 where a 12.5 meter zone of quartz veining and associated alteration grades 6.81 g/t gold. A second hole will test the 13 meter-wide zone grading 2.68 g/t gold in trench FT 212. Several core holes are also planned to test high grade gold values in multiple trenches on the Mico vein.

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 analytical results received from Inspectorate and disclosed in this news release have been reviewed by Robert Suda, P. Geo., Vice-President Exploration of FDG Mining and a Qualified Person as defined under NI 43-101.

The Company is also pleased to announced the appointment of Lisa McCormack as Corporate Secretary of the Company. Ms. McCormack is a seasoned professional Law Clerk, specializing in securities and corporate law. She is currently Corporate Secretary of several public companies. She has over 15 years of experience working for various securities and corporate finance law firms in Toronto and assisting public issuers within the mining industry.

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 Mining 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

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.
    Dan McIntyre
    Manager- Investor Relations
    (778) 279-3402