F.D.G. Mining Inc.
TSX VENTURE : FDG

F.D.G. Mining Inc.

May 18, 2011 21:00 ET

F.D.G. Mining Reports High Grade Gold Trench Results at Topacio, Nicaragua

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 18, 2011) - F.D.G. Mining Inc. (TSX VENTURE:FDG) ("FDG" or the "Company") is pleased to announce the results from the first 31 hand excavated trenches on the Mico and Topacio veins at the Company's Topacio gold concession in Nicaragua. 15 of 21 trenches over the Topacio vein returned high grade gold over at least one metre. Highlights over the known mineralized veins on the property include 9.4 g/t gold over 17.0 metres in trench FT11-024 including 16.2 g/t over 4.5 metres and 13.6 g/t over 4.0 metres. Trench FT11-026 returned 8.3 g/t gold over 18.5 metres including 24.6 g/t over 5.0 metres. A newly discovered vein (Veta Gallina), exposed in a new road cut in the northwestern part of the historical vein district at Topacio, was also channel sampled and returned an impressive 9.8 g/t gold over 2.0 metres. The first 10 trenches over the western extension of the Mico vein have returned anomalous gold values ranging between 0.2 and 1.4 g/t. 800 samples from the trenching program were sent to Inspectorate in Vancouver, B.C. for analysis. 34 individual trench samples ranging from 0.5-1.0 metres in length returned gold values greater than 10 g/t. Significant results from the sampling program are summarized below.

Table 1: Topacio Phase 1 Exploration Trench Results
TrenchFrom (m)To (m)Length (m)Au (g/t)
FT11-0117.511.54.03.5
FT11-0123.09.56.59.4
including5.08.03.014.5
FT11-01310.011.01.07.9
FT11-0155.06.01.04.5
FT11-0188.010.02.06.0
FT11-0213.09.06.04.9
FT11-0242.019.017.09.4
including7.011.54.516.2
and14.518.54.013.6
FT11-0250.09.09.02.5
FT11-0263.021.518.58.3
including6.511.55.024.6
FT11-02715.029.014.06.8
including16.521.55.07.2
and2427.53.512.5
FT11-02823.526.02.52.1
FT11-03019.020.01.06.5
FT11-03119.020.01.06.3
FT11-03216.017.51.54.7
FT11-0331.53.52.016.2
Veta Gallinaroad cut channel samples2.09.8

The Topacio concession includes a historical central vein district with up to twelve sub-parallel gold-bearing veins with estimated production of 160,000 tonnes of ore grading 8 g/t gold and 80 g/t silver in the early 1900s mainly from the Mico, Salmeron and Lone Star structures. Further work during the rest of the past century produced various estimates of remaining resources on the property that are documented in the Company's NI 43-101 technical report dated July 10, 2010, as amended December 14, 2010 and February 3, 2011 entitled "NI 43-101 Technical Report of a Geological Evaluation for the Topacio Concession, South Atlantic Autonomous Region, Nicaragua" (the "Topacio Report") filed and available for viewing at www.sedar.com. 19 widely spaced drill holes were completed in the 1980s and a further 43 were drilled in 1996 by previous operators to define a resource over the Topacio and Dos Amigos veins in the southern part of the historical mining district. FDG was able to confirm an NI 43-101 compliant inferred resource of 680,000 tonnes grading 5.2 g/t gold and 34 g/t silver using 26 of the high quality drill holes drilled on the Topacio vein in 1996 as detailed in the Topacio Report.

The current trenching program, part of the Company's Phase 1 exploration of the property, was designed to verify trench data over the known inferred resource at Topacio and along strike where extensions might be found. The Company was unable to use trench data from previous operators to calculate the resource on the Topacio vein as only maps of summarized results could be found. 21 of the current 31 trenches were re-opened and sampled at 0.5, 1.0 and 2.0 metre spacings over quartz veins, clay alteration and weakly or unaltered intervals respectively to confirm previous indications of economic gold mineralization extending from depth to the surface.

The remaining 10 trenches were located on the western extension of the Mico vein about 1 km northwest of the Topacio vein. Mico was one of the original producing structures and historical underground mapping indicates a possible extension of gold mineralization to the west. FDG is conducting soil sampling and trenching in that area to define future drill targets. All of the first trenches at Mico returned anomalous gold values (0.2-1.4 g/t gold) over clay altered intervals with only limited quartz or quartz-stockwork veining . The Company is currently preparing to complete the trench program on the Mico vein in areas where previous operators showed better grade trench intercepts.

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 Mit D. Tilkov, P. Geo., the President & CEO of the Company and a Qualified Person as defined under NI 43-101.

About F.D.G. Mining Inc.

As disclosed in the Company's May 10, 2011 news release (available on FDG's web site at www.fdgmining.com) FDG mining has been operating in Nicaragua since 2006 and has recently completed its Initial Public Offering (IPO). The Company's shares commenced trading on the TSX Venture Exchange on May 12, 2011 under the trading symbol FDG. The Company has interests in a number of mining concessions in Nicaragua including Topacio, our flagship project where FDG signed a definitive agreement with Inversiones Mineras, S.A. (IMISA) on April 30, 2010, for a three year option to purchase the past-producing 9,300 hectare Topacio gold concession in the Autonomous Atlantic South region of the country. The purchase price is US$3 million with semi-annual payments of US$60,000 until the option is exercised. IMISA will retain a 3% NSR upon completion of the sale.

For further detail, the reader is encouraged to view documents filed at www.sedar.com including the Company's prospectus dated April 14, 2011 or on the Company's website at www.fdgmining.com.

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. The technical disclosure in this news release has been prepared by or under the supervision of Mit D. Tilkov, P. Geo., the President and Chief Executive Officer of the Company and a Qualified Person as defined by National Instrument 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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