FDG Mining Inc.

FDG Mining Inc.

January 31, 2012 08:00 ET

FDG Reports New Drill Results on the Topacio Concession, Nicaragua

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 31, 2012) - FDG Mining Inc. ("FDG" or "Company") (TSX VENTURE:FDG) is pleased to announce new and promising assay results from the second FDG core hole on the Topacio property. Drill hole DDH 11-02 intercepted the Topacio Vein, which hosts the NI 43-101 compliant resource (680,000 tonnes grading 5.2 g/t Au and 34 g/t Ag), approximately 90 metres northeast of the previous DDH 11-01 intercept (see FDG press release dated Jan. 16, 2012). High grade results (47.5 g/t gold) from a five metre zone containing massive to banded quartz veins and quartz vein stockwork continue to support the Company's belief that the Topacio Phase I drilling program is on track to add new ounces to the existing resource at Topacio.

DDH 11-02 was initially sampled over a 24.5 metre interval from a downhole depth of 37 metres to 61.5 metres. This interval includes the Topacio Vein and associated silicification and argillic alteration. Within the sampled interval, massive to banded and drusy quartz veins and quartz vein stockwork were intercepted between 42.9 and 53.9 metres and again from 57.3 to 61.5 metres. All thicknesses quoted here are based on downhole depth measurements and therefore represent apparent thickness. True thickness of the intercepts will be somewhat less.

Highly encouraging gold and silver values were found in both intervals. The five metre interval from 45.5 to 50.5 metres grades 47.5 g/t gold and 269.8 g/t silver and includes a one metre interval that carries 123.3 g/t gold and 469.6 g/t silver. When lower grade (0.2 to 0.8 g/t gold) footwall and hanging wall stockwork mineralization is included, a nine metre interval from 43.5 to 52.5 metres grades 26.6 g/t gold and 156.3 g/t silver. Results from the second mineralized interval in DDH 11-02 include a one metre sample from 58.5 to 59.5 metres that returned values of 3.3 g/t gold and 5.1 g/t silver.

DDH 11-02 effectively twins historic drill hole No. 96-26, completed in 1996 by Triton Mining. It was designed to confirm the Triton results and, if possible, improve recovery and obtain a more accurate representation of the grade and thickness of the mineralization. Although Triton's assay results were relatively high grade, FDG's results from essentially the same zone are significantly better. The best result in 96-26 was 4.2 metres (22.3 - 26.5 metres) grading 8.0 g/t gold and 36.8 g/t silver. Results from Triton drill hole 96-01, which cut the Topacio Vein approximately 25 metres below the 11-02 intercept, included a one metre sample that carried 119.2 g/t gold and 289.1 g/t silver. In 96-26, and to a lesser degree in 96-01, recoveries were erratic with several intervals of no recovery recorded in the Triton drill logs. As was the case with DDH 11-01, the Company suspects but cannot be certain that the discrepancy between results from DDH 11-02 and the historic Triton results are due to better core recovery in the FDG hole.

Although FDG personnel were reasonably certain that the original high grade results from DDH 11-02 were accurate, they decided to submit the sample pulps to a second laboratory, AcmeLabs in Vancouver, B.C., in order to confirm the original results. The following table compares the AcmeLabs analyses of selected high grade samples with the original analyses performed by the Inspectorate laboratory in Vancouver, B.C. AcmeLab's results confirm the original Inspectorate results.

Sample No. From (m ) To (m ) Inspectorate Au g/t AcmeLabs Au g/t Inspectorate Ag ppm AcmeLabs Ag ppm
36111 43.5 44.5 0.311 0.343 9.6 9
36112 44.5 45.5 0.809 0.783 45.2 44
36113 45.5 46.5 123.338 123.2 469.6 447
36114 46.5 47.5 62.149 64.9 205.9 225
36115 47.5 48.5 10.528 10.1 72.1 83
36116 48.5 49.5 10.305 11.0 408.2 341
36117 49.5 50.5 31.297 32.5 193.2 203
36118 50.5 51.5 0.195 0.215 1.5 <2
36119 51.5 52.5 0.326 0.366 1.2 <2
36120 52.5 53.5 0.100 0.076 1.1 <2

FDG's Topacio Phase I drilling program was designed to add gold and silver ounces to the existing resource. The first two drill holes, DDH 11-01 and DDH 11-02, have essentially repeated two of the historic holes on which the inferred resource was calculated. Both drill holes significantly improved upon the historic intercepts. The company is very encouraged by these early results and is confident that continued drilling will result in a substantially larger resource at Topacio.

QA-QC Procedures, Sample Preparation, Analyses and Security

Core was transported by FDG employees from the drill site to FDG's secure core processing facility in Muelle de Los Bueyes. Core samples to be analyzed were identified and assigned a unique sample number during the core logging process. Core samples were selected at contiguous intervals of 1 or 1.5 metres. Using a core saw, core was cut in half taking care to cut at an orientation which maximized the chance that both halves would be as identical as possible After sawing the core in half, one half of the previously marked sample was placed in a clean, unused, transparent plastic bag along with a pre-printed paper sample ticket. The remaining half was returned to the core tray. The sample number was written on the plastic bag. The sample number and the interval sampled were recorded in the sample ticket booklet and in a spreadsheet. FDG employees were responsible for sampling and for the insertion of a certified standard, a certified blank and a duplicate every 20 samples. Duplicate samples were created by cutting one half of the core to be sampled in half again to form two quarters. Each 100-sample sequence contains 85 routine samples, five certified standards, five certified blanks and five duplicates.

Samples to be analyzed were transported by FDG employees to the Inspectorate Laboratory sample preparation facility located in Managua, Nicaragua for sample preparation. At the sample preparation facility core samples were dried for up to 24 hours and then crushed until >70% of the sample passed through a -10 mesh screen. A 250 gram split of the sample was produced with a riffle splitter and pulverized until >85% of the sample passed -200 mesh. The resulting pulps were shipped by Inspectorate Laboratories personnel from Managua to Inspectorate's analytical laboratory located in Richmond, British Colombia, Canada at #200 - 11620 Horseshoe Way.

At the Inspectorate laboratory samples were analyzed for gold using fire assay with an AA finish. The Inspectorate code for this process is Au-1AT-AA. After an aqua regia digestion samples were analyzed for 30 elements using an ICP-AES instrument. 30-AR-TR is the Inspectorate code for this analysis.

Under FDG's QA-QC 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., 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

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