SOURCE: NioGold Mining Corp.

March 01, 2012 08:30 ET

Marban Eastern Down Dip Zone Returns 6.4 g/t Au Over 8.9 Metres

VAL-D'OR, QC--(Marketwire - Mar 1, 2012) - NioGold Mining Corporation (TSX VENTURE: NOX) ("NioGold") is pleased to report on the initial drilling results of the second phase program conducted under the terms of the Aurizon Mines Ltd. ("Aurizon") earn-in option on the Marban Block property, located in the Malartic gold camp, Abitibi region of Quebec.

Results from 15 new drill holes completed on the Marban gold deposit are included in this release. Drill results are tabled as follows.

Marban Deposit
http://www.niogold.com/projects/maps/marban_block_drill_hole_location.pdf
Marban Deposit Longitudinal Section
http://www.niogold.com/projects/maps/marban_deposit_longitudinal_section.pdf

Drilling highlights include:

  • Hole MB-12-272, drilled on line/section 4550E, at the eastern end of the Marban deposit, returned four important gold mineralised intervals as follows:
    • 5.6 g/t Au over 7.2 metres at 235 metres at vertical depth
    • 3.0 g/t Au over 14.4 metres at 260 metres at vertical depth
    • 7.6 g/t Au over 5.0 metres at 360 metres at vertical depth
    • 6.4 g/t Au over 8.9 metres at 380 metres at vertical depth
  • The two deepest mineralised intervals of hole MB-12-272 are located 90 to 110 metres above the mineralised intersection in hole MB-11-242 within the newly recognised Eastern Down Dip Zone, which averaged 6.1 g/t Au over 12.6 metres.
  • The new results emphasise the potential to identify additional mineral resources within the Eastern Down Dip Zone between vertical depths of -350 and -600 metres. The mineralised structure is considered open laterally to the east and at depth.
  • The first two mineralised intervals of hole MB-12-272 were obtained at the eastern limit and just below the stopes of the former Marban mine. Three new intersections were alos obtained in proximity to hole MB-12-272, as follows:
    • 1.3 g/t Au over 26.2 metres (MB-12-251)
    • 32.1 g/t Au over 1.0 metres (MB-12-256)
    • 20.5 g/t Au over 1.1 metres (MB-12-257)

The second phase program will include 34,000 metres of diamond drilling, an updated mineral resource estimate and basic technical studies, including metallurgical testwork. Drilling commenced on December 13, 2011, and four drill rigs are currently in operation to expand the mineral resources of the Marban deposit. To date, 36 holes and seven (7) extensions of previous holes have been completed for a total of 14,430 metres. The second phase program and updated resource estimate are expected to be completed by the end of the second quarter of 2012.

Marban deposit drilling
The 2011 first phase drill program demonstrated the continuity of the mineralisation between surface and -250 metres vertical depth, as well as the grade consistency, and led to the discovery of the Western High Grade Zone. This first phase also identified the Eastern Down Dip Extension Zone which is located below -250 metres vertical depth and remains open at depth and laterally.

The objectives of the second phase drilling program:

1) Improving the quality of the Marban near surface resources
The objective is to improve the quality of the known resources and to increase the potential to find more mineralised corridors within a pit shell to help decrease the stripping ratio, and will include drilling the Western High Grade Zone.

2) Developing a mineral inventory -250 metres vertical depth:
This objective targets the identification of new gold resources inside the Marban structural zone. Preliminary interpolation on the Eastern Down Dip Zone indicates a strong potential to identify gold resources between a vertical depth of -350 and -600 metres. The mineralised structure is considered open laterally and downdip.
New holes and extension of previous holes are planned at vertical depths of -300 metres to -1,000 metres to test the consistency and extension of the Eastern Down Dip Zone at an average drill hole spacing of 50 metres.

Aurizon Option
Aurizon can earn up to a 65% interest the Marban Block property under the terms of an option and joint venture agreement dated July 5, 2010, between NioGold and Aurizon. The initial 50% interest can be earned by incurring expenditures of $20 million over three years, completing an updated NI 43-101 compliant mineral resource estimate, and by making a resource payment for 50% of the total gold ounces defined by the mineral resource estimate. NioGold remains the project operator during the initial earn-in period.

The first phase program commenced on August 30, 2010, and was completed on August 9, 2011. The program consisted of 50,253 metres of diamond drilling (170 holes, 8 extensions) at a total cost of $6 million. Drilling was distributed between the Marban (41,270m) and Norlartic (4,319m) deposits and exploration drill hole fences between the two deposits (4,664m). Highlights include the identification of two new gold zones surrounding the former Marban mine named the High Grade Western Zone and Eastern Down Dip Zone.

Drill Results - Marban Deposit

Hole Line
(m)
Station
(m)
Azimuth Dip Hole
Length (m)
From (m) To(m) Core
Length
(m)
Grade (g/t Au) Zones
MB-11-249 4350 4100 N180° -77° 615.0 62.2 63.4 1.2 4.6
222.8 228.0 5.2 1.6 E
445.6 446.3 0.7 17.7 A
493.1 494.3 1.2 10.1 P
552.4 555.8 3.4 4.8 T
MB-12-250 4450 4055 N180° -74° 563.0 185.0 194.8 9.8 1.1 E-2
371.8 376.7 4.9 1.6 C1
410.8 412.0 1.2 4.1 P
516.8 519.6 2.8 2.1
MB-12-251 4300 4005 N180° -50° 435.0 236.6 258.5 21.9 0.9 B-C2-C3
including 255.0 256.2 1.2 7.0 C3
271.4 297.6 26.2 1.3 C1-A
including 273.6 274.8 1.2 11.4 C1
MB-12-255 4650 4040 N180° -55° 567.0 502.8 505.2 2.4 2.2
MB-12-256 4600 4050 N183° -58° 602.0 124.1 126.1 2.0 4.0
345.1 346.1 1.0 32.1 C1
432.4 436.0 3.6 2.6
504.9 507.2 2.3 4.4
MB-12-257 4600 3955 N180° -55° 261.0 115.4 116.6 1.2 3.9
243.9 245.0 1.1 20.5 C1
MB-12-262 4250 3841 N180° -54° 287.0 61.8 65.7 3.9 1.7 E
MB-12-263 4150 3835 N180° -55° 203.0 119.8 125.8 6.0 1.0 D1
MB-12-264 4150 3790 N180° -50° 198.0 95.4 108.6 13.2 0.8 D1
MB-12-266 4100 3770 N180° -55° 160.0 72.5 74.9 2.4 2.7 T
96.0 103.2 7.2 0.9
MB-12-267 4050 3885 N180° -55° 219.0 72.4 73.4 1.0 4.5 E
165.0 166.2 1.2 7.7 T
MB-12-269 3900 3855 N180° -47° 132.0 94.4 95.6 1.2 15.0 T
MB-12-270 3900 3882 N180° -55° 183.0 54.8 58.0 3.2 2.9 E
MB-12-271 4050 3750 N180° -52° 90.0 37.8 41.0 3.2 1.7 D1
83.7 86.8 3.1 3.6 T
MB-12-272 4550 3970 N180° -58° 501.0 111.1 112.3 1.2 5.4
267.2 286.4 19.2 2.4 C1-A
including 272.0 279.2 7.2 5.6 A
300.6 315.0 14.4 3.0 V-M-P
including 303.0 304.2 1.2 10.4 P
including 311.4 313.8 2.4 10.5 V-M-P
420.6 425.6 5.0 7.6 W
444.7 453.6 8.9 6.4 T

Technical Info, QA/QC and Qualified Persons

Reported intervals are in core lengths but are anticipated to approximate true width, except where structural complexities occur, as the holes were drilled near perpendicular to the principal local structural orientation.

Diamond drill holes were drilled with NQ-size core in order to obtain larger sample volumes of the mineralised zones, except for holes that traversed underground workings which were completed using BQ-size core. The core was sealed delivered by the drilling contractor to NioGold's facilities located at the Norlartic mine site. The core was photographed for reference, logged and mineralised sections were sawed in half. Sample lengths vary between 0.5 to 1.5 metres. Half core samples were bagged, sealed and delivered to ALS Chemex in Val-d'Or, Quebec, an accredited laboratory. The remaining core is stored on site for reference. Samples were assayed by the fire-assay method using an atomic absorption finish on a 50-gram pulp split. A quality assurance and quality control program (QA/QC) was implemented by NioGold and the laboratory to insure the precision and reproducibility of the analytical method and results. The QA/QC program includes the insertion of standards, blanks and field duplicates in the sample batches sent to the laboratory and a systematic re-assaying of samples returning values above 2 g/t Au by the fire-assay method using a gravimetric finish. As well, pulps grading above 0.5 g/t Au are sent to Bourlamaque Assay Laboratories Ltd. in Val-d'Or for check assaying.

The drilling program is conducted under the supervision of Yan Ducharme, M.Sc., P.Geo. (OGQ), the Company's Exploration Manager and a Qualified Person as defined by National Instrument 43-101. This news release was prepared by Rock Lefrançois, P.Geo. (OGQ), the Company's President and a Qualified Person as defined by National Instrument 43-101.

NioGold Mining Corporation - On Canada's Golden Highway
NioGold Mining Corporation is a mineral exploration company focused on GOLD. The Company's flagship projects are located in the Cadillac - Malartic - Val-d'Or stretch of the prolific Abitibi gold mining district, Province of Quebec, Canada. The Cadillac, Malartic and Val-d'Or mining camps have produced over 45 million ounces of gold since the 1930s and presently encompass seven producing gold mines and a major mine development project (Canadian Malartic, Osisko Mining). NioGold's land holdings within the Abitibi presently cover 125 km2 and encompass three former gold producers, namely the Norlartic, Kierens (First Canadian), and Marban mines that collectively produced 600,000 ounces of gold. NioGold has outlined Indicated resources of 598,000 ounces gold and Inferred resources of 361,000 ounces gold in and around these deposits.

NioGold's experienced and qualified technical team will ensure the successful advancement of the Company's projects towards the highest quality mineral resources. NioGold invites you to visit the company website at www.niogold.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

FORWARD-LOOKING STATEMENTS
This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties.

CAUTIONARY NOTE TO U.S. INVESTORS
The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this news release, such as 'measured resources', 'indicated resources' and 'inferred resources', which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 20-F. The news release may contain information about adjacent properties on which we have no right to explore or mine. U.S. investors are cautioned that mineral
deposits on adjacent properties may not be indicative of mineral deposits on our properties.

Contact Information

  • For information on NioGold Mining Corporation contact:

    Michael A. Iverson
    Chairman & CEO
    miverson@niogold.com
    Tel: (604) 856-9887

    Dale Paruk
    Vice-President
    dparuk@niogold.com
    Tel: (604) 662-4505
    Toll-free: (877) 642-6200