NFX Gold Inc.

NFX Gold Inc.
Maximus Ventures Ltd.

Maximus Ventures Ltd.

October 19, 2006 16:41 ET

Maximus and NFX Report Assays From Larder Lake Gold Project, Ontario

TORONTO, ONTARIO and VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 19, 2006) - NFX Gold Inc. ("NFX") (TSX VENTURE:NFX) and Maximus Ventures Ltd. ("Maximus") (TSX VENTURE:MXV) announced today assay results from six additional diamond drill holes at the Larder Lake Gold Project. The results include significant gold mineralization in several areas, including a 57.95 meter wide zone of anomalous gold at surface, suggesting potential for near surface, bulk tonnage potential. These six holes were drilled as part of an exploration program of up to 24 holes planned for 2006.

"The gold mineralization intersected in holes NFX06-07, 08, and 11 are all candidates for follow-up drilling later in the program," noted Frederick T. Graybeal, Maximus' President. "The 57.95 meters averaging 0.47 g/t gold starting at a depth of 2 meters in hole NFX06-08 suggests potential for near-surface mineralization that could be amenable to open pit mining. Maximus is sufficiently encouraged that drilling continues to intersect significant zones of gold mineralization to have added a second drill rig and will extend the 2006 drilling into late November."

"Officers and consultants of both NFX and Maximus will be presenting results of work at Larder Lake during the forthcoming Stock Day Resources 2006 Conference in Frankfurt October 26-28, 2006," added Thomas Larsen, President and CEO of NFX.

Numerous additional targets remain to be tested within the highly prospective Larder Lake gold district. Maximus' expenditures to date have exceeded its 2006 expenditure obligations of $1,200,000 under the Option and Joint Venture Agreement (the "Agreement") with NFX. Exploration work under the Agreement is in the area of the historic Cheminis gold mine along known fault zones, as described in a July 18, 2006 joint news release by Maximus and NFX. The project area is on the Larder Lake Break, a larger zone of connected faults that extends over 200 kilometers east from Kirkland Lake, through Larder Lake, to Val d'Or, and along which numerous large gold mining districts are located.

Exploration Objectives

The objectives of the 2006 drill program are to test favourable host rocks (iron-rich basalt flows and ultramafic rocks) where they are cut by strong fault zones and are heavily altered (mixtures of sericite, fuchsite, pyrite, quartz veins, and carbonate minerals), a geologic setting commonly associated with gold mineralization in the Larder Lake area, including that of the historic producing Cheminis gold mine. Target areas being evaluated in 2006 within the joint venture land are illustrated on the map attached to this release. Some of the priority targets include:

1. High grade gold mineralization adjacent to the Cheminis gold mine, as well as the Fernland and Bear Lake prospects, along the southern strand of the Larder Lake Break;

2. Shallow, near-surface zones of gold mineralization; and

3. Gold mineralization of the Kerr Addison type along three additional, recently recognized, regional scale fault zones north of the Cheminis mine.

Most of the 24 holes planned for the 2006 program will be widely spaced reconnaissance holes designed to evaluate areas outside of known resource zones with few or no previously known drill holes. These drill holes will provide an initial assessment of several target areas that Maximus believes have potential to host significant gold systems. Once Maximus has completed its initial assessment, it will prioritize targets for further evaluation. All assays will be reported under the policy stated in the July 18, 2006 news release by Maximus and NFX.

Drill Program Details

Fourteen diamond drill holes (8,065 meters) have been completed in 2006.
Assay results since the previous news release on July 18, 2006 are as

Hole From To Length Gold Mineralization
Numbers (m) (m) (m) (1) (g/t) (2) Type (3)
NFX06-03 498.35 501.45 3.10 1.10 Flow

NFX06-04 Lost before
target zone

NFX06-05 85.80 95.35 9.55 1.50 Flow

NFX06-06 less than

NFX06-07 565.50 576.00 10.50 2.59 Mixed
including 567.25 571.30 4.05 4.39 Mixed

NFX06-08 2.65 60.60 57.95 0.47 Mixed
including 6.40 13.00 6.60 1.01 Mixed

NFX06-11 68.40 76.30 7.90 3.46 Flow
including 71.00 75.70 4.70 5.49 Flow

(1) Meters. Length is reported in meters of drilled core and is not
necessarily the "true" width.
(2) Au g/t. Gold grades are reported in units of grams per tonne gold.
All gold assays were performed by Expert Laboratories in Rouyn, QC using
standard fire assaying protocols. Assay results from the 2006 drill
program are considered accurate, precise and free of contamination as
determined from assay results of quality control certified reference
standards, field blank standards and duplicate samples submitted during
the program. Core recovery generally exceeded 95%. All other assays are
less than 1.00 g/t Au.
(3) Flow - contains abundant pyrite in altered volcanic rock.
Carbonate - contains abundant ankerite, quartz veins, occasional visible
gold, and only minor pyrite.

The technical content of this news release has been reviewed by Martin Bourgoin, P.Geo, responsible for supervising the drilling campaign and is the qualified person for Maximus under the guidelines of National Instrument 43-101.

Larder Lake Geology

The Cheminis mine hosts an in situ Measured and Indicated Mineral Resource of 1,619,082 tons grading 0.175 oz/ton gold and an in situ Inferred Mineral Resource of 924,275 tons grading 0.189 oz/ton gold (see NFX's National Instrument 43-101 Technical Report dated November 20, 2003, prepared by MRB & Associates, available on SEDAR). These estimates were prepared by G.M. Hogg in 1998, in accordance with National Policy 2A, the requirement in 1998 when the resource estimates were made, and as such, are not NI 43-101 compliant. Since these estimates were prepared before the introduction of NI 43-101, they should be treated as historical estimates only. Investors are cautioned that recent independent verification has not been completed and Maximus has not completed sufficient work to independently verify the historical resource and reserve estimates. Maximus is not treating the historical estimates as NI 43-101 defined resources and reserves verified by a qualified person and the historical estimates should not be relied upon.

Most of the 876 holes drilled previously at Larder Lake have focused on a single fault strand that controls gold mineralization at the Cheminis mine and Fernland, Bear Lake and Barber Larder prospects. However, an analysis of assays and geologic information in the property database by consultants to NFX and Maximus has identified 3 additional altered and mineralized fault zones north of the Cheminis mine. These three fault zones extend across a cumulative 11 kilometers of the project and a compilation of historic data indicates very limited drilling along these important, ore controlling structures. The northernmost of these structures may extend through the site of the now-closed Kerr Addison mine (11 million ounces of gold produced at a grade of 0.29 oz Au), located 2 kilometers to the east of the project property boundary.

Further information on the Larder Lake Property can be found in a Maximus report titled "Technical Report, NI-43-101 & 43-101F1, LARDER LAKE PROPERTY, Larder Lake, Ontario", dated February 20, 2006, prepared by MRB & Associates, and also filed on SEDAR.

Larder Lake Property

The Larder Lake Project consists of the Cheminis, Bear Lake, and Fernland properties (all 100% NFX owned) and the Barber Larder property (75% NFX owned). Under the Agreement between NFX and Maximus signed March 3, 2006 Maximus acquired the right to earn a 60% interest in NFX's interest at Larder Lake by expending $6 million on exploration thereon by December 31, 2008.

This release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", and "intend" and statements that an event or result "may", "will", "can", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements reflect the current internal projections, expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by the Company with securities regulatory authorities, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company.

To view the map accompanying this press release please click on the following link:

The TSX Venture Exchange has neither approved nor disapproved of the contents of this news release.

Contact Information

  • NFX Gold Inc.
    Thomas G. Larsen
    President and CEO
    (416) 360-8006 or Toll Free: 1-800-360-8006
    (416) 361-1333 (FAX)
    Maximus Ventures Ltd.
    Frederick T. Graybeal
    President and CEO
    (973) 635-8262
    (973) 635-4991 (FAX)