NFX Gold Inc.
TSX VENTURE : NFX

NFX Gold Inc.
Maximus Ventures Ltd.
TSX VENTURE : MXV

Maximus Ventures Ltd.

December 06, 2006 13:58 ET

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

TORONTO, ONTARIO and VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 6, 2006) - NFX Gold Inc. (TSX VENTURE:NFX) and Maximus Ventures Ltd. (TSX VENTURE:MXV) today announced assay results from ten additional diamond drill holes at the Larder Lake Gold Project. The results include significant gold mineralization from holes in several areas along the southernmost strand of the Larder Lake fault zone, on strike from but outside of the existing historic resource in the Cheminis gold mine. These ten holes are part of an ongoing reconnaissance drilling program being conducted on the Larder Lake property.

"These new intersections are distributed along a two kilometer length of the Larder Lake fault zone, on strike from but outside of the Cheminis historic resource, and confirm the initial exploration concept that important gold grades extend well beyond the Cheminis resource, into the Fernland and Bear Lake areas," noted Frederick T. Graybeal, Maximus' President. "The higher grade gold intersections in holes NFX06-10, -11, -13, and -18 are relatively narrow, but warrant follow-up to determine whether they represent the edges of potential new ore shoots." Maximus has not yet begun testing the three recently identified fault strands north of the Cheminis mine, which will be targeted in an aggressive exploration campaign being planned for 2007."

Maximus' expenditures to date have exceeded its 2006 cumulative expenditure obligations of $1,200,000 under the Option and Joint Venture Agreement (the "Agreement") with NFX. The project area covered by the Agreement includes the historic Cheminis gold mine and 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. Numerous additional targets remain to be drilled within the highly prospective Larder Lake gold district.

Exploration Objectives

Maximus' objective in its 2006/07 drill program is 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. Areas being drilled in 2006 within the joint venture land are located on the map attached to this release and are along the same fault that hosts the gold resource at Cheminis. In addition to close-spaced drilling to offset the better holes drilled in 2006, additional drilling is planned to explore new faults north of the Cheminis mine identified during the 2005 drilling program, which targets represent large, previously unexplored tracts of favourable structure analogous to that hosting the Cheminis mine.

Most of the 23 holes completed during the 2006 program have been 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 the 2006 program, it will prioritize targets for further evaluation. The policy for reporting assays was given in the July 18, 2006 news release by Maximus and NFX.

Drill Program Details

Twenty-three diamond drill holes (11,994 meters) have been completed in 2006. Assay results received since the previous news release of October 19, 2006 are below (additional assays are pending for holes NFX06-17 and 18 and no assay results are available for holes NFX06-19 to 23 inclusive):



----------------------------------------------------------------
Hole From (m) To (m) Length (m) Gold (g/t) Mineralization
Numbers (1) (2) Type (3)
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less than less than
NFX06-09 1 m@+1g/t 3 gpt
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----------------------------------------------------------------
NFX06-10 142.10 142.65 0.55 4.70 Conglomerate
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And 168.60 169.70 1.10 3.43 Conglomerate
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And 430.50 436.10 5.60 2.32 Sediment
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including 433.40 434.90 1.51 6.91 Sediment
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And 516.95 519.55 2.60 3.41 Sediment
----------------------------------------------------------------
including 518.45 519.55 1.10 7.05 Sediment
----------------------------------------------------------------
And 534.05 534.60 0.55 5.89 Sediment
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And 568.80 570.80 2.00 1.66 Sediment
----------------------------------------------------------------
including 568.80 569.50 0.70 4.30 Sediment
----------------------------------------------------------------
And 573.45 574.85 1.40 3.02 Sediment
----------------------------------------------------------------
And 759.15 760.30 1.15 3.25 Flow
----------------------------------------------------------------

----------------------------------------------------------------
NFX06-11(i) 71.00 75.70 4.70 5.49 Flow
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including 72.15 74.65 2.50 8.78 Flow
----------------------------------------------------------------

----------------------------------------------------------------
NFX06-12 131.90 133.10 1.20 2.39 Flow
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including 132,90 133.10 0.20 12.41 Flow
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----------------------------------------------------------------
NFX06-13 278.55 279.95 1.4 5.45 Flow
including 278.55 279.30 0.75 9.79 Flow
----------------------------------------------------------------

----------------------------------------------------------------
less than
NFX06-14 1 gpt
----------------------------------------------------------------

----------------------------------------------------------------
NFX06-15 258.90 266.00 7.10 1.32 Sediment/Flow
including 260.90 262.45 1.55 3.64 Sediment/Flow
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And 489.55 494.85 5.30 1.77 Sediment/Flow
including 491.95 494.85 2.90 2.85 Sediment/Flow
----------------------------------------------------------------

----------------------------------------------------------------
NFX06-16 162.15 168.00 5.85 2.01 Sediment/Flow
including 165.85 166.75 0.90 5.17 Sediment/Flow
----------------------------------------------------------------

----------------------------------------------------------------
less than less than
NFX06-17 1m@+1g/t 3gpt
----------------------------------------------------------------

----------------------------------------------------------------
NFX 06-18 253.00 255.35 2.35 4.29 Flow
including 254.45 255.35 0.90 6.45 Flow
----------------------------------------------------------------


Notes:
(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%.

(3) Flow - contains abundant pyrite in altered volcanic rock. Carbonate - contains abundant ankerite, quartz veins, occasional visible gold, and only minor pyrite.

(i)Intersection from 71.00-75.70 meters with 5.49 gpt was reported on October 19, 2006.

The technical content of this news release has been reviewed by Martin Bourgoin, PGeo, 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 historic Measured and Indicated Mineral Resource of 1,619,082 tons grading 0.175 oz/ton gold and an historic 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 a map regarding this release, please click on the link below.

http://www.ccnmatthews.com/docs/map1206.pdf.

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)
    Website: www.nfxgold.com
    or
    Maximus Ventures Ltd.
    Frederick T. Graybeal
    President and CEO
    (973) 635-8262
    (973) 635-4991 (FAX)
    Website: www.maximusventures.com