Nevgold Resource Corp.

Nevgold Resource Corp.

March 19, 2007 09:30 ET

Nevgold Drills 1.72 g/t Gold Over 10.8 Metres at McBride

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 19, 2007) - Nevgold Resource Corporation ("Nevgold" or the "Corporation") (TSX VENTURE:NDG) is pleased to announce the drilling results from its wholly-owned McBride gold project in Manitoba and the proposed acquisition of a new project located in the south western portion of Ontario's prolific Abitibi greenstone belt.

Six diamond drill holes totalling 892 metres were completed over a 300 metre strike length portion of a 1.3 km long mineralized structure running through the McBride property. Hole MB07-01 tested the structure 50 metres below a 1994 drill hole that returned 2.43 grams gold per tonne over 9.14 metres, including a higher-grade section averaging 6.59 grams gold per tonne over 2.54 metres in the Upper zone and 0.59 gram gold per tonne over 15.5 metres in the Lower zone. The latest hole yielded 1.72 grams gold per tonne over 10.8 metres, including two higher-grade intervals of 3.29 grams gold per tonne over 0.8 metre and 2.45 grams gold per tonne over 5 metres within the Upper zone and 0.56 gram gold per tonne over 14.98 metres, including a higher-grade section running 1.13 grams gold per tonne over 4 metres in the Lower zone.

Moving 50 metres east on a previously untested section, hole MB07-02 returned 2.18 grams gold per tonne over 4 metres, including a higher-grade section running 5.42 grams gold per tonne over 1 metre in the Upper zone and 0.98 gram gold per tonne over 6.18 metres, including a higher-grade section running 3.64 grams gold per tonne over 0.83 metre in the Lower zone. The remaining four holes were drilled to test only the Upper zone with holes MB07-03 and MB07-04 appearing to have been collared above the target zone returning 1.49 grams gold per tonne over 0.62 metre from 54.65 metres downhole and 0.87 gram gold over 1 metre from 26.5 metres downhole, respectively.

Hole MB07-05 collared 200 metres east of the first hole returned 0.57 gram gold per tonne over 11.1 metres, including a higher-grade interval of 1.5 grams gold per tonne over 0.92 metre. Moving a further 100 metres east, hole MB07-06 yielded 1.92 grams gold per tonne over 3.19 metres.

The Corporation considers the results encouraging and that further work is warranted to test the structure at greater depth and along strike as previous drilling on the property has encountered up to 63.9 grams gold per tonne over 2.4 metres starting at 62 metres depth. All intervals are simple downhole lengths; the true widths of these intersections are estimated to be at least 70% of core length. The McBride property is located some 14 kilometers west of the Burnt Timber gold mine property (which held pre-production historic (predates and is non National Instrument 43-101 compliant) resources of 3.2 million tonnes grading 2.37 grams gold per tonne in 1993; source Manitoba Mineral Inventory File Number 1043) that was in production from September 1993 until June 1996 and has excellent infrastructure already in place.

Nevgold has also agreed to acquire 100% of a 170.619 hectare mining lease in Ontario's Greenlaw Township by paying the 2007 lease rent of a nominal $525.88. The 21 year mining lease expires on November 30, 2007 but Nevgold can apply to have the lease renewed for another 21 year period. The project is located in the Swayze greenstone belt, which is the western extension of the Abitibi greenstone belt. Cameco Corp. and WMC International Ltd., explored the area immediately to the east in the 1990s. Nevgold considers the property to have significant potential for the discovery of gold and gold-rich volcanogenic massive sulphide mineralization. The transfer of lease must be approved by the Ministry of Northern Development and Mines and once registration is completed, the Corporation will initiate data compilation and data research in anticipation of a field evaluation in May.

The results of the Corporation's drilling program and the previous exploration data has been reviewed, verified (including sampling, analytical and test data) and compiled by Richard A. Graham, P. Geol., President of Nevgold, who is a 'qualified person' for the purpose of National Instrument 43-101, Standards of Disclosure for Mineral Projects. The Corporation has implemented a quality control program to ensure sampling and analysis of all exploration work is conducted in accordance with industry standard practices. Under these quality assurance measures, drill core is split in halves with one half of the core shipped to TSL Laboratories Inc. in Saskatoon, Saskatchewan for analysis. The remainder of the core is retained for future assay verification.

About Nevgold

Nevgold is a North American focused exploration company, with a wholly-owned gold property in Manitoba, plus three wholly-owned gold-base metal properties in Ontario and is actively seeking new business opportunities. Nevgold's common shares trade on the TSX Venture Exchange under the symbol "NDG".

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Nevgold Resource Corp.
    Richard A. Graham
    President and CEO
    (604) 689-1428