New Carolin Gold Corp.
TSX VENTURE : LAD

New Carolin Gold Corp.

November 01, 2011 10:29 ET

New Carolin Gold Announces Historic Gold Resource for Carolin Mine

WHITE ROCK, BRITISH COLUMBIA--(Marketwire - Nov. 1, 2011) -

NOT FOR DISTRIBUTION IN THE UNITED STATES.

New Carolin Gold Corp. (TSX VENTURE:LAD) (formerly Module Resources Inc. TSXV-MLE) is pleased to announce the completion of a preliminary study to determine the existing underground gold resource at the Carolin Mine, located within its Ladner Gold Property in southeastern British Columbia. Resource estimates carried out by New Carolin Mine Corp. and Athabaska Gold Resources Ltd. ("Athabaska") have determined an existing gold resource of 728,429 ounces, in the measured, indicated and inferred categories.

The New Carolin Mine Corp. estimate was completed in 2011 and the Athabaska resource estimate completed in 1996, with subsequent updates in 1997. The gold resources are historic estimates based on exploration and development work undertaken by Athabaska in 1995 and 1996 and a database of 595 diamond drill holes (approximately 40,000 metres diamond drilling). The estimates are indicative of the potential gold resource at present and which the Company believes will be increased with further exploration.

As with all projects involving work completed in the past, it is quite difficult to verify the early results or make representations regarding their accuracy or applicability. It is assumed past work was completed to industry standards of the time, and there is no reason to doubt the results. Note that the resource estimate contained herein is based solely on the results of diamond drilling completed up to 1996. Diamond drill core samples underwent testing by fire assay for gold at Acme Analytical Laboratories, an ISO 9001:2000 certified analytical laboratory, located in Vancouver, BC. Additional drilling will be needed to determine the full extent of the gold resource. This resource estimate will form the basis for an NI 43 - 101 study that is anticipated to begin in 2012.

The base case total undiluted resource in the Idaho Zone at May 1, 1996 is:
1,175,000 tonnes grading 4.92 gram/tonne Au
(1,295,000 tons grading 0.143 oz/ton Au)

Applying a 15% mining dilution factor at a grade of 1.0 g/tonne, the gold resource is:
1,350,000 tonnes grading 4.41 g/tonne Au
(1,488,000 s. tons grading 0.129 oz/ton Au containing 192,000 oz Au)

Resource Parameters

  • Cut off grade: approximately 2.74 g/tonne (0.08 ounces per short ton).
  • Minimum width: 3 metres (9.94 feet) provided a minimum grade of 3.43 g/tonne was obtainable in isolated blocks.
  • Specific gravity: 2.78 (Britton research - early metallurgical work)
  • Mining Dilution: 15% @ 1.0 g/tonne.
  • Database of 595 diamond drill holes comprising approximately 40,000 metres.

The following is a breakdown of the underground gold resource at the Carolin Mine and is considered an historic estimate.

Resources Tonnes Grade Ounces
g/t
Measured 1,124,040 4.31 155,775
Indicated 1,393,460 4.28 191,768
TOTAL M & Ind. 2,517,500 4.29 347,543
Inferred 2,569,540 4.61 380,886
TOTAL / ALL CATEGORIES 728,429

Resource Parameters

The foregoing historical gold resource estimates were estimated using the same database that was used for the gold resource as estimated by Athabaska in 1996. A third party qualified person has not done sufficient work to classify the historical estimate as current mineral resources, and the issuer is not treating the historical estimates as current mineral resources and they should not be relied upon.

Cutting of individual assays None
Specific gravity 2.50
Mining dilution None
Cut off 2.5 gm/tonne gold
Categories
One drill hole allowed for all categories
8 m search distance measured
16 m search distance indicated
32 m search distance inferred

The Company believes that there is potential to expand the gold resource as it is apparent from historical drill information and geological mapping that the mineralization is open both at depth and along strike. Drill sites have been selected based on extending the 1996 drilling on the 875 level drift and exploring for additional resources from the 875 level. The underground rock stability and working conditions are excellent.

A three dimensional model of the mineralized drill hole intercepts is shown in the Company website.

About New Carolin Gold Corp.

New Carolin Gold is a Canadian-based junior mineral exploration and development company engaged in the acquisition, exploration, evaluation and development of 104 sq kms of contiguous mineral claims, collectively known as the Ladner Gold Project, located along the prospective and under-explored Coquihalla Gold Belt in south eastern British Columbia, which is host to several historic small gold producers including the Carolin Mine, Emancipation Mine, Pipestem Mine and numerous gold prospects.

For further company and technical information, please visit the Company's website at www.newcarolingold.com (formerly www.moduleresources.com).

The technical information contained in this release has been prepared by Bruce Downing, P.Geo, a Qualified Person who is the president and CEO of the Company.

ON BEHALF OF THE BOARD OF DIRECTORS

Bruce W. Downing, M.Sc., P.Geo, Hon.FEC, President & Chief Executive Officer

We seek Safe Harbor.

Caution concerning forward-looking information

This news release may contain forward-looking statements that are based on the Company's expectations, estimates and projections regarding its business and the economic environment in which it operates. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances, unless otherwise required to do so by law.

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

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