New Carolin Gold Corp.
TSX VENTURE : LAD

New Carolin Gold Corp.

April 17, 2012 15:24 ET

New Carolin Gold Announces Updated Resource Estimate for the Carolin Mine at Ladner Gold Property

WHITE ROCK, BRITISH COLUMBIA--(Marketwire - April 17, 2012) -

NOT FOR DISTRIBUTION IN THE UNITED STATES

New Carolin Gold Corp. (TSX VENTURE:LAD) is pleased to announce the completion of a NI 43-101 compliant resource estimate containing an updated gold resource in the Carolin Mine at its Ladner Gold Property in southwestern British Columbia.

This NI 43-101 Mineral Resource estimate validates previous internal Company reports regarding the mineral potential of the Carolin Mine. This resource estimate, together with the McMaster Zone Mineral Resource estimate, which was announced on March 28, 2012, is integral to our corporate strategy to advance the Ladner Gold Property toward renewed gold production. The required NI 43-101 technical report for the Carolin Mine will be filed on SEDAR within 45 days. It will support the Carolin and McMaster Zone Mineral Resource estimates and reference the historic Emancipation and Pipestem mines, along with numerous other gold showings on the property.

Highlights

This Mineral Resource estimate comprises two scenarios for the Carolin Mine:

  • Inferred Mineral Resource estimate is 607,000 oz gold (1.5 gm/t) in 12,352,124 tonnes at a cutoff grade of 0.5 g/t gold. This estimate would be indicative of a potential open pit resource.
  • Inferred Mineral Resource estimate of 278,000 oz gold (3.34 gm/t) in 2,588,736 tonnes at a cutoff grade of 2.0 g/t gold. This estimate indicates a potential underground operation, based on the existing and extensive underground development from previous operations in the 1980s. There is a potential open-pit zone above, and contiguous with, this underground Mineral Resource.
  • The Carolin Mine occurs within the current mine permit area.
  • The Carolin Mine mineralized zones are open for exploration in all directions.
  • This Inferred Mineral Resource takes into account only gold as silver was not included in the historical database.
  • Gold mineralization appears to occur in sub-parallel zones that dip to the northeast.
  • The Carolin Mine is an "Advanced Property" whereby most of the future drilling will be dedicated to mineral resource definition. Additional drill core testing will be needed to determine the full extent of the possibility of an open pit gold - underground resource and/or open-pit (global) resource to bring the Inferred tonnage estimates into the Indicated category.

Future Plans

The Company will focus on further defining and increasing the gold resource at the Carolin Mine. Additional diamond drilling is required to:

  • confirm continuity and grade of gold mineralization,
  • upgrade gold mineralization now reported in the Inferred category to the Measured and Indicated categories,
  • identify and define additional areas of gold mineralization outside, but in close proximity to, the current Carolin Mine resource envelope,
  • define, and increase, the gold resource potentially amenable to both open pit and underground mining.

In addition to diamond drilling, underground surveying will be needed to update the adit and drift database necessary for further drilling and help bring inferred estimate into the indicated category.

The longitudinal north-south cross section (looking east) shows the potential continuity of mineralization from the Carolin Mine to the McMaster Zone. The Montana gold prospect has gold mineralization similar to the McMaster and Carolin (see press release of December 15, 2011). There are sub-parallel stacked zones dipping to the northeast. There remains over one kilometer of strike length and 400 metres of vertical depth of untested ground in which to build the gold resource. The Carolin has only been drilled to the 750 metre level with the lower portal being at the 800 metre level. Other portals occur at the 900 and 1000 metre levels. Note the gold surface exposure (red blocks) which occurs at the 1015 metre level.

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Carolin Mine
Inferred Mineral Resource Estimate
April 2012

Cut Off Tonnes Grade Gold Gold
grams grams gms (000) Ounces (000)
3.5
771,339

5.12

3,945

127
3
1,131,794

4.52

5,112

164
2.5
1,716,177

3.91

6,705

216
2
2,588,736

3.34

8,649

278
1.5
4,220,902

2.72

11,468

369
1
7,149,854

2.11

15,086

485
0.5
12,352,124

1.53

18,886

607
0.1
19,132,294

1.09

20,797

669

CIM definitions were followed for Mineral Resources.
Mineral Resources are undiluted.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resource will be converted into Mineral Reserves.

Mineral Resource Estimate Parameters:
Details of the parameters used in the mineral resource estimate are as follows:

  • This mineral resource estimate is based on 44,311 metres of drill core from 637 diamond drill holes comprised of 51 surface and 586 underground drillholes, approximately 10 kms of underground drifts and mined out sections which are part of a historical database. Drill core is not available for direct verification of sampled intervals, hence this resource is classified as Inferred. Available data, including drill hole collar information, drill hole logs, assay certificates, government assessment reports, internal Company reports and press releases have been checked, compared and verified to support this Inferred category Mineral Resource estimate.
  • Missing or unsampled intervals were filled with 0.001 g/t gold.
  • A three dimensional block model with parent block dimensions 10m x 10m x 5m sub-blocked to 2m x 2m x 2.5m was produced using Vulcan 3D mining software.
  • The gold grade distribution within the mineralized domain was examined to determine if capping was required. A cap of 17.0 g/t was applied.
  • Composited gold assay values were analyzed using Supervisor software to generate pairwise relative semivariograms.
  • Gold grade estimation was carried out using inverse distance cubed method using one metre downhole drill hole composites. This method was used to interpolate grades into blocks within the block model. The estimate was completed using a three pass approach with the search ellipse for each pass being a function of the semivariogram ranges.
  • Specific gravity value of 2.78 was used as this was the historical value used in past estimate studies.

Mineral Resource Estimate

This Mineral Resource estimate has been prepared by Mr. Walter A. Dzick, CPG. (Snowden Consultants) and Mr. Cliff Pearson, P.Geo. (Pearson Geological Services), each one being an independent "Qualified Person" under the National Instrument 43-101 Standards of Disclosure for Mineral Projects. The technical information contained in this news release was prepared by Mr. Bruce Downing, CEO for New Carolin Gold Corp., who is a "Qualified Person" under NI 43-101.

This report validates prior Company reports and continues New Carolin's tradition of execution. The Company is now able to plan a definitive drill program as part of its overall exploration and development plan at the Carolin Mine.

Bruce Downing, President and CEO, commented, "The two recently completed NI 43-101 reports on the Carolin Mine and the McMaster Zone give a combined Inferred Resource of 686,540 ounces of gold contained in a total of 15,927,204 tonnes of mineralized material at a cutoff grade of 0.5 g/t gold. We expect that this new Inferred Resource will provide a benchmark for revaluing the market capitalization of the Company using typical industry-wide valuation metrics. Based on the size of this Inferred Resource, which has been estimated on a small portion of the Company's total land position, we believe that the under-explored Coquihalla Gold Belt could have the potential to host a multi-million ounce deposit."

About New Carolin Gold Corp.

New Carolin Gold is a Canadian-based junior mineral exploration and mine development company engaged in the acquisition, exploration, evaluation and development of approximately 130 square kilometres of contiguous mineral claims, collectively known as the Ladner Gold Project, located along the prospective and under-explored Coquihalla Gold Belt located in southwestern British Columbia, which is host to several historic small gold producers including the Carolin Mine, Emancipation Mine, Pipestem Mine and numerous other gold prospects. The results of a recently completed airborne geophysical survey indicate a major magnetic linear structure that can be traced for over 18 km within the Company's claims. The aforementioned gold prospects all occur along this magnetic trend. The linear structure is attributable to the presence of serpentinite, which is associated with gold mineralization.

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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