New Guinea Gold Corporation

New Guinea Gold Corporation

March 03, 2011 11:00 ET

New Guinea Gold Advises That Gold Production and Gold Purity Continued to Improve During the First Two Months of 2011

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2011) - New Guinea Gold Corporation (TSX VENTURE:NGG)(FRANKFURT:NG8) ("NGG") announces that gold production for the first two months of 2011 totaled 1,379ozs or an average of 689ozs/month. In the quarter ending December 31, 2010, gold production totaled 1,891ozs or an average of 630ozs/month. Gold purity in gold dore (gold dore is produced by direct smelting at the mine) varied between 24% and 60%, maintaining the improvement noted in the press release of January 4, 2011.

Income from gold sales was CAD$1,814,960 for January and February, or an average of CAD$907,480/month as against CAD$837,012/month for the quarter ending December 31, 2010. Income is received in PNG Kina (ie: Kina 4,807,316 for January and February 2011) and the above Canadian dollar figures may change slightly after audit.

Average monthly cash mine operating costs continue to follow the trend established in the quarter ending December 31, 2010 – approximately CAD$500,000/month. Cash operating surplus at the mine was approximately CAD$800,000 for January and February 2011 (see also press release of January 4, 2011 for detail of cash operating costs).

Bob McNeil, Acting CEO commented: "Sinivit is expected to continue production at the above rate or continue to gradually improve, for the immediate future. The draft report by Mining Associates on the way forward for the Sinivit Project is expected to be received in the next few days and its conclusions and recommendations will be released as soon as management has reviewed them. The Kavursuki zone exploration results are very encouraging and an update on this zone is expected to be released next week."

The information in this release was prepared under the direction of Robert D. McNeil a Fellow of the Australasian Institute of Mining and Metallurgy and a "qualified person" as defined by National Instrument 43-101. Mr McNeil has read and approves the information contained herein.

Full details of Sinivit are described in an Independent National Instrument 43-101 report dated January 2006 which is available at

For further information on this release or on other NGG projects such as the Sinivit Gold Mine, contact, or access our website –



Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of NGG, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Neither 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 accuracy of this release.

Contact Information