New Guinea Gold Corporation
TSX VENTURE : NGG

New Guinea Gold Corporation

May 31, 2005 12:19 ET

New Guinea Gold Announces Imwauna Drilling Results to 61.9 grams per tonne Gold & 193 grams per tonne Silver

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 31, 2005) - New Guinea Gold Corporation (TSX VENTURE:NGG) announced the results of a further 19 diamond core holes at the Imwauna Prospect, Normanby Property, Papua New Guinea. Imwauna is the second of three gold properties planned for development, subject to feasibility and approvals, by New Guinea Gold.

The present program is designed to confirm earlier surface trenching and drilling results that included 0.8m @ 69.1g/t gold and 193g/t silver and 2.20m @ 22.46g/t gold and 45g/t silver. Full results are given on the accompanying table. Results from previous drill programs included:



- IMH1 -3.8m @ 27.30g/t gold and 61g/t silver between 64.3 and 68.1
downhole.

-inc. 1.05m @ 72.97g/t gold and 117g/t silver

- IMH2 -7.2m @ 16.51g/t gold and 18g/t silver between 32 and 39.2m
downhole


The previous and present drilling programs will test less than 20% of the potential gold bearing area and the total gold potential of this system is regarded as very large. The potentially gold bearing area is outlined by both gold in soils and mapped gold bearing quartz veins. For more information on the possible total size of the system see maps in project descriptions and presentation at http://www.newguineagold.ca

Limited core recovery has made it difficult to fully assess the drill results of the present program. In particular some holes have encountered low grades of gold beneath surface trenches which contain high grade gold and thus the actual grades may be understated. The drill program has been temporarily suspended until a new drill, purchased by NGG, arrives on site in the near future.

The Imwauna Prospect consists of a continuous vein system (one or more veins within a 20m wide zone) known to extend over a strike length of more than 1240 m. This Prospect is a part of the Imwauna Vein Swarm which is a zone of epithermal quartz/gold veins, with some interspersed, disseminated gold mineralisation, that occurs within a northerly trending structural zone which varies from 500 to 1000m in width and has a defined strike length of approximately 3,500m.

At the northern end of the property, at the Knob Prospect, gold occurs in disseminations in volcanics with trench results such as 320m @ 0.5g/t gold, suggesting potential for a major bulk mineable resource.

Development Plan

NGG's business plan proposes that a gold mine be developed at Imwauna in 2007, subject to completion of a satisfactory feasibility study, and receipt of government approvals. As a part of this feasibility, and to allow an updated resource to be calculated, a comprehensive diamond core drilling program commenced in October 2004. In addition, this drilling will test depth and lateral extensions of the gold mineralisation and previously untested parts of the system.

The drilling is intended to define an open pittable resource which can be relatively easily mined and treated to extract both gold and silver, by VAT leach.

The initial proposed open pit mine at Imwauna is considered to be very attractive because:

- the continuity is established over a length of more than 1,240 m

- the relative ease of mining in this environment

- the likely high head grade is between 6g/t and 12g/t gold

- the processing or extraction of gold is relatively simple

- there are likely to be major extensions to depth and along strike, subsequently a significant underground operation may be established or further vein systems/bulk mineable mineralisation may be developed.

Prior Exploration

In 1996 NGG reported (News Release, 31 October 1996) an inferred resource at Imwauna of 990,000t @ 6.1g/t gold and 12g/t silver. This resource was based on 17 drill holes over a strike length of 950m (strike length now known to exceed 1240m).

Although this resource is JORC code and Australian Stock Exchange compliant, it was calculated prior to existing N.I. 43-101 requirements. This resource is thus dated, does not meet the requirements of N.I. 43-101, and should be considered to be exploration information only.

NGG reactivated exploration at Imwauna in 2002. A trial mining operation was completed which yielded geotechnical information for a possible open pit mining operation, a large (approximately 100t) bulk sample to check near surface gold grades and to provide samples for metallurgical testing. The bulk sample averaged 14.1g/t gold over a 2.2m mined width, comparable with results from small surface samples and adjacent drill hole results.

Subsequently, in 2003 and 2004, 2040kg of bulk samples were collected from 38 excavator trenches and outcrops over a 1240m strike length of the Imwauna vein system. These bulk samples indicated that, over an average 1m width (for the entire 1240m strike length), the high grade central core of the trenched zone, the average gold content was 26.4g/t. This bulk sampling did not test for lower grade hanging/footwall or inter-vein gold mineralisation.

The technical data in this release was prepared by or under the supervision of Robert D. McNeil, Director of New Guinea Gold Corporation. Mr. McNeil is a Member of the Australian Institute of Mining & Metallurgy, and meets the requirements of NI 43-101 for a qualified person. Mr. McNeil has a M.Sc. in Geology and approximately 45 years experience in the mineral exploration industry.

ON BEHALF OF THE BOARD

"R. D. McNeil"

CHAIRMAN & CEO

The TSX Venture Exchange has not reviewed and does not accept the responsibility of the adequacy or accuracy of this release. The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the company.



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EL 1091 NORMANBY
Imwauna Prospect - Drilling Results December 2004
---------------------------------------------------------------------
Hole Interval (m) Results (0.5 g/t Au cut-off)
---------------------------------
From To
---------------------------------------------------------------------
IMH019 All results less than 0.5 g/t Au
---------------------------------------------------------------------
IMH020 9.0 12.0 3.0 m @ 2.09 g/t Au
---------------------------------------------------------------------
IMH021 3.0 4.0 1.0 m @ 1.4 g/t Au
---------------------------------------------------------------------
5.0 6.0 1.0 m @ 0.51 g/t Au
---------------------------------------------------------------------
9.0 11.0 2.0 m @ 1.15 g/t Au
---------------------------------------------------------------------
14.0 16.0 2.0 m @ 5.97 g/t Au
---------------------------------------------------------------------
Including
---------------------------------------------------------------------
15.0 16.0 1.0 m @ 11.35 g/t Au,
20 g/t Ag
---------------------------------------------------------------------
IMH022 All results less than 0.5 g/t Au
---------------------------------------------------------------------
IMH023 All results less than 0.5 g/t Au
---------------------------------------------------------------------
IMH024 14.0 18.0 4.0 m @ 7.93 g/t Au
---------------------------------------------------------------------
Including
---------------------------------------------------------------------
16.0 18.0 2.0 m @ 14.95 g/t Au,
14 g/t Ag
---------------------------------------------------------------------
IMH025 All results less than 0.5 g/t Au
---------------------------------------------------------------------
IMH026 3.0 6.0 3.0 m @ 1.99 g/t Au
---------------------------------------------------------------------
21.0 23.0 2.0 m @ 1.74 g/t Au
---------------------------------------------------------------------
IMH027 All results less than 0.5 g/t Au
---------------------------------------------------------------------
IMH028 10.2 12.8 2.6 m @ 1.08 g/t Au
---------------------------------------------------------------------
17.9 18.9 1.0 m @ 6.02 g/t Au,
18 g/t Ag
---------------------------------------------------------------------
IMH029 17.5 19.5 2.0 m @ 20.3 g/t Au,
32 g/t Ag
---------------------------------------------------------------------
IMH030 11.3 12.8 1.5 m @ 26.5 g/t Au,
56 g/t Ag
---------------------------------------------------------------------
IMH031 17.0 22.0 5.0 m @ 5.86 g/t Au
---------------------------------------------------------------------
Including
---------------------------------------------------------------------
21.0 22.0 1.0 m @ 15.05 g/t Au,
14 g/t Ag
---------------------------------------------------------------------
IMH032 12.0 13.0 1.0 m @ 10.50 g/t Au
---------------------------------------------------------------------
IMH033 54.0 56.0 2.0 m @ 2.75 g/t Au
---------------------------------------------------------------------
Including
---------------------------------------------------------------------
54.0 55.0 1.0 m @ 4.49 g/t Au,
80 g/t Ag
---------------------------------------------------------------------
57.0 58.0 1.0 m @ 1.16 g/t Au
---------------------------------------------------------------------
IMH034 21.0 24.0 3.0 m @ 8.88 g/t Au
---------------------------------------------------------------------
Including
---------------------------------------------------------------------
22.0 23.0 1.0 m @ 14.70 g/t Au,
24 g/t Ag
---------------------------------------------------------------------
IMH035 48.0 51.0 3.0 m @ 2.57 g/t Au
---------------------------------------------------------------------
56.0 60.0 4.0 m @ 14.05 g/t Au
---------------------------------------------------------------------
Including
---------------------------------------------------------------------
57.0 59.0 2.0 m @ 23.68 g/t Au,
20 g/t Ag
---------------------------------------------------------------------
63.0 65.0 2.0 m @ 4.68 g/t Au
---------------------------------------------------------------------
IMH036 20.0 21.0 1.0 m @ 4.04 g/t Au
---------------------------------------------------------------------



---------------------------------------------------------------------
Intercept Length of Gold Silver Comments
From (m) Intercept (m) (g/t) (g/t)
to (m)
---------------------------------------------------------------------
IMH037 49.40 - 51.10 1.70 2.16 Significant core
loss in vein,
47% recovery
---------------------------------------------------------------------
IMH037a 47.80 - 50.10 2.30 2.78 Re-drill of
IMH037, 84%
recovery NB:
core recovery
72% in interval
of 48.35-48.60m
---------------------------------------------------------------------
24.90 - 25.90 1.00 0.46 Significant loss
26.70 - 27.90 1.20 1.23 in vein, 25%,
28.90 - 29.80 0.90 3.06 83% and 16%
recovery
respectively
---------------------------------------------------------------------
IMH039 No vein intercept - -
---------------------------------------------------------------------
IMHO40 12.80 - 16.00 3.20 9.0 Significant core
loss. Footwall
to vein
returned 1.00m
@ 1.17g/t Au,
23% recovery
---------------------------------------------------------------------
IMH041 20.75 - 21.45 0.70 1.16 Very poor
recovery
through vein.
24% recovery
---------------------------------------------------------------------
IMH042 16.35 - 19.30 2.95 8.85 12 12.5m spaced
infill drill
hole west of
IMD017
Significant
core loss in
vein material.
27% recovered
from
18.90-19.30m.
Total recovery
from 16.35m -
19.30m is 81%.
---------------------------------------------------------------------
IMH043 14.30 - 16.50 2.20 13.25 21 12.5m spaced
infill drill
hole west of
IMD010 Core
recovery ok -
92% average
over sampled
interval.
---------------------------------------------------------------------
IMH044 30.60 - 32.20 1.60 6.12 15 Infill hole
immediately
north of trial
mining slot
near IMD008.
Poor recovery
average 78%
from 30.60m to
32.20m. Trial
mining slot
average
14.1g/t gold
over a 2.2m
mined width.
---------------------------------------------------------------------
IMH045 44.50 - 46.20 1.70 5.27 7 Drilled from
same collar
position as
IMH044 but
steeper angle
and did not
intersect the
main vein.
Drilled
footwall vein
down dip. Core
recovery ok-96%
average from
43.8m to
46.20m.
---------------------------------------------------------------------
IMH046 44.10 - 44.95 0.85 8.98 21 Deeper hole
underneath
IMH014 in
northern end of
project. Core
recovery 100%
from 44.10m to
44.95m.
---------------------------------------------------------------------
IMH047 17.90 - 18.70 0.80 61.90 193 Shallow hole
approx 100m
south of trial
mining slot
testing area
between trench
28 & trench 29.
Core recovery
across this
interval 17.90m
to 18.70m 86%.
---------------------------------------------------------------------
IMH048 6.50 - 8.50 2.00 4.62 15 Shallow hole
underneath
trench 20
southern area
of project.
Core recovery
68% from 6.50m
to 9.80m
---------------------------------------------------------------------
IMH049 No significant Shallow hole
assay underneath
trench 16.
Intercept too
near surface
to test the
vein.
---------------------------------------------------------------------
IMH050 15.90 - 17.55 1.65 16.67 38 Shallow hole
drilled
southern area
of project
underneath
trench 13a.
Core recovery
15.90m to
17.55m 50%.
---------------------------------------------------------------------
IMH051 23.90 - 26.10 2.20 22.46 45 Deeper hole from
same pad as
IMH050 testing
trench 13a.
Core recovery
60% from 23.90m
to 26.10m
---------------------------------------------------------------------
IMH052 14.20 - 14.30 0.10 6.22 14 Shallow hole
underneath
trench 11 in
the south of
the project.
Core recovery
100% from
13.80m to
14.30m
---------------------------------------------------------------------
IMH053 22.80 - 25.20 2.40 4.78 49 Shallow hole
underneath
trench 12 in
the south of
the project.
Core recovery
85% from 22.80m
to 25.50m.
---------------------------------------------------------------------
IMH054 30.88 - 32.85 1.97 3.02 17 Shallow hole
drilled central
area of project
underneath
trench 18. Core
recovery 94%
from 30.30m to
33.50m.
---------------------------------------------------------------------



Contact Information

  • New Guinea Gold Corporation
    Forbes West
    toll free at (888) 655-5532
    or
    New Guinea Gold Corporation
    Judith O'Quinn
    (604) 662-3598