New Guinea Gold Corporation

New Guinea Gold Corporation

April 30, 2007 11:10 ET

New Guinea Gold Announces Start of Processing at Sinivit

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 30, 2007) - New Guinea Gold Corporation (TSX VENTURE:NGG) ("NGG" or the "Company") announces that mining and processing of gold mineralization from the Sinivit Mine has commenced. Project development has been completed at site and initial process plant commissioning commenced in April 2007 with first gold pour expected in May 2007. Vat 1A is full and processing is underway - mineralisation remains in vat for several weeks until gold is dissolved and the gold is then precipitated onto activated carbon, further processed by electrowinning and gold dore is finally recovered after smelting in a furnace. Vat 1B is expected to be filled in May 2007 from stockpiled, crushed mineralisation.

Production is expected to gradually increase over the next six months to a monthly gold rate of approximately 3,000 ozs (35,000 ozs on an annual basis; see Press Release dated 31 January 2006).

Bob McNeil CEO/Chairman has just returned from a five day visit to site. During this period the Papua New Guinea Chief Mining Engineer, Mr Howard Lole and the Corporate Relations Manager for the Bank of South Pacific Mr Ron McDonald also visited the site. Mt McNeil stated "Mining has commenced from the Northern oxide pit. The crushing circuit is operating above expectations and crushed ore is presently being stockpiled to allow Vats 1B and Vat 1 to be filled as soon as they are completed. Stripping of waste is well advanced in several parts of the southern oxide pit and mining of gold mineralisation in this pit will commence in the near future. Vat construction will continue now throughout the life of the mine, with Vat 1B being filled and processed in late May, followed by Vat 1 in June or July. Initial mineralisation to the vats is expected to grade approximately 3g/t to 4g/t gold with the higher grades announced recently (Press Release dated 5th April 2007) being accessed in the third and fourth quarters of 2007. Lower grades are used in the initial vats and processing to ensure all aspects of the processing circuit are operating satisfactorily.

Infrastructure, office and accommodation is now complete with approximately 90 persons resident on site. The contractor's mining equipment and maintenance facility is operating satisfactorily.

In summary Mr McNeil said: "I am pleased with the progress at site, and to be able to report that the project is moving ahead as expected. We have a dedicated and supportive work force at site and I take this opportunity to thank them for their support during the construction phase."

Current photo's of site operations as at 18th April are shown below:

More photo's will be displayed on the web site under Sinivit Project, at later this week.

Investors are cautioned that the development of Sinivit is proceeding in the absence of a full feasibility study. These evaluations are preliminary in nature and are based entirely on indicated mineral resources, which have not been categorized as mineral reserves. There is no assurance that the operating and financial projections in the preliminary assessment will be realized. Mineral resources that are not reserves do not have demonstrated economic viability. Measured and indicated mineral resources are that part of a mineral resource of which quantity and grade can be estimated with a level of confidence sufficient to allow the application of technical and economic parameters to support mine planning and evaluation of the economic viability of the deposit. An inferred mineral resource for which quantity and grade can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified.

The technical data in this release was prepared by or under the supervision of Robert D. McNeil, CEO of New Guinea Gold Corporation. Mr McNeil has an MSc in Geology, 45 years mining industry experience, is a Fellow of the Australian Institute of Mining and Metallurgy, and meets the requirements of NI 43-101 for a qualified person.


"R.D. McNeil", CEO/President

The TSX Venture Exchange has not reviewed and does not accept the responsibility of the adequacy 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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