New Guinea Gold Corporation

New Guinea Gold Corporation

February 26, 2007 11:49 ET

New Guinea Gold Corporation: Development/Exploration Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 26, 2007) - New Guinea Gold Corporation (NGG)(TSX VENTURE:NGG) reports on development and exploration. Chairman and CEO Bob McNeil looks forward to meeting investors in Toronto at the PDAC, Booth 2631B on March 6 and 7.

Sinivit Project (92% NGG)

The project continues to progress towards commencement of processing and gold extraction. The initial vats will be filled in mid March with commissioning of the production circuit and gold production to commence in early April.

It is expected to take three months from commencement of commissioning to build up to achieve the projected annualised production rate of 35,000 ozs gold.

All major equipment is on site, key personnel are at site, all permits such as cyanide use, licensing of explosive magazine etc are in place and infrastructure and roads are essentially complete. The final shipment of key chemicals used in gold extraction is expected at site in early March 2007.

Grade control drilling is well advanced with excellent initial results from bulldozer trenching of the mineralised zone after stripping of surface waste (see Press Release dated 15th February 2007). Trench results included 13m at 13.59g/t gold (with a high 1m at 90g/t). This confirmed that gold previously intersected in drill holes extends to the present surface.

Exploration drilling to increase the total resource at Sinivit has commenced and will continue throughout 2007.

Imwauna Project (Normanby Property - 100% NGG)

Resource drilling continued throughout 2006 with 96 holes now completed in the present program (about 110 holes total). Ten holes are currently awaiting assay (some 1500 samples) and the first of these results should be available in the near future.

The extent and grade of Imwauna mineralisation continues to improve in some parts of the system.

New Guinea Gold had previously disclosed historical resource estimates for this project based on 15 drill holes. While management considers these earlier estimates important, investors are cautioned that historic resource estimates cannot be relied upon until they have been verified by a NI 43-101 compliant technical report.

92 holes have now intersected the potential mineralised zone. These 92 holes have 380m of intersections above 0.5g/t gold giving an average composite downhole intersection per drill hole of 4.13m at 8g/t gold and 15.4g/t silver. The strike length of system defined at surface and in drill hole is 1200m (still open ended) and the mineralisation is defined over a vertical extent of 300m. The above figures are indicative only of the possible grade in a potential open pit and any resources still need to be verified by a compliant NI 43-101 report.

An experienced resource geologist and project manager, Jack Drzymulski took up his appointment at Alotau (Provincial Capital of Milne Bay Province, PNG) at the beginning of January. Jack has been charged with providing data to the Independent Qualified Person such that a NI 43-101 compliant resource estimate can be provided by mid 2007.

The mineralised zone at Imwauna which has been drilled to date represents 10-15% of the potential mineralised area as defined by surface trenching, soil gold geochemistry and geophysical surveys.

Mt Penck (60% NGG)

Drilling continued at the Mt Penck Project throughout 2006 and defined widespread gold mineralisation at Kavola East. Typical intersections were 23m at 2.3g/t gold, 20m at 2.1g/t gold, 4m at 18.7g/t gold and 4m at 8.0g/t gold. The Kavola East system appears to be developing as a significant gold mineralised system at a grade of approximately 2g/t gold.

Recent trenching has defined two new prospects at Mt Penck named Peni Creek and Kavola South.

At Peni Creek, hand trenching defined high grade zones with best results of 3m at 180g/t gold within a 24m zone at 33.7g/t gold.

The drill rig at Mt Penck is being shipped to Feni for the Feni drill program. A new drill is being purchased and will arrive on site in several months. In the meantime further trenching will be carried out and an NI 43-101 resource estimate will be initiated.

Simuku Project (90% NGG - 10% S. Yeaman)

Drilling at the Simuku porphyry copper/ gold/ molybdenum project has confirmed the presence of significant molybdenum mineralisation. Two drill holes were completed (for complete results see Press Release dated 6th February 2007) with summary intersections as follows:

- SMD014 - 19m, from surface to 19m downhole, at 0.32% molybdenum (3.2% copper equivalent), including 7m at 0.6% molybdenum (6.0% copper equivalent).

- SMD014 - 59m from surface to 59m downhole at 1.4% copper equivalent.

- SMD013 - 71m, from surface to 71m downhole, at 0.5% copper equivalent.

Copper equivalents are the combined value of copper, molybdenum and silver. They are important at Simuku as the project has credits in copper, molybdenum, gold and silver. Copper equivalents were calculated using current metal prices of US$2.50/lb for copper, US$25/lb for molybdenum and US$13.3/oz for silver. Gold is also a credit in parts of the Simuku system, but is not present in significant amounts in the present drill holes.

Drill holes SMD013 and SMD014 were drilled to 70.8m and 100.1m respectively to test a zone of molybdenum mineralisation defined in trench (73m at 0.17% molybdenum).

Further work at Simuku is pending subject to the Corporate restructuring below:

Yup River (50% NGG)

Rock chip and grid soil sampling located a 5 meter wide zone of bedrock mineralisation grading 2.47 g/t gold within a large gold soil anomaly at Dauri Prospect within the Yup River tenement.

The 5m wide rock chip anomaly is derived from a single 5m composite chip sample and represents the first significant bedrock gold mineralisation discovered in the Yup River tenement. The enclosing gold soil anomaly has rough dimensions of 1200m by 300-450m and is open to the northeast. Nearby subordinate soil anomalies are present adjacent to the main anomaly that together define a large gold-anomalous area that contains at least four targets for follow up pitting, trenching and drilling. Soil samples were collected by hand augering to depths of 0.5m to 1.0m at 25m spacing along lines spaced 100m apart. The soil anomaly locations are shown in the press release dated February 12th 2007.

The soil values are rather erratic reflecting the coarse, crystalline nature of the gold at Yup River. Several plus 1.0 g/t gold values in soil are present up to a peak of 6.46 g/t gold.

Feni Project (NGG residual interest 25% subject to sole funding by Vangold Resources)

Vangold Resources will fund a 2000m drilling program (about $600,000) at the Feni Project commencing March/April 2007 (see Press Release dated 5th February 2007).

Corporate Restructuring

NGG is involved in mineral exploration and development on 12 projects in Papua New Guinea. Restructuring, which involves "spinning off" two new public companies in order to permit a substantial increase in exploration) on projects in those companies. This will allow New Guinea Gold to focus on its core projects - Sinivit, Imwauna /Normanby and Weioko /Sehulea.

The spin off companies are expected to be PNG private company Kanon Resources Ltd (owned 50/50 by NGG and Vangold) and NGG's two porphyry copper / gold / molybdenum properties of Simuku (90%) and Mt Nakru (75%).

Work is proceeding on the spin-offs, including creating new companies, preparation of 43-101 compliant reports on all the properties, and getting regulatory approval for the structure. It is expected that the spin-off process will not be completed until the third quarter of 2007.

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, 44 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.



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.

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

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