New Guinea Gold Corporation
TSX VENTURE : NGG

New Guinea Gold Corporation

October 11, 2006 16:01 ET

New Guinea Gold Corporation: High Grade Gold & Silver Zone in Hole MPD 22 at Mt Penck

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 11, 2006) - New Guinea Gold Corporation (TSX VENTURE:NGG) -

The latest drill results, from five holes at the Mt Penck project (West New Britain, Papua New Guinea) continue to include numerous (30) gold intersections above cut-off grade of 0.5g/t gold. A higher grade zone of 2m at 19.1g/t gold and 130g/t silver, and wider, bulk mineable grade zones such as 9m at 6.4g/t gold and 8.3m at 1.7g/t gold were intersected (see table).

Results of 24 holes from the Kavola East part of Mt Penck are now available (including one historical hole) and suggest that gold mineralisation is widespread over the drill tested area. This area extends 500m east-west and 300 north-south, with most holes drilled containing significant gold intersections above cut-off grade of 0.5g/t gold. For all results, which typically include 5m at 5.9g/t gold, 19m at 1.6g/t gold, 26m at 2.3g/t gold and 4m at 18.7g/t gold refer to Press Release dated 6(th) September 2006.

Hole MPD22, which intersected the high grade zone is the western most hole drilled to date (see figure) and was drilled on an azimuth of approximately 135 degrees.

This hole contained ten intersections above cut off and appears to be defining a new major zone of mineralisation to the west of the original Kavola East zone. Two high grade gold zones were intersected between 50m - 51m and 91m - 93m downhole of 16.4g/t gold (70g/t silver) and 19.1g/t gold (130g/t silver) respectively. The style of mineralisation differs from the Kavola East zone in containing high silver and significant copper, lead and zinc. Zinc, lead, and copper values reached 12.2%, 7.1% and 0.7% respectively over the interval 28m to 29m downhole. All results are given in the accompanying table.

In addition to the intervals above 0.5g/t gold quoted in the accompanying table much of the remainder of the holes are mineralised with grades between 0.1 and 0.5g/t gold. The very extensive, almost pervasive, low grade gold mineralisation is a characteristic of the Mt Penck system, and suggests that overall, the gold mineralisation system is large.

The hole locations are shown, with gold soil geochemistry, on the accompanying plan. The plan illustrates the geographically extensive area in which drill intersections have defined gold mineralisation and that gold geochemical soil anomalies, where drilled, have significant subsurface gold mineralisation.

Except for the central mineralised zone of Kavola East the lateral extent and depth of many of the intersections is still unknown. Much drilling remains to be completed before the system is fully evaluated, and the various styles of mineralisation fully understood.

An additional point to note is that the accompanying figure encompasses less than 25% of the known gold anomalous area at Mt Penck (approximately 2 sq kms) and many targets outside the area of the figure remain to be drill tested (see figure 2 in Press Release dated 6 September 2006, or on the web site at www.newguineagold.ca). Drill assays from the present holes above 0.5g/t gold are listed below:



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Intersection Length Gold Silver Zinc Lead
Drill Hole From To (m) (g/t) (g/t) (%) (%)
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Hole MPD 19 17.2 19.5 2.3 2.9 - - -
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35.3 37.4 1.2 1.2 - - -
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39.3 41.4 2.6 2.6 - - -
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77.9 78.5 0.9 0.9 - - -
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Hole MPD 20 4 5 1 0.6 - - -
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7 8 1 0.5 - - -
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10 14 4 0.9 6 - -
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15 18 3 1.8 - - -
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20 22 2 3.2 30 - -
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43 48 5 2.9 15 - -
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55 58 3 0.7 3 - -
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65 69 4 0.7 - - -
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77 81 4 0.5 - - -
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141 142 1 0.7 - - -
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146 148 2 0.8 - - -
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Hole MPD 21 45 47 2 1.03 - - -
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Hole MPD 22 27 29 2 2.1 43 7.4 4.3
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28 29 1 2.4 65 12.2 7.1
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33.7 42 8.3 1.7 3 - -
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44 46 2 0.6 1 - -
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48 52 4 7.5 41 1.6 0.3
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50 51 1 16.4 70 1.7 0.5
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57 59 3 0.9 3 - -
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64 67 3 2.1 12 - -
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87 96 9 6.4 37 - -
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91 93 2 19.1 130 1.8 0.5
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97 98 1 1.0 4 - -
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99 100 1 1.4 4 - -
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104 106 2 0.9 5 - -
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MPD 23 18 19 1 1.3 4 - -
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20 26 6 1.4 - - -
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30 31 1 2.6 1 - -
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92 93 1 1.0 - - -
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True thickness of intersections is not known
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The Mt Penck project is beneficially owned 60% by New Guinea Gold and 40% by Vangold Resources.

NGG is presently focussing on four key gold projects including Mt Penck. At Sinivit, NGG is developing a gold mine which is largely complete: plant commissioning will commence in November 2006. NGG is also drilling the Imwauna prospect (see Press Release dated 14 September 2006), where high grade gold such as 3m at 106g/t gold has recently been intersected. Drilling at the Weioko prospect (Sehulea Project) will commence in November 2006.

All drill core is logged, photographed and split on site with preparation and assaying of half core carried out, using 50g fire assay technique, at accredited laboratory ALS Chemex in Townsville Australia.

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.

ON BEHALF OF THE BOARD

R.D. McNeil, CHAIRMAN & CEO

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.

There is a map available on the CCNMatthews website at the following link, http://www.ccnmatthews.com/docs/newguineamap.pdf

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

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