New Guinea Gold Corporation

New Guinea Gold Corporation

October 04, 2005 09:10 ET

New Guinea Gold: Molybdenum Trench Intersection At Simuku Increased To 72m Grading 1664ppm Molybdenum

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 4, 2005) - New Guinea Gold (TSX VENTURE:NGG) has announced that the molybdenum in bulldozer trench at the Simuku porphyry copper/molybdenum/gold prospect has increased from the previously reported 21m @ 1513ppm molybdenum to 72m @ 1664ppm molybdenum. This section is within a longer, lower grade section of 132m @ 989ppm molybdenum. These are very significant results - for example at the current molybdenum price of approximately US$35/lb, 1664ppm molybdenum has a value of US$115/tonne of rock (at present prices equivalent to 7.7g/t gold, not including copper and/or gold credits). Shareholders and investors are cautioned that molybdenum is at near record high prices, these prices may not be sustained in the future and that the comparison with gold is for information only as the treatment and recovery of molybdenum from molybdenum mineralisation is often more difficult and more costly than the recovery and treatment of gold mineralisation.

The Simuku prospect in West New Britain is owned 90% by New Guinea Gold Corporation (NGG-TSX.V) and 10% W.S.Yeaman. It is a large porphyry copper system with associated molybdenum and gold mineralisation. Detailed information on the property can be found in a Press Release dated 12 September 2005, and in the Independent report at

The intersection described above is part of a 20km bulldozer trenching program, for which approximately one third of samples are still pending. The trenches were channel sampled at 3m intervals, approximately 3 to 4kg of sample collected and the samples were shipped to accredited laboratory, ALS-Chemex, in Townsville Australia for analysis. The results quoted above are molybdenum by the XRF method.

The trench intersection above is situated 250m NE of drill hole SMD002. It comprises a trench which partly encircles a ridge, i.e the trench passes along one side of the ridge around the top and along the far side. The trench suggests an area of mineralisation of at least 75m by 75m and is open on three sides. The nearest trench to the north is 200m distant. Management believe this is a significant area of molybdenum mineralisation.

Within the 72m @ 1664 molybdenum are several higher grade intervals:

- 15m @ 3035ppm molybdenum

- 6m @ 2582ppm molybdenum

- 24m @ 1820ppm molybdenum

Approximately 4,000 samples have been collected in this program but all results will not be available, collated and assessed for at least 6 weeks.

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.




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