New Guinea Gold Corporation
TSX VENTURE : NGG
FRANKFURT : NG8

New Guinea Gold Corporation

May 19, 2010 09:10 ET

New Guinea Gold: Sinivit Mine Update

- Drilling Extends Central Oxide Zone With Assay Results Such as 8m at 12.82g/t Gold Including 2m at 38g/t Gold

- Process Enhancement

- Tellurium Recovery

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 19, 2010) - New Guinea Gold Corporation (TSX VENTURE:NGG)(FRANKFURT:NG8) ("NGG" or "the Company") is pleased to announce the drill results at its Sinivit Gold Mine ("Sinivit") have extended the known oxide gold mineralisation in the Central Oxide Zone. Fourteen (14) RC drill holes (of a total of 21 drill holes) returned average gold results above mine cut off of 1.5g/t gold. Best results were 8m at 12.82g/t gold, underlying 2m at 38g/t gold; 6m at 10.45g/t gold including 2m at 19.30g/t gold; 4m at 19.60g/t gold including 2m at 37.60g/t gold. All results are shown in the table on page two.

Process Enhancement

An on-site review of Sinivit by NGG staff and experts associated with our Normanby joint venture partners have concluded that it would be appropriate to proceed to heap leaching at Sinivit and gradually phase out the vat leaching. The heaps would be constructed on top of existing vats. Normally, with heap leaching it is necessary to have "pregnant and barren" ponds associated with heaps to retain solution. In the case of Sinivit, the underlying vat serves as the "pregnant pond" and the barren solution is re-circulated straight to the heap. Heap leaching will result in lower operating costs than vats. The first trial heap leach should be operating within four weeks.

If heap leaching provides similar or better recoveries to vat leaching, NGG's capacity to process mineralisation in a more timely fashion will be greatly increased. Based on the existing vats, total heap capacity at present, is estimated to exceed 200,000 tonnes of mineralisation. In addition to the heap leach trial, the Company's new vat capacity available to-date is around 30,000 tonnes. Approximately 8,000 tonnes have been placed in Vat 5 over the past few days. On the expert advice above, NGG will also be trialling revised methods of fluid circulation in these vats which may increase recovery.

Crushing capacity has improved significantly over the past quarter with approximately 11,000/12,000 tonnes/month being achieved. NGG expects to achieve 15,000 tonnes in May. The Company, in the near future, will implement extended crushing shifts under lights. This, together with the new crusher, is expected to allow a finer crushed product (100% minus 6-8 mms) and achieve as much as 20,000 tonnes/month of crushed product.

Tellurium Recovery

In respect to tellurium, World Industrial Minerals of Denver, Colorado, have indicated interest in proceeding to further evaluation of the potential to extract tellurium at Sinivit. Representatives will visit the Operations Office in Queensland, Australia early in June, and then proceed to Sinivit for further evaluation.

CENTRAL OXIDE DRILL RESULTS – SINIVIT

Hole No. From (m) To (m) Length (m) Gold (g/t) Cut-off Grade (gold g/t)
CGC 204 6 8 2 10.90 10
CGC 205 0 6 6 2.31 1
  14 16 2 4.63 4
CGC 206 2 6 4 3.47 1
CGC 207 0 4 4 3.78 3
CGC 208 0 8 8 12.82 2.5
  0 2 2 38.0 38
CGC 209 No assays greater than 1g/t Au  
CGC 210 14 18 4 1.85 1.5
CGC 211 No assays greater than 1g/t Au
CGC 212 18 24 6 3.60 2.5
CGC 213 18 22 4 2.28 1
CGC 214 0 6 6 10.45 4
  4 6 2 19.30 19
CGC 215 0 2 2 9.70 9
  4 10 6 3.70 2
CGC 216 4 10 6 4.69 1
CGC 217 4 8 4 19.60 1.5
  4 6 2 37.60 37
CGC 218 0 2 2 1.81 1.5
CGC 219 4 6 2 1.36 1
CGC 220 No assays greater than 1g/t Au
CGC 221 No assays greater than 1g/t Au
CGC 222 No assays greater than 1g/t Au
CGC 223 No assays greater than 1g/t Au
CGC 224 No assays greater than 1g/t Au

DRILL HOLE LOCATION DATA

Hole No. AMG North AMG East RL Dip
CGC0204 9488910 394263 926.52 -90
CGC0205 9488904 394264 926.27 -90
CGC0206 9488900 394258 926.25 -90
CGC0207 9488895 394256 926.21 -90
CGC0208 9488896 394253 926.18 -90
CGC0209 9488891 394248 926.06 -90
CGC0210 9488881 394242 925.61 -90
CGC0211 9488878 394239 925.76 -90
CGC0212 9488873 394242 925.24 -90
CGC0213 9488885 394248 925.63 -90
CGC0214 9488889 394253 925.72 -90
CGC0215 9488901 394253 926.16 -90
CGC0216 9488907 394259 926.30 -90
CGC0217 9488917 394263 925.82 -90
CGC0218 9488966 394289 924.176 -90
CGC0219 9488958 394289 923.01 -90
CGC0220 9488951 394290 922.206 -90
CGC0221 9488944 394291 921.294 -90
CGC0222 9488949 394296 921.54 -90
CGC0223 9488956 394296 922.347 -90
CGC0224 9488963 394295 923.329 -90

All RC samples are partly prepared at site by splitting to 500 grams. Further preparation and analysis is completed at accredited laboratory, ALS Chemex laboratories, in Townsville, Queensland, Australia.

The information in this release was prepared under the direction of Robert D. McNeil, a Fellow of the Australasian Institute of Mining and Metallurgy and a "qualified person" as defined by National Instrument ("NI") 43-101. Mr. McNeil has read and approves the information contained herein.

Full details of Sinivit are described in an Independent NI 43-101 report dated January 2006 which is available at www.newguineagold.ca and in its recent Press Releases.

For further information on this release or on other NGG projects, contact Forbes West toll free at (888)6555532, email forbes@sherbournegroup.ca, info@newguineagold.ca, or access our website – www.newguineagold.ca.

ON BEHALF OF THE BOARD

R.D.McNeil, CHAIRMAN & CEO

Forward Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of NGG, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of resource and reserve estimates, currency fluctuations, dependence upon regulatory approvals, the availability of future financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information