New Guinea Gold Corporation
TSX VENTURE : NGG
FRANKFURT : NG8

New Guinea Gold Corporation

March 23, 2011 14:32 ET

New Guinea: Kavursuki Mineralised Zone at Sinivit Gold Mine Likely to Be Equal in Size to Original Sinivit Mineralised Zone-Trench Results to 4m at 118.5g/t Gold

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 23, 2011) - New Guinea Gold Corporation ("NGG" or the "Company") (TSX VENTURE:NGG)(FRANKFURT:NG8) announces that drilling, trenching, geochemical sampling, and geophysical surveys suggest that the Kavursuki mineralized zone will ultimately equal or exceed the oxide mineralisation at the present Sinivit Mine. The geophysical survey also confirmed there may be sulphide potential at depth below the oxide mineralisation, but at this time, there has been no drilling to explore the Kavursuki Zone at depth.

21 diamond core holes, in excess of 3,000m of excavator trenching, have confirmed a continuous, mineralized structural zone up to 50m in width, and one km in length, variably silicified and mineralized with gold and silver. By analogy with the Sinivit Zone, it is assumed that at depth, below the limit of oxidation, the Kavursuki mineralization will be similar to that at Sinivit – i.e. copper/gold/tellurium sulphides. The Kavursuki Zone is probably continuous with the northern extension of the Sinivit Zone but because of excessive topography, this has not yet been confirmed by drilling.

The relationship between the Kavursuki and Sinivit Zones is shown in Figure 1, and the distribution of drill holes and most trenching at Kavursuki are shown in Figure 2. Topography in the Kavursuki area is steep which can assist trenching (i.e. expose a face approximately 50m high on a hill slope) or hinder trenching. Some parts of the Zone are difficult to sample at surface without very extensive earthworks.

All drill hole summary results are shown in Table 1. Best results include:

  • 20.3m at 3.28g/t gold including 8m at 6.49g/t gold;
  • 5.25m at 9.45g/t gold including 2.6m at 13.74g/t gold;
  • 8.1m at 4.06g/t gold including 0.9m at 12.05g/t gold;
  • 4.1m at 2.65g/t gold;
  • 13.3m at 1.92g/t gold;
  • 1.12m at 33.7g/t gold.

28 trenches have been excavated on or near the Kavursuki mineralized zone, of which, except for Trench H, all contained at least one 2.0 m sample greater than 0.5 g/t gold. All results are shown in Table 2. Best results include:

  • 28m at 19.42g/t gold including 4m at 118.50g/t gold (note – this trench is partly along strike);
  • 16m at 2.79g/t gold;
  • 4m at 13.72g/t gold;
  • 32m at 2.17g/t gold;
  • 14m at 10.21g/t gold including 4m at 26.13g/t gold;
  • 10m at 3.8g/t gold;
  • 12m at 12.29g/t gold;
  • 20m at 8.08g/t gold including 4m at 20.35g/t gold;
  • 38m at 5.2 g/t gold including 4m at 21.15 g/t gold;
  • 4m at 12.02g/t gold including 2m at 23.5g/t gold.

Complete tables of all individual drill and trench locations and assays are available on the web site – www.newguineagold.ca.

The mineralized zones shown on Figure 2 are, in general, defined by silicification and the approximate limit of 0.1 g/t gold. These mineralized zones contain 0.1g/t gold or more throughout the entire zone. The higher grade lenses within this zone are narrower, and vary in width from less than 1m to 10m in width. To date, three high grade zones have been defined at surface although these zones vary rapidly along strike in terms of grade and width. Two zones are towards the northern end, and one zone is in the central part of Kavursuki in the vicinity of Hole 11KVD019 (including the 4m at 118.5g/t gold). Drilling is quite wide-spaced over much of the one kilometer length and it is anticipated that closer spaced drill holes will locate further high grade zones.

Figure 3 is included to illustrate higher gold in trench results at the northern end of the Kavursuki Zone. Several samples exceeded 20g/t gold. Trench 20 averages 20m at 8.08 g/t gold and Trench 21 has mineralized intervals of 12m at 12.29g/t gold and 18m at 3.62g/t gold over the higher grade zone shown on the plan. The grades appear to "drop off" to the north, but Hole 90KVD009, 50m north of the surface high grade zone intersected 5.25m at 8.18g/t gold (including 1.4m at 19.5g/t gold). Hole 90KVD011 intersected only lower grade gold but still above a 0.5g/t gold cut off.

These results illustrate that gold grades vary substantially along and across strike and with depth. The nearest drill hole south of Hole 90KVD009 is approximately 300m south, and, there are no drill holes beneath this high grade zone. These results (including other trench results) and the still extensive untested parts of Kavursuki suggest further high grade lenses will be defined. RC and/or diamond core holes on "fences" on 25 centers are planned to allow better definition of Kavursuki and an assessment of the resources in this zone.

Bob McNeil, Acting CEO, commented: "Kavursuki is proving to be a likely source of additional oxide ore to extend the life of the present oxide mine, or provide ore for re-vamped processing such as CIP or CIL. In addition, the style of mineralisation and the geophysical results suggest that the oxide mineralisation is likely to be underlain at depth by substantial volumes of copper/gold/tellurium sulphide mineralisation. Ultimately, it is likely that the Sinivit and Kavursuki Zones will be proven to be one continuous, albeit erratically mineralized, zone of mineralisation. The total length of this combined zone is of the order of 3 kilometers. The Company is presently investigating possible financing to enable the Kavursuki resource to be defined and for exploration and definition of the sulphide resource, IP and resistivity anomalies, and the southern extension of the Sinivit structure to be comprehensively explored."

Trench samples are continuous channel samples, each two metres long and comprised of approximately 5kgs of sample. Samples are partly prepared on site by crushing and splitting to approximately 500 grams. Further preparation is completed at accredited laboratory, ALS Chemex laboratories, in Townsville, Queensland, Australia.

Drill core is logged and split (all by saw) on site with half core being dispatched to, and assayed by accredited laboratory ALS–Chemex in Townsville, 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 43-101. Mr McNeil has read and approves the information contained herein.

Full details of Sinivit are described in an Independent National Instrument 43-101 report dated January 2006 which is available at www.newguineagold.ca.

To view the tables and maps accompanying this press release please click on the following link: http://media3.marketwire.com/docs/NGG0323.pdf

For further information on this release or on other NGG projects such as the Sinivit Gold Mine, contact info@newguineagold.ca, or access our website – www.newguineagold.ca.

ON BEHALF OF THE BOARD

R.D. McNeil, ACTING 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.

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