SOURCE: NioGold Mining Corp

NioGold Mining Corp

April 26, 2012 07:30 ET

New Results at Marban Highlight Potential to Define High Grade Ore Shoots

VAL-D'OR, QC--(Marketwire - Apr 26, 2012) - NioGold Mining Corporation (TSX VENTURE: NOX) (OTCQX: NOXGF) ("NioGold") is pleased to release new drilling results of the Phase Two program conducted under the terms of the Aurizon Mines Ltd. ("Aurizon") earn-in option on the Marban Block property, located in the Malartic gold camp, Abitibi region of Quebec.

Results from 22 new drill holes and six (6) extensions of previous holes completed on the Marban gold deposit are included in this release. Drill results are tabled on the following pages.

The new results highlight the potential to define high grade shoots within the Marban deposit, which include:

  • Hole MB-07-024ext, drilled on section 4300E, was extended to investigate the Eastern Down Dip Zone and returned two high grade intercepts that are included within lower grade intervals:
    • 8.1 g/t Au over 0.9 m at a vertical depth of 395 metres
    • 196.5 g/t Au over 1.2 m at a vertical depth of 415 metres
  • Shallow in-fill drilling between sections 4300E and 4400E returned the following high grade intersections:
    • 20.5 g/t Au over 2.0 m at a vertical depth of 180 metres (MB-11-248)
    • 36.7 g/t Au over 1.1 m at a vertical depth of 155 metres (MB-07-019ext)
    • 29.8 g/t Au over 1.0 m at a vertical depth of 65 metres (MB-12-252)
  • Hole MB-12-295 drilled on section 3575E and part of the in-fill drilling on the near surface Western High Grade Zone intersected:
    • 51.4 g/t Au over 1.1 m at 95 metres at vertical depth

The new results are showing very good intercepts over a strike of 1,050 metres on the deposit (from section 3550 to 4600) and from surface to a vertical depth of 500 metres. The deposit is developed inside the Marbenite shear zone which is about 200 to 500 metres wide and is affected by kilometric folds. The deposit itself is multi-folded and the flanks and hinges are forming numerous zones sometimes merging together and giving a thickness that range from 5 to 80 metres. Mineralisation is characterized by chlorite - carbonate - albite alteration associated with a variable amount of quartz veining and iron sulphides.

The Phase Two program will include 34,000 metres of diamond drilling, an updated mineral resource estimate and basic technical studies, including metallurgical testwork. Drilling commenced on December 13, 2011, and four drill rigs are currently in operation. Two are testing the extension at depth of the Marban deposit, one is following up on the fences drilled during Phase 1 between the Norlartic and Marban deposits, and the fourth drill is investigating select exploration targets outlined on the Marban Block property. To date, 75 holes and nine (9) extensions of previous holes have been completed for a total of 26,380 metres. The Phase Two program and updated resource estimate are expected to be completed by the end of the second quarter of 2012.

Marban deposit drilling

The 2011 Phase One drill program demonstrated the continuity of the mineralisation between surface and a vertical depth of 250 metres, as well as the grade consistency, and led to the discovery of the Western High Grade Zone. This Phase One also identified the Eastern Down Dip Extension Zone which is located below a vertical depth of 250 metres and remains open at depth and laterally.

The objectives of the Phase Two drilling program:

1. Improve the quality of the Marban near surface resources:

The objective is to improve the quality of the known resources and to increase the potential to find more mineralised corridors within a pit shell to help decrease the stripping ratio, and will include drilling the Western High Grade Zone.

2. Develop a mineral inventory below a vertical depth of 250 metres:

This objective targets the identification of new gold resources inside the Marban structural zone. Preliminary interpolation on the Eastern Down Dip Zone indicates a strong potential to identify gold resources between a vertical depth of 350 and 600 metres. The mineralised structure is considered open laterally and downdip.

New holes and the extension of previous holes are planned at vertical depths of -300 metres to -1,000 metres to test the consistency and extension of the Eastern Down Dip Zone at an average drill hole spacing of 50 metres.

Aurizon Option

Aurizon can earn up to a 65% interest in the Marban Block property under the terms of an option and joint venture agreement dated July 5, 2010, between NioGold and Aurizon. The initial 50% interest can be earned by incurring expenditures of $20 million over three years, completing an updated NI 43-101 compliant mineral resource estimate, and by making a resource payment for 50% of the total gold ounces defined by the mineral resource estimate. NioGold remains the project operator during the initial earn-in period.

The Phase One program commenced on August 30, 2010, and was completed on August 9, 2011. The program consisted of 50,253 metres of diamond drilling (170 holes, 8 extensions) at a total cost of $6 million. Drilling was distributed between the Marban (41,270m) and Norlartic (4,319m) deposits and exploration drill hole fences between the two deposits (4,664m). Highlights include the identification of two new gold zones surrounding the former Marban mine named the High Grade Western Zone and Eastern Down Dip Zone.

Drill results - Marban deposit

Hole Easting (m) Northing (m) Azimuth Dip Hole Length (m) From (m) To (m) Length (m) Grade (g/t Au) Zones
MB-11-248 4400 4185 N180° -62° 612.0 207.0 209.0 2.0 20.53
503.1 507.5 4.4 2.36 W
526.9 528.0 1.1 6.15
MB-12-252 4300 3855 N180° -45° 284.0 61.0 62.1 1.1 8.67 2
84.5 86.1 1.6 4.50
88.0 89.0 1.0 29.80
175.3 180.8 5.5 2.64 A
MB-12-253 3700 3975 N180° -47° 241.0 109.8 111.0 1.2 3.24
132.6 133.6 1.0 3.17 D1
MB-12-254 3675 4290 N180° -47° 437.0 253.5 256.5 3.0 2.26 2
294.8 299.2 4.4 3.64 Z
including 298.2 299.2 1.0 9.78 Z
353.2 354.1 0.9 4.84 B
MB-12-258 4600 3862 N180° -55° 440.0 223.2 229.4 6.2 3.29 V-M
MB-12-259 4000 4165 N180° -51° 425.0 197.8 201.2 3.4 3.40
239.7 240.8 1.1 12.05 E
282.2 283.2 1.0 7.31 D1
329.5 332.0 2.5 6.96 C2
337.5 340.0 2.5 6.00 C1
MB-12-260 3950 4110 N180° -45° 359.0 192.5 193.5 1.0 19.65 Z
206.5 207.8 1.3 5.03 E
257.7 269.7 12.0 1.59 B
274.9 276.9 2.0 7.14 C1
282.2 284.8 2.6 4.35 A
MB-12-261 3550 4265 N180° -50° 327.0 62.0 63.2 1.2 4.87
MB-12-265 4100 3830 N180° -55° 239.0 117.8 119.0 1.2 2.27 T
MB-12-268 3950 3955 N180° -47° 360.0 63.0 64.2 1.2 4.92 2
104.0 104.8 0.8 3.72 E
MB-12-273 4550 4110 N180° -61° 603.0 65.4 66.3 0.9 5.99
174.0 174.6 0.6 4.66
MB-12-276 4350 3750 N180° -45° 285.0 162.1 163.3 1.2 2.53
MB-12-277 4050 4015 N180° -60° 345.0 171.6 172.8 1.2 11.15
202.8 218.6 15.8 1.71 B
227.0 233.9 6.9 3.58 C1
MB-12-280 3700 4287 N180° -50° 428.0 255.3 257.3 2.0 2.23 2
321.2 322.4 1.2 6.29 Z
MB-12-286 4050 4265 N180° -57° 525.0 30.4 38.0 7.6 1.91
152.3 153.3 1.0 3.60
281.5 283.5 2.0 2.51 Y
344.2 357.2 13.0 2.47 D1
including 351.0 354.2 3.2 7.08 D1
450.8 451.7 0.9 5.63
468.0 475.8 7.8 0.99 A
MB-12-288 3900 4145 N180° -55° 420.0 227.0 228.0 1.0 6.72 E
309.1 316.1 7.0 3.07 C1
342.9 350.6 7.7 1.74 A

Drill results - Marban deposit (continued)

Hole Easting (m) Northing (m) Azimuth Dip Hole Length (m) From (m) To (m) Length (m) Grade (g/t Au) Zones
MB-12-291 3575 4260 N180° -51° 381.0 202.2 203.4 1.2 1.58 2
MB-12-292 3600 4335 N180° -51° 429.0 358.6 359.8 1.2 5.98
MB-12-293 3625 4260 N180° -51° 372.0 127.4 129.6 2.2 2.49
231.2 246.2 15.0 1.48 2
MB-12-295 3575 4130 N180° -51° 300.0 121.3 122.4 1.1 51.40 2
234.0 242.2 8.2 1.01 T
MB-12-296 3625 4130 N180° -51° 305.0 216.6 218.1 1.5 1.74 Z
MB-12-299 3550 4005 N180° -50° 189.0 49.7 50.7 1.0 10.35 Y
MB-07-019ext 4350 3880 N180° -45° 189 to 345 204.3 205.4 1.1 36.70 A
324.8 326.0 1.2 7.36
MB-07-024ext 4300 4050 N180° -80° 282 to 525 386.4 401.5 15.1 1.54 A
411.7 419.0 7.3 2.16
including 412.8 413.7 0.9 8.10
432.4 433.6 1.2 196.50 P
MB-08-049ext 4200 4200 N180° -65° 360 to 561 460.6 468.6 8.0 0.87 A
MB-08-071ext 4200 4240 N180° -68° 351 to 612 540.0 542.4 2.4 4.02 A
MB-08-074ext 4150 4235 N180° -56° 296.3 to 509 313.0 316.6 3.6 3.05 D2
335.8 337.0 1.2 4.72
345.4 351.4 6.0 1.27 D1
440.0 446.8 6.8 0.92 A
MB-08-077ext 4300 4050 N180° -63° 264 to 484 325.6 333.8 8.2 2.73 C1

Technical Info, QA/QC and Qualified Persons

Reported intervals are in core lengths but are anticipated to approximate true width, except where structural complexities occur, as the holes were drilled near perpendicular to the principal local structural orientation.

Diamond drill holes were drilled with NQ-size core in order to obtain larger sample volumes of the mineralised zones, except for holes that traversed underground workings which were completed using BQ-size core. The core was sealed and delivered by the drilling contractor to NioGold's facilities located at the Norlartic mine site. The core was photographed for reference, logged and mineralised sections were sawed in half. Sample lengths vary between 0.5 to 1.5 metres. Half core samples were bagged, sealed and delivered to ALS Chemex in Val-d'Or, Quebec, an accredited laboratory. The remaining core is stored on site for reference. Samples were assayed by the fire-assay method using an atomic absorption finish on a 50-gram pulp split. A quality assurance and quality control program (QA/QC) was implemented by NioGold and the laboratory to ensure the precision and reproducibility of the analytical method and results. The QA/QC program includes the insertion of standards, blanks and field duplicates in the sample batches sent to the laboratory and a systematic re-assaying of samples returning values above 2 g/t Au by the fire-assay method using a gravimetric finish. As well, pulps grading above 0.5 g/t Au are sent to Bourlamaque Assay Laboratories Ltd. in Val-d'Or for check assaying.

The drilling program is conducted under the supervision of Yan Ducharme, M.Sc., P.Geo. (OGQ), NioGold's Exploration Manager and a Qualified Person as defined by National Instrument 43-101. The news released was prepared by Mr. Ducharme.

NioGold Mining Corporation - < < On Canada's Golden Highway > >

NioGold Mining Corporation is a mineral exploration company focused on gold. The Company's flagship projects are located in the Cadillac - Malartic - Val-d'Or region of the prolific Abitibi gold mining district in Quebec. The Cadillac, Malartic and Val-d'Or mining camps have produced over 45 million ounces of gold since the 1930s and presently encompasses six producing gold mines including Osisko Mining's new Canadian Malartic operations. NioGold's land holdings within the Abitibi presently cover 130km2 and encompass four former gold producers, namely the Norlartic, Kierens (First Canadian), Marban and Malartic Hygrade mines that collectively produced 640,000 ounces of gold. NioGold has outlined Indicated resources of 598,000 ounces gold and Inferred resources of 361,000 ounces gold in and around these deposits.

NioGold's experienced and qualified technical team are overseeing the advancement of these projects, with current drill programs underway targeting expansion of the resource base.

NioGold invites you to visit the company website at www.niogold.com.

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

FORWARD-LOOKING STATEMENTS

This news release includes "forward-looking statements," as that term is defined in Section 27A of the Unites States Securities Act of 1933, as amended, and Section 21E of the United States Exchange Act of 1934, as amended, that are subject to assumptions, risks and uncertainties. Statements in this news release which are not purely historical are forward-looking statements, including without limitation any statements concerning the Company's intentions, plans, estimates, expectations or beliefs regarding the future. Although the Company believes that any forward-looking statements in this news release are reasonable, there can be no assurance that any such forward-looking statements will prove to be accurate. The Company cautions readers that all forward-looking statements, including without limitation those relating to the Company's future operations and business prospects, are based on assumptions none of which can be assured, and are subject to certain risks and uncertainties that could cause actual events or results to differ materially from those indicated in the forward-looking statements. Readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance on forward-looking statements.

Any forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual events or results could or do differ from those projected in the forward-looking statements. Except as required by law, the Company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

CAUTIONARY NOTE TO U.S. INVESTORS

The United States Securities and Exchange Commission (the "SEC") permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We may use certain terms in this news release, such as 'measured resources,' 'indicated resources' and 'inferred resources,' which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. The news release may contain information about adjacent properties on which we have no right to explore or mine. U.S. investors are cautioned that mineral deposits on adjacent properties may not be indicative of mineral deposits on our properties.

Contact Information

  • For information on NioGold Mining Corporation contact:

    Michael A. Iverson
    Chairman & CEO
    miverson@niogold.com
    Tel: (604) 856-9887

    Dale Paruk
    Vice-President
    dparuk@niogold.com
    Tel: (604) 662-4505
    Toll-free: (877) 642-6200