NFX Gold Inc.

NFX Gold Inc.

January 22, 2008 11:37 ET

NFX Commences Diamond Drilling at Lemoyne North Property in James Bay District, Quebec

TORONTO, ONTARIO--(Marketwire - Jan. 22, 2008) - NFX GOLD INC. (TSX VENTURE:NFX) (the "Company" or "NFX") is pleased to announce that a surface diamond drilling program has commenced on the Lemoyne North Property, pursuant to the Company's July 2007 option and joint venture agreement with Eloro Resources Ltd. ("Eloro").

The 100 km2 Lemoyne North Property is located within the La Grande Belt in the James Bay district of Quebec and straddles the northern border of Virginia Mines Inc.'s Poste Lemoyne property where Virginia Mines Inc. has outlined a 95,000 ounce gold resource grading 14.5 g/t gold, that included intersections of up to 43.09 g/t gold over 11.65 m (Source: Virginia Mines Inc. website).

Recent work completed at the Lemoyne North Property has identified felsic volcanic rocks with sulphide mineralization and accompanying alteration similar to the world-class Doyon-Bousquet-LaRonde Camp of the Abitibi Belt. The work has identified targets for immediate drilling where the alteration is strongest, and where Eloro's 2006 drilling intersected semi-massive sulphides anomalous in gold, silver and zinc. Historic grab sample assays at Lemoyne North (Virginia Gold Mines, 1996, Boreal Exploration, 1998), include grades up to 4% copper, 21 g/t gold and 38 g/t silver.

In July 2007 Eloro optioned four mineral properties located within the La Grande belt to the Company. The properties involved in the transaction are the Lemoyne North, Horseshoe, Taiga and Taiga West properties (the "Properties"). Under the terms of the option and joint venture agreement, the Company has an option to earn a 50% interest in the Properties by incurring C$ 3 million in exploration related expenditures on or before July 15, 2011.

The Company has initiated a 2,000 meter surface drilling program to test the sulphide zone associated with alumina and magnesium bearing alteration, typical of the Doyon-Bousquet-La Ronde Camp. This wide alteration zone has been delineated over a 3 km strike length by geophysics and is more than 200 m wide. Grab samples from this zone consist of abundant pyrite - pyrrhotite (iron sulphides) and minor chalcopyrite (copper sulphides) and sphalerite (zinc sulphides).

This release contains certain "forward-looking statements". All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, are forward-looking statements. Potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a mineral resource on the properties mentioned above and it is uncertain if further exploration will result in any such target being delineated as a mineral resource. Forward-looking statements reflect the current internal projections, expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties, including those detailed from time to time in filings made by the Company with securities regulatory authorities, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company.

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

Contact Information

  • NFX Gold Inc.
    Thomas G. Larsen
    President and Chief Executive Officer
    (416) 360-8006
    (416) 361-1333 (FAX)
    NFX Gold Inc.
    Jorge Estepa
    Vice President
    (416) 360-8006
    (416) 361-1333 (FAX)