NFX Gold Inc.
TSX VENTURE : NFX

NFX Gold Inc.

April 26, 2007 11:15 ET

NFX Gold Inc. Acquires Additional Strategic Property along Larder Lake Break and Commences Regional Exploration Program

TORONTO, ONTARIO--(CCNMatthews - April 26, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES.

NFX GOLD INC. (TSX VENTURE:NFX) ("NFX" or the "Company") is pleased to announce that it has enhanced its mineral property holdings along the Larder Lake break in northeastern Ontario by purchasing two claims (9 claim units) in McVittie Township (the "McVittie Property") (the "Property Acquisition").

Pursuant to the McVittie Property agreement (the "McVittie Agreement"), NFX has agreed to acquire a 100% interest in the McVittie Property by the issuance of 100,000 common shares of NFX to the Vendor. The McVittie Agreement stipulates that the Vendor will retain a 0.5% Net Smelter Return royalty on the McVittie Property, of which NFX will have the option to purchase 0.25% for $250,000.

The completion of the Property Acquisition is subject to receipt of all necessary regulatory approvals including that of the TSX Venture Exchange Inc.

The Company also announces the commencement of a regional exploration program at the Company's 75% owned Swansea property and the Company's wholly-owned McVitte Township, McGarry Township and Kirkland Wright properties. The Swansea and McVittie Township properties adjoin the western and northern boundaries of the Company's Larder Lake property. The Larder Lake property is comprised of the Fernland, Cheminis, N. Cheminis, Bear Lake and Barber Larder properties currently under an option and joint venture agreement (the "Larder Lake Property Agreement") with Maximus Ventures Ltd. ("Maximus"). Under the terms of the Larder Lake Property Agreement, Maximus has the option to earn a 60% interest in the Company's interest in the Larder Lake property by completing exploration expenditures totaling $6.0 million by December 31, 2008.

The Larder Lake property has been the centre of extensive exploration drilling by Maximus, since acquiring the Larder Lake property option in November, 2005. Maximus has completed 38 diamond drill holes totaling 16,925m of drilling focused primarily on possible extensions of historically identified resources. While some historic resources may have been extended, the drilling also intersected several possible new zones of gold mineralization associated with faults and/or lithologies not previously known to host mineralization or that remain inadequately explored. The 2007 Maximus drill program recently commenced with a focus to further explore these new host lithologies and structures.

Several of the mineral hosting lithologies and fault structures on the Larder Lake property extend westward across the Swansea and McVittie Township properties where historic drill holes and surface sampling have also identified gold mineralization and/or significant zones of alteration. The prolific Larder Lake fault is one of these structures. One of the historic intersections on the Swansea property is considered highly significant. A historic report(1) on the Swansea property indicates 4 diamond drill holes were completed in 1987 including hole SW-87-4 that contained an intersection from 372.4 to 378.5 meters grading 9.33 gpt(2) (0.30 opt(3)) Au over 6.1 meters including 36.70 gpt (1.18 opt) Au over 1.5 meters. The mineral intersection is described as "flow-ore" style in reference to similarities with the Kerr Addison Mine "flow-ore" that produced 23 million tons at a grade of 0.33 opt (10.23 gpt) Au. The Kerr Addition Mine also produced an additional 15 million tons at a grade of 0.23 opt (7.15 gpt) Au from "green-carbonate" style mineralization. Historic production and resources at the Cheminis and Fernland Mines include both "flow-ore" and "green-carbonate" style mineralization.

NFX has commenced data compilation of historic work completed on the Swansea and McVittie Township properties and is working to extend the geological model from the Larder Lake property westward. The initial compilation has identified several attractive target areas for follow-up work. NFX plans to complete mapping, lithogeochemical sampling and geological modeling during the summer of 2007 with a diamond drill program to follow in the late summer/fall.

The technical content of this news release has been reviewed by Mr. Alexander S. Horvath, P. Eng., a qualified person for NFX under the guidelines of National Instrument 43-101.

(1) The historic report dated June 25, 1987 is titled "Report on the Swansea Property, Ontario" and was prepared for Eldor Resources by Derry, Michener, Booth and Wahl.

(2) gpt is the grade in grams per tonne Au

(3) opt is the grade in ounces per ton Au

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. 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)
    or
    NFX Gold Inc.
    Jorge Estepa
    Vice President
    (416) 360-8006
    (416) 361-1333 (FAX)
    Website: www.nfxgold.com