SOURCE: NioGold Mining Corp

May 04, 2011 08:43 ET

NioGold Discovers Two Important Mineralised Structures in the Malartic Camp

VAL-D'OR, QUEBEC--(Marketwire - May 4, 2011) - NioGold Mining Corporation (TSX-V: NOX) ("NioGold" or the "Company") is pleased to report on the on-going exploration drilling program within the southern portion of Company's wholly-owned Malartic Block property, located in the Malartic gold camp, Abitibi region of Quebec.

The first three holes of the program intersected two important altered, veined and sulphide mineralised shear zones cutting sedimentary rocks:

  • The first mineralised shear zone was intersected in hole CW-11-016 from 99.0 to 107.60 metres (8.6 metres) down hole at a vertical depth of 70 meters;
  • The mineralised structure returned gold values averaging 3.15 g/t Au over 6.5 metres including an interval of 12.65 g/t Au over 0.9 metre;
  • The down dip extent of this zone was cut in hole CW-11-017 from 273.3 to 282.4 metres down hole (9.1 metres) at a vertical depth of 193 meters. Results are pending;
  • A second mineralised shear zone was intersected 350 metres to the south in hole CW-11-018 from 94.0 to 103.1 metres (9.1 metres) down hole at a vertical depth of 66 metres. Results are pending.

The Malartic Block property covers a potential 4- to 5-kilometre unexplored strike extent of these newly revealed mineralised structures based on their interpreted WNW-ESE orientation.

Malartic Block exploration drilling program

The southern portion of the Company's large Malartic Block property is located 20 kilometres west of the town of Val-d'Or and directly adjacent to Osisko Mining Corp.'s ("Osisko") Canadian Malartic mine development project.

An initial 6,000-metre exploration drilling program is in progress to investigate sedimentary formations on the north side of the famous Cadillac fault in proximity to the Canadian Malartic and Barnat deposits and Jeffrey Zone being developed by Osisko. Despite the obvious potential within the southern portion of the Malartic Block property, no sustained exploration programs have been conducted over the area in the past, in part due to the lack of rock exposure. NioGold ranks this sector as a high priority target for a new discovery. The drilling is investigating a combination of magnetic, electro-magnetic and induced polarisation geophysical anomalies and gold in-soil anomalies.

Marban Block drilling program

The initial program under the terms of the Aurizon Mines Ltd. option agreement on the adjoining Marban Block property is progressing as scheduled. Three drill rigs are currently in operation on the project and 35,000 of resource development drilling has been completed to date. Additional results will be released in the upcoming weeks.

Technical Info, QA/QC and Qualified Persons

Reported intervals are in core lengths but are anticipated to be close to true width as the holes were drilled at high angle 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. The core was sealed 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 insure 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 was conducted under the supervision of Yan Ducharme, M.Sc., P.Geo. (OGQ), a Qualified Person as defined by National Instrument 43-101. This news release was prepared by Rock Lefrançois, P.Geo. (OGQ), the Company's President and a Qualified Person as defined by National Instrument 43-101.

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 stretch of the prolific Abitibi gold mining district, Province of Quebec, Canada. The Cadillac, Malartic and Val-d'Or mining camps have produced over 45 million ounces of gold since the 1930's and presently encompasses seven producing gold mines and a major mine development project (Canadian Malartic, Osisko Mining). NioGold's land holdings within the Abitibi presently cover 125 km2 and encompass three former gold producers, namely the Norlartic, Kierens (First Canadian), and Marban mines that collectively produced 600,000 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 will ensure the successful advancement of the Company's projects towards the highest quality mineral resources. 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.

FOWARD-LOOKING STATEMENTS

This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties.

CAUTIONARY NOTE TO U.S. INVESTORS

The United States Securities and Exchange Commission 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 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. U.S. investors are urged to consider closely the disclosure in our Form 20-F. The news release contains 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