SOURCE: NioGold Mining Corp

NioGold Mining Corp

April 24, 2012 07:30 ET

NioGold's Marban Property Recovers 95.4 - 97.6% Gold in Metallurgical Testwork

LANGLEY, BC--(Marketwire - Apr 24, 2012) - NioGold Mining Corporation (TSX VENTURE: NOX) (OTCQX: NOXGF) ("NioGold" or the "Company") is pleased to announce the results of preliminary metallurgical testing for two composite samples from the Marban Block property conducted by SGS Mineral Services. Ore cyanidation testing produced results ranging from 95.4% to 97.6% gold recoveries. The Marban Block property is located in the Malartic gold camp in the Abitibi Region of Quebec and is subject to an earn-in by Aurizon Mines Ltd.

Two gold-bearing composite samples were examined at the SGS Mineral Services Lakefield site. The #1 composite containing an assay grade of 1.24 g/t gold was designed to study the metallurgical response of a low grade envelope. The #2 composite containing an assay grade of 4.59 g/t gold and was designed to represent the high grade envelope. After 48 hours, gold recoveries ranged from 95.4% to 97.6% for composite #1 and 95.7% to 97.3% for composite #2. Finer grinding typically increased the gold recovery at the cost of higher cyanide consumption.

Table #1 Ore cyanidation recovery results
Sample Size P80 (micron) Recovery 24 hours (%) Recovery 48 hours (%) Calculated Head grade (g/t Au)
Comp. 1 173 86.0 95.4 1.19
Comp. 1 83 87.2 96.5 1.15
Comp. 1 62 86.5 97.6 1.24
Comp. 2 153 76.6 95.7 4.95
Comp. 2 82 83.6 97.3 4.82
Comp. 2 62 76.2 97.0 4.90

Gravity separation testing on the #1 composite showed a 41.3% Gravity Recoverable Gold (GRG). Gravity separation testing on the #2 composite showed a 56.5% GRG. The combination of gravity recovery and cyanidation of the gravity tail did not increase the overall gold recovery. This demonstrates that while this concept could be beneficial from a plant design perspective, gravity recovery is not essential to obtaining good recoveries from these two composites.

Table #2 Gravity recovery
Samples GRG
(Gravity Recoverable Gold)
(%)
Gravity
concentrate
grade
(g/t)
Calculated Head grade
(g/t Au)
Comp. 1 41.3 756 1.03
Comp. 2 56.5 4061 4.19

Bond ball mill testing indicated that the two composites fell in the medium-soft to medium range of hardness compared to the SGS database (10.1-10.9 kWh/t).

While this test work is preliminary in nature and has been performed on two composite samples the Company is very pleased with these initial results which suggest high gold recoveries utilizing conventional processes.

Testing on the residue samples from composite #1 & #2 suggests that acid generation is highly unlikely to occur from these samples.

Qualified Person and Quality Control

Samples selection, collection and preparation was conducted under the supervision of Yan Ducharme, M.Sc., P.Geo. (OGQ), the Company's Exploration Manager and a Qualified Person as defined by National Instrument 43-101.

Information regarding the metallurgical testwork has been prepared by or under the supervision of Simon Lacasse, eng, Project Officer- Metallurgy of Mines Aurizon Ltd 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 region of the prolific Abitibi gold mining district Quebec. The Cadillac, Malartic and Val-d'Or mining camps have produced over 45 million ounces of gold since the 1930's and presently encompasses six producing gold mines including Osisko Mining's new Canadian Malartic operations. NioGold's land holdings within the Abitibi presently cover 126km2 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 is 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. For information on NioGold Mining Corporation contact:

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 Exchange Act, 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 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.

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