Northern Gold Mining Inc.

Northern Gold Mining Inc.

September 23, 2010 07:10 ET

Northern Gold Announces Significant NI 43-101 Resource Estimate on Garrcon Deposit, Brings Garrison Gold Property to a Total Gold Resource of 207,000 Ounces Indicated and 776,000 Ounces Inferred

TORONTO, ONTARIO--(Marketwire - Sept. 23, 2010) - Northern Gold Mining Inc. (TSX VENTURE:NGM) ("Northern Gold" or "the Company") is pleased to announce the results of the first NI 43-101 compliant resource estimate for the Garrcon Deposit on the Garrison Gold Property. A.C.A. Howe International Limited (Howe) has completed a mineral resource estimate for the Garrcon Deposit effective September 23, 2010. The estimate was completed in accordance with Canadian Securities Administration National Instrument 43-101 ("NI 43-101") and CIM Standards on Mineral Resources and Reserves. The resource estimate, using a block cutoff grade of 0.5 g/t gold and a specific gravity of 2.6 g/cm3, reports an indicated resource of 3.78 million tonnes at a grade of 1.2 g/t containing 144,000 ounces of gold. An inferred resource of 18.5 million tonnes at a grade of 0.9 g/t containing 530,000 ounces gold is also reported. Adding the indicated and inferred resources above to the indicated and inferred resources reported for the Jonpol Deposit in the October 2009 Technical Report filed on SEDAR October 21, 2009, brings total resources on the Garrison Gold Property to 207,200 ounces gold in the indicated category and 776,500 ounces gold in the inferred category.

The complete NI 43-101 compliant Technical Report on the Garrcon Deposit describing in detail, among other things, the resource estimate, QA/QC, database validation and geologic model, is expected to be filed on SEDAR by October 15, 2010. Deposit modeling utilizes assay data from 65 diamond drill holes with a maximum intercept spacing of 52 meters used for the indicated resources. Maximum drill hole intercept for the inferred resources was limited to approximately 100 meters. No Measured Resources or Reserves of any category were identified. No economic work that would enable the identification of mineral reserves has been carried out. Mineral resources are not mineral reserves and by definition do not demonstrate economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserve. The resource estimate was prepared by Doug Roy, M.A.Sc., P.Eng., Associate Mining Engineer with Howe. Geological interpretation and review of assay QA/QC was provided by Ian Trinder, M.Sc., P.Geo., Senior Geologist with Howe.

The Technical Report identifies, estimates and summarizes the Garrcon Deposit resources above and below the 150 meter elevation for both the indicated and inferred mineral resource categories. These resources are shown in Table 1 below:

Table 1 – Mineral Resource Category Summary (block cut-off @ 0.5 g/t gold)
Indicated   Tonnes Above Cut-off   Average Gold Grade (g/tonne)   Ounces
Less Than 150 m Deep   3,300,000   1.2   130,000
More Than 150 m Deep   480,000   0.9   14,000
Total Indicated   3,780,000   1.2   144,000
Less Than 150 m Deep   9,400,000   1.0   300,000
More Than 150 m Deep   9,100,000   0.8   230,000
Total Inferred   18,500,000   0.9   530,000
1. Cut-off grade for mineralised zone interpretation was 0.1 g/tonne.
2. Block cut-off grade for defining Mineral Resources was 0.5 g/tonne.
3. No top-cut grade was used. In the author's opinion, the use of a top cut would not have significantly affected the results.
4. Gold price was $US 900 per troy ounce.
5. Zones extended up to 100 metres down-dip from last intercept.
  Along strike, zones extended halfway to the next cross-section.
6. Minimum width was 5 metres, though in no place was the zone that narrow.
7. Non-diluted.
8. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
9. Resource estimate prepared by Doug Roy, M.A.Sc., P.Eng.
10. A specific gravity (bulk density) value of 2.6 was applied to all blocks (a representative value based on a limited number of measurements). 
11. Ordinary block kriging ("OBK") was used for estimating block grades. 
12. Indicated resources identified where sample intercept spacing was 50 metres or less (based on variography).  
13. No Measured Mineral Resources or Mineral Reserves of any category were identified.   

Howe also includes two tables in its report that illustrate the variations in tonnes, grade and ounces contained within the Garrcon Deposit mineralized zone at various cutoff grades, both above and below the block cutoff of 0.5 g/t gold selected for this resource calculation. Table 2 contains the data for the indicated category and Table 3 the data for the inferred category.

Table 2:
    Indicated Category
    Less Than 150 Meters Deep   More Than 150 Meters Deep
Cut-off Grade (g/tonne)   Tonnes Above Cut-Off   Avg Gold Grade g/tonne   Ounces   Tonnes Above Cut-Off   Average Gold Grade g/tonne   Ounces
2.00   490,000   3.2   50,000            
1.50   660,000   2.8   59,000   18,000   1.7   980
1.00   1,300,000   2.0   84,000   150,000   1.3   6,300
0.75   2,000,000   1.6   100,000   310,000   1.1   11,000
0.50   3,300,000   1.2   130,000   480,000   0.9   14,000
0.25   6,000,000   0.8   150,000   650,000   0.8   17,000
Note: values for cut-off grades less than 0.5 g/t are not considered mineral resources and are included for information purposes only.
Table 3:
    Inferred Category
    Less Than 150 Meters Deep   More Than 150 Meters Deep
Cut-off Grade (g/tonne)   Tonnes Above Cut-Off   Avg Gold Grade g/tonne   Ounces   Tonnes Above Cut-Off   Average Gold Grade g/tonne   Ounces
2.00   670,000   3.5   75,000   92,000   2.4   7,100
1.50   1,100,000   2.8   99,000   460,000   1.8   27,000
1.00   2,700,000   1.9   160,000   1,400,000   1.4   63,000
0.75   4,500,000   1.4   200,000   3,700,000   1.1   130,000
0.50   9,400,000   1.0   300,000   9,100,000   0.8   230,000
0.25   20,000,000   0.7   450,000   21,000,000   0.6   410,000
Note: values for cut-off grades less than 0.5 g/t are not considered mineral resources and are included for information purposes only.

Howe's deposit model identifies a broad zone of mineralization that extends over an east-west distance of 760 meters and remains open to the east. The mineralization averages approximately 275 meters wide, with the narrowest width of 175 meters located on the more sparsely drilled eastern end of the zone, reaching a maximum width of 375 meters in the western and more densely drilled western portion of the zone. About half of the 760 meter east-west length of the zone is bounded by the Destor-Porcupine fault system on the south and the contact with mafic and ultramafic rocks on the north side. Widths are still open on the remainder of the 760 meter strike length. Mineralization included in the resource extends from surface across the entire zone to a depth of 125 meters on the more sparsely drilled eastern end and reaches a depth of 350 to 400 meters on the western half of the zone and remains open at depth.

Howe recommends that the Company's current infill drilling program within the resource area be continued to both upgrade the quality of the resources to more assured categories and to add internal resources by decreasing drill hole spacing. Howe also recommends drilling step out fences to the east to follow the broadly mineralized area and to continue defining the mineralized zone to its eastern limit which is unknown at this time.

Even though gold mineralization in some drill holes has been encountered at a depth in excess of 500 vertical meters beneath the zone containing the resources discussed above, Northern is focusing its current drilling on the top 200 meters of mineralization to more quickly and cost effectively develop sufficient resources to bring the Garrcon Deposit to a production decision at the earliest possible time.

"This initial resource estimate on the Garrcon Deposit demonstrates that Garrcon has the potential to be a significant shallow resource and bulk tonnage open pit deposit," said Martin Shefsky, President and CEO of Northern Gold Mining Inc. "This resource does not include the results of our ongoing 10,000 meter drill program which we expect will both add ounces to our resource and demonstrate the continuity of this shallow mineralization. Over the near term, we will continue to accelerate our exploration efforts resulting in an updated and expanded resource calculation in the first quarter of 2011." Northern Gold is currently in the middle of an ongoing 10,000 meter drill program with 4,454 meters completed as at August 31st. The Company is releasing assay results as they become available. Northern Gold plans to continue infill drilling in order to both quickly expand and improve the quality of the existing Garrcon resource.

Qualified Persons

Technical information related to the Garrcon mineral resource estimate contained in this press release has been reviewed and approved by Doug Roy, M.A.Sc., P.Eng. and Ian Trinder, M.Sc., P.Geo., both independent Qualified Persons as defined by NI 43-101, with the ability and authority to verify the authenticity and validity of this data.

The technical aspects of this press release has been reviewed and approved by Michael Gross M.S., P.Geol., Vice President Exploration for Northern Gold, who is the "Qualified Person" as defined by NI 43-101 for this project.

About Northern Gold Mining

Northern Gold Mining Inc. is a TSX-V publicly traded junior resource company based in Toronto, Ontario, dedicated to the discovery of economic, shallow, high value mineral deposits in the proven mining camps of Kirkland Lake and Timmins in Northern Ontario. Northern Gold is focused on developing two advanced stage projects on its Garrison Gold Property in the world renowned mining districts of Kirkland Lake and Timmins in North Eastern Ontario. The property is located within the Abitibi greenstone belt along the Porcupine-Destor and the Munro Fault systems. The Property hosts several gold mineralized showings, including the advanced stage Jonpol and Garrcon Deposits and the less advanced 903 gold mineralized area. Historic drilling was completed on all three of the referenced areas. The Garrison Township Property has historic mining infrastructure and producing mines are located in close proximity to the property. The Jonpol Project contains an indicated resource of 253,100 tonnes grading 7.77 g/t Au (containing 63,200 ounces of gold) and an inferred resource of 1.6 million tonnes grading 4.93 g/t Au (containing 246,540 ounces of gold) as reported in a NI 43-101 Technical Report filed by Northern Gold on SEDAR on 21 October 2009. The Company is in the second year of an option agreement under which it may earn up to an 80% interest in the Garrison gold property from ValGold Resources Ltd. ("ValGold,") (TSX VENTURE:VAL). For more information on the option agreement, please see the Company's news release dated 14 September 2009.

CAUTIONARY STATEMENT: This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, future plans and objectives of Northern Gold Mining Inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Northern Gold Mining Inc.'s expectations are the risks detailed herein and from time to time in the filings made by Northern Gold Mining Inc. with securities regulators.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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