Northern Gold Mining Inc.

Northern Gold Mining Inc.

September 10, 2013 08:30 ET

Northern Gold Completes Acquisition of Contiguous Mining Claims to the Garrison Property from Lac Properties

TORONTO, ONTARIO--(Marketwired - Sept. 10, 2013) - NORTHERN GOLD MINING INC. (TSX VENTURE:NGM) ("Northern Gold" or the "Company") is pleased to announce that it has completed the acquisition of 20 patented mining claims in Garrison Township (the "Property") from Lac Properties Inc. ("Lac"), a wholly-owned subsidiary of Barrick Gold Corporation, as previously announced on June 10, 2013.

The claims comprising the Property are contiguous to the west, north and south of Northern Gold's Garrison Property. The Property was explored by Dome Mines and Wright Hargreaves Mines in the 1940's and was last active in 1991 when held by Lac. A summary of this historical exploration is presented below. This historical exploration was not supervised by a "qualified person" in accordance with National Instrument 43-101 ("NI 43- 101"). The Company cautions against relying on the historical work, but believes that it is sufficiently relevant and reliable to indicate exploration potential only.

Diamond drilling conducted in the 1940's through the 1990's totaled 81 holes (approximately 17,000 metres) which has outlined several gold-bearing zones. While no mineral resource has been estimated for the Property, many of the zones had significant strike length and width. The 903 Zone lies in the southern portion of the Property and is hosted by linear syenite intrusives along a strike length of 730 metres. The second zone on the Property is the JD Zone which is an extension of Northern Gold's Jonpol Deposit within the Munro fault. The Property extends the known strike length of the Jonpol Zone by 300 metres to a total of 900 metres. Drill hole highlights from the 903 Zone include GE88-08 which intersected 2.65 g/t over 51.8 metres and from the JD Zone extension H91-1 which intersected 5.3 g/t over 3.0 metres (Jonpol Explorations Ltd. and T and H Resources Ltd., 1991). The 903 Zone and JD Zone are both known to extend onto Northern Gold's current land holdings.

Pursuant to the terms of the Agreement the Company acquired the Property (the "Transaction") in consideration for:

  • a cash payment of CDN$750,000;
  • the issuance of common shares of Northern Gold (the "Common Shares") with a value of $250,000 based on 10-day average trading price prior to issuance being 4,011,311 Common Shares issued at a price of approximately $0.06 per share;
  • a back-in right (the "Back-In Right") for up to a 51% interest in the Property should a resource (as defined in NI 43-101) totaling 4 million ounces of gold or gold equivalent be identified on the Property. Such Back-in Right would trigger a cash reimbursement to the Company equal to double the exploration costs incurred since the date of the Transaction; and
  • a royalty of two percent (2%) of net smelter returns (the "NSR") from production on the Property with the option by the Company to purchase one-half of one percent (0.5%) of the NSR for the amount of $1,000,000.

Martin Shefsky, President and CEO of Northern Gold, commented: "We welcome Barrick Gold Corporation as a new shareholder of Northern Gold Mining Inc. We are excited to acquire the contiguous claims from Lac Properties as the mineralization from the Jonpol, Garrcon, and 903 Zone extend onto these claims."

Following completion of the Transaction, Northern Gold's Golden Bear Project now holds mineral properties covering more than 22,000 hectares.

The technical information in this press release has been prepared in accordance with the Canadian regulatory requirements set out in NI 43-101 and has been reviewed by Gary Nassif, M.Sc., P.Geo., Manager, Exploration Services of Northern Gold, a "Qualified Person" under NI 43-101.

The securities issued in connection with the transaction will be subject to a four-month hold period from the date of issuance.

About Northern Gold

Northern Gold is a TSXV-listed gold company based in Toronto, Ontario. The Company's main focus is the exploration and development of its prospective mineral properties of the Golden Bear Project in the Larder Lake Mining Division, northeastern Ontario. Northern Gold has a portfolio of advanced exploration projects, including the Jonpol and Garrcon Deposits and the Buffonta Property. The recent property acquisitions including the Harker-Holloway Property and amalgamation with Victory Gold Mines Inc. add to the Company's regional consolidation strategy along the Destor-Porcupine Fault Zone.

CAUTIONARY STATEMENT: Neither the TSX Venture Exchange ("TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) 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. This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, Northern Gold's objectives, goals or future plans, statements regarding exploration results and exploration plans. Factors that could cause actual results to differ materially from such forward- looking information include, but are not limited to, capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, and those risks set out in Northern Gold's public documents filed on SEDAR. Although Northern Gold believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Northern Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

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