Northern Gold Mining Inc.
TSX VENTURE : NGM

Northern Gold Mining Inc.

October 21, 2009 09:00 ET

Northern Gold Files NI 43-101 Report and Receives Acceptance of Option Agreement on Garrison Gold Property

TORONTO, ONTARIO--(Marketwire - Oct. 21, 2009) - Northern Gold Mining Inc. ("Northern Gold") (TSX VENTURE:NGM) is pleased to announce that the TSX Venture Exchange has given final acceptance to the Option Agreement ("the Agreement") dated 9 September 2009 with ValGold Resources Ltd. ("ValGold") (TSX VENTURE:VAL) covering the Garrison gold property. Pursuant to the agreement, Northern Gold holds an option to acquire up to an 80% interest in the Garrison Gold Property. The complete terms of the agreement were announced in a press release issued by Northern Gold on 14 September 2009 and filed on SEDAR (www.sedar.com.)

Northern Gold files NI 43-101 report

A NI 43-101 compliant technical report on the Garrison gold property was filed on SEDAR on 20 October 2009 by Northern Gold. The report identifies four mineralized gold zones on the property - JP, JD, RP, and East - and concludes that these four mineralized zones contain both an indicated resource and an inferred resource. The estimate of Indicated and Inferred Resources from the report estimate focused on four mineralized zones along the Munro Fault Zone, which is a splay from the regional Destor-Porcupine Fault Zone.

  Indicated ResourceInferred Resource
       Zone           
  TonnesAu g/TOuncesTonnes     Au g/TOunces
 JP Zone 236,100 7.69 58,380 812,400      4.66 121,750
 JD Zone       168,000      7.37 39,830
 RP Zone 12,100 10.91 4,260 124,300      5.05 20,170
 East Zone 4,900 3.58 560 451,100      4.47 64,790
 TOTALS253,1007.7763,2001,555,800     4.93246,540

According to the NI 43-101 technical report, from 1996-1999 Hillsborough Resources extracted a 50,477 tonne bulk sample from the central part of the JP zone at an average recovered grade of 8.3 grams per tonne. A smaller bulk sample of 79 blast rounds (approximately 3,160 tonnes) was extracted by Jonpol Exploration from the JP zone in 1990 and returned calculated assays of 10.9 and 18.5 grams per tonne when sent for metallurgical testing.

Garrison Project Summary

The Garrison gold property consists of thirty-five patented claims in Garrison Township approximately 40 kilometres north of Kirkland Lake and 100 kilometres east of Timmins, Ontario. The 374.5 hectare property covers approximately 2.5 kilometres of the Destor-Porcupine Fault Zone and 1.7 kilometres of the Munro Fault Zone, within the Abitibi Greenstone Belt. The Abitibi Greenstone Belt hosts numerous major gold deposits which, as of 2008, had reportedly produced approximately 150 million ounces of gold.

Gold mineralization on the property occurs as sulphide-rich bodies within the two major fault zones, and as quartz-pyrite vein stockworks within the intervening Timiskaming sediments. Four high-grade gold zones or shoots of sulphide mineralization were outlined within the Munro Fault Zone by previous operators who focused their 199 drill holes primarily on gold zones to a depth of 300 metres. The individual mineralized shoots are estimated to be up to 300 metres in strike length, average 3.35 metres in thickness and contain gold associated with albite, sericite, and pyrite alteration. An advanced underground exploration program was initiated on one of these, the J.P. gold zone, in October 1995. The underground development included a 12 x 14 foot, 18-20 degree decline excavated to the 476 foot level.

The Garrcon Zone

The technical report also recommends that a study of the Garrcon Zone be completed to formulate a program and budget to test the potential for bulk tonnage, open-pit mining. The report suggests that the Garrcon Zone, which occurs approximately 1,000 metres east of the above resource area on the immediate north side of the Destor-Porcupine Fault, has the potential to host a bulk tonnage target of up to 30 million tonnes ranging in grade from 1 to 3 grams per tonne gold. The potential quantity and grade is conceptual in nature and as a result it is uncertain if further exploration will result in the discovery of a mineral resource.

The initial focus for Northern Gold will be the Garrcon Zone, where Northern Gold plans to diamond drill in the near future. Northern Gold's due diligence over the past few months included compiling and digitizing all available data. This resulted in preparation of a 3-D model of past drilling to assist in determining optimal diamond drill hole locations.

This Press release has been reviewed by Brad Leonard P.Geo., exploration manager for Northern Gold Mining Inc., who is the "Qualified Person" as defined by NI 43-101 for this project.

Northern Gold Mining Inc. is a Toronto based junior resource company dedicated to gold exploration in the Kirkland Lake mining camp of Northern Ontario.

CAUTIONARY STATEMENT: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. 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.

Contact Information

  • Northern Gold Mining Inc.
    Martin R. Shefsky
    President and CEO
    (416) 366 - 7300
    (416) 366 - 7301 (FAX)
    mshefsky@northerngold.ca
    or
    Northern Gold Mining Inc.
    Jeffery P. Boykin
    VP Investor Relations/Regulatory Affairs
    Mobile: (647) 269 - 7300 or Tel: (416) 366 - 7300
    (416) 366 - 7301 (FAX)
    jboykin@northerngold.ca
    www.northerngold.ca