Northern Gold Mining Inc.
TSX VENTURE : NGM

Northern Gold Mining Inc.

July 11, 2011 07:01 ET

Northern Gold Intersects 3.0 m of Gold Assaying 660.0 g/t Including 1.0 m @ 1956.0 g/t

TORONTO, ONTARIO--(Marketwire - July 11, 2011) - Northern Gold Mining Inc. (TSX VENTURE:NGM) ("Northern Gold" or "the Company") announces assay results for six additional diamond drill holes totaling 1,558 meters of drill core bringing the total meters of drilling reported for 2011's ongoing 30,000 meter drill program to 2,747 meters in 12 drill holes.

These new results include four drill holes, GAR-11-62, GAR-11-64, GAR-11-67 and GAR-11-69, that are tracing Shaft Zone mineralization to the western edge of the resource footprint at Section Line 14+00W. The other two holes, GAR-11-76 and GAR-11-78, are part of the systematic infill drill fences currently being drilled in the eastern half of the resource footprint.

Drill hole GAR-11-76, located along Section Line 9+75W encountered a one meter intersection assaying 1956 g/t gold. This is the highest grade sample interval that Northern Gold has encountered, but Cominco Ltd. (Cominco) reports one assay of 2800 g/t in an area described as yielding spotty assays. GAR-11-76 crosses approximately 20 meters below the Cominco drift about five meters from its eastern termination. Approximately 20 meters above Northern Gold's high grade intercept, Cominco reports assays of 48.0 g/t and 3.7 g/t in two diamond drill holes. Cominco also reports a 591 g/t assay in an area of slashing about 45 meters from the eastern end of the drift and about 45 meters from the high grade intercept in GAR-11-76. (The Cominco assay information is historical in nature. It is not NI 43-101 compliant and as such should not be relied upon.) The close proximity of three of the Cominco high grade assays to the high grade in drill hole GAR-11-76 is encouraging and supports the conclusion that further infill drilling is required in this area to determine if a zone of high grade mineralization can be identified and traced.

Drill hole GAR-11-78, located along Section Line 10+00W encountered a one meter intercept assaying 81.0 g/t gold. This hole is located 25 meters west of GAR-11-76 with the intercept north by north west approximately 50 meters horizontal and 30 meters vertically. The proximity of these two high grade intersections to each other and the Cominco workings is additional support to the conclusion that further infill drilling is required in this area.

"These drill results continue to confirm the long continuous runs of mineralization demonstrated in our 2009 and 2010 programs that, in conjunction with the recent resource update announced in a Press Release dated June 23rd, continues to demonstrate the potential for development of an open pit mine on the Garrcon Deposit," said Martin Shefsky, President and CEO of Northern Gold Mining." The bulk of the drilled mineralization at Garrcon has shown very uniform assay grades, however it is encouraging to find higher grade intercepts in such close proximity, as this could portend localized high grade zones."

The following table presents the significant highlights from the holes. Top-cut assays are cut at 34.0 g/t.

Table 1 – Highlights of Assay Results*


Hole ID


Zone

Incl
(m)

Incl
(m)

Incl
(m)

To
(m)

Interval
(m)
Au
g/t
Un-Cut
Au
g/t
Cut
GAR-11-62 Shaft 77.0 225.0 148.0 0.38
77.0 88.0 11.0 0.67
169.0 186.0 17.0 1.22
208.0 216.0 8.0 1.26
347.0 357.0 10.0 1.06
GAR-11-64 Shaft 85.0 105.0 20.0 0.54
85.0 106.0 1.0 4.28
GAR-11-67 Shaft 12.8 195.0 182.2 0.39
12.8 16.0 3.2 3.09
15.0 16.0 1.0 6.28
41.0 131.0 90.0 0.56
69.0 78.0 9.0 2.01
GAR-11-69 Shaft 103.0 120.0 17.0 0.39
GAR-11-76 Shaft 95.0 98.0 3.0 660.03 19.31
95.0 96.0 1.0 1956.16 34.0
241.0 250.0 9.0 0.62 0.62
GAR-11-78 Shaft 2.0 336.0 334.0 0.32 0.18
58.0 102.0 44.0 1.98 0.91
86.0 87.0 1.0 81.00 34.00
196.0 199.0 3.0 1.12
223.0 225.0 2.0 1.97
*As true widths are not known, all intervals are downhole intervals and not true widths.
Table 2 – Location and Orientation of Drill Holes

Hole ID
Section Line
West
Section Line
North
Azimuth
(True)

Inclination
GAR-11-62 12+25W 8+65N 332.4 -46.7
GAR-11-64 13+75W 10+55N 157.1 -43.8
GAR-11-67 13+50W 9+50N 151.6 -61.5
GAR-11-69 14+00W 9+30N 158.4 -63.1
GAR-11-76 9+75W 8+70N 334.0 -46.4
GAR-11-78 10+00W 10+58N 164.6 -45.1

Two assays above 34.0 g/t are reported in these results bringing the total number of assay results received that are higher than one ounce per tonne to ten since drilling commenced in May of 2010. Those assay results affected by the high grade assays are also shown after applying a top cut grade of 34.0 g/t. Cross sections showing complete drill results including those announced above can be seen on the Company's web site at:
http://www.northerngold.ca/files/Garrcon-Cross-Sections.pdf

It appears that Shaft Zone mineralization extends southwesterly from the south west corner of the resource footprint and additional drilling is currently underway, stepping out to the west beyond Section Line 14+00W to follow this mineralization.

The Company is also pleased to announce that effective July 8, 2011, it has granted 2,500,000 stock options under the Company's incentive stock option plan, which was approved by shareholders at their annual meeting held September 23,2010. These options were granted to management, directors, employees, and consultants with an exercise price of $0.40 and an expiry date of July 7, 2016.

Quality Assurance/Quality Control

Northern Gold Mining Inc. has implemented a QA/QC protocol for its exploration work that meets or exceeds CIM standards. Northern is currently diamond drilling the Garrison Gold Property and the drilling contractor is Major Drilling Group International Inc. Core size is NQ, to give good sample sizes and enabling the possibility for at least two step-downs if ground conditions should require it. Core is delivered to the secure Core Shack facility by the driller or picked up by one of Northern Gold's designated personnel and transported to the Core Shack facility. In addition to recovery and RQD (Rock Quality Designation) data geologic parameters: including lithology, alteration, quartz veining, presence and identification of sulfide mineralization along with other geologic parameters are noted and recorded. Core is marked in one meter intervals for splitting, sampling and assaying, unless geologic data indicate a shorter sample interval. Prior to splitting, all core is photographed, rotated 180 degrees and photographed again. Core splitting is done with a diamond core saw and ½ of the drill core is submitted to Expert Laboratories, an accredited laboratory (PTP-MAL – Accredited by Standards Council of Canada – In full accord with ISO/IEC Guide 43-1 "Proficiency Testing by Interlaboratory Comparison") in Rouyn-Noranda, Quebec for assaying. The remainder of the core is stored at the Garrison Gold Property.

All sample intervals where visible gold is observed to be present are automatically submitted for analysis using the metallic screen procedure where the entire half core is crushed, pulped and screened at 100 mesh. The screen oversize is assayed in total and the screen undersize is fire assayed in triplicate using a gravimetric finish. All other samples are analyzed by conventional fire assay using a 30 gram sample with geochemical finish. All samples that assay greater than one gram are re-assayed with conventional fire assay using a gravimetric finish. Conventional fire assay sample prep consists of crushing to 90% passing 10 mesh from which a 300 gram sample is split and pulped to 90% passing 200 mesh and from which a 30 gram sample is taken for fire assaying. Following completion of fire assaying at Expert Laboratories, pulp samples are forwarded by Expert to SGS' certified laboratory (ISO/IEC 17025), in Toronto, Ontario for CN solubility assaying and for multi-element analyses of select samples. CN solubility test uses a 1% CN solution added to 30 grams of sample and shaken for an hour prior to settling and decanting for geochemical analysis. Multi-element analysis is conducted using 4-acid digestion followed by ICP analysis with OES finish (Inductively coupled plasma optical emission spectroscopy). Northern inserts a mixture of gold standard samples, blank samples and duplicate samples into the sample stream at a rate approximating 10% of total original samples. Samples are normally transported in a Company truck from the Property to Expert Labs in Rouyn-Noranda. Chain of Custody protocols require the signing and maintenance of logs and receipts each time the samples are picked up from or delivered to a new location. When utilizing commercial transportation, all shipping sacks are sealed with a numbered tag, the removal of which is recorded upon receipt by Expert Laboratories. Check analyses are conducted on a regular basis utilizing SGS' laboratory, in Toronto, Ontario.

About Northern Gold Mining

Northern Gold Mining Inc. is a TSX-V listed, publicly traded junior resource company based in Toronto, Ontario, dedicated to the discovery and development of high value mineral deposits in the proven mining camps of Kirkland Lake and Timmins in North Eastern Ontario. Northern Gold is focused on developing two advanced stage gold deposits on the Garrison Gold Property. 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 in addition to the two advanced stage exploration targets, the Jonpol and Garrcon Deposits, for each of which NI 43-101 compliant mineral resources have been calculated, and the less advanced 903 gold mineralized area. Historic diamond drilling by previous operators was completed in all three referenced areas. The Jonpol Technical Report was posted on SEDAR October 21, 2009 and the first Garrcon Technical Report was posted on SEDAR November 5, 2010. In a Press Release dated June 23, 2011, Northern announced the completion of an updated resource calculation and completion of a Preliminary Economic Assessment for the Garrcon Deposit. The Garrison Gold Property has historic mining infrastructure at both the Jonpol and Garrcon Deposits and producing mines are located in close proximity to the property. On May 13, 2011,the Company completed its purchase of 100% ownership of the Garrison Gold Property from ValGold Resources Inc.

The technical aspects of this press release has been reviewed 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.

CAUTIONARY STATEMENT: This News Release includes certain "forward-looking statements". These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration, project development, reclamation and capital costs of the Company's mineral properties, and the Company's financial condition and prospects, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with the activities of the Company; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.

Neither 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.

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