Northern Gold Mining Inc.
TSX VENTURE : NGM

Northern Gold Mining Inc.

November 08, 2010 14:31 ET

Northern Gold Posts Garrcon Technical Report on Sedar

TORONTO, ONTARIO--(Marketwire - Nov. 8, 2010) - Northern Gold Mining Inc. (TSX VENTURE:NGM) ("Northern Gold" or "the Company") is pleased to announce that a NI 43-101 compliant Technical Report reporting a "first time" NI 43-101 compliant mineral resource at the Garrcon Gold Deposit was posted on SEDAR November 5, 2010 (the "Garrcon Report"). The resource was previously announced in a Press Release dated September 23rd, 2010 and at the Company's Annual General Meeting the same day. The resource calculation and Technical Report were prepared by A.C.A. Howe International Limited. ("Howe") The Garrcon Deposit occurs on the Garrison Gold Property and is the second deposit on that property for which a 43-101 compliant resource has been calculated by Howe.

The Garrison Gold Property is in North Eastern Ontario in Garrison Township, within the Abitibi greenstone belt. The Destor-Porcupine and Munro Fault/Shear systems cross the Property slightly west of the point where the Munro Fault/Shear splays off the Destor-Porcupine Fault/Shear system into its North wall. The property is immediately adjacent to and south of Highway 101, about 15 kilometers west of St Andrew Goldfield's Holt-McDermott and Harker Holloway mines and about 30 kilometers east of Brigus Gold's Black Fox mine.

This is a "first time" mineral resource for the Garrcon Deposit that conforms to the requirements of NI 43-101. The resource estimate, using a block cutoff grade of 0.5 g/t gold and a specific gravity of 2.6, 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.

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.

Howe's deposit model identifies a broad zone of stockwork 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 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 contact with mafic and ultramafic rocks on the north side. Mineralization is 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 half, reaching a depth of 350 to 400 meters on the western half of the zone and remains open at depth over the entire east-west strike length of the zone.

The Garrcon Report discusses in detail, among other things, the resource estimate, QA/QC, database validation, geologic model, deposit statistics and the continuity of mineralization as observed in the variography. Deposit modeling utilized assay data from 65 diamond drill holes composed of 54 holes completed by previous operators and 11 holes completed by Northern Gold in its 2009 drill program. None of Northern Gold's assay and drill hole data obtained in its ongoing 2010 drilling program was included in the resource calculation.

The omni-directional variogram produced excellent data to which a spherical model could readily be fit with a range of approximately 50 meters which was the distance used to calculate indicated resources. Inferred resources were limited to a maximum of approximately 100 meters beyond the last drill hole intercept. The Report discusses sample statistics which show that only one sample population is present. As only six of the 11,004 one meter regularized samples, or 0.05%, produced a grade higher than one ounce per tonne no sample capping was required because capping would not materially affect the resource grade. Variography results showed that gold mineralization was very consistent in all directions, enabling a spherical search radius to be used in combination with ordinary kriging to calculate the resource.

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. Table 1 summarizes those resource calculations

Table 1 – Mineral Resource Category Summary (non-diluted, block cut-off @ 0.5 g/t gold)

Indicated Tonnes Above Cut-off Average Gold Grade (g/tonne) Contained 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
       
Inferred      
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

 

    Notes:
   1. Cut-off grade for mineralized 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 meters down-dip from last intercept.
    Along strike, zones extended halfway to the next cross-section.
   6. Minimum width was 5 meters, 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 meters or less (based on variography).
   13. No Measured Mineral Resources or Mineral Reserves of any
    category were identified.
   14. The volume/tonnage of historic Cominco shaft, drifts and crosscuts
    have not been deleted from the Howe mineral resource volume/
    tonnage. Howe estimates the tonnage extracted from the resource
    area was less than 0.1% of the total inferred and indicated resource tonnage.

"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 first 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 7,207 meters completed as at October 31st. The Company is releasing assay results as they become available.

Howe recommends that the Company's ongoing 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.

The Company's current plan is to complete a second resource calculation for the Garrcon Deposit in the first quarter of 2011, using results of drilling available up to December 1, 2010. With 29 holes completed as at October 31, Northern Gold expects this next resource calculation to be based on about 105 drill holes, including 36 new holes. The holes will be a combination of about 30 infill holes and about 6 holes in the first of new, systematic fences stepping out in 50 meter increments to the east.

Quality Assurance/Quality Control

The QA/QC for the Press Release is described in the Garrcon Technical Report and can be viewed on SEDAR.

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, both of which have been the subject of NI 43-101 compliant resource calculations, 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 221, 2009 and the Garrcon Technical Report was posted on SEDAR November 5, 2010. 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. 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.

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: 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.

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