Northern Lion Gold Corp.

Northern Lion Gold Corp.

May 31, 2011 12:06 ET

Northern Lion Drills 41 Metres of 0.89 g/t Gold Including 6.6 Metres of 4.77 g/t Gold at St. Nik Project, Republic of Cyprus

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 31, 2011) - Northern Lion Gold Corp. (the "Company" or "Northern Lion") (TSX VENTURE:NL)(FRANKFURT:N3E) wishes to announce additional results from the seven holes drilled on the Company's 100% owned St Nik project. This drill program was part of a larger program, totalling 34 holes (3,200 metres) within five project areas. St. Nik drill holes targeted geophysical anomalies generated by the 2011 Induced Polarization ("IP") survey, surface geochemical sampling, and followed up on limited historical reports. This initial drill program at St. Nik outlines an area with a continuous near surface mineralized horizon. The mineralization is open to the south, west and north and represents a younger mineralizing event than the typical Cyprus style VHMS deposits which are dominantly hosted within the Lower Pillow Lava sequence. A drill hole location map is available on the Company's website.

The Company previously released initial gold results of 4.5 grams per tonne ("g/t") gold over 28.6 metres from hole 11SN02 (reported April 6, 2011). This significant interval of massive and stockwork mineralization begins ten metres below surface. It is hosted within the Upper Pillow Lavas ("UPL") just below the sedimentary contact and includes at least 3 metres of silicified massive sulphides at 30 metres, with an overlying and underlying zone of stockwork mineralization.

The following table contains the assay results for the St. Nik mineralized horizon.

Hole #(m)(m)(m)(g/t)(g/t)(%)(%)
** No significant results

In 11SN03 the mineralization starts at 18.5 metres, which represents the base of the sedimentary sequence, and continues to 65.4 metres for a total interval of 47 metres of 0.56 g/t gold and 7.8 g/t silver. Within this zone there is a higher grade interval of 12.5 metres containing 1.4 g/t gold, 21.4 g/t silver with minor copper and zinc. The massive sulphide zone at the base of the sediments is present in this hole also; however it is narrow at 0.2 metres grading 2.9 g/t gold, 16 g/t silver and 0.9% copper.

Hole 11SN05 was drilled to test the northwest extension of the mineralization found in holes SN02 and 03. It encountered the mineralized volcanic horizon at 49.4 metres. The uppermost 6.6 metres of this zone contained 4.8 g/t gold, 19.3 g/t silver and 0.5% copper, within a larger 41.4 metres interval grading 0.9 g/t gold, 4.2 g/t silver and 0.3% copper.

Holes 11SN02, 03 and 05 intersected this mineralized horizon along a northwesterly trending distance of 135m. Holes SN02 and SN05 encountered cavities and wood fragments within the mineralization as a result of ancient roman mining activities. These cavities varied from 1 to 2.5 metres in width, at the level of the massive sulphide horizon. The original thickness of the massive sulphide unit is variable across the three holes, as would be expected in a sea floor depositional environment; however the continuity of the unit over the tested area is very encouraging. Each hole also displayed two separate pulses of higher grade mineralization within a wider lower grade section.

Hole 11SN06 located 75 metres northeast of SN05, targeted a weak chargeability anomaly derived from the IP survey carried out earlier this year, and was located in the vicinity of an historical hole with a reported assay of 67 g/t silver over three metres. The equivalent interval in SN06 contained 3.2 metres of 0.7 g/t gold, 21.5 g/t silver and minor copper at the sediment – volcanic contact.

Based on the drilling completed to date at the St. Nik project it appears that the mineralized horizon is trending northwesterly and dipping to the southwest under the sedimentary sequence. There are no historical holes in this direction, and it is believed that the sedimentary cover would have protected the mineralization from erosion. Drill hole 11SN07 located between holes 05 and 06 did not encounter any significant mineralization. There are numerous gossans and ancient slag piles in the St Nik region from the roman era and it is indicative that ancient mining activities occurred in the immediate vicinity. The Company has commenced additional surface sampling and mapping.

At a showing known as Perapedi, located 12 kms east of St Nik, rock samples have returned up to 0.4 g/t gold and 2.6% copper over two metres from a gossanous zone along the same volcanic – sedimentary contact. Based on these results the Company has applied for a permit covering 19.5 kms2 of the contact zone between St Nik and Perapedi.

Preparations are continuing for the airborne EM and magnetic survey which is expected to be approved in early June. The area to be flown has been increased to take into account this new style of mineralization.


The history of mineral exploitation (copper, gold and other metals) on the island of Cyprus dates back to the Bronze Age, approximately 5,000 years ago. The Phoenicians were the first to process copper on the island, followed by the Romans and this activity has continued to the present day. The evidence of this long history of mining is readily observed in the abundant ancient surface and underground workings along with extensive slag heaps. Mineral exploration in the Republic of Cyprus has been at a very low level over the last few decades, and management believes that there is a high probability of additional massive sulphide bodies being present that did not outcrop, as nearly all of the known deposits did.

The metal deposits of Cyprus are dominantly copper-bearing volcanogenic hosted massive sulphide "VHMS" deposits. These deposits are hosted within the pillow lava sequence of the Troodos Ophiolite Complex. The pillow lava sequence is divided into Upper and Lower Pillow Lavas, with the majority of massive sulphide bodies located along the contact between pillow lava sequences, and the remainder between the Lower Pillow Lavas and the Basal Group. All of the Company's applications overlie these important contacts. Gold mineralization associated with the massive sulphide ores has not historically been evaluated.

Quality Control and Assurance

The Company's field activities in Cyprus are under the direction of Jim Chapman, P.Geo. (BC), consultant to the Company and "qualified person", as defined by National Instrument 43-101, who is responsible for the technical content of this news release.

About Northern Lion

Northern Lion Gold Corp. is a Canadian mineral exploration company, listed on the TSX Venture Exchange and the Frankfurt Exchange. The Company is committed to building a strong portfolio of projects within mining-friendly and infrastructure-rich areas of Europe.

In addition to its exploration permits in Cyprus, the Company holds a 100% interest in its Moura Licence in Portugal and a 100% interest in one project in the historic Bergslagen mining district of southern Sweden.


John Lando, President

This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, the success of exploration activities and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward-looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among others, risks and uncertainties relating to exploration and development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; potential defects in title to the Company's properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and, except as required by law, the Company is under no obligation to update or alter any forward-looking information.

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 news release.

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